LexThe PUNJAB LABOUR WELFARE FUND ACT, 1965
Punjab · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS
THE PUNJAB LABOUR WELFARE FUND ACT, 1965.
(PUNJAB ACT 17 OF 1965)
(As amended upto the 2 February, 2026)
2026
THE PUNJAB LABOUR WELFARE FUND ACT, 1965.
CONTENTS
Preamble
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Welfare Fund.
4. Establishment of Board.
5. Power of State Government to remove members from office in certain cases.
6. Vacancies, etc., not to invalidate proceedings of Board.
7. Term of office, casual vacancies and resignations.
8. Procedure at the meetings of the Board.
9. Unpaid accumulations and claims thereto.
10. Vesting and application of Fund.
11. Power of Board to Borrow.
12. Investment of Fund.
13. Power of State Government to give directions to Board.
14. Appointment and powers of Welfare Commissioner.
15. Appointment of Inspectors.
16. Absorption of the existing staff under Labour Commissioner.
17. Appointment of Clerical and other staff by Board.
18. Power of State Government to remove any person on staff of Board.
19. Power of State Government or Authorised Officer to call for records, etc.
20. Mode of recovery of sums payable into Fund, etc.
21. Supersession of Board.
22. Members of the Board, Welfare Commissioner, Inspectors and all officers
and servants, to be public servants.
23. Delegation.
24. Protection of persons acting in good faith.
25. Exemptions.
26. Application of Act to certain establishments of Central and State
Governments.
27. Power to make rules.
1THE PUNJAB LABOUR WELFARE FUND ACT, 1965.
(PUNJAB ACT 17 OF 1965)
[Received the assent of the President of India on the 17 th July, 1965 and was
first published for general information in the Punjab Government Gazette
(Extraordinary), dated 27th July, 1965]
1. 2. 3. 4.
Year No. Short title Whether affected by Legislation.
1965 17 The Punjab
Labour Welfare
Fund Act,1965
1. Amended by the Adaptation of
Punjab Laws Order, 1970.
2. Amended by G.O.I. S.O. No.1301,
dated 28th March, 1969.
3. Amended by Punjab Act no.18 of
2006.
4. Amended by Punjab Act no.23 of
2011.
5. Amended by Punjab Act no.32 of
2014.
AN ACT to provide for the constitution of a Fund for the financing of
activities to promote welfare of labour in the State of Punjab and for
conducting such activities and for certain other purposes.
BE it enacted by the Legislature of the State of Punjab in the sixteenth Year
of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Labour Welfare Fund Act, 1965.
(2) 2[It extends to the territories which , immediately before the 1 st day of
November,1966 , were comprised in the State of Punjab , excluding the territory
1 For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary) ,1965,page 452.
2 Substituted by Government of India ,S.O. No.1301 ,dated 28th March ,1969.
Short title,
extent and
commencement
transferred to the Union Territory of Himachal Pradesh under section 5 of the
Punjab Reorganisation Act,1966 (31 of 1966).]
(3) It shall come into force on the first day of July, 1965
2. In this Act, unless the context otherwise requires, -
1[(1) 'Board' means the Punjab Labour Welfare Board established a nd
constituted under section 4 for each of the States of Punjab and Haryana and
the Union Territory of Chandigarh;]
(2) 'employee' means any person who is employed for hire or reward to do any
work, skilled or unskilled, manual or clerical, in an establishment;
(3) 'employer' means any person who employs, either directly or
through another person on behalf of himself or any other person, one or
more employees in an establishment, and includes,-
(i) in a factory, any person named under clause (f) of sub -section (1)
of section 7 of the Factories Act, 1948, as the manager;
(ii) in any establishment, other than a factory, any person responsible
to the owner of the establishment for the supervision and control of
the employees or for the payment of wages;
(4) 'establishment' means-
(i) a factory;
(ii) a motor omnibus service or
(iii) any establishment, including a society registered under the
Societies Registr ation Act, 1860, and a charitable or other tru st,
which carries on any business or trade or any work connected
therewith or an cillary thereto and has been em ploying on any
1 Substituted by Government of India ,S.O. No.1301 ,dated 28th March ,1969
Definitions
working day during the preceding twelve months more than twenty
persons;
(5) 'factory' means a factory as defined in clause (m) of section 2 of the
Factories Act, 1948, or any place which is deemed to be a factory
under sub-section (2) of section 85 of that Act;
(6) 1['Fund' means the Punjab Labour Welfare Fund constitute d under
section 3 for each of the States of Punjab and Haryana and the
Union Territory of Chandigarh;]
(7) ' independent member' means a member of the Board who is not
connected with the management of any e stablishment or who it not
an employee;
(8) Inspector' means an Inspector appointed under section 15;
(9) 'prescribed" means prescribed by rules made under this Act;
(10) "unpaid accumulations' means all payments due to the employees but
not made to them within a period o f three years from the date on
which they became due, whether befor e or after the commencement
of this Act, including the wages, bonus and gratuity legally payable,
but not including the amount of contribution, if any, paid by an
employer to a provident f und established under the Employees
Provident Fund Act, 1952;
(11) "wages' means wages as defined in clause (6) of section 2 of the
Payment of Wages Act, 1936;
(12) 'Welfare Commissioner' means the Welfare Commissioner
appointed under section 14.
1 Substituted by Government of India ,S.O. No.1301 ,dated 28th March ,1969
3. (1) The State Government shall constitute a Fund called the Labour Welfare
Fund and, notwithstanding anything co ntained in any other law for the time being
in force or in any contract or instrument, al l unpaid accumulations shall be paid to
the Board which shall keep a separate account therefo re until claims thereto have
been decided in the manner provided in section 9, and the other sums specified in
sub-section (2) shall be paid into the Fund.
(2) The Fund shall consist of-
(a) all fines realised from the employees;
(b) unpaid accumulations transferred to the Fund under section 9;
(c) grants and subsidies to the Board made by the State Government;
(d) any voluntary donations;
(e) any fund transferred under sub-section (5) of section 10; 1[***]
(f) any sum borrowed under section 11; 2[and
(g) contribution of employers and employees]
(3) The sums specified in sub -section (2) shall be collected by such agencie s and
in such manner and the accounts of the Fund shall be maintained and audited in
such manner as may be prescribed.
4. 3[(1) For the purpose of administering the Fund and for performing such
other functions as are assign ed to it by or under this Act, the State Gov ernment
shall by notification establish a Board to be known as " the Punjab Labour Welfare
Board for Punjab and Haryana or the territory of Chandigarh" as the case may be.]
(2) The Board shall be a body corporat e with the name aforesaid, having
perpetual succession and a common seal with power, subject to the provisions of
1 Omitted the word 'and' by Punjab Act no.18 of 2006,section 2
2 Substituted and Inserted by Punjab Act no.18 of 2006 ,section 2
3 Substituted by Government of India ,S.O. No.1301 ,dated 28th March ,1969
Welfare
Fund
Establishment
of Board.
this Act, to acquire, hold or dispose of property, and to contract, and may by that
name sue or be sued.
(3) The Board shall consist of the f ollowing members, including the Chairman,
to be nominated by the State Government, namely:
(a) such equal number of representatives of employers and employees as
may be prescribed; and
(b) such number of independent members, whether official, non - official or
both, as may be prescribed.
(4) No person shall be nominated as a member of the Board who -
(a) is a salaried official of the Board; or
(b) has been adjudged as an insolvent; or
(c) is of unsound mind and stands so declared by a competent court or is, in
the opinion of the State Government, physically or mentally unfit to be
appointed as a member; or
(d) has been convicted of an offence which, in the opinion of the State
Government, involves moral turpitude.
5. The State Government may remove from office the Chairman or any member
of the Board who-
(a) a bsents himself from three consecutive m eetings of the Board without
permission of the Chairman of the Board in the case of a member and
of the State Government in the case of the Chairman;
(b) is or has become subject to any of the disq ualifications m entioned in
sub-section (4) of section 4; or
(c) so abuses his position as to render his continuance in office detrimental
to the public interest.
6. No act done, or proceeding taken, under this Act by the Board shall be invalid Vacancies,
etc., not to
invalidate
proceedings
of Board.
Power of
State
Government
to remove
members
from office
in certain
cases.
merely on the ground-
(a) of any vacancy or defect in the constitution of the Board; or
(b) of any defect or irregularity in the nomination of a person acting as a
member thereof; or
(c) of any defect or irregularity in such act or proceeding, not affecting the
merits of the case.
7. (1) The term of office of a member of the Board shall be three years
commencing on the date on which his nomination is notified in the official
Gazette:
Provided that a member nominated to fill a casual vacancy shall hold office for
the unexpired portion of the term of office of the member in whose place the
former is nominated.
(2) A member of the Board, including the Chairman thereof, may resign his
office by notifying in writing his intenti on to do so to the State Govern ment, and
on such resignation being accepted by the State Government, he shall be deemed
to have vacated his office.
(3) If a vacancy arises in the office of the Chairman or a member of the Board,
whether by death, resignation, removal or otherwise, the vacancy shall be filled up
by the State Government in accordance with the provisions of section 4.
(4) An out going member, including the Chairman shall be eligibl e for re-
nomination.
8. (1) The Chairman, and in his absen ce, a member of the Board nomi nated by
the State Government shall preside at a meeting of the Board.
(2) All questions at a meeting of the Board shall be decided by a majority of the
Term of
office, casual
vacancies
and
resignation.
Procedure at
the meetings
of the Board.
members of the Board present and voting:
Provided that in the case of an equality of votes, the Chairman or the person
presiding, as the case may be , shall, in addition to his vote as a mem ber have a
second or casting vote.
(3) The quorum at a meeting of the Board and the manner in which the business
of the Board shall be conducted shall be such as may be prescribed.
9. (1) All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the
provisions of section 3 shall, on such payment, discharge an employer of the
liability to make pay ment to an employee in respect thereof but to the extent only
of the amount paid to the Board, and the liability to make payment to the employee
to the extent aforesaid shall, subject to the succeeding provisions of this section, be
deemed to be transferred to the Board.
(3) As soon as possible after the payment of any unpaid accumulations is made to
the Board, the Board shall, by notice (containing such particulars as may be
prescribed)-
(a) exhibited on the notice board of the establishment in which t he
unpaid accumulations was earned;
(b) published in the Official Gazette and also in any two newspapers in
both the regional languages of the State having large circulation in the
area in which the establishment is situated or in such other man ner as
may be prescribed, regard being had to the amount of the claim;
invite claims by employees for any payment due to them. The notice shall be
inserted in the manner aforesaid in June and December of every year, for a period
Unpaid
accumulations
and claims
thereto.
of three years from the date of the payment of the unpaid accumulations to the
Board.
(4) If any question arises whether the notice referred to in sub -section (3) was
given as required by that sub -section a certificate of the Board that it was so given,
shall be conclusive.
(5) If a claim is received, whether in answer to the notice or otherwise, within a
period of four years from the date of first publication of the notice in respect of
such claim,-
(a) where the amount of claim so received is equal to the amount
deposited by the management with the Board, the amount of the
claim shall be paid by the Board to the employee concerned; and
(b) in any other case, the Board shall transfer such claim to the
Authority appointed under section 15 of the Payment of Wages
Act, 1936, having jurisdiction in the area in which the
establishment is or has been situated, and the Authority shall
proceed to adjudi cate upon, and decide, such claim. In hearing
such claim the Authority shall have the powers conferred by, and
follow the procedure (in so far as it is applicable) followed in
giving effect to the provision of, that Act.
(6) If the Authority aforesaid is satisfied that any such claim is valid so that the
right to receive payment is established, it shall decide that the unpaid
accumulations in relation to which the claim is made shall cease to be deemed to
be abandoned propert y, and shall order the Board to pay the whole of the dues
claimed, or such part thereof as the Authority decides are properly due, to the
employee; and the Board shall make payment accordingly:
Provided that the Board shall not be liable to pay any sum i n excess of that paid
under sub-section (1) of section 3 t o the Board as unpaid accumula tions in respect
of the claim.
(7) If a claim for payment is refused, the employee shall have a right of appeal
to the Court of District Judge and the Board shall co mply with any order made in
appeal. An appeal shall lie within sixty days of the decision of the Authority.
(8) The decision of the Authority, subject to the appeal aforesaid, and the
decision in appeal shall be final and conclusive as to the right to re ceive payment,
the liability of the Board to pay and also as to the amount, if any.
(9) If no claim is made within the time specified in sub -section (5) or a claim
has been duly refused as aforesaid by the Authority, or on appeal by the Court,
then the unpaid accumulations in respect of such claim shall accrue to, and vest in,
the State as bona vacantia , and shall thereafter, without further assurance, be
deemed to be transferred to, and form part of, the Fund.
1[9-A (1) Every employee shall contribute 2{five rupees} per month to the fund
and every employer shall, in respect of each such employee, contribute 3{twenty
rupees} per month to the Fund.
Explanation- For the purpose of sub section ( 1), "employee" shall mean an
employee whose name finds mention in the register of an establishment on the last
working day of the month.
(2) Every employer shall pay to the Fund both, his contribution and the
contribution of the employee before the fifteenth day of October, for the period
commencing from the 1 st day of April to the 30th day of September, and before the
1 Inserted by Punjab Act No.18 of 2006 , section 3
2 Substituted for words "two rupees" by Punjab Act no.32 of 2014 , section 2
3 Substituted for words "four rupees" by Punjab Act no.32 of 2014 ,section 2
Contribution
towards the
fund by
employers
and
employees.
fifteenth day of April, for the period commencing from the 1 st day of October to
31st day of March every year, by crossed cheque or demand draft in favour of the
Welfare Commissioner.
(3) The employer shall be entitled to recover from the employee, the employee`s
contribution by deduction from his wages and not otherwise:
Provided that no such deduction shall be made in e xcess of the amount of the
contribution, payable by such employee:
Provided further that if through inadvertence or on account of some other
reason, no such deduction has been made from the wages of an employee for any
month , such deduction shall be made from the wages of such employee in any
subsequent month after intimation in writing to the employee and the Inspector:
Provided further that it shall be no excuse for the employer for non -payment of
contribution to the Fund that he had not deduct ed the contribution of the employee
from his wages]
10. (1) The Fund shall vest in, and be held and applied by, the Board as trustees
subject to the provisions and for the purposes of this Act. The moneys therein shall
be utilized by the Board to defray the cost of carrying out measures which may be
specified by the State Government from time to time to promote the welfare of
labour and of their dependants.
(2) Without prejudice to the generality of sub -section (1), t he money in the
Fund may be utilized by the Board to defray expenditure on the following:-
(a) community and social education centres including reading rooms and
libraries;
Vesting
and
application
of Fund
(b) community necessities;
(c) games and sports;
(d) excursions, tours and holiday homes;
(e) entertainment and other forms of recreation;
(f) home industries and subsidiary occupations for women and
unemployed persons;
(g) corporate activities of a social nature;
(h) cost of administering this Act including the allowances, if any , payable
to the Chairman and members of the Board and the salaries and allowances
of the staff appointed for the purposes of this Act; and
(i) such other objects as would in the opinion of the State
Government improve the standard of living and ameliorate the
social conditions of labour:
Provided that the Fund shall not be utilized in financing any measure which the
employer is required under any law for the time being in force to carry out:
Provided further that unpaid accumulations and fines shall be paid to the
Board and be expended by it under this Act notwithstanding anything contained in
the Payment of Wages Act, 1936, or any other law for the time being i n force.
(3) The Board may, with the approval of the State Government make a grant of
the Fund to any local authority or any other body except an employer in aid of any
activity for the welfare of labour and of their dependants approv ed by the State
Government.
(4) If any question arises whether any particular expenditure is or is not debitable
to the Fund, the matter shall b e referred to the State Govern ment and the decision
of the State Government on such reference shall be final.
(5) It shall be lawful for the Board to continue any activity financed from the
welfare fund of any establishment if the said fund is duly transferred to the Board.
11. The Board may, with the previous s anction of the State Government, and
subject to the provisions of this Act and to such conditions as may be specified in
this behalf, borrow any sum required for the purposes of this Act.
12. Where the Fund or any portion thereof cannot be applied for some time for the
purposes of this Act, the Board shall invest the same in such manner and in such
securities as may be prescribed.
13. The State Government may give the Board such directions as in its opinion
are necessary or expedient in connection with expenditure from the Fund or for
carrying out the other purposes of this Act ; and it shall be the duty of the Board to
comply with such directions.
14. (1) There shall be a Welfare Commissioner to be appointed by the Board with
the previous approval of the State Government , who shall be the principal
executive officer of the Board.
(2) Notwithstanding anything contained in sub -section (1) , the firs t Welfare
Commissioner shall be appointed by the State Government as soon as practicable
after the passing of this Act for a period not exceeding five years and on such
conditions as the State Government thinks fit.
(3) It shall be the duty of the Welfare Commissioner to ensure that the provisions
of this Act and the rules made thereunder are duly carried out and for this purpose
he shall have the power to issue such orders not inconsistent with the provisions of
Power of
Board to
Borrow.
Investment
of Fund.
Power of
State
Government
to give
directions to
the Board.
Appoint-
ment and
powers of
Welfare
Commission
-er.
this Act and rules made thereunder as he dee ms fit, including any order
authenticating and implementing the decisions taken by the Board under this Act
or rules made thereunder.
15. (1) The State Government may appoint Inspectors to inspect records in
connection with the sums payable into the Fund.
(2) Any Inspector may-
(a) with such assistance, if any, as he thinks fit, enter at any reasonable
time any premises for carrying out the purposes of this Act; and
(b) exercise such other powers as may be prescribed.
16. The Board shall take over and employ such of the exist ing staff under the
control of Labour Commissioner, Punjab, as the State Government may direct and
every person so taken over and employed shall be subject to the provisions of this
Act and the rules made thereunder:
Provided that-
(a) during the period of such employment all matters relating to pay,
leave, retirement, allowances, pensions, provident fund and other
conditions of service of the said staff shall be regulated by the
Punjab Civil Service Rules or such other rules as may from time to
time be made by the State Government; and
(b) every such member of the said staff shall have a right of appeal to
the State Government against any order of re duction, dismissal or
removal from service, fine or any other punishment:
Provided further that person so taken over may elect within the prescribed
Appointment
of
Inspectors.
Absorption
of the
existing
staff under
Labour
Commission
-er
period that he desires to be governed by the rules made under this Act in respect of
conditions of service of the staff appointed by the Board under this Act, and on his
electing to be so governed the provisions of first proviso shall cease to apply to
him.
17. The Board shall have power to appoint the necessary clerica l and executive
staff to carry out and supervise the activities financed from the Fund:
Provided that if any appointment is not agreed to by the majority of the total
number of members of the Board, the appointment shall be made by the
State Government:
Provided further that the expenses of the staff t hus appointed and other
administrative expenses shall not exceed a prescribed percentage of the annual
income of the Fund.
18. The State Government shall have the power to remove a ny person whom it
may deem unsuitable from the service of the Board.
19. The State Government or any officer authorised by the State Govern ment in
this behalf may call for records of any proceedings which are pending before, or
have been disposed of by, the Board for purpose of satisfying itself or himself, as
the case may be, as to the legali ty or propriety of such proceed ings or of any order
made therein and may pass such orders in relation thereto as the State Government
or such officer may think fit:
Provided that no order adversely affecting any person shall be made under this
Appointment
of Clerical
and other
staff by
Board.
Power of State
Government
to remove any
person on staff
of Board.
Power of State
Government or
Authorised
Officer to call
for records, etc.
section without giving such person a reasonable opportunity of being heard.
20. Any sum payable into the F und under this Act, shall, with out prejudice to any
other mode of recovery, be recoverable on be half of the Board as an arrear of land
revenue.
21. (1) If the State Government is satisfied that the Board has made default in
performing any duties imposed on it by or under this Act or has abused its power,
the State Government may by notification supersede and reconstitute the Board i n
the prescribed manner:
Provided that before issuing such notification, the State Government shall give a
reasonable opportunity to the Board to show cause why it should not be superseded
and shall consider the explanation and objections, if any, of the Board.
(2) After the supersession of the Board and until it is reconstituted, the powers,
duties and functions of the Board shall be exercised or performed by such officer
or officers as the State Government may appoint for this purpose.
22. The members of the Board, including the Chairman thereof, the Welfare
Commissioner, Inspectors and all officers and servants of Board, shall be deemed
to be public servants within the meaning of section 21 of the Indian Penal Code.
23. The Board may, by resolution passed by it at a meeting of the Board, direct
that any power or duty which by this Act or by any rule made under this Act is
conferred or imposed upon the Board shall, in such circumstances and under such
conditions, if an y, as may be spe cified in the direction, be exercised or disc harged
Mode of
recovery of
sums
payable into
Fund, etc.
Supersession
of Board.
Members of the
Board, Welfare,
Commissioner,
Inspectors and
all officers and
servants of
Board to be
public servants.
Delegation.
also by the Welfare Commissioner.
24. No suit, prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done under this Act.
25. The State Government may by notification and in public interest exemp t any
class of establishments from all or any of the provisions of this Act subject to such
conditions, if any, as may be specified in the notification.
26. This Act shall apply to such establishments belonging to the Central
Government or any State Government as are referred to i n sub-clauses (i) and (ii)
of clause (4) of section 2.
27. (1) The State Government may, by notification and subje ct to the condition
of previous publication, make rules to carry out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the forego ing power,
such rules may be made for all or any of the following matters, namely: -
(a) the agency for and the manner of collection of sums specified in sub
section (3) of section 3; and the period within which the same shall be
paid to the credit of the Fund:
(b) the manner in which the accounts of the Fund shall be maintained
and audited under sub-section (3) of section 3;
(c) the number of representatives o f employers, employees and
independent members of the Board and the allowances, if any,
payable to the Chairman and members thereof;
(d) the quorum at meetings of the Board and th e manner in which it shall
conduct its business;
Protection
of persons
acting
in good
faith.
Exemptions.
Application
of Act to
certain
establish-
ments of
Central and
State
Government
..s. Power to
make rules.
(e) the particulars which shall be contained in the notice referred to in
sub-section (3) of section 9, and the other manner of publication of such
notice;
(f) the procedure for making grants from the Fund under sub-section (3)
of section 10 and the securities in which the Fund may be invested and
the manner of investment;
(g) the procedure for defraying the exp enditure incurred in administer ing
the Fund;
(h) the duties and powers of Inspectors and the conditions of service of
the Welfare Commissioner and Inspectors and othe r staff appoint ed
under this Act;
(i) the percentage of the annual income of the Fund beyond which the
Board may not spend on the staff and other administrative measures;
(j) the registers and records to be maintained under this Act and the form
and manner in which they shall be maintained;
(k) the publication of the report of activities financed from the Fun d
together with statement of receipts and expenditures of the Fund and
statement of accounts; and
(l) any other matter which is to be or may be prescribed.
(3) Every rule made under this section shall be laid as soon as may be after it is
made before 1[***] the State Legislature while it is in session for a total period of
ten days which may be comprised in one session or in two successive sessions, and
if before the expiry of the session in which it is so laid or the session immediately
following, 2[the Legislature] agree in making any modification in the rule or 12[the
1 The words "each house of" omitted by the Adaptation of Punjab Laws Order,1970.
2 Substituted for the words "both Houses" by the Adaptation of Punjab Laws Order, 1970.
Legislature] agree that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may be, so
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.