LexThe Telangana Labour Welfare Fund Act, 1987.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA LABOUR WELFARE FUND ACT, 1987.
(ACT NO. 34 OF 1987)
ARRANGEMENT OF SECTIONS
Sections
1. Short title and commencement.
2. Definitions.
3. Constitution of Telangana Labour Welfare Fund.
4. Establishment and functions of Telangana Labour
Welfare Board.
5. Disqualifications and removal.
6. Resignation of office by member and filling up of
casual vacancies.
7. Power to appoint Committees.
8. Unpaid accumulation transferred to the Fund and
claims thereto.
9. Interest on unpaid accumulation or fines after notice
of demand.
10. Contribution to the Fund by employee and
employer.
11. Grants and advances by the Government.
12. Vesting and application of the Fund.
13. Power of Board to borrow.
14. Deposits of Fund and placing of accounts and audit
report before the Government.
15. Investment of Fund.
16. Directions by Government to Board.
17. Appointment and powers of Welfare Commissioner.
18. Appointment of Inspectors.
2 [Act No.34 of 1987]
19. Appointment of clerical and other staff by Board.
20. Power of Government over staff of Board in certain
cases.
21. Allotment of certain officers and staff to the Board.
22. Transfer of Provident Fund to the Board.
23. Powers of Government or authorised officer to call
for records, etc.
24. Mode of recovery of sums payable into the Fund,
etc.
25. Penalty for obstructing inspection or for failure to
produce documents, etc.
26. Cognizance of offences.
27. Offences by companies.
28. Limitation of prosecution.
29. Power to supervise the welfare activities of an
establishment.
30. Penalty for non-compliance with direction of the
Board.
31. Annual Report.
32. Supersession of the Board.
33. Delegation of powers.
34. Members of Board Welfare Commissioner,
Inspectors and all officers and servants of Board to
be public servants.
35. Protection of action taken in good faith.
36. Exemption.
37. Power of Government to make rules.
38. Power of Board to make regulations.
[Act No.34 of 1987] 3
39. Amendment of section 8 of Central Act 4 of 1936.
40. Amendment of section 8 of Central Act 8 of 1923.
THE TELANGANA LABOUR WELFARE FUND ACT, 1987.1
ACT No.34 OF 1987.
1. (1) This Act may be called the 2Telangana Labour
Welfare Fund Act, 1987.
(2) It shall come into force on such date as the State
Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(1) „Board‟ means the 2Telangana Labour Welfare Board
established under section 4;
(2) „employee‟ means:-
(i) any person who is employed for hire or reward to
do any work, skilled or unskilled, manual, supervisory,
clerical, or technical, in an establishment for a period of
thirty days during the period of twelve months, whether the
terms of employment be express or implied; but does not
include any person –
(a) who is employed mainly in a managerial
capacity; or
(b) who being employed in a supervisory capa city,
draws wages exceeding Rs.1,600 (Rupees sixteen hundred)
1. The Andhra Pradesh Labour Welfare Fund Act, 1987 received the
assent of the President on the 14 th August, 1987. The said Act in force in
the combined State, as on 02.06.2014, has been adapted to the State of
Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 20 14 (Central Act 6 of 2014) vide. the Notification, issued in
G.O.Ms.No.6, Labour, Employment, Training and Factories (Labour)
Department, dated 01.02.2016.
2. Substituted by G.O.Ms.No.6, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016.
Definitions.
Short title and
commencement.
2 [Act No.34 of 1987]
per mensum or exercises either by the nature of the duties
attached to the office or by reason of the powers vested in
him, functions mainly of a managerial nature ; or
(c) who is employed as an apprentice or on part -
time basis.
Explanation.–An apprentic e means a person who
according to the Certified Standing Orders applicable to the
establishment is an apprentice or who is declared to be an
apprentice by the authority specified in this behalf by the
Government; and
(ii) any other person employed in an y establishment
whom the Government, may by notification, declare to be an
employee for the purposes of this Act;
(3) „employer‟ means any person who employs either
directly or through another person either on behalf of
himself or any other person, one o r more employees in an
establishment and includes-
(i) in a factory, any p erson named under section
7(1)(f) of the Factories Act, 1948 as the manager;
(ii) in any establishment, any person responsible to
the owner for the supervision and control of the employees
or for the payment of wages;
(4) „establishment‟ means –
(i) a factory as defined in section 2 (m) of the
Factories Act, 1948;
(ii) a motor transport undertaking as defined in the
Motor Transport Workers Act, 1961;
Central Act 63 of 1948.
Central Act 63 of 1948.
Central Act 27 of 1961.
[Act No.34 of 1987] 3
(iii) any other establishment as defined in section 2
(10) of 3the Andhra Pradesh Shops and Establishment Act,
1966; and includes a society registered under any law in
force in the St ate relating to registration of societies, and a
charitable or other trust, whether registered or not, which
carriers on any business or trade or an y work in connection
with or an cillary thereto and which employs or on any
working day during the prec eeding twelve months
employed twenty or more persons, but does not include an
establishment, not being a factory, belonging to or under
the control of the Central or any State Government;
(5) „Fund‟ means the 4Telangana Labour Welfare Fund
Constituted under section 3;
(6) „Government‟ means the State Government;
(7) „independent member‟ means a member of the
Board who is not connected with the management of any
establishment or who is not an employee; and includes an
officer of the Government nominated as a member;
(8) „Inspector‟ means an inspe ctor appointed under
section 18;
(9) „notification‟ means a notification published in the
4Telangana Gazette and the word „notified‟ shall be
construed accordingly;
(10) „prescribed‟ means prescribed by the Government
by the rules made under this Act;
3. Now see the provisions of the Telangana Shops and Establishment
Act, 1988 (Act No.20 of 1988) in which the Act 1966 was repealed.
4. Substituted by G.O.Ms.No.6, LET&F (Labour) Department, dated
01.02.2016.
Central Act 15 of 1966.
4 [Act No.34 of 1987]
(11) „unpaid accumulations‟ means all payments due to
an employee but not paid to him within a period of three
years from the date on which they became due, whether
before or after the commencement of this Act, including the
wages and gratuity legally payable, but does not include the
amount of contribution, if any paid by an employer to a
Provident Fund established under the Employees Provident
Funds Act, 1952;
(12) „Wages‟ means all remuneration capable of being
expressed in terms of money which would, if the terms of
the contract of employment, express or implied were
fulfilled, be payable to an employee in respect of his
employment or of work done in such employment and
includes bonus payable under the Payment of Bonus Act,
1965, but does not include,-
(a) the value of any house accomodation, supply of
light, water, medical attendance, or any other amenity or
any servic e excluded from the computation of wages by
general or special order of the Government;
(b) any contribution paid by the employer to any
pension fund or provident fund or under any scheme of
social insurance;
(c) any travelling allowance or the value of any
travelling concession;
(d) any sum paid to the employee to defray special
expenses entailed on him by the nature of his employment;
or
(e) any gratuity payable on termination, of
employment;
Central Act 19 of 1952.
Central Act 21 of 1965.
[Act No.34 of 1987] 5
(13) „Welfare Commissioner‟ means the Welfa re
Commissioner appointed under section 17.
3. (1) The Government shall constitute a fund to be called
the 5Telangana Labour Welfare Fund, and notwithstanding
anything con tained in any other law for the time being in
force or in any contract or instrument, all unpaid
accumulations shall be paid, at such intervals as may be
prescribed, to the Board, and be credited to the Fund and
the Board shall keep a separate account there for until
claims thereto have been decided in the manner, provided
for in section 8.
(2) There shall also be credited to the Fund,–
(a) unpaid accumulations paid to the Board under
section 8;
(b) all fines including the amount realised under
Standing Orders issued under the Telangana Industrial
Employment (Standing Orders) Rules, 1953 from the
employees by the employers notwithstanding anything
contained in any agreement betwee n the employer and the
employee;
(c) deductions made under the proviso to sub-section
(2) of section 9 of the Payment of Wages Act, 1936;
(d) contribution by employers and employees;
(e) any interest by way of penalty paid under
section 9;
(f) any voluntary donations;
5. Substituted by G.O.Ms.No.6, LET &F (Labour) Department, dated
01.02.2016.
Constitution of
Telangana Labour
Welfare Fund.
Central Act 4 of 1936.
6 [Act No.34 of 1987]
(g) any amount raised by the Board from other
sources to augment the resources of the Board;
(h) any fund transferred under sub -section (5) of
section 12;
(i) any sum borrowed under section 13;
(j) grants or advances made by the Government.
(k) any money deposited under sub -section (1)
section 8 of the Workmens Compensatioin Act, 1923 as
compensation in respect of a deceased workman where the
Commissioner for Workmens ‟ Compensation is sa tisfied
after necessary enquiry that no dependent exists, subject
however, to the deductions permissible under the said sub -
section; as also any a mount remaining undisbur sed out of
such deposits.
(3) The sums specified in sub -section (2) shall be paid
to, or collected by, such agencies at such intervals and in
such manner, and the accounts of the Fund shall be
maintained and audited in such manner as may be
prescribed.
4. (1) The Government shall , by notification , establish a
Board for the whole of the State of 6Telangana to be called
the 6“Telangana Labour Welfare Board” for the purpose of
administering the Fund and to carry on such other functions
as are assigned to the Board by or under this Act.
(2) The Board shall be a body corporate by the name of
the 6Telangana Labour Welfare Board having perpetual
succession and a common seal, with power to acquire, hold
6. Substituted by G.O.Ms.No.6, LET&F (Labour) Department, dated
01.02.2016.
Establishment
and functions of
Telangana Labour
Welfare Board.
Central Act 8 of 1923.
[Act No.34 of 1987] 7
and dispose off property, both movable and immovable,
and shall, by the said name, sue and be sued.
(3) The Board shall consist of such number of members
as may be prescribed in each of the following categories,
namely:-
(a) representatives of employers and employees, in
equal proportion, to be nominated by the Government;
(b) independent members, to be nominated by the
Government, as follows:-
(i) Minister for Labour shall be the Chairman;
(ii) the Secretary to Government, Labour
Employment, 7[Training and Factories] Department, ex -
officio;
(iii) the Secretary to Government, Fi nance and
Planning (Finance) Department, ex-officio;
(iv) the Secretary to Government, In dustries
Department, ex-officio;
(v) a woman member to represent women.
(4) Save as otherwise expressly provided in this Act, the
term of office of the members of the Board shall be three
years commencing on the date on which their names are
notified.
(5) The allowances, if any, payable to the members of
the Board and the conditions of nomination of the
7. The words „Nutrition and Technical Education ‟ are substituted by
G.O.Ms.No.6, Labour Employment Training and Factories (Labour)
Department, dated 01.02.2016.
8 [Act No.34 of 1987]
representatives of the employers and employees sha ll be
such as may be prescribed.
5. (1) No person shall be nominated as or continue to be,
a member of the Board who-
(a) is a salaried official of the Board; or
(b) is or at any time has been adjudged insolvent or
has suspended payment of his debts or has compounded
with his creditors; or
(c) is found to be of unsound mind, or;
(d) is or has been convicted by a Criminal Court for
an offence involving moral turpitude, unless such conviction
has been set aside; or
(e) is in arrears of any sum due to the Board.
(2) The Government may remove from office any
member who-
(a) is or has become subject to any of the
disqualifications mentioned in sub-section (1) or;
(b) is absent without leave of the Board for more than
three consecutive meetings of the Board:
Provided that before taking, action under this sub -
section, the member concerned shall be given an
opportunity to make his representation against the action
proposed.
6. (1) A member may resign his office by giving notice
thereof in writing to the Government, and on the resignation
Disqualifications
and removal.
Resignation of
office by member
and filling up of
casual vacancies.
[Act No.34 of 1987] 9
being accepted, he shall be deemed to have vacated his
office as such.
(2) A casual vacancy in the office of a member shall be
filled by nomination of another person from the concerned
category and a member so nominated shall hold office for
the unexpired portion of the term of the office of his
predecessor.
(3) No act or proceedings of the Board shall be invalid
on the ground merely of the existence of any vacancy in, or
any defect in the constitution of, the Board.
7. For the purpose of advising the Board in the discharge
of its functions and in particular for carrying into effect any of
the matters specified in sub -section (2) of section 12, the
Board may constitute one or more committees consisting of
at least one member of the Board and equal number of
representative of employees and employers.
8. (1) All unpaid accumulations shall, subject to other
provisions of this section, be deemed to be abandoned
property and be transferred to the control and
administration of the Board and shall vest in the Board.
(2) Any unpaid accumulations transferred to the Board
in accordance with the provisions of this Act shall, on such
transfer, discharge an employer of the liability to make
payment to an employee in respect thereof, but to the extent
only of the amount transferred to the Board; and the liability
to make payment to the employee to the extent aforesaid
shall be deemed to be transferred to the Board.
(3) As soon as possible, after the tran sfer of any unpaid
accumulations to the Board, the Board shall publish a
notice, containing such particulars as may be prescribed, in
the following manner:-
Power to appoint
Committees.
Unpaid
accumulation
transferred to the
Fund and claims
thereto.
10 [Act No.34 of 1987]
(a) by exhibiting on the notice board of the
establishment in which the unpaid accumulations were
earned;
(b) by publishing in the 8Telangana Gazette; and
(c) by publishing in any two newspapers having wide
circulation, and in the language commonly understood, in
the area in which the establishment in which the unpaid
accumulations were earned, is situate, or in such other
manner as may be prescribed regard being had to the
amount of the claim; and shall invite claims by employees
for any payment due to them. The notice shall be so
published ordinarily in the months of June and December of
every year, for a period of three years, from the date of the
transfer to the unpaid accumulations to the Board.
(4) Where any question arises whether the notice
referred to in sub-section (3) was given publicity as required
by that sub -section, a certificate to that effect given by the
Board shall be conclusive proof of such publication.
(5) Where a claim is received whether in pursuance of
the notice afores aid or otherwise, within a period of four
years from the date of first publication of the notice in
respect of such claim, 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 situate, and the said authority shall proceed
to adjudicate upon, and decide such claim; and in hearing
such claim, the said authority shall have the same powers
conferred by and follow the same procedure, in so far as it is
applicable, laid down by or under the provisions of that Act.
8. Substituted by G.O.Ms.No.6, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016.
Central Act 4 of 1936.
[Act No.34 of 1987] 11
(6) If the said authority, after making the enquiry into the
validity of any claim, is satisfied that any such claim is valid,
and the employee is entitled to receive payment, it shall
pass an order directing that the unpaid accumulation or any
part thereof in relation to which the claim is made shall
cease to be deemed to be abandoned property and to be
transferred to the Board and that the Board shall pay the
whole or such part of the accumulation as the authority
decides to be property due, to the employee; and the Board
shall make the payment accordingly:
Provided that the Board shall not be liable to pay any
sum in excess of that transferred under sub -section (1) of
section 3 to the Board an unpaid accumulations in respect
of the claim
(7) Where a claim for payment is refused by the said
authority, the employee shall have a right or appeal in the
cities of Hyderabad and Secunderabad, to the Court or
Small Causes, and elsewhere, to the District Court , and the
Board shall comply wit h any order made by the Court in
such appeal. Every appeal under this sub -section shall lie
within sixty days fr om the date or commu nication of the
order of refusal of the said authority.
(8) The decision of the said authiority if no appeal is
filed, and decision of the Court in appeal, shall be final and
conclusive as to the right to receive payment, as to the
liability of the Board to pay and also as to the amount, if any,
so payable.
(9) Where no claim is made with the time specified in
sub-section ( 5) o r a clai m made has been refused as
aforesaid by the said authority and no appeal has been
made within the time allowed for such appeal or an appeal
filed has been dismissed by the Court, as the case may be,
then the unpaid accumulations in respect of such claim shall
12 [Act No.34 of 1987]
accrue to, and vest in, the State as bona vacantia, and shall
thereafter, without further enquiry and declaration, be
deemed to be transferred to, and form part of the Fund.
9. (1) If an employer does not pay to the Board any
amount of unpaid accumulations, of fines realised from the
employees within the time specified therefore by or under
this Act, the Welfare Commissioner may serve or cause to
be served a notice on such employer to pay the amount
within the period specified therein which shall not be less
than thirty days from the date of such notice.
(2) If the employer fails, without sufficient cause, to pay
any such amount within the period specified in the notice,
he shall, in addition to the amount, pay by way of penalty to
the Board simple interest,–
(a) for the first three months at one percent of the
said amount for each complete month or part thereof after
the last date by which he should have paid if according to
the notice; and
(b) for each complete month or part thereafter at one
and half percent of that amount during the time he
continues to make default in the payment of that amount:
Provided that the Welfare Commissioner may, subject to
such conditions as may b e prescribed, remit the whole or
any part of the penalty in respect of any period.
10. (1) Every employee shall contribute two rupees per year
to the Fund and every employer shall, in respect of each
employee contribute five rupees per year to the Fund.
(2) Notwithstanding anything contained in any other law
for the time being in force, the employer shall be entitled to
recover from the employees t he employees contribution by
Interest on unpaid
accumulation or
fines after notice
of demand.
Contribution to
the Fund by
employee and
employer.
[Act No.34 of 1987] 13
deduction from his wages in such manner as may be
prescribed and such deduction shall be deeme d to be a
deduction authorised by or under the Payment of Wages
Act, 1936.
11. The Government may, from time to time, make grants
and advance loans to the Board to the extent of the Fund
available for the purposes of this Act, on such terms and
conditions as the Governme nt may, in each case,
determine.
12. (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 measu res which
may be specified by the Government, from time to time, for
promoting the welfare of labour and of their dependents.
(2) Without prejudice to the generality of the provisions
in sub-section (1), the money in the Fund may be utilized by
the Board to defray expenditure on the following:–
(a) labour welfare centres under the control of the
Labour Department of the Government;
(b) reading rooms and libraries;
(c) games and sports;
(d) community necessities;
(e) excursions, tours and holiday homes;
(f) entertainment and other forms of recreation;
(g) home industries and subsidiary occupations for
women and unemployed persons;
Grants and
advances by the
Government.
Vesting and
application of the
Fund.
Central Act 4 of 1936.
14 [Act No.34 of 1987]
(h) corporate activities of social nature;
(i) vocational training;
(j) convalescent homes for tuberculosis patients;
(k) pre-schools;
(l) nutritious food to children of employees;
(m) construction and maintenance of the labour
welfare centre buildings;
(n) cost of administering the Act including the salaries
and allowances of the staff appointed for die purposes of
the Act;
(o) medical aid to employees for specialised
treatment in deserving cases; and
(p) such other objects as would in the opinion of the
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 B oard and be expanded by it under this
Act, notwithstanding anything in the Payment of W ages Act,
1936, or any other law for the time being in force.
(3) The Board may, with the approval of the
Government, make a grant out of the fund to any employer,
any local authority or any other body in aid of any activity for
the welfare of labour approved by the Government.
Central Act 4 of 1936.
[Act No.34 of 1987] 15
(4) If any question arises whether an y particular
expenditure is or is not debitable to the Fund, the matter
shall be referred to the Government, whose decision
thereon shall be final.
(5) It shall be lawful for the Board to contin ue any
activity financed from th e labour welfare fund of any
establishment, if the said fund is duly transferred to the
Board.
13. Subject to the other provisions of this Act the Board
may, from time to time, with the pr evious sanction of th e
Government, and subject to such conditions as may be
specified by the Government in this behalf borrow any sum
required for the purposes of the Act.
14. (1) All moneys and receipts forming part of the Fund
shall be deposited in the Reserve Bank of India constituted
under the Reserve Bank of India Act, 1934, or in the State
Bank of India, constituted under the State Bank of India Act,
1955, or any corresponding new Bank as defined in the
Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970, or any other scheduled bank or
the State Co -operative Bank or such other co -operative
bank as the Government may notify in this behalf and the
bank account shall be operated upon by such officers of the
Board as ma y be authorised by the Board and in such
manner as may be prescribed.
(2) The accounts of the Board as certified by the auditor,
together with the audit report thereon shall be forwarded
yearly to the Government and the Government may issue
such instructions to the Board in respect thereof as they
may deem fit and the Board shall comply with all such
instruction. A copy of the accounts of the Board, as certified
by the Auditor together with a copy of the audit report
Power of Board to
borrow.
Deposits of Fund
and placing of
accounts and
audit report
before the
Government.
Central Act 2 of 1934.
Central Act 23 of 1955
Central Act 5 of 1970.
16 [Act No.34 of 1987]
thereon shall be laid on the table of the 9Legislature of the
State.
15. Where the Fund or any portion thereof cannot be
utilised within a period of ninety days for fulfilling the objects
of the Act, the Board shall invest the same in any of the
securities specified in clauses (a) to (d) of section 20 of the
Indian Trusts Act, 1882 or in fixed deposit bonds of the State
Co-operative Bank or such other Co -operative Bank as the
Government may notify from time to time in this behalf, or in
such other security as may be expressly authorised by the
Government in this behalf.
16. The Government may give to the Board such directions
as in their opinion are necessary or expedient in connection
with the expenditure from the Fund or for carriying out the
purposes of this Act and it shall be the duty of the Board to
comply with all such directions.
17. (1) The Board shall, with the previous approval of the
Government, appoint an officer of the Labour Department
not below the rank of Joint Commissioner of Labour, as
Welfare Commissioner who shall be the Chief Executive
Officer of the Board. 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 th is
purpose he shall have the power to issue such orders, not
inconsistent with the provisions of this Act or the rules made
thereunder, as he deems fit, including any order
implementing the decisions of the Board taken by or under
this Act.
(2) Notwithstanding anything in sub -section (1), the first
Welfare Commissioner shall be appointed by the
9. Substituted by G.O.Ms.No.6, LET&F (Labour ) Department, dated
01.02.2016.
Investment of
Fund.
Directions by
Government to
Board.
Appointment and
powers of Welfare
Commissioner.
Central Act 2 of 1882.
[Act No.34 of 1987] 17
Government, as soon as may be practicable, after the
commencement of this Act for such period, not exceeding
five years, and on such conditions, as the Go vernment may
think fit.
18. (1) The Government may appoint as many Inspectors as
are required to inspect records in connection with the sums
payable into the Fund.
(2) Any Inspector may,-
(a) with such assistance as he thinks fit, enter at any
reasonable time any premises for carrying out the provisions
of this Act;
(b) exercise such other powers as may be
prescribed;
(c) make such examination and hold such inquiry as
may be necessary for ascertaining whether the p rovisions of
this Act, have been and are being complied with;
(d) require the production of any prescribed register
and any other document in possession of the employer in
connection with the sums payable to the Fund.
19. The Board shall have power to appoint such officers and
clerical and executive staff as it thinks fit to carry out the
purposes of the Fund and to supervise and control the
activities of any other body financed from the Fund:
Provided that the expenditure on account of the officers
and servants appointed by the Board and any other
administrative expenses to be incurred by the Board shall
not exceed fifteen percent of the annual income of the Fund.
Appointment of
Inspectors.
Appointment of
clerical and other
staff by Board.
18 [Act No.34 of 1987]
20. The Government shall have power to appoint any
person to, or remove any such person from, the service of
the Board, in respect of whom the Board by a special
resolution of more than one -third of its members, so
authorises the Government.
21. (1) As soon as may be after the commencement of this
Act, the Government may, after consulting the Board, direct
by general or special order that such of the officers and
other servants serving immediately before the notified date
in connection with the affairs of the State as are specified in
the order shall be alloted to serve in connection with the,
affairs of the Board with effect on and from such date as
may be specified in the order:
Provided that no such direction shall be issued in respct
of any officer or other servants without his consent for such
allotment:
Provided further that the conditions of service applicable
immediately before the notified date to any such person
shall not be varied to his disadvantage except with the
previous approval of the Government.
(2) With effect on and from the notified date, the officers
and other servants specified in such order shall become
employees of the Board and sh all cease to be officers or
servants of the Government.
Explanation:– In this section , 'notified date' means such
date, as is notified by the Government in this behalf.
22. (1) The moneys standing to the credit under the
Provident Fund Account of any officer or servant allotted
from the service of the Government to the service of the
Board on the date specified in the order under sub -section
Power of
Government over
staff of Board in
certain cases.
Allotment of
certain officers
and staff to the
Board.
Transfer of
Provident Fund to
the Board.
[Act No.34 of 1987] 19
(1) of section 21 shall stand tran sferred to and vest in the
Board with effect on and from such date.
(2) The Board shall, as soon as may be after such date,
constitute in respect of the moneys transferred to and
vested in it under sub -section (1); a similar fund and may
invest the accum ulations under the fund in such securities
and subject to such conditions, as may be specified by the
Board with the approval of the Government.
23. The Government or any officer authorised by them in
this behalf, may call for and examine the records of the
Board for the purpose of supervising the working of the
Board and may pass such orders as they or he may think fit.
24. Any sum payable into the Fund under this Act shall,
without prejudice to any other mode of recovery, be
recoverable on behalf of the Board as an arrear of land
revenue.
25. Any person who wilfully obstructs an Inspector in the
exercise of his powers or discharge of his duties under this
Act or fails to produce for inspection on demand by an
Inspector any register, record or other document maintained
in pursuance of the provis ions of this Act or the rules made
there under or to supply to him on demand true copies of
any such document shall, on conviction, be punished,-
(a) for the first offence, with imprisonment for a term
which may extend to three months, or with fine which may
extend to five hundred rupees, or with both; and
(b) for a second or subsquent offence, with
imprisonment for a term which may extend to si x months or
with fine which may extend to one thousand rupees, or with
both:
Powers of
Government or
authorised officer
to call for records,
etc.
Mode of recovery
of sums payable
into the Fund, etc.
Penalty for
obstructing
inspection or for
failure to produce
documents, etc.
20 [Act No.34 of 1987]
Provided that in the absence of special and adequate
reasons to the contr ary to be mentioned in the judg ment of
the court in any case where the offender is sentenced to fine
only, the amount of fine shall not be less than fifty rupees.
26. (1) No court shall take cognizance of any offence
punishable under this Act except on a complaint by, or with
the previous sanction in writing of the Welfare
Commissioner.
(2) No court inferior to that of a Magistrate of first class
shall try any offence punishable by or under this Act.
27. (1) If the person comitting an offence under this Act is a
company, every person who, at the time the offence was
committed, was incharge of, and was responsible to, the
company for the conduct of the business of the company as
well as the company shall be deemed to be guilty of the
offence, and shall be liable to be proceeded against and
punished accordingly:
Provided that nothing contained in this sub -section shall
render such person liable to any punishment provided in
this Act, if he proves that the offence was committed without
his knowledge, or that he exercised all due diligence to
prevent the commission of the offence.
(2) Notwithstanding anything in sub -section (1) where
an offence under th is Act has been committed by a
company and it is proved that the offence has been
committed with the consent or connivance of, or is
attributable to any neglect on the part of any director,
manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
Cognizance of
offences.
Offences by
companies.
[Act No.34 of 1987] 21
Explanation:– For the purposes of this section,
„company‟ means a body corporate and includes a firm or
other association of individuals; and „director‟ in relation to a
firm means a partner in the firm.
28. No court shall take cognizance of an offence punishable
by or under this Act unless a complaint thereof is made
within six months of the date on which the offence is alleged
to have been committed.
29. In regard to any money set apart in any establishment
specifically for the purpose of promoting the welfare of the
employees in such establishment, the Board shall have
power-
(i) to require the production of any document in
possession of the employer of the establishmen t in
connection with such money to satisfy itself as to whether
such money is being applied for such purposes;
(ii) to call for any such information from the employer of
the establishment as it may deem relevant; and
(iii) to issue such directions to t he employer of the
establishment as it may deem fit for the purpose of utilising
the Fund for promoting the welfare of the employees in the
establishment.
30. Any person who wilfully fails to produce any document
required by the Board or to furnish any information called for
by the Board or wilfully fails to comply with any direction
issued by the Board under section 29 shall, on conviction,
be punished with-
(a) for the first offence, with i mprisonment for a term
which may extend to three months, or with fine which may
extend to five hundred rupees or with both: and
Limitation of
prosecution.
Power to
supervise the
welfare activities
of an
establishment.
Penalty for non-
compliance with
direction of the
Board.
22 [Act No.34 of 1987]
(b) for a second or subsequent offence, with
imprisonment for a term which may extend to six months or
with fine which may exte nd to one thousand rupees or with
both:
Provided that in the absence of special and adequate
reasons to the contrary to be mentioned in the judg ment of
the court; in any case where the offender is sentenced to
fine only, the amount of fine shall not be less than fifty
rupees.
31. The Board shall, as soon as may be after the end of
each year, prepare and submit to the Government before
such date and in such form as may be prescribed, a report
giving an account of its activities during the previous year,
and the report shall also give an account of the activities, if
any, which are likely to be undertaken by the Board in the
next year. A copy of such report shall be laid on the table of
the Legislature of the State.
32. (1) If the Government are of opinion that the Board is
unable to perform or has persistently made default in the
performance of, the duty imposed on it by or under this Act
or has exceeded or abused its powers, they may, by
notification, supersede the Board for a period not exceeding
six months as may be specified in the notification:
Provided that before issuing a notification under this
sub-section, the Government shall, by notice require the
Board to show cause within such period as m ay be
specified in the notice why it would not be superseded and
shall consider the explanations and objections, if any, of the
Board.
(2) Upon the publication of a notification under sub -
section (1) superseding the Board,-
Supersession of
the Board.
Annual Report.
[Act No.34 of 1987] 23
(a) the Chairman and all th e members of the Board
shall, as from the date of supersession, vacate their offices
as such;
(b) all the powers and duties which may, by or under
the provisions of this Act be exercised or performed by or on
behalf of the Board and the Chairman shall, during the
period of supersession be exercised and performed by such
authority or person as the Government may direct;
(c) all funds and other property vested in the Board
shall, during the period of supersession, vest in the authority
or person referred to in clause (b); and
(d) all liabilities, legally subsisting and enforceable
against the Board shall be enforceable against the authority
or person referred to in clause (b) to the extent the funds
and properties vested in it or him.
(3) On the expiration of the period of super session
specified in the notification issued under sub-section (1), the
Government may,-
(a) extend the period of supersession for such further
period not exceeding six months as they may consider
necessary; or
(b) reconstitute the Board in the manner provided in
sub-section (3) of section 4.
33. (1) The Government ma y, by notification, authorise any
authority or officer to exercise any of the powers vested in
them by or under this Act except the power to make rules
under section 37 and may in like manner withdraw such
authorisation.
Delegation of
powers.
24 [Act No.34 of 1987]
(2) The Board may, by general or special order in writing
delegate to the Welfare Commissioner or other officer of the
Board such of its powers and functions under this Act
except the power to make regulations under section 38, as it
may deem necessary and it may in like manner withdraw
such delegation.
(3) The exercise of any power delegated under sub -
section (1) or sub -section (2) shall be subject to such
restrictions and conditions as may be specified in the order
and also to control and revision by the Government or by
such officers as may be empowered by the Government in
this behalf or, as the case may be, by the Board or such
officer as may be empowered by the Board in this behalf.
(4) The Government or the Board, as the case may be,
shall also have the power to control and revise the acts and
proceedings of any officer so empowered.
34. All the members of the Board, the Welfare
Commissioner, Inspectors and all Officers and servants of
the Board shall be deemed to be public servants within the
meaning of section 21 of the Indian Penal Code, 1860.
35. (1) No suit, prosecution or other legal proceedings shall
lie against any person for anything which is in good faith,
done or intended to be done in pursuance of this Act or any
rule or order made thereunder.
(2) No suit or other legal proceedings shall lie against
the Government or the Board for any damage caused, or
likely to be caused by anything which is, in good faith, done
Members of
Board Welfare
Commissioner,
Inspectors and all
officers and
servants of Board
to be public
servants.
Central Act 45 of 1860.
Protection of
action taken in
good faith.
[Act No.34 of 1987] 25
or intended to be done in pursuance of this Act or any rule
or order made thereunder.
36. The Government may, by notification, exempt any
establishment or class of establishments from all or any of
the provisions of this Act subject to such conditions as may
be specified in the notification.
37. (1) The Government may, by notification, make rules to
carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality
of the foregoing power, such rules may provide for all or any
of the following matters, namely:
(a) the agency for and the manner of collection of
sums referred to in sub -section (3) of section 3, and the
period within which the same shall be paid to the credit of
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 procedure for making grants out of the Fund;
(d) the procedure for defraying the expenditure
incurred in administering the Fund;
(e) the number of; representations of the employers
and employees, on the Board;
(f) the allowances , if any, payable to them under
section 4;
Exemption.
Power of
Government to
make rules.
26 [Act No.34 of 1987]
(g) the procedure to be followed at the meetings of
the Board and the manner in which the Board shall conduct
its business;
(h) the particular s in the notic e regarding unpaid
accumulations;
(i) the duties and powers of the Welfare
Commissioner and the Inspectors and the conditions of
service of the Welfare Commissioner and the Inspectors and
other staff appointed by the Board under this Act;
(j) the per centage of the annul income of the Fund
beyond which the Board may not spend on the staff and on
other administrative expenses;
(k) the registers and records to be maintained by the
Board or its officers and servants under this Act including
the register to be kept separately for the account of unpaid
accumulations;
(l) the publication of the report of the activities of
bodies financed from the Fund together with a statement of
receipts and expenditure of the Fund and statement of
accounts;
(m) any other matter which under this Act is or may
be prescribed.
(3) Every rule made under this Act shall immediately
after it is made, be laid before the 10[Legislature] of the State
if it is in session and if it is not in session in the session
immediately following for a total period of fourteen days
which may be comprised in one session or in two
10. Substituted by G.O.Ms.No.6, Labour, Employment, Training and
Factories (Labour) Department, dated 01.02.2016.
[Act No.34 of 1987] 27
successive sessions, and if, before the expiration of the
session in which it is so laid or the session immediately
following the 11[Legislature] agrees in making any
modification in the rule of in the annulment of the rule, the
rule shall, from the date on which the modification or
annulment is notified, have effect only in such modified form
or shall stand annulled as the case msy be, so however that
any modification or annulment shall be withou t prejudice to
the validity of anything previously done under that rule.
38. (1) The Board may by notification, make regulations, not
inconsistent with this Act and the rules made thereunder, for
the purpose of giving effectExcerpt shown. Open the full act in Lexace.