The UTTAR PRADESH LABOUR WELFARE FUND ACT, 1965

  
2
THE UTTAR PRADESH LABOUR WELFARE FUND ACT, 1965 1
( U. P. Act No. XIV of 1965 )
Amended by
U. P. Act No. 17 of 1978
U.P. Act No. 23 of 2024
[Passed in Hindi by the Uttar Pradesh Legislative Council on
April 21, 1965 and by the Uttar Pradesh Legislative Assembly on
April 29, 1965.
Received the assent of the President on July 20, 1965
under Article 201 of the Constitution of India and was published in
theUttar Pradesh Gazette Extraordinary, dated July 26, 1965. ]
AN
ACT
to consolidate and amend the law relating to the
establishment and operation of a fund for promoting welfare of
labour in Uttar Pradesh.
It is hereby enacted in the Sixteenth Year of the Republic of
India as follows :
CHAPTER I
PRELIMINARY
Short title,
extent and
commencement
1.(1) This Act may be called the Uttar Pradesh Labour Welfare
Fund Act, 1965.
(2) It extends to the whole of Uttar Pradesh.
(3) It shall come into force on such date 2 as the State
Government may, by notification in theGazette, appoint in this behalf.
Definitions 2.In this Act, unless there in anything repugnant in the subject
or context—
(1) “Board” means the Uttar Pradesh Labour Welfare Board
constituted under section 4 ;
(2) “employee” means any person who is employed in an
establishment for hire or reward to do any work skilled, 3[semi - skilled]
or unskilled, manual or clerical and also includes a person so employed
to do any supervisory work if his wages do not exceed 4[twenty four
thousand]rupees per month ;
(3) “employer” means any person who employs either directly or
through another person either on behalf of himself or any person one or
more employees in an establishment and includes—
—————————————————————————————————————————— 
1. For Statement of Objects and Reasons seeUttar Pradesh Gazette Extraordinary, dated March 31, 1965.
2. The Act came into forcew.e.f.November 15, 1965 in the whole of Uttar Pradeshvidenotification no. 1698
(LL)/XXXVI (D)—263 (LL)-65, dated Nov. 10, 1965.
3.Ins.bysec.2(i) of U.P. Act No. 23 of 2024.
4.Subs.bysec.2(ii) of U.P. Act No. 23 of 2024.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
4
Act No. LXIII
of 1948
(a) in a factory, any person named under section 7(1)(f) of the
Factories Act, 1948, as a manager ;
(b) in an establishment carried on by or under the authority of
the Government, the person or authority appointed for the supervision
and control of employees and where no person or authority is so
appointed, the Head of the Department concerned ;
(c) in any other establishment, 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 a factory, a plantation or any other
establishment, other than an establishment (not being a factory) of the
Central or the State Government, which carries on any business or trade
or any work in connexion with or ancillary thereto and which employs or
on any working day during the preceding twelve months employed such
number of persons as may be prescribed from time to time ;
Act No. LXIII
of 1948
(5) “factory” means a factory as defined in section 2 (m) of the
Factories Act, 1948 ;
(6) “Fund” meansthe Uttar Pradesh Labour Welfare Fund
established under section 3 ;
(7) “Inspector” means Inspector appointed under section 9 ;
(8) “Labour Welfare Commissioner” means the Labour Welfare
Commissioner appointed under section 8 ;
(9) “Prescribed ” means prescribed by rules made under this Act;
(10)“Regulations” and “rules” respectively mean the regulations
and rules made under this Act ;
(11) “State Government” meansthe Government of Uttar
Pradesh;
(12) “Unpaid accumulations” means all sums due to the
employees but not paid to them within a period of 1[two years] from the
date on which they become due, whether before or after the
commencement of this Act, including wages, gratuity and house
allowance, if any, payable to them by the employer, but not including
the amount of contribution, if any, paid by an employer, to a provident
fund established under the Employees Provident Fund Act, 1952 ; and
Act No. XIX
of 1952
(13) “Wages” means all remuneration capable of being expressed
in terms of money which would, if the terms of contract of employment,
express or implied, were fulfilled, be payable to a person employed in
respect of his employment or of work done in such employment, but
does not include—
 
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1.Subs. bysec. 2 of U. P. Act no. 17 of 1978.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
6
(a) the value of—
(i) any house accommodation, supply of light, or water or medical
facilities ; or
(ii) any other amenity or any service excluded in this behalf by a
general or special order of the State Government ; or
(b) any contribution paid by the employer to any pension fund or
provident fund or under any scheme of social insurance ; or
(c) any travelling allowance or any travelling concession ; or
(d) any sum paid to the person employed to defray special
expenses entailed on him by the nature of his employment ; or
(e) any gratuity payable on discharge.
CHAPTER II
ESTABLISHMENT OF FUND AND BOARD
Establishment
of U. P.
Labour
Welfare Fund
3.(1) As soon as may be after the commencement of this Act, the
State Government shall establish a fund to be called the Uttar Pradesh
Labour Welfare Fund.
(2) The Fund shall consist of—
(a) all fines realized from or payable by the employees ;
(b) unpaid accumulations transferred to the Fund under
section 6 ;
(c) any amount transferred to the Fund under sub-section (3) ;
(d) any grants made to the Fund by the State Government ;
(e) any voluntary donation or contribution made to the Fund by
any person ;
(f) any sums borrowed under section 14 ; and
(g) any other money paid or payable into the Fund.
(3) If any amount is set apart or any fund is established by the
employer of an establishment for the welfare of the employees thereof,
the same may, on the request of the employer and with the approval of
the State Government be transferred to the Fund.
(4) The sums specified in sub-section (2) shall be collected in
such manner as may be prescribed.
Constitution
of Board, and
term of its
members
4.(1) As soon as may be after the commencement of this Act, the
State Government shall by notification in the Gazette, establish a Board
to be called the Uttar Pradesh Labour Welfare Board.
(2) The Board shall be a body corporate with the name aforesaid,
having perpetual succession and a common seal with power
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
8
to acquire and hold property, both movable and immovable, and may
sue and be sued by that name.
(3) The Board shall consist of the following ;
(a) a Chairman to be nominated by the State Government ;
(b) such equal number of representatives of employees and
employers as may be prescribed, to be nominated by the State
Government in such manner and subject to such conditions as may be
prescribed ;
(c) such number of independent members including women
members as may be prescribed, to be nominated by the State
Government ; and
(d) the Labour Welfare Commissioner or any other officer
nominated by the State Government, to act asex-officioMember-
Secretary to the Board.
(4) the term of the Chairman or any other members of the
Board nominated under clause (b) or clause (c) of sub-section (3) shall
be three years commencing on the date on which the nomination is
notified in the Gazette :
Provided that the term of office of a member nominated to fill a
casual vacancy shall be the remainder of the term of the member
against whose vacancy he is nominated.
(5) A member may resign his office by giving notice thereof in
writing to the State Government, and on such resignation being
accepted, such member shall be deemed to have vacated his office.
(6) The allowances, if any, payable to the members of the Board
shall be such as may be prescribed.
1[(7) the quorum to constitute a meeting of the Board shall be
one-fifth of the total number of members of the Board for the time
being :
Provided that, when it becomes necessary to postpone any
business at the meeting for want of quorum, the Chairman shall
adjourn the meeting to another date, and the business postponed for
want of the quorum shall be transacted on such date, or in the event of
a further adjournment of the meeting to a subsequent date, on such
subsequent date, notwithstanding any deficiency in the number of
members present. ]
Disqualifications
and removal
5.(1) No person shall be nominated or shall continue to be a
member of the Board if he—
(a) is a salaried official of the Board ; or
(b) has at any time been adjudged insolvent ; or
 
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1.Ins. bysec. 3 of U. P. Act no. 17 of 1978.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
10
  
(c) is of unsound mind ; or
(d) has been convicted of an offence involving moral turpitude.
(2) The State Government may remove from office any member
who—
(a) is or has become subject to any of the disqualification
mentioned in sub-section (1) ; or
(b) remains absent without leave of the Board at more than three
consecutive meetings of the Board ; or
(c) in the case of a member nominated under clause (b) of sub-
section (3) of section 4, no more fulfills the conditions of his nomination.
CHAPTER III
UNPAID ACCUMULATIONS AND APPLICATION OF FUND
Unpaid
accumulations
and claims
thereto
6.(1) Notwithstanding anything contained in any other law for
the time being in force or in any contract or instrument, all unpaid
accumulations shall be paid to the Board which shall keep a separate
account therefor until claims thereto have been decided under the
succeeding provisions of this section.
(2) The unpaid accumulations paid to the Board under sub-
section (1) shall discharge the employer of the liability in respect thereof
but to the extent only of the amount so paid to the Board, and the
liability to make that payment to the employees or their legal
representative 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 may be after the payment of any unpaid
accumulations to the Board under sub-section (1), the Board shall, by
notice, which shall contain all such particulars as may be prescribed,
and which shall be published in the manner laid down in sub-section
(4), invite claims by employees or their legal representatives, as the case
may be, for any payment due to them out of the unpaid accumulations
so paid to the Board.
1 [ (4) At least once in three months, the notice under sub-
section (3) shall, during a period of six months from the date of the
payment of the unpaid accumulations to the Board, be—
(a) exhibited on the notice board of the establishment in which
the unpaid accumulations were earned ;
(b) sent to the employee, by registered post, at his permanent
address ; and
(c) given to the trade union, if any, of the concerned
establishment, if the employee was member thereof ; ]
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1.Subs. bysec. 4(1) of U. P. Act no. 17 of 1978.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
12
(5) If any question arises whether the notice referred to in sub-
section (3) was published as required by sub-section (4), a certificate of
the Board that it was so published shall be conclusive.
Act No. IV of
1936
(6) If a claim in respect of any amount of unpaid accumulations
is received 1[within one year from the date of the first notice] in respect
of such amount, the claim shall be transferred by the Board to the
authority appointed under section 15 of the Payment of Wages Act,
1936, having jurisdiction in the area in which the establishment is
situated, which shall proceed to hear and determine the claim.
Act No. V of
1908
(7) The authority hearing any claim filed under sub-section (6)
shall have the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908, when trying a suit, in respect of the
following matters, namely—
(a) summoning and enforcing the attendance of any person and
examining him on oath ;
(b) requiring the discovery and production of documents ; and
(c) any other matters which may be prescribed.
(8) If the authority aforesaid is satisfied that a claim in respect of
any amount out of the unpaid accumulations is valid, it shall order that
such amount shall be paid by the Board to the person or persons
mentioned in such order and thereupon the Board shall make the
payment accordingly. The decision of the authority, subject to the result
of appeal if any, under sub-section (9) shall be final.
(9) If a claim for payment out of the unpaid accumulations is
refused the claimant shall have a right of appeal before the District
Judge of the district in which the establishment is situate. The appeal
shall lie within sixty days from the date of the order of the authority. The
decision of the District Judge in such appeal shall be final.
(10) Out of the unpaid accumulations in respect of which claims
have been invited under sub-section (3), the amount for which no claim
has been made within the time specified in sub-section (6) or in respect
of which the claims filed as aforesaid have been finally rejected, shall be
deemed to be the abandoned property and shall vest in the State as
bona vacantia and shall be deemed to be transferred to and form part of
the Fund.
Purposes for
which Fund
may be
utilized
7.(1) The Fund shall vest in, and be held and applied by, the
Board for carrying out the purposes of this Act.
(2) Without prejudice to the generality of sub-section (1), the
moneys in the Fund may be utilized by the Board for the benefit of the
labour to defray expenditure on the following, namely—
(a) community and social education centers including reading
rooms and libraries ;
——————————————————————————————————————————
1.Subs. bysec. 4(ii) of U. P. Act no. 17 of 1978.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
14
(b) public baths and washing places ;
(c) medical relief and convalescent homes ;
(d) educational facilities for women and children and education of
adults ;
(e) games and sports ;
(f) excursions, tours and holiday homes ;
(g) entertainment and other forms of recreations ;
(h) home industries and subsidiary occupations for women and
unemployed persons ;
(i) allowances of the members of the Board and the pay and
allowances of the officers and other employees of the Board ;
(j) setting up credit, consumers and multipurpose co-operative
societies ;
(k) corporate activities of a social nature ;
(l) facilities for preparation and processing of feed materials ;
(m) provision of housing facilities and their improvements ;
(n) such other objects as would, in the opinion of the Board,
improve the conditions of living of labour ;
1 [(o) Subject to a maximum of such percentage as the State
Government may by notification specify, on the service and publication
of notice under sub-section (4) of section 6. ]
Provided that the fund shall not be utilized in financing any
measure which any employer is required under any law, for the time
being in force, to carry out.
(3) The Board may, with the approval of the State Government,
make a grant out of the Fund to any employer, any Local Authority or
any other body in aid of any such activity for the welfare of labour as
may be approved by the State Government in this behalf.
(4) If any question arises whether any particular expenditure is
or is not debitable to the Fund, the matter shall be referred to the State
Government and the decision of the State Government thereon shall be
final.
(5) It shall be lawful for the Board to continue, subject to
approval of the State Government, any activity financed from any
amount set apart by any employer, or from any fund established by him,
for the welfare of the employees, if such amount or fund is transferred to
the Board under sub-section (3) of section 3.
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1.Ins. bysec. 5 of U. P. Act no. 17 of 1978.
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
16
1[Advance from
unpaid an
accumulations.]
1[7-A.The Board may with the previous approval of the State
Government withdraw, out of the unpaid accumulations, an amount
not exceeding five per cent thereof for the purposes of defraying the
expenditure in inviting claims of the employees on publication of notice
under sub-section (4) of section 6. ]
CHAPTER IV
APPOINTMENT AND POWERS OF OFFICERS AND STAFF
Appointment
and powers of
Labour Welfare
Commissioner
and Additional
or Deputy
Labour Welfare
Commissioner
8.(1) The Labour Welfare Commissioner shall be the principal
executive officer of the Board and shall be appointed by the State
Government.
(2) The Labour Welfare Commissioner shall 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 this Act and the rules made
thereunder, as he deems fit including any order implementing the
decision taken by the Board under this Act or the rules made
thereunder.
(3) The State Government may appoint one or more officers of
Labour Welfare Department or any other person or persons asex-officio
or whole time Additional or Deputy 2 [or Assistant]Labour Welfare
Commissioner. Such Additional or Deputy 2[or Assistant] Labour
Welfare Commissioner shall, under the supervision and direction of the
Labour Welfare Commissioners, exercise and discharge such powers
and functions of the Labour Welfare Commissioner under this Act as
the Board may, with the approval of the State Government, by order
specify. The Board may define the local limits within which any such
Additional or Deputy 2[or Assistant] Labour Welfare Commissioner shall
exercise and discharge the powers and functions so specified.
Appointment of
Inspectors
9.(1) The State Government may appoint one or more Inspector
for the whole of the State or for any specified area or areas therein to
inspect records in connection with the sums paid or payable in the Fund.
(2) The Inspector may—
(a) with assistance, if any, as he thinks fit, enter at any
reasonable time, any premises of an establishment for the purposes of
inspection ; and
(b) exercise such other powers as may be prescribed.
Appointment of
other officers
and employees
10.Subject to such conditions as may be prescribed in this
behalf, the Board may appoint such other officers and employees as it
considers necessary for the efficient performance of its functions.
Conditions of
service of
employees
11.The method of appointment and the conditions of service
including the scales of pay of the officers and employees of the Board,
shall—
 
—————————————————————————————————————————— 
1.Ins. bysec. 6 of U. P. Act no. 17 of 1978.
2.Ins.bysec.3 of U.P. Act no. 23 of 2024
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
18
(a) as respects the Labour Welfare Commissioner, Additional or
Deputy Labour Welfare Commissioner and Inspectors, be such as may
be prescribed ; and
(b) as respects other officers and employees appointed under
section 10, be such as may be determined by regulations.
CHAPTER V
ADMINISTRATION OF THE FUND AND ACCOUNTS AND AUDIT
Administration
and
management
of the Fund
12.The Fund shall be managed and administered in such
manner as may be prescribed.
Investment of
Fund
Act No. II of
1882
13.Where the moneys in the Fund are not required for being
applied at an early date to the purposes of the Act, the same may be
invested by the Board in any securities specified in clauses (a) to (d) and
(f) of section 20 of the Indian Trusts Act, 1882.
Power of Board
to borrow
14.The Board may, from time to time, with the previous
sanction of the State Government and subject to the provisions of this
Act and the rules made thereunder and to such other conditions as may
be fixed by the State Government in this behalf, borrow any sum
required for the purposes of this Act.
Accounts and
Audit
15.(1) The Board shall cause to be maintained such books of
account and other records in relation to the Fund, as may be prescribed.
(2) The Board shall, as soon as may be after the closing of its
annual accounts, prepare an annual statement of accounts in such form
and manner as may be prescribed.
(3) The Fund shall be deemed to be a local fund of a Local
Authority and be audited by the Examiner, Local Fund Accounts, Uttar
Pradesh. The audit report and the action taken thereon shall be
intimated by the Board to the State Government.
Publication of
accounts and
expenditure
16.The State Government shall publish in theGazette, each
year in the month of June or as early thereafter as may be, a statement
of accounts and report of the activities of the Board relating to the
previous financial year.
CHAPTER VI
MISCELLANEOUS
Mode of
recovery of
sums payable
into Fund
17.Any sum payable into the Fund under this Act shall, without
prejudice to any other mode of recovery, be recoverable on behalf of the
Boards as an arrear of land revenue.
Directions by
State
Government to
Board
18.(1) The State Government may, from time to time, issue to
the Board such directions as, in its opinion, are necessary or expedient
for carrying out the purposes of this Act.
 
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
20
(2) It shall be the duty of the Board to comply with the directions
received by it from the State Government under sub-section (1).
Supersession
of Board in
certain cases
19.(1) Where the State Government is satisfied that the Board
has made default in performing any duty imposed on it by or under this
Act or has abused its powers, the State Government may, by
notification in theGazette, supersede the Board :
Provided that before notifying the supersession of the Board, the
State Government shall give a reasonable opportunity to it to show
cause why it should not be superseded and shall consider the
explanations and objections, if any, of the Board.
(2) After the supersession of the Board, and until it is
reconstituted, which shall be done in the prescribed manner, the
powers, duties and functions of the Board under the Act shall be
exercised or performed by such officer or officers as may be appointed
by the State Government for the purpose.
Members of
Board, Labour
Welfare
Commissioner
and all other
officers and
servants of
Board to be
public
servants Act
No. XLV of
1860
20.The members of the Board, the Labour Welfare
Commissioner and all other 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.
Protection to
persons
acting in good
faith
21.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 or any rule or order made or deemed to be
made thereunder.
Validity of
the acts and
proceedings
of the Board
22.No act or proceeding of the Board shall be questioned or
deemed to be invalid by reason merely of any vacancy in or any defect
in the constitution of the Board or that it is discovered subsequently
that some person who was not entitled so to do, attended, voted or
otherwise took part in the proceedings.
Amendment
of section 8
of Act IV of
1936
23.In sub-section (8) of section 8 of the Payment of Wages Act,
1936, the following proviso shall, in its application to Uttar Pradesh, be
inserted before the Explanation :
Provided that in the case of any factory or establishment to
which the Uttar Pradesh Welfare Fund Act, 1965 applies all such
realisations shall be paid into the Fund established under the said Act.
Power of
State
Government
or authorized
officer to call
for records
etc.
24.The State Government or any officer authorized by the State
Government in this behalf may, for supervising the working of the
Board, call for the records of the Board, inspect the same and give such
direction to Board as it may consider expedient.
Power to
make rules
25.(1) The State Government may, by notification in theGazette
and subject to the condition of previous publication, make, rules to
carry out the purposes of this Act.
 
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
22
(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) manner of collection of sums specified in sub-section (2) of
section 3 ;
(b) number of representatives of employers and employees of the
Board and manner and conditions of their nominations ;
(c) number of independent members, including women
members, of the Board ;
(d) allowances payable to the members of the Board ;
(e) matters relating to powers of the authority referred to in
section 6 in the investigation of claims to unpaid accumulations ;
(f) terms and conditions of appointment of Labour Welfare
Commissioner, Additional Labour Welfare Commissioner, Deputy
Labour Welfare Commissioners and Inspectors ;
(g) conditions subject to which other officers and employees may
be appointed by the Board ;
(h) the procedure for defraying expenditure incurred in
administering the Fund ;
(i) the duties and the powers of the Inspectors ;
(j) delegation of powers and functions of the Board to the Labour
Welfare Commissioner, Additional or Deputy Labour Welfare
Commissioner and conditions and limitation subject to which powers
may be exercised or functions discharged by them ;
(k) registers and records to be maintained under this Act ;
(l) the publication of the annual statement of accounts and
report of the activities financed from the Fund ;
(m) any other matter which under this Act has to be or may be
prescribed.
(3) All rules made under this Act shall, as soon as may be after
they are made, be laid before each House of the State Legislature while
it is in session, for a total period of fourteen days, extending in its one
session or more than one successive session and shall, unless some
later date is appointed by the State Government, take effect, from the
date of their publication in theGazettesubject to such modification or
annulments as the two Houses of the Legislature may agree to make, so
however, that any such modifications or annulments shall be without
prejudice to the validity of anything previously done thereunder.
Regulations 26.(1) The Board may, with the previous sanction of the State
Government, make regulations, by notification in theGazette, consistent
with the provisions of this Act and the rules made thereunder.
 
 
[The Uttar Pradesh Labour Welfare Fund Act, 1965]
24
(2) In particular and without prejudice to the generality of the
foregoing power, the Board may make regulation providing for—
(a) procedure in regard to the transaction of business of the
Board ;
(b) manner of publication of notices inviting claims to unpaid
accumulations ;
(c) method and terms and conditions of appointment of officers
(other than Labour Welfare Commissioner, Additional Labour Welfare
Commissioner, Deputy Labour Welfare Commissioner and Inspectors),
and employees of the Board ; and
(d) any other matter which has to be or may be provided for by
regulations.
Repeal of
U. P. Act
XXXVII of
1956
27.The Uttar Pradesh Labour Welfare Fund Act, 1956 is hereby
repealed.
 
 
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