The labour welfare fund is a fund i.e. a statutory contribution maintained by individual state authorities. Frequency and amount of contribution are decided by the state labour board. This contribution differs from state to state. In some states like Tamil Nadu, Andhra Pradesh, Haryana etc. contribution to this fund is made annually. It is social security legislation which is used to improve the conditions of the labours.
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The contribution to this fund is made by employees, employers and in some states by the government. This Act has been implemented only in 15 states which also includes Union territories. This Act is not applicable to all categories employees, the application may depend on the designation and wages earned by the employees and may differ from state to state.
[Suggested Read: 11 SC Judgments]
The money from the Labour Fund may be utilised for the following purposes-
a) ย ย Vocational training.
b) ย ย Educational facilities for the children of the workers.
c) ย ย medical facilities for their workers and their families.
d) ย ย Housing facilities etc.
- To cover the employees of the unorganized sector left out by legislation like Employees Provident Fund Act, the government constituted the Labour welfare fund and under this, there are five specific finds established for various non-coal mines workers, beedi and cine workers.ย
- The contribution to the fund may be made annually or monthly. The employer is responsible for deducting the contribution from the salary and submit it to the authority in time.ย
- The fund may be utilized for providing educational facilities to children of workers, medical facilities for workers and their families, recreational schemes in the office, housing loans, vocational training etc.ย
- The constitution of the fund is for the purpose of improving industrial relations between the workforce and the employer, to reduce unrest and promote unity.ย
- If a woman has worked for 6 months and more continuously, she is entitled to claim Rs. 1000 as maternity benefit for the first two deliveries.
[Suggested Read: Shops and Commercial Establishments Act (S&E), 1961 – Brief Notes]
