Bare Act
The Bombay Labour Welfare Fund Act, 1953 as extended to Union Territory of Delhi
1. Short title, extent and commencement
(1) This Act may be called the Bombay Labour Welfare Fund Act, 1953. (2) It extends to the whole of the Union territory of Delhi. (3) It shall come into force on such date as the Administrator may, by notification in the Delhi Gazette, appoint in this behalf.
2. Definitions
(1) Board mean Board of Trustees constituted under section 4. (2) ... (3) ... (4) ... (5) "Employee" means any person who is an employee as defined in clause (13) of section 2 of the Payment of Wages Act, 1936 (IV of 1936), but does not include any person referred to in sub-clauses (i) to (iv) of clause (vi) of section 2 of the Payment of Wages Act, 1936, as amended by the Payment of Wages (Amendment) Act, 1965 (XXI of 1965). (6) "Employer" means any person who employs either directly or indirectly, or through another person, on his behalf or on behalf of any person, one or more employees in an establishment and includes an occupier of the factory as defined in clause (n) of section 2 of the Factories Act, 1948 (LXIII of 1948). (7) "Establishment" means any factory or any other establishment as defined in clause (ix) of section 2 of the Payment of Wages Act, 1936 (IV of 1936), or any other establishment which the State Government may by notification in the Official Gazette declare to be an establishment for the purposes of this Act. (8) "Fund" means the Labour Welfare Fund constituted under section 3. (9) "Inspector" means an Inspector appointed under section 12. (10) "Unpaid accumulation" means all payments due to the employees but not made to them 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 not including the amount of contribution, if any, paid by an employer to a Provident Fund established under the Employees' Provident Funds Act, 1952 (19 of 1952). (11) "Wages" means wages as defined in clause (6) of section 2 of the Payment of Wages Act, 1936 (IV of 1936). (12) "Welfare Commissioner" means the Welfare Commissioner appointed under section 11. In this Act, unless the context otherwise requires— (1) "Administrator" means the Administrator of the Union territory of Delhi appointed by the President under article 239 of the Constitution; (1A) "Board" means the Delhi Labour Welfare Board constituted under section 4; (1AA) "contribution" means the sum of money payable to the Board in accordance with the provisions of section 6BB; (2) "employee" means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, clerical, supervisory, or technical in an establishment but does not include any person— (a) who is employed mainly in a Managerial capacity, or (b) who, being employed in a supervisory capacity draws as wages exceeding one thousand and six hundred rupees per mensem 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; (3) "employer" means any person who employs either directly or through another person either 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 section 7 (1)(f) of the Factories Act, 1948 (LXIII of 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; (ii) a tramway or motor omnibus service or a motor transport undertaking to which the Motor Transport Workers Act, 1961 applies; and (iii) any establishment within the meaning of the Delhi Shops and Establishments Act, 1954, which employs, or on any working day during the preceding twelve months, employed five or more persons: Provided that, any such establishment shall continue to be an establishment for the purposes of this Act, notwithstanding a reduction in the number of persons to less than five at any subsequent time: Provided further that, where for a continuous period of not less than three months the number of persons employed therein has been less than five, such establishment shall cease to be an establishment for the purposes of this Act with effect from the beginning of the month following the expiry of the said period of three months, but the employer shall within one month, from the date of such cessation, intimate by registered post the fact thereof to such authority as the Administrator may specify in this behalf: Explanation.—For the removal of doubt, it is hereby declared that where an establishment has different branches or departments, all such branches or departments, whether situated in the same premises or different premises, shall be treated as parts of the same establishment; (5) "Factory" means a factory as defined in Section 2 (m) of the Factories Act, 1948, (LXIII of 1948) and includes any place wherein five or more persons are employed or working, and— (i) where in any manufacturing process is being carried on with the aid of power or is ordinarily so carried on; (ii) which is deemed to be a factory under section 85 of the said Act; (6) "Fund" means the Labour Welfare Fund constituted under section 3; (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 Government nominated as a member; (8) "Inspector" means an Inspector appointed under section 12; (9) "Prescribed" means prescribed by rules made under this Act; (10) "unpaid accumulation" means all payments due to the employees but not made to them 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 not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952); (11) "wages" means wages as defined in section 2(vi) of the Payment of Wages Act, 1936 (4 of 1936) and includes bonus payment under the Payment of Bonus Act, 1965 (21 of 1965); (12) "Welfare Commissioner" means the Welfare Commissioner appointed under section 11. 2. In this Act, unless the context otherwise requires— (1) "Administrator" means the Administrator of the Union territory of Delhi appointed by the President under article 239 of the Constitution; (1A) "Board" means for Delhi Labour Welfare Board constituted under section 4; (1AA) "contribution" means the sum of money payable to the Board in accordance with the provisions of section 6BB; (2) "employee" means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, clerical, supervisory, or technical in an establishment but does not include any person— (a) who is employed mainly in a Managerial capacity, or (b) who, being employed in a supervisory capacity draws as wages exceeding one thousand and six hundred rupees per mensem 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; (3) "employer" means any person who employs either directly or through another person either 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 section 7(1)(f) of the Factories Act, 1948 (LXIII of 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; (ii) a tramway or motor omnibus service or a motor transport undertaking to which the Motor Transport Workers Act, 1961 applies; and (iii) any establishment within the meaning of the Delhi Shops and Establishments Act, 1954, which employs, or on any working day during the preceding twelve months, employed five or more persons: Provided that, any such establishment shall continue to be an establishment for the purposes of this Act, notwithstanding a reduction in the number of persons to less than five at any subsequent time: Provided further that, where for a continuous period of not less than three months the number of persons employed therein has been less than five, such establishment shall cease to be an establishment for the purposes of this Act with effect from the beginning of the month following the expiry of the said period of three months, but the employer shall within one month, from the date of such cessation, intimate by registered post the fact thereof to such authority as the Administrator may specify in this behalf: Explanation.—For the removal of doubt, it is hereby declared that where an establishment has different branches or departments, all such branches or departments, whether situated in the same premises or different premises, shall be treated as parts of the same establishment; (5) "Factory" means a factory as defined in Section 2(m) of the Factories Act, 1948, (LXIII of 1948) and includes any place wherein five or more persons are employed or working, and— (i) where in any manufacturing process is being carried on with the aid of power or is ordinarily so carried on; (ii) which is deemed to be a factory under section 85 of the said Act; (6) "Fund" means the Labour Welfare Fund constituted under section 3; (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 Government nominated as a member; (8) "Inspector" means an Inspector appointed under section 12; (9) "Prescribed" means prescribed by rules made under this Act; (10) "unpaid accumulation" means all payments due to the employees but not made to them 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 not including the amount of contribution, if any, paid by an employer to a provident fund established under the Employees' Provident Funds Act, 1952 (XIV of 1952); (11) "wages" means wages as defined in section 2(vi) of the Payment of Wages Act, 1936 (4 of 1936) and includes bonus payment under the Payment of Bonus Act, 1965 (21 of 1965); (12) "Welfare Commissioner" means the Welfare Commissioner appointed under section 11.
2A. Deleted
Deleted by Maharashtra Act 36 of (1961)
3. Labour Welfare Fund
(1) The State Government shall constitute a Fund called the Labour Welfare Fund, and 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 at such intervals as may be prescribed, to the Board, and be credited to the Fund and the Board shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 6. (2) There shall also be credited to the Fund— (a) unpaid accumulations paid to the Board under sub-section (1); (b) all fines realised from the employees; (c) deductions made under the proviso to sub-section (2) of section 9 of the Payment of Wages Act, 1936 (IV of 1936); (d) interest by way of penalty paid under section 6A; (e) any voluntary donations; (f) any fund transferred under sub-section (5) of section 7; (g) any sum borrowed under section 8; (h) any unclaimed amount or prize money which may be prescribed. (3) The interest and other income received in respect of the Fund shall be credited to the Fund. (4) The Fund shall be a body corporate by the name of the Board of Trustees, and shall have perpetual succession and a common seal and shall by the said name sue and be sued. (5) 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 utilised 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 employees and their dependants. (6) In defraying the expenditure from the Fund the Board shall observe the procedure laid down under the Act and Rules made thereunder.
4. Constitution of Board
(1) The Administrator shall, by notification, in the Delhi Gazette constitute the Board for the whole of the Union territory of Delhi for the purpose of administering the Fund, and to carry on such other functions assigned to the Board by or under this Act. The Board shall consist of the following members not exceeding twenty-six in number, namely.— (a) such number as may be prescribed of representatives of employers and employees to be nominated by the Administrator: Provided that both employers and employees shall have equal representation on the Board; (b) such number of independent members as may be prescribed, nominated by the Administrator; and (c) such number of independent members as may be prescribed, nominated by the Administrator, to represent women. (2) The members of the Board shall elect one of its independent members as the Chairman of the Board. (3) Save as otherwise expressly provided by this Act, the term of office of the members of the Board shall be three years commencing on the date on which the names are notified in the Delhi Gazette. (4) The allowances, if any, payable to the members of the Board shall be such as may be prescribed. (5) The Board shall be a body corporate by the name of the Delhi Labour Welfare Board having perpetual succession and a common seal with power to acquire property both, moveable and immovable; and shall by the said name sue and be sued. (6) (Deleted by Maharashtra Act 36 of 1961)
5. Disqualifications and removal
(1) No person shall be chosen 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 a lunatic or becomes of unsound mind; or (d) is or has been convicted of any offence. (2) The Administrator may remove from office any member who:— (a) is or has become subject to any of the disqualifications mentioned in sub-section (1); (b) is absent without leave of the Board for more than three consecutive meetings of the Board.
6. Unpaid accumulations and claims thereto
(1) All unpaid accumulations shall be deemed to be abandoned property. (2) Any unpaid accumulation paid to the Board in accordance with the provisions of section 3 shall on such payment discharge an employer of the liability to make payment 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 any unpaid accumulation is paid to the Board, the Board shall by notice (i) exhibited on the notice-board of the establishment in which the unpaid accumulation was earned, and (ii) published in the Official Gazette, and (iii) also published in any two newspapers circulating in the area in which the establishment is situated, invite claims by employees, heirs, legal representatives or assigns for any payment due to them. (4) The notice shall be given in the manner that may be prescribed. (5) If any question arises whether the unpaid accumulations are required to be credited to the Fund or whether any money is properly payable to an employee or his legal representative, the dispute shall be decided by the Authority under section 15 of the Payment of Wages Act, 1936 (IV of 1936), or such other officer as the State Government may appoint for the purpose, subject to an appeal to the Industrial Court of the area or such other authority as the State Government may appoint, whose decision shall be final. (6) The time taken for such dispute shall be excluded in computing the period of limitation. (7) If the claimant prefers his claim within a period of four years from the date of such notice, the Board shall pay such amount to the claimant. (8) If the Board is satisfied that the claim is valid and arises out of the payment, the Board shall pay the amount due to the claimant. (9) If the Board is satisfied that any unpaid accumulation has been paid to it by an employer in error, it may, after such inquiry as it may deem fit, refund the amount to the employer. (1) The State Government shall constitute a Fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument, all moneys in the Welfare Fund 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 employees in the State. (2) Without prejudice to the generality of sub-section (1), the moneys in the Fund may be utilized by the Board to defray expenditure on the following, that is to say:— (a) community and social education centres; (b) vocational training; (c) community necessities; (d) entertainment and other forms of recreations; (e) convalescent homes for tuberculosis patients; (f) holiday homes; (g) nutritious food for children of employees; (h) employment of daily of employment; (i) activity for the welfare of women; (j) pre-schools; (k) reading rooms and libraries; (l) games and sports; (m) cost of administering the Act; (n) any other activity which the State Government may specify. (3) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (4) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (5) If any question arises whether any particular expenditure is or is not incurred on the objects specified in sub-section (2), the decision of the State Government shall be final. (6) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (7) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (8) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (9) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (1) The State Government shall constitute a Fund called the Labour Welfare Fund, and notwithstanding anything contained in any other law for the time being in force or in any contract or instrument, all sums specified in sub-section (2) shall, subject to the rules made under this Act, pay into the Fund. (2) The Fund shall consist of all sums paid to the Board under the provisions of this Act. (1) A member may resign his office by giving notice thereof in writing, to the Administrator, and on such resignation being accepted, shall be deemed to have vacated his office. (2) A casual vacancy in the office of a member shall be filled up, as soon as conveniently may be, by the authority concerned 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 questioned on the ground merely of the existence of any vacancy in, or any defect in constitution of the Board.
6A. Interest on unpaid accumulations or fines after notice
(1) If an employer does not pay to the Board any amount of unpaid accumulations or fines realised from employees within the time specified by the Board, the Welfare Commissioner may serve or cause to be served a notice on such employer to pay the amount within the specified period. (2) If the employer fails to pay the said amount within the time specified, he shall in addition to the amount be liable to pay interest at the rate of 2 per cent of the said amount for each month or portion thereof after the expiry of the time specified, provided that the total interest shall not exceed 25 per cent. (3) The claim for interest may be recovered as an arrear of land revenue by the Collector of the district on a certificate issued by the Welfare Commissioner. (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 payment to an employee in respect whereof the aforesaid accumulations were paid, the liability to make payment to the extent of the amount paid to the Board shall be deemed to be transferred to the Board. (3) As soon as possible after the unpaid accumulations are received, the Board shall publish a notice in the Official Gazette and also in such other manner as may be prescribed, inviting claims by employees, their heirs, legal representatives or assigns for any payment due to them. (4) If any question arises whether the notice was duly published, the certificate of the Board shall be conclusive proof of such publication. (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 payment 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 extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board. (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 payment to an employee in respect thereof but to the extent only of the amount paid to the Board and the payment made 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 factory or establishment in which the unpaid accumulation was earned and (b) (deleted by Maharashtra Act 22 of 1964) (c) also published in any two newspapers circulating and in the language commonly understood in the area in which the factory or establishment in which the unpaid accumulation was earned is situate, or in such other manner 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 of three years from the date of the payment of the unpaid accumulation 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 notices 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 (IV of 1936), having jurisdiction in the area in which the factory or establishment is situated, and the Authority shall proceed to adjudicate 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 provisions 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 accumulation in relation to which the claim is made shall cease to be deemed to be abandoned property, 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 employees; and the Board shall make payment accordingly: Provided that, the Board shall not be liable to pay any sum in excess of that paid under sub-section (1) of section 3, to the Board as unpaid accumulations, in respect of the claim. (7) If a claim for payment is refused, the employee shall have a right of appeal to the District Court, and the Board shall comply 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 appeal aforesaid and the decision in appeal of the District Court, shall be final and conclusive as to the right to receive 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, form part of, the Fund.
6B. Interest on unpaid accumulations or fines
(1) The interest payable to the Board on unpaid accumulations or fines shall be credited to the Fund. (2) The Board shall maintain a separate account for the interest credited to the Fund. (3) The Board may, with the approval of the State Government, utilize the interest credited to the Fund for the purposes of the Act. (1) If an employer does not pay to the Board any amount of unpaid accumulations, or fines realised from the employees or the amount of the employer's and employee's contributions under section 6BB within the time he is required by or under the provisions of this Act to pay it, the Welfare Commissioner may 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 service 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 that amount, pay to the Board simple interest— (a) in the case of a failure to pay any amount of unpaid accumulations or fines realised from the employees— (i) for the first three months, at one per cent of the said amount for each completed months, after the last date by which he should have paid it according to the notice; and (ii) thereafter, at one and a half per cent of that amount for each completed month, during the time he continues to make default in the payment of that amount; (b) in the case of a failure to pay any amount of the employer's and employees' contributions under section 6BB,— (i) for the first three months at one per cent of the said amount for each completed month, after the last date by which he should have paid it in accordance with the provisions of sub-section (3) of section 6BB; and (ii) thereafter, at one and a half percent of that amount for each completed month, 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 be prescribed, remit the whole or any part of the penalty in respect of any period. (1) If an employer does not pay to the Board any amount of unpaid accumulations, or fines realised from the employees or the amount of the employer's and employee's contributions under section 6BB within the time he is required by or under the provisions of this Act to pay it, the Welfare Commissioner may 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 service 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 that amount, pay to the Board simple interest— (a) in the case of a failure to pay any amount of unpaid accumulations or fines realised from the employees.— (i) for the first three months, at one per cent of the said amount for each completed month, after the last date by which he should have paid it according to the notice; and (ii) thereafter, at one and a half per cent of that amount for each completed month, during the time he continues to make default in the payment of that amount; (b) in the case of a failure to pay any amount of the employer's and employees' contributions under section 6BB,— (i) for the first three months, at one per cent of the said amount for each completed month, after the last date by which he should have paid it in accordance with the provisions of sub-section (3) of section 6BB; and (ii) thereafter, at one and a half percent of that amount for each completed month, 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 be prescribed, remit the whole or any part of the penalty in respect of any period.
6C. Fund to be kept in scheduled bank
(1) All moneys belonging to the Fund shall be deposited in the Reserve Bank of India or the State Bank of India or any other bank specified by the State Government in this behalf. (2) The Board may, with the approval of the State Government, invest the portion of the Fund in such securities as may be prescribed.
6AA. Power to appoint Committees
For the purpose of advising the Board in the discharge of its functions and also for carrying into effect any of the matters specified in sub-section (2) of section 7, the Board may constitute one or more Committees of which at least one on each Committee shall be a member of the Board.
6BB. Contributions
(1) The contribution payable under this Act in respect of an employee in an establishment shall comprise contribution, payable by the employers (here-in-after referred to as 'the employers contribution') contribution payable by such employee (here-in-after referred to as 'the employee's contribution') and the contribution payable by the Administrator and shall be paid to the Board and form part of the Fund. (2) The amount of contribution payable every six months in respect of every employee shall be 75 paise, only if the name of such employee stands on the register of an establishment on 30th June and 31st December, respectively; and in respect of an employer for each such employee shall be 225 paise payable every six months. (3) Every employer shall pay to the Board both the employer's contribution of 225 paise and the employee's contribution of 75 paise before the 15th day of July and 15th day of January. (4) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and any rules, the employer shall in the case of any such employee be entitled to recover from the employee that employee's contribution by deduction from his wages, and not otherwise; and such deduction shall be deemed to be a deduction authorised by or under the Payment of Wages Act 1936 (4 of 1936): Provided that, no such deduction shall be made in excess of the amount of the contribution payable, by such employee, not shall be made from any wages other than the wages for the months of June and December: Provided further, that, if through inadvertance or otherwise, no deduction has been made from the wages of an employee for the months aforesaid, such deduction may be made from the wages of such employee for any subsequent months or months with the permission in writing of the Inspector appointed under this Act. (5) Notwithstanding any contract to the contrary, no employer shall deduct the employer's contribution from any wages, payable to an employee or otherwise recover it from the employee. (6) Any sum duly deducted by an employer from the wages of an employee under this section shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. (7) An employer shall pay the employer's and the employee's contribution to the Board by cheque, money order or in cash, and he shall bear the expenses of remitting to the Board such contributions. (8) The Welfare Commissioner shall submit to the Administrator as soon as possible after the end of July and January every year in the prescribed form a statement showing the total amount of the employee's contribution and the employees' contribution in respect of employees in each establishment. On receipt of the statement from the Welfare Commissioner the Administrator shall pay to the Board, a contribution of an amount equal to twice the employees contribution in respect of that establishment.
7. Vesting and application of Fund
(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. (2) 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 employees. (3) Without prejudice to the generality of the foregoing, the moneys in the Fund may be utilized for: (a) community and social education centres; (b) vocational training; (c) community necessities; (d) entertainment and other forms of recreation; (e) convalescent homes; (f) holiday homes; (g) nutritious food for children of employees; (h) employment of daily employment; (i) activity for the welfare of women; (j) pre-schools; (k) reading rooms and libraries; (l) games and sports; (m) cost of administering the Act. (4) If any question arises whether any particular expenditure is or is not incurred on the objects specified in this section, the decision of the State Government shall be final. (5) The Board may, with the approval of the State Government, make grants from the Fund to any employer, any local authority or any other body in aid of any activity for the welfare of employees. (1) All unpaid accumulations shall be deemed to be abandoned property. All unpaid accumulations, whether before or after the commencement of this Act, shall be paid to the Board and be credited to the Fund and the Board shall keep a separate account therefor until claims thereto have been decided in the manner provided in section 8. (2) Any employer who is required to pay any unpaid accumulations or any fine as such to the Board shall pay such accumulations or fine to the Board or to such officer as may be authorised by the Board in this behalf. (3) The notice for payment of the unpaid accumulations or fines shall be given by the Board by displaying it at a conspicuous place of the establishment and in any other manner as may be prescribed, and any claim received from any employee regarding the unpaid accumulations shall be disposed of by the Board in the manner prescribed. (4) The payment of unpaid accumulations or fines by the employer to the Board shall be a full discharge of his liability to the employees in respect of such unpaid accumulations or fines. (5) Before making any payment of such unpaid accumulations or fines to the Board, the employer shall display on the notice board of the establishment a list of all unpaid accumulations or fines of the employees and if no claim is received within the prescribed period, the employer shall pay the same to the Board.
8. Power of Board to borrow
The Board may from time to time with the previous sanction of the Administrator 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 purpose of this Act.
9. Vesting and application of Fund
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. (1) Where the Fund or any portion thereof cannot be applied at any early date for fulfilling the objects of the Act, the Board shall invest the same in any of the securities specified in clauses (a) to (d) and (f) of section 20 of the Indian Trusts Act, 1882.
10. Power of Board to borrow
The Board may, from time to time, with the previous sanction 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. Subject to the provisions of this Act and subject to the direction of the Board, the Fund shall be vested in and be held and applied by it as Trustees. The Administrator may give the Board such directions as in his opinion are necessary or expedient in connection with expenditure from the Fund or for carrying out the other purposes of the Act. It shall be the duty of the Board to comply with such directions.
11. Investment of Fund
(1) Where the Fund or any portion thereof can not be applied at an early date for the purposes of this Act, the Board shall invest the same in any of the securities specified in clause (a) to (d) and (f) of section 20 of the Indian Trusts Act, 1882. (2) The Board shall have such powers to hold and dispose of the investments as may be prescribed. (3) The Board shall have the power to create a reserve fund from the surplus income of the Board and invest the same with the prior approval of the State Government. The Board may from time to time with the previous sanction of the State Government and subject to the provisions of this Act and such conditions as may be specified in this behalf borrow any sum required for the purposes of the Fund. (1) (i) The Welfare Commissioner shall be appointed by the Board with the previous approval of the Administrator; (ii) The Welfare Commissioner shall be the principal executive officer of the Board; (iii) 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 the Act and rules made thereunder as he deems fit including any order implementing the decisions taken by the Board under the Act or rules made thereunder. (2) (Deleted by Maharashtra Act 36 of 1961).
12. Cost of administering the Act
(1) The cost of administering the Fund shall be met from the Fund. (2) Such costs shall not exceed such percentage of the annual income of the Fund as may be prescribed. (1) All moneys and other assets vesting in the Fund shall be held and applied by it, subject to the provisions and for the purposes of this Act, and all moneys belonging to the Fund shall be deposited in the Reserve Bank of India or the State Bank of India or such other bank as may be prescribed, or shall be invested in such securities as may be prescribed. (2) Such moneys and assets shall be held and applied by the Board in the name of the Board. (3) The accounts of the Fund, as certified by the auditor appointed by the State Government, together with the audit report thereon, shall be forwarded annually by the Board to the State Government. (1) The Administrator may appoint inspectors to inspect records in connection with the sums payable into the Fund. Inspectors appointed under the Delhi Shops and Establishments Act, 1954, in relation to any area, shall be deemed to be also Inspectors for the purposes of this Act, in respect of establishments to which this Act applies, and the local limits within which such Inspector shall exercise his functions under this Act shall be the area for which he is appointed under the said Act. (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 the Act; (b) exercise such other powers as may be prescribed. (1) The Administrator may appoint inspectors to inspect records in connection with the sums payable into the Fund. Inspectors appointed under the Delhi Shops and Establishments Act, 1954, in relation to any area, shall be deemed to be also Inspectors for the purposes of this Act, in respect of establishments to which this Act applies, and the local limits within which such Inspector shall exercise his functions under this Act shall be the area for which he is appointed under the said Act. (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; (b) exercise such other powers as may be prescribed.
13. Application of Fund
The Fund shall be applied to meet expenditure in connection with measures which, in the opinion of the State Government, are for the promoting the welfare of employees and their dependants, and in particular to meet the expenditure on the following, namely :— (a) community and social education centres; (b) vocational training; (c) community necessities; (d) entertainment and other forms of recreations; (e) convalescent homes for tuberculosis patients; (f) holiday homes and health resorts; (g) pre-schools and nursery schools; (h) feeding programmes; (i) cost of administering this Act; (j) such other objects as would, in the opinion of the Board, improve the standard of living and ameliorate the social conditions of labour. The Board shall have power to administer the Fund and to carry out the provisions of this Act and shall for this purpose have power to spend moneys from the Fund. (2) The Board may also, subject to the previous approval of the State Government, delegate its powers and functions of execution of works to the Welfare Commissioner or any other officer as it considers fit. (1) The Board shall take over and employ such of the existing staff under the control of the Labour Commissioner, Delhi, as the Administrator 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 rules for the time being applicable to persons employed in connection with the affairs of the Union territory of Delhi or such other rules as may be from time to time be made by the Administrator. (b) every such member shall have a right of appeal to the Administrator against any order of reduction, dismissal or removal from service, fine of any other punishment: Provided further that person so taken over may elect within the prescribed 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 do so the provisions of the first proviso shall cease to apply to him. (2) (Omitted).
14. Power of State Government to give directions
The State Government may give the Board such directions as in its opinion are necessary or expedient in connection with the expenditure from the Fund or for the administration of the Act. (1) The Board shall have power to appoint the necessary clerical and executive staff to carry out and supervise the activities financed from the Fund: Provided that the expenses of the staff thus appointed and other administrative expenses shall not exceed a prescribed percentage of the annual income of the Fund. (2) The Board shall, with the approval of the Administrator, make regulations regarding the method of recruitment, pay and allowances, and other conditions of service of the members of its staff (other than the Welfare Commissioner and the Inspectors): Provided that, until the regulations are so made, the conditions of service of such staff shall be governed by the rules made by the Administrator in this behalf.
15. Penalty for obstructing inspection
Any person who wilfully obstructs an Inspector in the exercise of his powers or performance of his duties under this Act shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees or with both. The State Government shall appoint a Welfare Commissioner who shall be the principal executive officer of the Board. The Administrator shall have the power to remove any person whom he may deem unsuitable, from the service of the Board and to make an appointment in respect of whom more than one-third of the members of the Board have not agreed.
16. Cognizance of offences
No Court shall take cognizance of any offence punishable under this Act except on complaint made by, or with the previous sanction in writing of, the Welfare Commissioner. The State Government may appoint Inspectors to carry out the purposes of this Act. The Administrator or any officer authorised by the Administrator may call for the records of the Board, inspect the same and may supervise the working of the Board.
17. Power to make rules
The State Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. The Board may appoint such staff as it considers necessary for the administration of the Fund. (1) Any sum payable to the Board or 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. (2) After the supersession of the Board and if it is reconstituted, the powers, duties and functions of the Board under this Act shall be exercised or performed by the Board or by such officer or officers, as the Administrator may appoint for this purpose.
17A. Power of State Government to make rules for certain purposes
The State Government may make rules to provide for the manner in which the unpaid accumulations shall be paid to the Board and the procedure for disposing of claims regarding the same. The Inspectors appointed under this Act shall have such powers and perform such duties as may be prescribed for the purpose of carrying out the provisions of this Act. 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 registers, records or other documents maintained in pursuance of the provisions of this Act or the rules made thereunder or to supply to him on demand true copies of any such documents, 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 subsequent offences, with imprisonment for a term which may extend to six months, or with fine which may extend 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 judgement of the Court, in any case where the offender is sentenced to a fine only, the amount of fine shall not be less than fifty rupees.
17B. Provisions relating to jurisdiction
(1) No Court inferior to that of a Metropolitan Magistrate shall try any offence punishable under section 17A. (2) No prosecution for such offence shall be instituted, except by an inspector with the previous sanction of the Welfare Commissioner. (3) No Court shall take cognizance of such offence, unless complaint thereof is made within six months of the date on which the offence is alleged to have been committed.
18. Delegation of powers
(1) The Board may, by resolution, delegate to the Welfare Commissioner such of its powers and duties under this Act as it may deem fit. (2) The Board may also delegate such powers and duties as it considers necessary to any officer of the Board appointed under the Act. (1) If the Administrator is satisfied that the Board has made default in performing any duty imposed on it by or under this Act or has abused its power, the Administrator may by notification in the Delhi Gazette supersede or reconstitute the Board in the manner prescribed for constitution of the Board: Provided that before issuing the notification under this sub-section, the Administrator will give a reasonable opportunity to the Board to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Board.
19. Mode of recovery of sums payable to Board
Any sum payable to the Board or into the Fund under this Act shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue. (1) Any person who wilfully obstructs an Inspector in the exercise of his powers or duties under this Act shall, on conviction, be punished with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both. (2) Any employer who fails to produce any register, document or information when required to do so by an Inspector shall, on conviction, be punished with fine which may extend to five hundred rupees. (1) The Administrator may, by notification, in the Delhi Gazette and subject 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 foregoing power, such rules may be made for all or any of the following matters, namely:- (a) the intervals at which or the period within which any of the sums referred to in section 3 shall be paid to the Board or into the Fund, the manner of making such payment and the agency for and manner of collection of any such sum; (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 from the Fund under section 7; (d) the procedure for defraying the expenditure incurred in administering the Fund; (e) the number of representatives of employers and employees, independent members and representatives of women on the Board, and the allowances, if any, payable to them, under section 4; (f) the manner in which the Board shall conduct their business; (g) the duties and powers of the inspectors and the conditions of service of the Welfare Commissioner and Inspectors appointed under this Act; (ga) the delegation of the powers and functions of the Board to the Welfare Commissioner and the conditions and limitations subject to which the powers may be exercised or functions discharged; (h) the percentage of the annual income of the Fund beyond which the Board may not spend on the staff and on other administrative members; (i) the registers and records to be maintained and returns to be sent to the Board under this Act; (j) the publication of the report of the activities financed from the Fund together with a statement of receipts and expenditures of the Fund and statement of accounts; (k) any other matter which under this Act is or may be prescribed. (3) (Omitted).
20. Penalty for obstructing inspection
Any person who wilfully obstructs an Inspector in the exercise of his powers or duties under this Act shall be punishable with imprisonment or fine or both as prescribed. Any employer who fails to comply with any direction given by the Welfare Commissioner under section 17 shall, on conviction, be punished with fine which may extend to twenty-five rupees for every day during which the failure continues. 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.
21. Cognizance of offences
No Court shall take cognizance of any offence punishable by or under this Act except on complaint made by, or with the previous sanction in writing of, the Welfare Commissioner. 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 under this Act.
22. Protection of action taken in good faith
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. The Administrator may by notification, in the Delhi Gazette exempt any class of establishment from all or any of the provisions of this Act subject to such conditions as may be specified in the notification.
23. Amendment of section 8 of Act IV of 1936
In section 8 of the Payment of Wages Act, 1936, in its application to the Union Territory of Delhi, to sub-section (8) the following shall be added, before the explanation, namely :- “but in the case of any factory or establishment to which the Bombay Labour Welfare Fund Act, 1953, as extended to the Union territory of Delhi, applies all such realisations shall be paid into the Fund constituted under the said Act.”
PDF: pending for this language.