TELANGANA WELFARE FUND ACT, 1987

ABOUT:  The Labour Ministers Conference, the National Commission of Labour and the then united Andhra Pradesh State Labour Advisory Board, the Government have decided to undertake legislation for the establishment of a Labour welfare fund in this State and for the constitution of a Labour Welfare Board for this State for the purpose of administering the fund and to carry on such other functions as are assigned to the said Board, from time to time.

Received the assent of the President on the 14th August, 1987 and first published on the 19th August, 1987 in the Andhra Pradesh Gazette.

Employee means Any person who is employed to do any work, skilled or unskilled, manual, supervisory, clerical, or technical, in an establishment for a period of 30 days during the period of 12 months, 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 wages exceeding Rs. 1,600 (Rupees sixteen hundred) per month

(c) who is employed as an apprentice or on part time basis.

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

-          in a factory, the manager.

-          in any establishment, any person responsible to the owner for the supervision and control of the employees or for the payment of wages.

Telangana welfare Fund: This fund is created by the Telangana government and it shall be maintained by Telangana welfare fund board. Minister of Labour shall be the chairman of the Board.

There shall also be credited to the Fund:

(a) unpaid accumulations paid to the Board: means all payments due to an employee but not paid to him within a period of 3 years from the date on which they became due, 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;

(b) all fines including the amount realized under Standing Orders issued under the Andhra Pradesh Industrial Employment (Standing Orders) Rules, 1953 from the employees.

(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: Employee contribution: Rs.2/- & Employer contribution Rs. 5/-

(e) any interest by way of penalty paid: If an employer does not pay to the Board any amount of unpaid accumulations of fines realized from the employees, within the time specified.  Board may issue the notice to the employer to pay the amount with interest within 30 days from the date of service of such notice. Employee has to pay the unpaid accumulated amount along with 1% simple interest and if the employer did not turnup even after the service of notice for 3 months then he shall be charged 1.5% on the unpaid accumulated amount.

(f) any voluntary donations;

(g) any amount raised by the Board from other sources to augment the resources of the Board;

(h) any fund transferred

(i) any sum borrowed

(j) grants or advances made by the Government.

(k) any money deposited under sub section (1) of Section 8 of the Workmen s Compensation Act, 1923 as compensation in respect of a deceased workman where the Commissioner for Workmen s Compensation is satisfied after necessary enquiry that no dependent exists, subject however, to the deductions permissible under the said sub section, as also any amount remaining undisbursed out of such deposits.

Deposit and utilization of the fund: All amounts received in the fund shall be deposited in the state bank of India or any schedule commercial bank.

where the Fund or any portion thereof cannot be utilized within a period of 90 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 Cooperative Bank or such other Cooperative Bank as the Government may notify from time to time in this behalf.

Accounts and audit report before the Government: The accounts of the Board as certified by the auditor, together with the audit report thereon shall be forwarded yearly to the Government. A copy of the accounts of the Boards certified by the Auditor together with a copy of the audit report thereon shall be laid on the table of the Legislative Assembly of the State.

Penalty for noncompliance: If the person committing 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.

Any person who willfully fails to produce any document required by the Board or to furnish any information called for by the Board or to furnish any information called for by the Board or willfully fails to comply with any direction issued by the Board;

(a) for the 1^st offence, with imprisonment for a term which may extend to 3 months, or with fine which may extend to Rs.500/- or with both; and

(b) for a 2^nd or subsequent offence, with imprisonment for a term which may extend to 3 months, or with fine which may extend to Rs.500/- or with both; and

Annual Report:- 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 Legislative Assembly of State.

Benefits to the subscribers of welfare fund