The Maharashtra Labour Welfare Fund Act, 1953: D.R. Haibat Corporate Consultant and Consulting Lawyer NGO Member

Sharp Institute Of Individual & Organizational Development (SIIOD)
The Maharashtra
Labour Welfare Fund
Act,1953
D.R. Haibat
M.Com., LL.B.DPM & IR, DAM

Corporate Consultant and
Consulting Lawyer
NGO Member
Introduction/Objective of the Act:
• This Act has been enacted to provide for the

constitution of a fund for financing activities
to promote welfare of labour for conducting
such activities and for certain other purposes.
• This Act extends to whole of State of

Maharashtra.
Main Definitions
a) Board means The Maharashtra Labour Welfare Board

b) Contribution means the amount payable to the Board as per provisions of the Act.
c) Employee means any person to do any work ,skilled or unskilled ,manual, clerical
etc. directly by the employer or through contractor or any other agency but does not
include any person who is employed mainly in a managerial capacity or who is being
employed in a supervisory capacity , drawing wages exceeding Rs.3,500/- p.m.
d) Employer means any person who employs the employees either directly or through
another person (contractor/agent)
e) Establishment means ,a factory, a tramway etc. & any establishment under S & E Act
employing 5 or more persons
f) Unpaid accumulations means all payments due to the employees but not made to
them within 3 years from the due date including the wages, gratuity except PF
contributions.
Main Definitions contd.
g) Wages means as defined under PO Wages Act,1936 and includes bonus

payable under PO Bonus Act,1965.
h) Welfare Fund means a fund called Labour Welfare Fund and shall consist
of :
I. All fines realised from employees
II. unpaid accumulations
III. penal interest
IV. voluntary donations
V. any loan, subsidy ,grant in aid etc. paid by the State Govt.
UNPAID ACCUMULATIONS AND CLAIMS THERETO:
i. All unpaid accumulations shall be deemed as abandoned

property
ii. Once the Employer pays it to the Board ,he is discharged
from his liability and thereafter the Board is responsible
iii. On receipt of the unpaid accumulations ,the Board shall
exhibit the details of the same on the notice board of the
establishment & also publish the same in two local
newspapers in June & December every year for 3 years and
invite the concerned employees to claim the same .
iv. If any claim is received within a period of 4 years in response
to the notice, the Board shall transfer the claim to the
Authority under the PO Wages Act,1936 ,on receipt of its
approval ,Board will make the payment to the employee.
CONTRIBUTIONS
v. The Contribution payable under this Act is from the, Employee (Rs. 6/- if
wages are Rs. 3,500/- p.m. or less and Rs.12/- ,if wages are more than Rs.
3,500/- p.m. ) & from the Employer ( thrice of the Employee’s Contribution
) every six months to be recovered from salary for June and paid before
15th July and from salary for December and paid before 15th January every
year.
vi. If Employer fails to pay the Contribution on time ,he will have to pay
interest between 1.5 % to 2% p.m.
APPLICATION OF THE FUND:
• The Board shall spend the amounts received to promote the welfare of
labour and their dependants:
1. Community and social education centres including reading rooms and

libraries
2. Community necessities, games & sports, excursions/tours and holiday
homes
3. Entertainment and recreations
4. Corporate activities of social nature
5. Educational assistance to the members & family members
PENALTY FOR VIOLATION UNDER THE ACT:
• a)For first offence ,with imprisonment for 3 months or fine up to Rs.500/- or

both
• b)For second or subsequent offences, with imprisonment for 6 months or

fine up to Rs.1,000/- or both
RECORDS TO BE MAINTAINED /SUBMITTED UNDER THE ACT:
*Form A
*Form A -1: Statement of employees’ and employers contribution on 30th

June and 31st December
*Form A-2:
*Form B :Register of Wages
*Form C: Register for fines and unpaid accumulations for the year .....

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Sharp Institute Of Individual & Organizational Development (SIIOD)

M.Com., LL.B.DPM & IR, DAM

Introduction/Objective of the Act:

• This Act has been enacted to provide for the

• This Act extends to whole of State of

a) Board means The Maharashtra Labour Welfare Board

Main Definitions contd.

g) Wages means as defined under PO Wages Act,1936 and includes bonus

UNPAID ACCUMULATIONS AND CLAIMS THERETO:

i. All unpaid accumulations shall be deemed as abandoned

APPLICATION OF THE FUND:

1. Community and social education centres including reading rooms and

PENALTY FOR VIOLATION UNDER THE ACT:

• a)For first offence ,with imprisonment for 3 months or fine up to Rs.500/- or

• b)For second or subsequent offences, with imprisonment for 6 months or

RECORDS TO BE MAINTAINED /SUBMITTED UNDER THE ACT:

*Form A -1: Statement of employees’ and employers contribution on 30th

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