Keyword(s):
Establishment, Fund, Unpaid Accumulation
Amendments appended: 13 of 1994, 44 of 1995, 59 of 1997
THE TAMIL NADU LABOUR WELFARE FUND.. ACT, 1972.
ARRANOBMBNT OF SECTIONS.
SECTIONS.
- Short title, extent ad commcaa-: –
- Definitions.
- Labour Welfare Fund.
- Establishment of Board.
- Constitution of the Board.
- Appointment of the Chairman and the members to be notified.
- Term of office of the members.
- Disqualifications and removal.
- Resignation of office by member and filling up of casual vacancies.
- Power to appoint committees.
- Acts of the Board or committee not to be invalidated by informality, vacancy, etc.
- Functions of the Board.
- Unpaid accumulations and claims thereto.
- Interest on unpaid accumulations or fines after notice of demand.
- Contribution to the Fund by employee and employer.
- Grants and advances by the Government.
- Vesting and application of Fund.,
- Power of Board to borrow.
- Deposit of Fund and placing of accounts and audit report b’Z;ee
the State Legislature. - Power of Government to give directions to the Board.
21, Appointment and powers of Secretary. - Inspectors.
- Allotment of certain offtars and staff to the Board,
- Transfer of Provident Fund to the Board.
Labour Welfaie #und [WIZ : tN. Act 36
I - Oornn*enf tc credit the leave salary and pensionary contribut~ons in respect of the officers and servants allotted to Board’s
service. - Appointment of clerical and other staff by Board.
- Powers of Government to call for records.
- Mode of recovery of sum% payable to Board.
- Penalty for obstructing inspection or for failure to produce documents, etc.
- Cognizance of offences.
- Offences by companies. 1
- Limitation of prosecution.
- Power to supervise the welfare activities of an establishment.
- Penalty for non-compliance with the direction of the Board.
- Annual Report.
- Supersession of the Board.
- Delegation of powers.
- Members of Board, Secretary, Inspectors and all officers and servants of Board to be public servants. ,
- Prgtection of action taken in good faith. I
- Exemption.
- Power to make rules.
- Power to make regulations. I
- Amendment of section 8, Central Act IV of 1936.
1972 : T.N. A; 361 la6mrl. We@e Fund 151
TAMIL NADU ACT No. 36 OF 1972. *
THE TAMIL NADU LABOUR WEIPARE
BUND ACT, 1972.
[Received the assent of the President on the 2nd December
1972, Jirst published in the Tamil Nadu Government
Gazette Extraordinary on the 6th December 1972 [Karthigai 22, Parithapi (2003-Thiruvalluvar Andu)].]
An Act to provide for the constitution of a Fund for promoting the weIfae of labour and for certain other matters
connected therewith in the State of Tamil Nadu.
BE it enacted by the Legislature of the State of Tamil Nadu
in the Twenty-third Year of the Republic of India as
follows :- - (1) This Act may be called the Tamil Nadu Labour Short title,
Welfare Eund Act, 1972. extent and
commenwmmt.
I (2) It extends to the whole of the State of Tamil
1 Nadu. I
(3) It shall come into force on such date as the 1 Government may, by notification, appoint. - In this Act, unless the context otherwise requires,- Dtfinitioas.
(a) ” Board ” means the Tamil Nadu Labour Wela
fare Board established under section 4 ; I
(b) ” employee ” means-
(i) any person who is employed for hire or reward
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 l[the preceding twelve months]
whether the terms of employment be express or implied, but does not include any person-
(a) who is employed mainly in a managerial
capacity ; or
Th:se words were substituted for the figures and word ” 12
months by section 2 (i) (a) of the Tamil Nadu Labour Welfare
Fund (Amendment) Act, 1982 (Tamil Nadu Act 37 of 1982).
- For Statement of Objects and Reasons, see Tamil Nadu
Government Gczette Extraordi~ary, dated the 2nd February 1972,
Part IV-Section 3, Pages 26-27.
152 Labour Welfare Fund [I972 : T.N. Act 36
(b) who being employed ih a supervisory capacity draws wages exceeding l[Rs. 1,0001 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, or
(c) who is employed as an apprentice or on
part-time basis.
Explanation.-An apprentice means a person who
according to the Certified Standing Orders applicable to
the establishment, is an apprentice or who is declared
to be an apprentice by the authority specified in this behalf
by the Government ; and
(ii) any other person employed in any establishment whom the Government may, by notification, decla~e
to be an employee for the purposes of this Act;
(c) ” employer ” means a person who has the ultimate control over the affairs of the establishment and
where the said affairs are entrusted to any other person
whether called a manager, managing director, managing
agent, superintendent or by any other name, such other
person ;
(d) ” establishment ” means- I
(i) a factory as defined in clause (m) of section 2 of
the Eactories Act, 1948 (Central Act LXIII of 1948),.or
any place which is deemed to be a factory under sub-section
(2) of section 85 of that Act ;
(ii) a motor transport undertaking as defined
in dasse (g) of section 2 of the Motor Transport Workers
Act, 1961 (Central Act 27 of 1961) ;
(iii) a plantation as defined in clause (f) of section 2
of the Plantations Labour Act, 1951 (Central Act LXIX
of 1951) ; I
(iv) a catering establishment as dehed in
section 2 (1) of the Tamil Nadu Catering Establishmants
Act, 1958 (Tamil Nadu Act XI11 of 1958)a[which employs,
or on any working day during the preceding twelve months ,
employed, five or more than five persons] ;
1 This expression was substituted for the expression ” Rs. 750 **
by section 2 (i) (b) of the Tamil Nadu Labour Welfare Fund (Amend- ment) Am, 1982 (Tamil Nadu Act 37 of 1982).
a Thew words were addad by section 2 (ii) (a), iW. I
1972 : T.N. Act 361 Labour Weqare Tund 153
(v) an establishment, including a society l[registered or deemed to be registered under the Tamil Nadu
Societies Registration Act, 1975 (Tamil Nadu Act 27 of
1975)l and a charitable or other trust whether registered
under any law applicable to such charitable or other trust
or not, which carries on any business or trade or any work
in connection therewith or ancillary thereto and which
employs, or on any working day during the preceding
twelve months imployed, 2[five or more persons]; but
does not include an establishment (not being a factory)
of the Central or any State Government ;
(vi) any other establishment which the Governmenr may, by notification, deciare to be an establishment
for the purposes of this Act ;
3[Explanation.-For the purposes of this Act, where an
eNab1ishmen.t consists of differe-~t departments or bas
branches whether situate in the same place or in different
places, all such departments or branches shall be treated
as parts of the same establishment.]
(e) “Fund” means the Labour Welfare Fund constituted under section 3 ;
(f) “Government” means the Statc Government ;
(g) “Inspector” means an Inspectcr rt fcl-rcc!
in section 22 ;
1 (h) “Secretary” means the Secretary appointed under
section 21 ;
~ (i) “unpaid accumulaticn” means all pa ymf rrr r other
than gratuity due to an employee but not paid to him within
~ a period of three years from the date on which the payments
became due whether before or after the commencement of I this Act and the gratuity accrued to an employee after the
commencement of this Act but not paid within a period
of three years from the date of such accrual but does nor
include the amount of contribution, if any, paid by an
employer to a provident fund established under the Emplogees’ Provident Funds Act, 1952 (Central Act XIX of 1952);
(j) “wages” means all remuneration capable of being
expressed in terms of money which would, if the terms of – —
1 This expression was substituted for the expression ” registe;ed
under the Societies Registration Act, 1860 (Central Act XXI of 1860)”
by section 2 (ii) (b) of the Tamd Nadu Labour Welfare Fundr(Amenc:- mmt)Act, 1982 (mail Nadu Act 37 of 1982).
3 Thls expression was substituted for the expression ” more than
twenty persons” by section 2 (iiXb), ibld.
a This cnrpl~n wsa added by section 2 (ii) (0). Wd.
154 Labour Wetfare Fund [ 4 972 : T.N. Act 36
the contract of employment, express or implied, were
fulfilled, be payable t o an employee in respect of his employment or of work done in such employment, but does not
includeI
(i) the value of any house awbmmodation or of
the supply of light, water, medical attendance or other
amenity or of any service excluded from the computation
of wages by general or special order of the Government ;
(ii) any contribution paid by the employer to any
pension or provident fund or under any scheme of social
insurance ;
(iii) any travelling allowance or the value of any
travelling concession ;
(iv) any sum paid to the employee to defray special
expenses entailed on him by the nature of his employment ;
or
(v) any gratuity payable on termination of employment.
~ab~u~ welfare 3. (1) The Government shall constitute a fund called
Fund. 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 for in section 13.
(2) There shall also be credited to the Fund-
(a) unpaid accumulations paid to the Board under
sub-section (2) of section 13 ; I
(b) all fines including the amohnt realised under
Standing Order 20 of the Model Standing Orders issued
under the Tamil Nadu Industrial Employment (Standing
Orders) Rules, 1947 l[and under the certified Standing
Orders of the establishment] from the employees by the
employers, notwithstanding anything contained in any
agreement between the employer and employee ;
1 This xpression was inserted by section 3 (1) of the Tamil Nadu
Labur la we Fund (Amendment) Act, 1982 (Tamil Nab Aot 37
of 1m.
1
fW2 : T.N.Act 361 L~bour Welfare ~und 155
(c) deductions made under the proviso to subsection (2) of section 9 of the Payment of Wages Act, 1936
(Central Act IV of 1936) l[and under the proviso to subse’ction (2) of section 36 of the Tamil Nadu Shops and
Establishments Act, 1947 (Tamil Nadu Act XXXVI of
1947) .]
(d) contribution by employel s and cmployees ;
(e) any interest by way of penalty paid under ,
section 14 ;
( 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 under sub-section (5) of
section 17 ;
(i) any sum borrowed under section 18 ;
(j) any unclaimed amount credited to the Govemment in accordance with the rules made under the Payment
of Wages Act, 1936 (Central Act IV of 1936) and the
Minimum Wages Act, 1948 (Central Act XI of 1948) ;
(k) grants or advances made by the Government ;
(I) all fines imposed and realiscd from employers
by courts for violation of labour laws less the deduction
made by court towards administrative expc nses.
(3) The sums specified in sub-section (2) shall be
paid to, or collected by, such agencies, at such intervals
and in such manner, and the accounts of the Fund shall be
maintained and audited in such manner, as may be pescribed.
- (I) With effect from such date as the Government
may, by notification, appoint in this behalf, there shall be
established a Board by the name “Tamil Nadu Labour
Welfare Board”.
(2) The Board shall be a body corporate having
perpetual succession and a common seal, and shall, by
the said name, sue and be sued.
- — 1 This expression was added by sz 3 (2) of tho Tamil Nadu
Labour Welfare Fund (Amendment) A&, 1982 (Tam11 Nadu Act 37
of 1982).
156 Labour Welfare find [I972 : T.N. Act 3Q
CofUtitution 5. The Board shall consist of a Chairmen who shall ‘
cf the Board. be the Minister-in-charge of Labour and of the following
members appointed by the Government, namely :-
(a) such number of representatives of employers
and employees as may be prescribed :
Provided that both employers and employees shall
have equal representation on the Board ;
(b) such number of members of the State Legislature
as may be prescribed; and
(c) such number of officials and non-oEcials as may
be prescribed.
Appointment of 6. The appointment of the Chairman and the members
the Chairman shall be notified in the Tatnil Nadzt Government Gazette.
and the members
to be notifled. I
- The term of office of the members of the Board other
Of than the official members shall be three years from the date the members. of their appointment and th~y shall be eligible for reappointment. They shall continue as such members until the
appointment of the successors :
Provided that a Member of the State Legislature shall
cease to be a member of the Board from the date on which
he ceases to be a Member of the State Legislature.
Disqualifications 8. (1) No person shall be chosen as, or continue to be,
and removal. a member of the Board, if he-
(a) is an officer or servant under the Board; or
(b) is an undischarged insolvent; or
(c) is of unsound mind; or
(d) has been convicted by a criminal court for an
offence involving moral turpitude, unless such cooviotion
has been set aside; or
(e) is in arrears of any sum due to the Board.
(2) me cfiovernmellt may remove from oacc any
member who–
(a) is or has become subject to my of the disqualiilcations mentioned in subsection (1); or
(b) is absent without leave of the Board for mom
than three consecutive meetings of the Board.
lJv’i2 : T.N. Act 361 Labour Welfirre Fund 151 - (1) Any representative of employer or employee or Resignation of
Member of the State Legislature, or non-official member office by n~ember
may resign his office by giving notice thereof in writing,u~’~$to the Government, and on such resignation being accepted, shall be deemed to have vacated his office.
(2) A casual vacancy in the office of member may be
filled up as soon as may be and a member so appointed to
fill such vacancy shall hold office for the remainder of the
term. - For the purpose of advi~ing the Board in the Powerto
digcharge of its functions and in particular for carrying z:g&. into effect any of the matters specified in sub-section (2)
of section 17, the Board may constitute one or more committees consisting of atleast one member of the Board and
equal number of representatives of employees and employers. - No act done or proceeding taken under this Act Actsofthe
by the Board or any committee shall be invalidated mtrely Board or
on the ground- committee not
to be invalidated
by informality, (a) of any vacancy or defect in the constitution of vacancy, etc.
the Board or the committee; or
(b) of any defect or irregularity in the appointment of
-a person acting as a member thereof; or
(c) of any defect or irregularity in such act or proceeding not affecting the merits of the case. - The functions of the Board shall be the adminis- Fun~tionsof
tration of the Fund and such other functions as may be fheBoard.
iissigned by or under this Act. - (1) All unpaid accumulations shall be deemed to be ~~~da~muabandoned property. claims thereto.
(2) Any unpaid accumulation paid to the Board
in accordance with the provisions of section 3 shall on
ruch payment,discharge an employer of his 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 provisidns of thir scdion, bc deemed to be transferred to the Board.
I
158 Labour Welfare Fund [I972 : T.N.Act 36
1[(3) As soon as possible after the payment of any
unpaid accumulation is made to the Board, the Board
shall-
(a) exhibit on the notice board of the establishment
in which the unpaid accumulation was earned ; and
(6) publish in the Tamil Nadu Government Gazette,
and in such other manner as may be prescribed,
a notice inviting claims by employees, their heirs, legal
representatives or assigns for any payment due to them.]
(4) If any question arises whether the notice referred
to in sub-section (3) was given as required by that subshall be conclusive.
section, a certificate of the Board that it was so given,
,
(5) a[If a claim is received whether in response to the
notice or otherwise, within a period of six months from
the date of the publication of the notice in the Tamil Nadu
Government Gazette in respect of such claim j the Board
shall transfer such claim to the Authority appointed
under section 15 of the Payment of Wages Act, 1936
(Central Act IV of 1936), having jurisdiction over the area
in which the establishment is situate, and that Authority
shall proceed to adjudicate upon and decide, such claim.
In hearing such claim such Authority shall have the powers
conferred by that Act and follow the procedure (in so far
as it is applicable), specified therein.
- 1 This sub-section was substituted for the following original sub-section by section 4(i) of the Tamil Nadu Labour Welfare Fund
(Amendment) Act, 1982 (Tamil Nadu Act 37 of 1982):-
“(3) As soon as possible aftcr the payment of any unpaid accu- mulations is made to the Board, the Board shall by notjce-
(a) exhibit on the notice-board of the establishment in which
the uizpaid accumulation wzs earned ; and
(b) publish in the Tamil Nadu Government Gazette, and in
such other manner as may be prescribed, regard being had to the
amount of the unpaid accumulations ;
invite claims by employees, their heirs, legal representatives or assigns for any payment due to them. The notice shall be given 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”. IPThese words were substituted for the following words by section
4 (ii), £bid:-
“If a claim is received whethex in response to the notices or othawise, within a period of four years from the date of first publicaim
of the notice in respect of such claim”.
I
1972 : T,N.Act 361 Labour Welfare Fund 159
(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 employee; 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 or
his heirs, ‘legal representatives or assigns, as the case may
be, may, within sixty days from the date of receipt of the
order of the Authority, prefer an appeal in the City of
Madras to the Madras City Civil Court, and elsewhere
to the District Court.
(8) The decision of the Authority, subject to appeal
aforesaid, and the decision in appeal of the Madras City Civil Court, or as the case may be, 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 received within the period specified
in sub-section (9, or a claim has been refused by the
Authority, or on appeal by the Madras City Civil Court
or the District Court, then the unpaid accumulations in
respect of such claim shall accrue to, and vest in, the State
as bona vacantia, and shall thereafttr be deemed to have
been transferred to, and form part of, the Fund.
- (1) If an employer does not pay to the Board any on amount of unpaid accumulations, or fines realiaed from the
employees, within the time specified by or under this Act, lat~om or finer
the Secretary may serve or cause to be served a notice on after notice of
such employer to pay the amount within the period demand. I specified therein which shall not be less than thihy days
from the date of service of such notice. I
(2) If the employer failsLwithout suficient cause, to
pay any such amouct within the period specified in the
notice, he shall, in addition to the amount, pay by way of
penalty to the Board simple inter( st-
(a) for the first three months at one per cent of the
said amount for each complete month or part thereof after
the last date b~ which he should have paid it according
to the notice; and
(h) for each ::omplete month or part thereof
thereafter at one and a half per cent of that amount during the time he continues to make default in the payment of
that amount :
Provided that, the Secretary may, ‘subject to such conditions as may be prescribed, rzmit the whole or any part
of the penalty in respect of any period.
Contribution to I
the Fund by 15. 1[(1) Every employec shall contribute two rupees employee and per year to the Fund and every employer shall, in respect
of each such employee, contribute four rupees per year
to the Fund and the Government shall, in respect of each
such employee, contribute two rupees per year to the Fund.]
(2) Notwithstanding anything contained in any
other law for the time being in force the employer shall
be entitled to recover from the employees the employee’s
contribution by deduction from his wages in such manner
as may be prescribed and such deduction shall be deemed
to be a deduction authorised by or under the Payment of
Wages Act, 1936 (Central Act IV of 1936) 8[or the Tamil
Nadu Shops and Establishments Act, 1947 (Tamil Nadu . Act XXXVI of 1947).]
