CIRCULAR – LABOUR WELFARE FUND FOR THE YEAR 2010

As per the Sec. 7-A (2) of the Karnataka Labour Welfare Fund Act, 1965, "In respect of every employee whose name stands in the register of an establishment on 31st December of a year sum of Rs.3/-, Rs.6/- & Rs.3/- respectively shall be payable as contribution for that year by the concerned employee, the employer and the State Government.

(3) The employer's contribution and the employee's contribution in respect of a year shall be paid by the employer to the Board on or before 15th January of the following year by cheque and the expenses of remitting the contribution shall be borne by the employer himself."

We wish to remind you that the Labour Welfare fund for the year 2010 must be paid on or before 15th January 2011 for all those employees' whose names stands in the register of an establishment on 31st December 2010. The cheque must be drawn in favour of ` Welfare Commissioner, Bangalore’.

It is left to the management as to whether they wish to deduct Rs.3/- per employee for the year 2010 or pay Rs.9/- including the employees' contribution to the Labour Welfare Commissioner.

An employee is defined under the act, as per Sec. 2(2) as "Employee" means any person who is employed for wages to do any work, skilled or unskilled, manual or clerical, in an establishment;

An employer is defined under the act, as per Sec.2(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 Sec. 7(1)(f) of the Factories Act, 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;

Also the employer is required to deposit the unpaid accumulations, like unpaid bonus, wages after three years of their becoming due. Further the penalty and fines are to be paid to the fund immediately.

Therefore other than the person responsible to the owner for the supervision and control of the employees or for the payment of wages is an employer under the act. So, kindly (deduct and ) pay towards all the employees except the MD / CEO of the company under the act.