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Preamble I , .• I I
THE KERALA LABOUR WELFARE FUND ACT, 1975
(Act II of 1977) ·
I' f J I 1 CONTENT~'
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• t ' .. Sections • , 1 f 0 I1
I.
2.
3.
4.
5.
6.
7.
8.
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19.
II.
I 2.
13.
14.
15.
16.
17
18.
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22.
23
24.
25
26
27
28.
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A ppointm( nt and powers of Commissioner. Fmancc Offrrr
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Inspectors
Appointmrnt of staff of Board Power of Government and, auth •rised offic,.rs to call for recorns etc
Mode of recovery of sums pa\ able t0 Board
Penalty for obstructing Inspector or for farlure to produce do( uments, etc.
Cogr,izance of offences
30 Offences by companies . ' .
31. Limitation of prosecutiOn I ' • f
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33
34.
35
36.
37.
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Po"er to supervise \\elfdre activities of es~bl,ishm(nt. Penal v for non-compliance with the direction of the Board ' I '
Annual rer ort
'iuperse~sion of Board
Delcgau.m of powers
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Members of Board, Commrss:oner, Inspt'ct 'rs, ' ,. • t 0
~ervants
-Prott"' twn of action taken in good fa th. etc to be public
3g Exemption
40 Power to mdke rules
41.
'' 42.
43,
I J 1 f Rules anri not.ficarions •o be laid before the L,.g slative Assembly J ' ., , I I ' -
Power to ma~ e regulations
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. \ n ;n 1mcnt ,f s-::ctron 8, 'Ce ttral Ao::t 1- of 19 35. '
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I I ' J I ,,lJ , I I 0 .J •• • J '
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• THE KERALA LABOUR1'WELFARE FU~D ACT, 1975
(ACT 'II OF l977) An Act to provide for the constitution of a fund for promotuzg the welfare of labour and for certain other matters connected t~rewith tn.the State of Kerafa. Preamble.-WHEREAS it is expedient to provide for the constitution of a fund for promoting the welfare of labour and for certam other mattus connected therewith in the State of Kerala ;
BE it enacted in the Twentv-sixth Year of the Republic of India as follows:-
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Explanation.-An apprentice means a person who, .according to the certi- fied standing orders appl1cable to the establishment, is an apprentice or who is declared to be an apprentice by the authority ~pecified in this behalf by the Government ; and
(i1) any other person employed in any e~tablishment, whom the Gov"ern- ment may, by notification in the Gazette, declare to be an employee for the purposes of this Act.
Explanatzon -If any question arises whether a person is an employee for the purposes of tlus A;:t or not, the que
(e) "employer" means a prr;on who t mploy~ either directly or through another person, either on behalf of himself or any other penon, one or more employee or employc:s in an estabh:shment and includes- ·
(i) in a factory, any person named under clause (f) of sub-section ( l) of section 7 of the Factories Act, 1948 (Central Act 63 of 1948), as the manager ;
(ii) m any establishment, any person responsible to the owner for the supervision and control of the employees or for the paymen.t of wages ;
(f)
( i)
(ii)
"establishment" includes- . ' a factory as defined in cia use ( m) of section !l of the Factories Act, i94R (Central Act 63 of ,1948) or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act;
a motor transport undertaking as defined in clause (g) of ~cction 2 of the Motor Transport \Vorkers Act, 1961 (Central Act 27 of 1961) ;
(ii1) a plantation as defi 1ed m clause (f) of scct1on 2 of the Pl?ntations Labour Act, 1951 (Central Act 64 of 19')1);
(iv) any commercial establishment w1thm the meaning ofclau~e (4) of sccticn 2 of the Kcrala Shops and Commerc1al Establish- ments Act, 1960 (34 of 1960), which employs, or on any workmg day during the preceeding twelve months employed, five or more persons:
Provided that any ~uch comrrcrcial establishment shall continue to be an establishment for the purpuse~ of th1s Act notwithstandmg that there was a reductiOn in the number of persons to les> than five at any subsequent time:
Provided fut ther that where for a contin•1ous period of not less than six months the number of persons employed therein has been less than five, such commercial establishment shall cease to be an establishment for the purposes of this Act with effect from the beginning of the month following
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the expiry of the said period of~ ix months, but the employer shall, within one month from the date of such cessation, intimate by registered post the I act thereof to such authority as the Government may specify in this behalf; (v)
(vi)
(g)
section 3;
(h)
an establishment, including a soctety registered under the Svcieties Registration Act, 1860 (Central Act 21 of 1860) or the Travan- core-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 (XII of 1955), v.hich carries on any bustness or trade or any work in connection thet ewith or an- Cillary thereto and which employ~, or on any workmg day during the precedmg twelve months employed, more than twenty
persons, bur does not i .. clude an establishment (not being a factory) of the Central or any State Government;
any other establishment which the Gwernment may, by noti- fication in the Gazette, declare to be an e~tablt~hment for the purposes of this Act;
"Fund" means the Labour Welfare Fund constituted under
"lnspectOt" means an lmpcctor appointed under sectic:m 24;
(i) ''prescribed" mcam prescribed by rules made undet thi~ Act,
(j) "State" means the State of Kerala;
(k) "unpaid accumulatioa" means all payment~ other than gratuitv due to an employee but not paid to hun within a period of three years fro~ the date on wh1ch the payments became due, whether before or after the commencement of this Act, and the gratuity accrued to an employee after the commencement of thi~ Act but not pa1d withm the penod of th1 ee years from the date of ~uch accrual, but does not include the amount of contri-' bution, if any, paid by an employer to a provident lund e~tabli~hed under the Employees' Pwvident Funds' Act, 1952 (Central Act 19 of 195'2) or any other prov1den• fund established by the Government; .
(1) ''wages" means wages as defined in clause (vi) of section 2 of the Payment ofwages Act, 1936 (Ceut~al Act 4 of 1936).
3. Labour Welfare Fund.-(I) The G.w('rnment shall constitute a Fund called the Labour Welfare Fund, and~ n 1twithstanding anythmg contained m any other law for the time bemg •n force or in any contract or instrument, all unpaid accumulations shall be paid, at such incervals as may be prescribed, to the Board, and be credited to the Fund, and the Board shall keep a · separate account therefor until claims then.to have been decided m tJte manner prov1ded}or in section 13.
(2) . There shall also be credited to the Fund-
(a) unp1id accumulations paid to the Board u_nder s~b-sect1on (2) of SCCtlOll !3;
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(b) lll fi&es inclu:ling the am'Junt realised under Sta•di tg Ord\!r 20 of the.Model Standing Orders issued under the Kerala Industrial Employ- ment (Standmg Ord·rs) Rules, 1947, from the employees by the employers, notwithstand·ng anythmg containtd many agre.-ment between the emr;loyer and·employce;
(c) deductions made under the proviso to sub-sectiOn (2) of section 9 of the Payment of Wages Act, 1936 {Central Act 4 of 1936); · (d) c:>ntributions by employers and employees;
(e) any interest by way of penalty paid•under section 14;
(f) any voluntary donations; · (~) any amount raised by the Board from other sources to augment the resources of the Board;
(h) any fund transferred under ~U1)·scction (6) of s ctton 17;
(1) any sum borrowed under section 18;
(j) any unclaimed amount credited to the Governmmt 1 n accot dance with the rules made under the Payment of Wages ct, 1936 (Central Act 4 of 1936) and tt e Minimum Wages Ac·, 1948 ( Centrd I Act 11 of 1948);
(k) grants or advances made by the C:"ntral or State Government or any local authority ;
(I) all fines imposed and reahscd from employers by courts for viola- tion of labour laws less the deductions made by courts towards admmrstrativc expenses
(3) The sums specified in ·ub-s:ction (2) shall 1be p.id to, or collected by, ~uch agencies, at such mtervals and in such manner, and the accounts of tbe Fun I shall be maintained ·and audited in such manner, 'as may be prescribed.
4 Establishment of Board. -(1) With dfect from such date as the Government may, by notification i'l the Gazette, appoint in 1his behalf, there shall be es!ablished a Board l y the name "Kerala Labour Welfare Fund Board".
(2) The Board shall be a body corpor ~te having perpetual succession and a common seal, and shall, by the said name, sue and be sued
5. Constztution of Brard.-(1) The Boa1d shall consist of the following members appomted by 1 he Government, namely -
(a) such nwnber of representatives of employers and employees as may be prescribed :
Provided· that both empllyers and t:mployees shall have equal repre- sentation on the Board ; and
(b) such number of officials and non•officials as may be prescribed.
(2) The Government shall.app int one of the members of the Board to be its Chairman.
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(3) The number of memb~rs of the Board inclr,ding t e Chaitman shalJ not exceed twenty-five.
6. Ap,botnfment of Chairman, arzd othn members to be notifzed-1hc appoint- ment of the Chairman, and the other members of the Board ~hall be notified m the Gazette
7. Term of nfftce of members.-The term of offce of the members or the Board other than the offictal members shall be three years from the date of thetr appomtmem and they ~hall be cltgible for reappomtment:
Provid~d that a member may contmue as such member untli the appmntment of hts successor.
8. Dw;ualifzcations and removal.-(!) No person shall be chosen as, or contmue to be, a member of the Board tf he-
(a)
(b)
(c)
IS an officer or scrvar.t uncer the Board; 01
ts an und•scharged tnsolvent, or
IS of unsound mmd ; or
(d) has been convtcted by a cnminal court for an offence mvolving moral turpttude, unless such convtctton has been set as1de; 01
(e) IS m arrean of any sum due to the Board
(2) The Government may rem:we from office any member who-
(a) 15 or has bc.-:ome subject to any of the dtsquahfications ment1orrcd in sub-sect ton (I), or
(b) ts absent wtthout leave of the l.oard fo1 mete than three consecutrve meetings of the Board
9. Rcsigrzatzon of ojjtce by member and frlling up cafual vacancws- (I) Any member other than all offic1al member may res1gn Ills cffic:e by g1vmg not1ce thereof m wntmg, to the Governme.Jt, and on such re,JgnatJOn bemg accepted, shall be deemed to have vacated hts office.
(2) A casual vacancy m t"e office o' a member may be filled UJ, as soon as may be, by the Government and a membe1 so appowted to fill such vacancy shall hold office for the unexp1red portwn of the term C'f office of the u.ember whos~ place he fills .
10 Power to appowt commzttees- (I) For the purpose of 'idv1sing the Board 1n the d1scharge of 1ts funcuons and m parttcular lor carrymg mto effect a11y of the matters spectfird m sub sectwn (3) of secucn 17, the Board may constitute one or more commltrees
(2) Each c: mm1t\ce constJtut:d under sub-sectiOn (I) sltall conSISt of at least one memb, r of the Board.
ll . Acts of Board or commttlee not to be ~rwalrdated uy etr.-No act dot•e or proceed1'1· takell un·:er th1s Act by comn11ttee shall be mv.Jl1dat' d merely on the ground- zrifvrmaltty, ~aranry,
the Board or any
( a)_ of any vacancy or defect m the COIHtttuuo.l of the Board or the committe~" ; or
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(b) of any defect or irregularity in the appointment of a person acting as a member thereof; or
(c) of any defect or Jrregularity in such act or proceedmg not affecting the ments of the case.
12. Functions of the Board. -The functwns of the Board shall be the administration ot the Fm;d and such other functions as may be assigned to it by or under this Act.
13. Unpazd accumulatwns and claims thereto.-( I) All unpaid accumula- tiono shall be deemed to be abandoned property.
(2) Any unpaid accumulatiOn paid to the Board in accordance With the proviSions of secuon 3 shall, on such payment, discharge an employer of h1s liabii1ty to make pa)'meut to an employee m respect thereof, but to the extent onl} of the amount pa1d to the Board, and the hab1hty to make pay- ment to the employee to the extent afor.:sa1d shall, subject to the succeeding provisions of th1s section, be de1 med to be transferred to the Board.
(3) As soon as possible after the payment of any unpa1d accumulatiOn is made to the Board, the Board shall by noticc-
(a) exh1b1ted 0n the notice-board of the establishment m wl11ch the unpaid accun ulatiOn was earned; and
(b) pubbshed m the Gazette, <~nd m such other manner as • may be prescnbcd, regard beiUg had to the amount of· the unp,ud accumulations, invite clamts by employees, their hens, legal representat•ves or ass•gm for any payment due to them.
(4) The notice referred to in sub-se€lion (3) shall be g•ven in the manner aforesaid m June and December of every year, for a period of three yeats lro n the date of the p~y ment of the unpaid accumulation to the Board.
(5J If any question ames whether tile notice referred to m sub- section (3) was given as req utred by that sub-;ection aud sub-sect•on ( 4), a certtficate of the Boa1d that It was so given ~hall be conclusiVe.
(6) If a claim is recetved, whether in respon!e to the nollces or othe'- wise, \'
(7) In hearing any cla,m referred to in sub-section (6), the authority referred to m tl-.at sub-s .. ctiOn shall have the powet s conferred by the Pay- ment of Wag~s Act, 1936 \Central Act 4 ol 1936) and fo low the procedure (in so far as tt is apphcable), specified therem.
(8) If the authonty aforesaid is satisfied that any such claim IS vahd so that the 1 ight to rece1ve p3yment Is e~t !bhshed, it shall dec1de that the unpatd accumulation 111 relatt n to whtch the da1m is made sh 11l cea'se to b
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deemed to be aband0i'c-l property; and shall order the Board to pay the whole of the dues cia 1m d, 01 such part thc~eof as the authority decide~ are properly due, to the em')loyee, and the Board shall make pa) ment accordingly. Provtdcd that the Board shall not be liable to pay any sum in excess of th"\t paid under s·1'1-sec.ti ·n ri) of sectron 3 to the !joard as unpaid accumu- latiOns, m respect of t'1c clan1
(9) It a claim for payment is rcf,lsed, the employee or h1s heirs, legal repr~'sentativrs o· :\~~igons, as the ca~e mav be may, withm s1xty days from the date of receipt of the o dcr of the autho1 ity, prefer an appeal to the District Court.
(IO The deci~1on of the authority, •ubject to appeal to the Di trict CoUI t, and the dec sion m appeal of the Distnct Com t, shi!.ll be final and conclusive as to the right to recc1ve payment, the liabil1ty of the Board to pay and also as to the amount, if an, ..
(I:) If no c aim i'l received within the period specified m'sub-section (6), or a claim has been refused by the authority, or on appeal by the District Court, then the u •p1.1d accumulations in respect of su-;h claim shall accrue to, and vest in, t~e State as bona vacantza. ard shall thereafter be dee red to have been tran~fc1 red to, and form part of, the Fund.
14. Interest on unpmd accumulatzons or fmes after notzce of demand.-(1) If an empl 1yer doc~ not pay to the Board ?.ny amount of unpaid accumulations or fines re dis<>d from the rmployees, W1thm the time •p-:cified by or under this Act, the Comm1ssioner may serve or cause to be served a notice on such employer to pay the amount wxthin the period spcc1fied therein, whrcb shall not be l· ss than thtrty days from the date of serv1ce of such not1ce. (21 If the f'mployer fails, -wtthout sufficient rause. to pay any such amount withm th.: period specified in the n0uce. he shall, in addition to that amount, pay, by _way of penalty to the Board, simple interr~t-
(a) for the fint th1ee mnnth' at two per cent of the said amount for each complete month or part thereof after the last date by which he should have pard it accordmg to the notice; and
lb) for each complet~ TT'Onth or part thereof thereafter at five per cent of that amount during the time he contmues to make default m the pay- ment of that amount:
Provide-! •hat the Government may; subject to such conditions as may be prescribed, remit the whole or any part ol the penalty in respect of any period
15 Contrlbut•on to the Fund by employees and employers.-(!) Every emplo- yee ,h,l]l contribute fifty paise per half year to the Fund and every employer shall xn respect of e,\ch such employee contribute one rupee per half year to the Fund.
(2) Eve1y employer shall pay to the Fund both. the employer's c.on- tribution and the employee's contribution before the 15th day of July and 15th day of January of every year.
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(3) Notwithstanding anything contained in any other law for the time being in force, the emp!.-.yer •hall he entitle-i t0 recover from, the employee~ the employee's contrihution by deduction from his wages ur in sue' other m'nner as may be prescobed, anti such deduction shall be deeme.:l to be a deduction authorased by or under t e Payment of \!'.'ages Act, 1931 (Central Act 4 of 1936).
16 G"'ant and advances by Govemme111.-The Government rr.ay, from time to time, make gra•acs or advance loans t() the Board f0r the purposes of thts Act on ~uch tfrms and conditions a~ the Government may, m each ca,e, drtermi •1e.
,17. Vcslml! and applzcation of Fund.-(1) The Fund shall ve•t in, and be held and a 1phco b ·, t e Bo rd a~ trustf'es subject to the pr·vi-10ns, and f::~r the purpo-;cs of th 1s Act
(2) The m()neys m the Fund shall be ntili•ed bv the Board to defray the cost of earn-ing out measure• which mav be soecifird by the Gavernn ent from ti 11e !o t1m · to pr 1rnote the welfare of employees and of theit depen- dents. .
(3) Without pr-judice to th,. gmeral ty of 1he provisiOns of suh- sertions ( l) and ( l), mrmevs in the Fund ma.y be utilised by the Board to refray expendi•ure on the fol10wing activiti:•, namely:-
(a) community and social edt;cation centres including rt'ading rooms and hbra1 ies;
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(b) gam~~ and sports; •
(c) vocational train rng ;
(d) communrty nccess1tics;
(c) rntutainmcnt anrl other form, of recreatiOn;
(f) co•valc
(g) hohdav homes in he1lth resorts;
(h) part-time employment for houscwt. e~ of employees ; {i) pre-sc'FJOls;
(J) hi~her education ;
(k) nutntlous foo:l ro children of emphyees;
(I) employment opportumties to the dis:J b'ed employees;
(m) co~t of ad nrnrstcnng th1~ Act includmg the s.1lancs and allow- ances of the staff appoi lted for the purposf's of thts Act , and
(n) such other obiects as would, m the opm1on of the Government, improve the sranc!ard of II•mg and amelwrate the social cond1t10nsof labour:
.I~rovtdcd that the Fund ~hall not be utths~d m fi11ancing any measure which the emplov'_l ts required under ,my l.lw for the time b.:mg iu fvrce to carry out : . '
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Provided further that unpaid accumulations and fines shall be expe 1ded by the Bo rd under this Act notwithstanding anvthing contained in the Paym<>nt of Wages Act, 1936 (C~ntral Act 4 of 1936) or any other la.w or agreement for the time be1ng in force.
(4) The Board may, with the aporoval of tho Government, make gr~nts from the Fund to any Ioc'\l a·1thority or any other bojy in aid of an., activity for the welfare of employ :es.
(1) If any question ari~t>S whether any part1cuh r expenditure is or is not debitable •o the Fund, the matter shall be referred to the Government whose decisio 1 thereon shall be f.nal.
(6) The Bo:1rd mav accept the tr.msfer of any Labour Welfare Fund of any est<;bl1shment and may continue any actavity fi1anced from such Labour Welfare Fund if the said Fund is duly transferred to the Board.
18. Power of Board to borrow -The Board may, from time to hmt', with the previous saner ion of thr: GovPrnment and suhject to the provisions of thts Act and to such cond1tio'1s as may be pre>cnbed in this behalf, borrow any sum required for the purposes of thi~ Act.
I 9. Deposit of Fund and placzng of accounts and audzt report before State Legis- lature.-(!) All moncvs and rece pts formmg part of the Fund shall, with the prcv1ous ~anction of the Governmen·, be depos1ted in the State Bank of India constituted under the State Bank of India Ac1, 1951 (Central Act 23 of I 955) or in any subsidiary bank within 1 he meaning of clau
State Bank of India (Sub>idiary Banks) Act, I 959 (Central Act 38 of I 959) or in any correspondmg new bank as defined in the B:tnkmg Companies (AcquisitiOn and Tran
i 970 (Central
Act 5 of 1'.:.:70), or in any DI,irict Co-op• rative Bank or in the Treasury Savings Bank, and such :1ccount slnll be operated upon by such officers of the Boud a5 may be authorised by the Board and in >uch manner as may be prescribed .
(2) The accounts of the Board, as certified by the audit()r, together with the :1ud1t report thereon. ~hall be forwarded yearly to the Government and tht> Gove1 nm<·nt mav issue such instructions to the Board in respect therrof as they deem fit and th
(3) The Government shall cause the accoJnts of the Board togt>ther wtrh the audit report thereon forwarded to them under sub-section (2) to be laid yearly before the Legi,Jative Assembly of the Srate.
20. lnve~tment of Fund -If the Fund or any portion thereof cannot be applied at an early date for carrying out any of the activities referred to in this Act, the Board sh'\11 invest the sam~ 1n any of the securities specified in clauses (a) to (d) and (f) of section 20 of the Indian Tru~ts Act, 1882 lCen•ral Act 2 of 1882).
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21 Power of Government to giue directionr to Board.-The Goverl!ment max give th.! Board such dtrcctwns as in their opmion are necessary or ex- pedtent m connect on wtth the expendtture from the Fund or for carrying out the purposes of this ALt, and it shal! be the duty of the Board to comply with such dm ctions.
22 Appuintmm1and powers of Commzsswn~r -(1) The Govetnment may, by notificatiOn m 1 he Gazette, appoint a Labour Welfare Fund Commis- SIOner who shall be the Chtef Exccut1ve Officer of the Board. ., ~2) The conditions of appomtment and servtce and the scale of pay of the Commts
23. l•znance Offtcer- (I) Th Q Board ~hall have a Finance Officer appointed by the Government by not1fica ion tn the Gazette.
(2) The Finance Officer shall exercise such powers and perform such duties as may be prescribed.
(3) The condition~ of appointment and Sfrvice and the scale of pay of the Fmance Officer shall bl! ~uch a~ may be prescribed.
24. Tnrpectors.-(1) The Government may, by notification in the Gazette appoint such persons as they thmk fit and possessing such qualifications as may be prescnbe 1 to be In~pl:'ctors for the purpose of this Act, and may define the lora! hmits wtthm which, and the class of estabhshments in respect of whtch, they shall exercis_ thc1r functtons.
(2) Subject to any rules made in this behalf, an Inspector shall have power to do all or any of the followmg matters withm the local limits for whtch he is appointed, namely:-
(a) to make such exammation and holri such inquiry as may be necessary for ascertainine; whether the provis10r.s of this Act have oeen and are bemg comphed with;
(b) require the product" on of any prescribed register and any·other document in possession of the employer 111 conni'Ction with the sums payable to the Fund;
(c) to enter at all redsonable times any prcmtscs with such assistants as he may think fit,
(d) lo exercise ~uch other po.v•rs as may be prescribed.
25. Appomtment of staff of Board.-(1) The Board shall appoint such number of officers and other employees as may be necessary for carrying out its functions under this Act.
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(2) The conditions of appointment and service and the scales of pav of the officers and servants rt>ferred to in sub-section ( 1) shall be . such as .may be prescribed by regulations made by the Board.
26 Power of Governmmt and au/homed offzcers to call for records, etc.-The Government or a•ty officer authonsed by the Government in thi~ behalf may call for the records of the Board, mspect the same and supervise the working of the Board. ·
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27. Mode of recovery of rumr payable to Board -Any sum payable to the Board or into the Fund under thts Act shall, wtthout prrjud1ce to any oth.r mode of recovery~ be recoverable on behalf of the Board as an an ear of public revenue due on land.
28. Penalty for obstructmg Inspector or for fazlure to produce documents, etc.- Any person who wtlful\y obstructs an ln1pector in tht> exercis.e of his powers or discharge of Jus duttes under thts Act or falls to p10duce for nnpection on demand by an Inspector auy regtstei, record, or other documents main- tained in purmancc of rhe provtswns of this Act or the rules made there- under or to supply to hun on dcman i true copies of any such document shall, on conviction, be punksh-::d-
( a) for the first offence, with 1mpriS)nrr. ent for a tet m which may extend to three month~, or wtth fine wluch may extend to five hundred rupees, or with both; and
(b) for a second or subsequent offence, with 1mprhonmfl1t for a term wluch may extend to stx months, 01 with fine wh1ch may extend to one thous::tnd rupees, or with both:
P10vided that, in the absence of special and adequate rea~ons to the conttary to be mentioned in the JUdgment of the court, 111 any ca~e where the offender \s sentenced to fine only, the amount of fine shall not be Jess than fifty 1 1p ~es.
29 Cognzza11cc nJ offences.-( I) No cou1 t shall take cogmzaJ,c'e of any offence pun1::.hable unde1 this Act except on a complaint by, or ·with the previous sanction in wntmg, of, the CommJSsJOncr.
(2) No court inferioi to that of a Magtstrate of the first clas, shall try any offence pumshable under rhis Act .
30. Offences by compames - (I' If the person committmg an offence under this Act ts a company, cvet y person who, ... t the time the offence was commJttcd, was m chat ge of, and was respom1ble to, the company for the C'lnduct of the busmess of the compa11y, as well as the CJmpany, shall be deemed to be gudty of • he offence, and shall be liable to be proceeded against and punr>hed accoJdingly:
Provided that nothing con tamed 111 this subsection shall 1 cnder any such p~rs1n liable to any pumshment provtde I 1n this Act, 1f he proves th'lt the offence was committed Without hts knowled!.!e, or thttt ht: exerc1sed all due diligence to prevent the commts~iJn of the offt:nce.
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(2) :'-Jotw,dlstand.ng anythmg contained i01 sub-secti1n (1), where an oflence under this Act has been commnted b/ a cnmpany, and it ts proved that the ofTe 'C.! In~ bc:en c •mmttted wtth th" consent or conmvancp of, or ts attributable t•l .. ny neglect on the part of, any director, manager, secretary or other officer of the company, such director, m'lnager, secretary or other officer .,h tll also be d('emed to be gmlty of that offenC<- and sh,,.JJ be liable to be proceeded against and punished·accordingly.
Explallalzon.-For the purpose' of this se(tion,-
(a) "company" means a body corporate and includes a firm or other assoctation of mdtv,duals; and
(b) "d1 rector'', m rehtion to a firm, means a partner in the firm.
31 Lzmlfalzon of Proirculzon.-No court sh ,J) take cognizance of an offl!nce pumshable by or under tim Act unless a complaint thcrc=of i~ made w!lhlll one yeai of the date on whtch the offence ts alleged to have been comrnttted.
32 Power lo supe1vzre welfare aclwzlzes of eslabfzslzmrnt.-In regard to any money set apart in any e,tabltshmc 1t c;pecd1cally for the purpo,e of prom Jttng the welfare of the employee~ m SJch establi,hment, the BJard shall have power-
(t) to requite the production of anv docurr.ent in po~session of the e nployer of that e>td.blt~h·nent m connccuon wtdt ~uch money to sattsly ttself as to wheth~r suct1 money I' being applted for such purpose; ( ti) to lall for any mformauon irom such employer a~ it may deem relevant, and
(iii) to i~';oJe such directions to such em?loyer a~ 1t may de_m fit for the purpose of utliJSJng the lund Lr promotir.g the wei fan· of the employees.
33 Pen1ll)' for non-comj;hance wzlh thr dzr~ctwn oj the Bonrd.-Any person who wtl!uliy latls to produce any document required by the Board or to furnish any tnformat10n called for by the Board or wtllully tails to comply wtth any dtrections issued by the B ard under sec• ton 32 shall on collvtction, be punis1ed-
(a) f .r the first offence, with tmprisonmcnt fur a term whtch may extend to thtce months, or wllh fine which may exte 1d to hve hundred rupees, or wi1h both; and
(b) for a second or subsequent offence, wtth nnpnsonment for a term whtch may extc1 d to s•x months, or wtth fine whtch may extend to one thousand rupees, or with both:
Provided that, in the absence of special and adequate r1 asons to' the cont- rary to be mentioned Ill the judgement of tbe court, many case where the offender is sentenced to fine only, the amount of fine shall not be les~ than fifty rupees. ·
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34. Annual report.-;-The Board shall,.as soon as may be after th ~ end of each year, prepare and submit to the Government before such date and in such. form as may be pre•cribed a report giving an account of its activitieS during the previous year and of the actiVIties, if any, which are likely to be undertaken by rhe Bo rrd in the next year and the Government sh'lll cause every such reporr to be laid before the Legislative Assembly of tho State as s~n as may be after it is received by the Government.
35. Supmession of Board.-(!) If the Govcr.1mcnt are of opinion that the Boatd is unable to perform, or has persistently made default in the performance of the duties imposed on it by or under this Act or , has exceeded or abused 1ts powers, they may by notification in the Gazette supenede the Board for such period not exceeding six months, as may. be sp~cified iTJ. the notification:
Provided that before issuing a notification under thts sub-section, the Government shall, by nouce, require the Board to show cause within such period as may be specified in the notice whv it sh0uld not he superseded and shall c nstder the explanations and Objections, If any, of the Board.
(2) Upon the publication of a notification under sub-section ( 1) super- seding the Board,-
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(a) all the members of the Board shall, as from the date of superse- ssion, vacate their offices as such; · ·
(b) all the powers and duties which may, by or under •he provision of this Act, be exercised or performed by or on behalf of the Board and the Chairman shall, durin~ the period of super~ession, be exercised and perfor- med by such authority or person as the Government may direct;
(c) all funds and other property vested in the Board •hall, during the period of supersesswn, vest in the authority or person ref en ed to in clause (b); and
· (d) allliabihties legally sub~isting and enforceable against the Board shall be enforceable against the authority or person referred to in clause (b) to th<. exrent ot the funds and properties vested in it or him.
(3) On the expiration of the period of superses>Ion specified in the noti- ficatiOn issued under sub-section (I), the Go'vernment may- ( a) extend the penod of supersession for such further period not exceeding SIX months as tbey may consider necessary; or
(b) reconstitute the Board in the mannc1 provided in section 5.
36. Delegatron of powers.-( I) The Government may, by notification i~ the· Gazette, authorise any authority or officer to exercise anv of. the powers vested in them by or under thts Act, except the power to make rules under section 40, and may in like manner withdraw such authority. 34/430/B.
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. (2) The B1ard ,may, bv general or special order in writing, relegate to the Commissioner or other offirer of the Board such of it:. powers and function~ under thi~ Act, except the power to make regulation<> under section 42, as it may daem n~~es~ary, and may in like manner withdraw such authority. ·
(3) The exerci
(4) The Government or the Board, as the case may be, shall also h~ve the power to control and revise the acts and prnceedings ()f any officer 'empowered under ruh-srct'on (3) .
· 37. Members of Board, Commimoner, Inspectors etc., to be public se vants.- The members of the Board, the Commissioner, the Fmance Officer, Inspectors and all officf'rg ::~nd servants of the 8o1rd, ::~nd all OPrsons entrusted with the executwn of any function under this Act, shall be dremed to be oublic ~ervants wit htn thl" meaning of section 2 I of the Indran Pf'nal Code (Central Act 45 of I 860) •
38. Protectzon of action taken lT1 good faith-(!) No suit, prosecution or other legal proceeding~ shall lie agamst any person for anything wh1ch ·j~ in good faith done or.intended to be done in purs'..lant..e of this Ac• or any rule or order m'l.de thereunder. ' ,
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(2) No suit or other legal proceeding ~hall lie against the Goven1ment or th~ Board for any dama~e caused or likdy to be bused by anything whir.h i~ in good f.-1Ith don~" 0r i~.tended to be done in pucsuance of this Act ·or any rule or order mv1e thereunder.
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39. Exemptron.-Thc Go,ernm nt rna,·, by notification m the Gazettr, C"
~s of establi~hments from all or any of the
provi•ion~ of this Act s••bject to such condttions as may be specrfied in the notification.
40 Power to make rules -(l) Thr Government may, by notification in the Gazette, mnke rule:. for the purpose of carrying mto effect 'the previsions of this Act . .
(2) In pa1ticular, and without prt>judice to the generality ofthe foregomg power, such rules may prov rde ff'r-
(a) the intervals at wh1ch or the wriod Wit~. in which any flf the sums referred to in sccli·'n 3 ~hall be paid to the Board or into the Fund, the ·manner of making ~uch payment and the agency for, and manner 'of, coll('ction of any such sum ; · . . t • •• ,
(b) the manner in which the accounts of the Fund' 'shall 'be main• tained and audited ; • i ' j I
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(c) 'the allowances, if ariy, payable to the members of the Board ;
(d) the manner in which the employee's' contribution may b'e deducted from his wages ;' .
(e) the f'>rm ot notice regarding unpaid accumulations ;· • '1
(f) the procedure tor paking grants from the Fund ;
. (g), the, procedure fo.r defraymg the expendtture incurred m admini- stering the Fund ; ' . '
(h) the manner in whic'1 the Boc1rd shall conduct Its business ; , . (t) the delegation of th~ po .vers and functions of the Board to the Commi~sion-r or other officer of the Board and the conditions and limitation 'I subJeCt to whtch such powen may be exercised or functions discharged ;
(J) the percentag~ M'the ann,·al income of the Funrl be) ond which the Board may not ~pend on the staff and o'l other admtnistrative expenses ,
(k) the registers and records to be rnaintatned under thts Act ;
(I) the pubhcation of the teport of the actlvttrs financed from the Fund togethPt wtth a st,ltcment of rc~etpts and ell.penditure of the 1 Fund all(] statement of accounts ;
(m) any other matter whtch has to be or may be prescribed.
41. Rufes aud notifzrnfzo7H to he laid btjo1P 1/ze Legzslatwe Ammb!)1.-Every tule made and every nottfic-ttion issued under tlus Act shall be latd, as soon as may be after tt IS made or tssued, befon.: the Legislative Assembly while it IS in session for a total period ol foUl teen days wluch may be comprised 111 one session or m two successive sessions and if, before the exptry 0f the sesswn m whtch it is so laid, or the session immediarely followtng, the Legislative Assembly makes .my modification tn 1hc rule cr notification or dectdes 1 hat the rule or notification sh"Juld not be made or ts~ued, the rule or notrficauon shall thereafter have effec1 oPly in ~uch modrfied f~.)rm or be of no effect, as the case may be; so however that any such modtfication or annulment shall be without prejudrce to the valtdity of anythmg previously done under that rule or nottficauon.
42. Power to make regulatzons.-(1) The Iloatd may, by notification in the Gazette, make regulations not mconmtent with this Act and the rules made thereunder for the purpose of gtvmg effect to tht: proviSions of this Ace.
(2) In particular, and wtthout prejuc ice to the gener ahty of the fore- gomg po .ver, such regulatio 1S may prov1de for--
(a) the procedure in regard to the transaction of business at the
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I (d) the manner in.which and the form in which the accounts of the .Board shall be mamtained ;
(e) any other matter which has to be, or may be, prescribed by regulations .
(3) No regulation or its cancellation or modification shall have effect unless the same is approved by the Government.
(4) The Government may, by notification m the Gazette, rescind <~ny re!Ulat10n made under this secnon and, thereupon, the regulation shall cease to have effect.
43. Amendment of section 8, Central Act 4 of 1936.-In section 8 of the Payment of Wages Act, 1936 ( Crntral Act 4 ot 1936) , in its applicatiOn to ·the State of Kerala, 11. sub-section (8) , before the Explanatzon, the following proviso shall be inserted, namrly :-
"Provided that m the case of any establishment to which the Kerala .Labour Welfare Fund Act, 1975, applies all such realisations shall be paid into the Fund constlluted under that Act.".
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