The Bombay Labour Welfare Fund (Amendment) Act, 2003 Complete Act - Bare Act

An Act further to amend the Bombay Labour Welfare Fund Act, 1953.

Whereas it is expedient further to amend the Bombay Labour Welfare Fund Act,

1953, (Bom. XL of 1953) for the purposes hereinafter appearing; it is hereby enacted in the Fifty-fourth Year of the Republic of India as follows:

STATEMENT OF OBJECTS AND REASONS

The Bombay Labour Welfare Fund Act, 1953 (Bom. XL of 1953), is enacted to provide for the constitution of a Welfare Fund for the financing of activities to promote welfare of labour in the State of Maharashtra and for conducting such welfare activities. Under the existing provisions, the employees covered by the said Act include, inter-alia, persons employed in a supervisory capacity drawing wages upto and inclusive of two thousand and five hundred rupees per mensem. This ceiling of wages was based on provisions of the Payment of Bonus Act, 1965, as amended from time to time The Payment of Bonus Act, 1965 has since been amended to cover thereunder employees drawing salary or wages not exceeding three thousand and five hundred rupees per mensem. It is, therefore, proposed to amend the existing definition of the expression "employee" in section 2(2) of the Bombay Labour Welfare Fund Act, 1953, suitably, to enlarge the coverage under the Act of the persons employed in supervisory capacity drawing salaries upto rupees three thousand and five hundred per mensem.

Section 6BB of the said Act provides for every six-monthly contribution to be made to the Fund by the employees, employers and also by the State Government. Over the decades there has been substantial increase in the- welfare activities conducted by the Board and also the number of workers and their dependants taking the benefit of the welfare activities as also cost of the staff, by way of salary and allowances, has gone up substantially. Besides the Board has also undertaken construction of Labour Welfare Centre buildings at many industrial cities and towns in the State. Therefore with a view to enable the Board to finance the increased Welfare Fund activities and to undertake construction of Labour Welfare Centre Projects, it is expedient to augment the Welfare Fund by increasing the existing rates of six-monthly contributions to the Fund Payable, as follows:

(i) contribution by the employees " the amount of contribution by the employee is made six rupees in respect of every employee drawing wages up to and inclusive of three thousand rupees per mensem, and twelve rupees in respect of every employee drawing wages exceeding three thousand rupees per mensem.

It is also proposed to take power to the State Government to enhance once in every three years, the quantum of employee's contribution by issuing a notification in the Official Gazette, so, however that, such increase shall not exceed 30 per cent of the quantum of contribution,

(ii) contribution by the employer " contribution by the employer is to be at the rate of three the amount of contribution payable by the employees, and

(iii) by the State Government, an amount equal to half the employee's contribution for the period from the 31st December 2000 to the 31st March 2003; and an amount equal to twice the employee's contribution with effect from the 1st April 2003, in respect of every such employee as referred to in sub-clauses (i) and (ii) of clause (a) of sub-section (2) of section 6BB.

Hence this Bill.

(1) This Act may be called the Bombay Labour Welfare Fund (Amendment) Act, 2003.

(2) It shall be deemed to have come into force on the 7th January 2002, save as otherwise expressly provided anywhere in the provisions of this Act.

(1) In Section 2 of the Bombay Labour Welfare Fund Act, 1953 (Born. XL of 1953) (hereinafter referred to as "the principal Act"),-

(a) for clause (2), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 31st December 2000, namely:

(2) "Employee" means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency, but does not include any person

(i) who is employed mainly in a managerial capacity,

(ii) who, being employed in a supervisory capacity, draws wages exceeding three thousand and five hundred rupees per mensem, or exercises powers or carries out, 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

(iii) who is employed as an apprentice under the Apprentice Act, 1961

(52 of 1961);"

(b) in clause (4), in sub-clause (iii), after the words "five or more persons", the following words shall be added, namely: "including the establishments which have been granted exemption partly or wholly under the proviso to section 4 of that Act."

In Section 4 of the Principal Act, in sub-section (1),-

(a) in clause (b), the word "and" shall be deleted;

(b) after clause (c), the following clauses shall be added, namely:

(c) the Principal Secretary or Secretary (Finance) or his nominee shall be the ex-officio member; and

(e) the Principal Secretary or Secretary (Labour) or his nominee shall be the ex-officio member."

(a) in sub-section (2),- (i) in clause (a),-

(A) in sub-clause (i), for the words "one thousand rupees per mensem, one rupee" the words "three thousand rupees per mensem, six rupees" shall be substituted and shall be deemed to have been substituted with effect from the 31st December

2000;

(B) in sub-clause (ii), for the words "one thousand rupees per mensem, two rupees" the words "three thousand rupees per mensem, twelve rupees" shall be substituted and shall be deemed to have been substituted with effect from the 31st December 2000;

(ii) to clause (a), the following proviso shall be added, namely: -

"
Provided that, the State Government may, on receipt of a proposal from the Board by notification in the Official Gazette, increase once in every three years, the rate of employee's contribution so, however that, such increase shall not exceed 30 per cent of the rates of contribution.";

(iii) for clause (b) and the existing provisos, the following clause shall be substituted and shall be deemed to have been substituted with effect from the 31st December 2000, namely: "(b) in respect of an employer for each employee referred to in sub-clauses (i) and (ii) of clause (a), thrice the amount of contribution payable by an employee;

(b) in sub-section (8), for the portion beginning with the words "an amount equal to" and ending with the word "respectively", the following shall be substituted and shall be deemed to have been substituted with effect from the 31st December 2000, namely:-

"an amount equal to half the employee's contribution for the period from the 31st December 2000 to the 31st March 2003; and an amount equal to twice the employee's contribution with effect from the 1st April 2003, in respect of every employee referred to in sub-clauses (i) and (ii) of clause (a) of sub-section (2)".

In section 6B of the Principal Act, in sub-section (2),

(a) in clause (a),

(i) in sub-clause (i), for the words "one per cent" the words "one and a half per cent" shall be substituted;

(ii) in sub-clause (ii), for the words "one and a half per cent" the words "two per cent" shall be substituted;

(b) in clause (b),

(i) in sub-clause (i), for the words "one per cent" the words "one and a half per cent" shall be substituted;

(ii) in sub-clause (ii), for the words "one and a half per cent" the words "two per cent" shall be substituted.

In section 22 of the Principal Act, for the words "Government may" the words "Government may, after consulting the Board," shall be substituted.