Companies covered under the Shops and Establishment Act need to comply with the statutory requirements mentioned in the Tamil Nadu Labour Welfare Fund Act. I understand that when an employee who is employed in a company governed under the Labour Welfare Fund Act can claim benefits under this act only when their salary is less than INR 15,000 per month. Can any professionals advise whether this benchmark amount can be considered for remitting the contribution for this Fund? In other words, can we take into account only the employees who earn less than INR 15,000 per month for the computation of this contribution?
Similarly, in Form A of this act, there is a column for listing the number of employees who are not covered under this act. Can we mention the number of employees who earn above INR 15,000 per month in this column, or should only the managers/executives/supervisors who are exempt from this contribution be listed in this section? Additionally, if someone can advise on the effective date when INR 3,500 was changed to INR 15,000, it would be appreciated.
Thanks
From India, Chennai
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5Similarly, in Form A of this act, there is a column for listing the number of employees who are not covered under this act. Can we mention the number of employees who earn above INR 15,000 per month in this column, or should only the managers/executives/supervisors who are exempt from this contribution be listed in this section? Additionally, if someone can advise on the effective date when INR 3,500 was changed to INR 15,000, it would be appreciated.
Thanks
From India, Chennai
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Hi
At the outset, the Company is liable to pay the LWF Contribution in respect of employees defined under Section 2(b)(i) which includes the following categories of employees
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 the preceding twelve months whether the terms of employment be express or implied.
It has excluded the following categories of employees [Section 2(b)(i)(a)), (b) and (c)
-(a) who is employed mainly in a managerial capacity
(b) who being employed in a supervisory capacity draws wages exceeding Rs. 1,000 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.
The wage limit Rs.1,000/- fixed under (b) above was enhanced to Rs.3,500/- and the same has been further enhanced to Rs.15,000/- by virtue of amendment to the Act namely; The Tamil Nadu Labour Welfare Fund (Amendment) Act, 2018 which was published in the Official Gazette of Tamil Nadu on 30th January, 2018.
The effective date of enforcement of the amendment with effect from 14th March, 2018
A copy of the Gazette Notifications of 30th January, 2018 and 14th March, 2018 are attached herewith.
Your Query
Which means whether we can take into account the employees who draw less than INR 15000 per month alone for computation of this contribution?
You have to take all the employees as defined in Section 2(b)(i) even though their salary is above INR 15000 per month
In addition, if you have employees in supervisory category and drawing wages more than INR 15000 per month you can exclude them.
In Form A you have to mention in the specific column – number of employees who are not covered you have to mention the number of employees engaged in the category of Supervisors (who draw more than INR Rs.15000/- per month, Managers / Executives.
Regards
Lakshmanan
S.G. Management Services
Kolkata
From India, Kolkata
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At the outset, the Company is liable to pay the LWF Contribution in respect of employees defined under Section 2(b)(i) which includes the following categories of employees
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 the preceding twelve months whether the terms of employment be express or implied.
It has excluded the following categories of employees [Section 2(b)(i)(a)), (b) and (c)
-(a) who is employed mainly in a managerial capacity
(b) who being employed in a supervisory capacity draws wages exceeding Rs. 1,000 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.
The wage limit Rs.1,000/- fixed under (b) above was enhanced to Rs.3,500/- and the same has been further enhanced to Rs.15,000/- by virtue of amendment to the Act namely; The Tamil Nadu Labour Welfare Fund (Amendment) Act, 2018 which was published in the Official Gazette of Tamil Nadu on 30th January, 2018.
The effective date of enforcement of the amendment with effect from 14th March, 2018
A copy of the Gazette Notifications of 30th January, 2018 and 14th March, 2018 are attached herewith.
Your Query
Which means whether we can take into account the employees who draw less than INR 15000 per month alone for computation of this contribution?
You have to take all the employees as defined in Section 2(b)(i) even though their salary is above INR 15000 per month
In addition, if you have employees in supervisory category and drawing wages more than INR 15000 per month you can exclude them.
In Form A you have to mention in the specific column – number of employees who are not covered you have to mention the number of employees engaged in the category of Supervisors (who draw more than INR Rs.15000/- per month, Managers / Executives.
Regards
Lakshmanan
S.G. Management Services
Kolkata
From India, Kolkata
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Thanks a lot Mr. Lakshmanan for a detailed explanatory note. Regards Ravi Kumar Sensiple
From India, Chennai
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From India, Chennai
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Mr. Lakshmanan, Can you confirm for Telangana state, who are comes under the this LWF act.
From India, New+Delhi
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From India, New+Delhi
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Hi Abhiram
The definition of employee under Section 2(2) of The Andhra Pradesh Labour Welfare Fund Act, 1987 reads as follows:-
Section 2 sub-section (2) 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 thirty days during the period of 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 (b) who being employed in a supervisory capacity, draws wages exceeding Rs. 1,600 (Rupees sixteen hundred) per mensum 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;
As per above sub-section (2) Item (ii) Clause (b) the following categories of employees have been excluded from the purview of the Act
a) employed mainly in a managerial capacity
b) employed in supervisory capacity, draws wages exceeding Rs.1,600/- per month 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
Subsequently there was an amendment to the definition of employees which was published in the Official Gazette of Andhra Pradesh on 9th April, 2015. The amendment reads as follows:-
“In sub-section (2) Item (i) Clause (b) shall be omitted”
That means now all employees irrespective of their categories will come under the purview of the Act.
The effective date of the aforesaid amendment is with effect from 23rd day of April, 2015.
Attached, please find the Gazette Notification of the amendment and notifying the effective date.
The Telangana has adopted The Andhra Pradesh Labour Welfare Fund Act vide Telangana Government’s Notification G.O.Ms. No 8 dated 1-2-2016. I do not have this notification with me.
Hence, the Establishment is liable to pay contribution in respect of all the employees irrespective their categories under The Telangana Labour Welfare Fund Act.
Regards
P S Lakshmanan
S G Management Services
Kolkata
From India, Kolkata
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The definition of employee under Section 2(2) of The Andhra Pradesh Labour Welfare Fund Act, 1987 reads as follows:-
Section 2 sub-section (2) 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 thirty days during the period of 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 (b) who being employed in a supervisory capacity, draws wages exceeding Rs. 1,600 (Rupees sixteen hundred) per mensum 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;
As per above sub-section (2) Item (ii) Clause (b) the following categories of employees have been excluded from the purview of the Act
a) employed mainly in a managerial capacity
b) employed in supervisory capacity, draws wages exceeding Rs.1,600/- per month 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
Subsequently there was an amendment to the definition of employees which was published in the Official Gazette of Andhra Pradesh on 9th April, 2015. The amendment reads as follows:-
“In sub-section (2) Item (i) Clause (b) shall be omitted”
That means now all employees irrespective of their categories will come under the purview of the Act.
The effective date of the aforesaid amendment is with effect from 23rd day of April, 2015.
Attached, please find the Gazette Notification of the amendment and notifying the effective date.
The Telangana has adopted The Andhra Pradesh Labour Welfare Fund Act vide Telangana Government’s Notification G.O.Ms. No 8 dated 1-2-2016. I do not have this notification with me.
Hence, the Establishment is liable to pay contribution in respect of all the employees irrespective their categories under The Telangana Labour Welfare Fund Act.
Regards
P S Lakshmanan
S G Management Services
Kolkata
From India, Kolkata
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We are about to get the Labour welfare fund registered this month. Is there any late fee or penality clause in LWF? rgds HRdPuru
From India, Chennai
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From India, Chennai
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TN Labour Welfare Fund 2018.pdf