Labour welfare fund is a statutory contribution managed by individual state authorities. It is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
The employer and employee should make payment of contribution towards labour welfare Fund annually / halfyearly.
The returns mentioning the no.of employees in the organisation, contribution details, payment details should be sent to the authorities concerned and registers to be maintained as per the applicability
Any amount due to the employees but no claimed for more than three are to be treated as unclaimed wages and the said amount should be deposited in to the Labour Welfare Fund along with details of employees amount due to each and every employee etc. and the authorities will arrange disbursement of the unclaimed accumulations to the concerned employee by initiating necessary communication procedures.
The board constituted for the purposes of employees in the name of Labour Welfare fund is administrated by the board and financial assistance is given to the needy employees for the purpose of education, hospitalization, marriage, self employment etc