Objective

It empowers the establishment and shop of a Labour welfare fund in Madhya Pradesh; it is to channel unpaid wages, unclaimed bonuses, gratuities and fines. Madhya Pradesh Labour welfare board administered this fund. It includes employee and employer contributions.

Applicability

Any commercial establishment and shops employing more than 1 or more employees fall under this act. Its enforcement is overseen by the Labour Commissioner.

Key Provisions

1. Contribution by Employee is Rs. 50 from its wages every 6 months. That of employer should not be less than Rs. 2500/- for every 6 months.

2. It is submitted half yearly.

3. Now the fund is transferred through online mode to Welfare Commissioner.

4. Record Register should be maintained, and it should be annually submitted to welfare commissioner.

Penalties and Compliance

1. For non-compliance employer has to pay interest and fines.

2. Contribution should be submitted half yearly by 30th June and 31st of December 3. Return should be file half yearly by 15 July and 15 Jan of the month.

4. Employer has to maintain the register of wages, deductions and fine.

Recent Amendments