Maharashtra Labour Welfare Fund Act

Maharashtra Labour Welfare Fund Act

Deskera Content Team
Deskera Content Team
Table of Contents
Table of Contents

The Maharashtra Labour Welfare Fund Act of 1953 attempts to ensure a more organized, efficient and beneficial system of providing relief to the employees. The Act was passed by the Maharashtra state legislature and came into force on December 15 1959.

Another essential feature of the Act is its applicability to all sectors where industries are functioning. Besides factories, mines, oilfields, plantations, and other establishments falling under the purview of the individual acts have been included in the ambit of this Act.

The main objective behind this legislation is to provide immediate financial assistance to the workers during any calamity or distress due to industrial or other accidents. Furthermore, the funds collected through this legislation will be utilized for different purposes, such as providing medical treatment or compensation to injured or deceased employees and their dependents.

Let us dive deeper into the Maharashtra Labour Welfare Fund Act:

1) What is the Maharashtra Labour Welfare Fund Act?

2) Maharashtra Labour Welfare Fund-An Overview

3) Significance of Maharashtra Labour Welfare Fund Act

4) What is the purpose of the Maharashtra labour welfare fund Act?

5) What are the objectives of the Maharashtra labour welfare fund Act?

6) Benefits of Maharashtra Labour Welfare Fund Act

7) What are the key features of the Maharashtra Labour Welfare Fund Act?

8) Why is the Maharashtra Labour Welfare Fund Act necessary?

What is the Maharashtra Labour Welfare Fund?

The Maharashtra Government enacted the Maharashtra Labour Welfare Fund Act in 1953 to provide for the constitution and management of a fund called the Maharashtra Labour Welfare Fund and for matters connected in addition to that or incidental to that.

The objective of the Maharashtra labour welfare fund Act is to provide financial assistance and services to workers and their dependents employing grants and loans, medical aid and other forms of social security.

The objective of this Act is to provide a social security cover to the employees and their dependents during the risks of old age, sickness, unemployment and any other insurable risk.

The Act ensures compensation for unemployment, illness, injury and death due to injuries suffered by an employee during employment. It also covers old-age pensions for all those persons who have retired from industries or establishments under this Act.

The amendments were made because the Government wanted to correct the imbalance between employers and employees. Therefore, the Fund was created so that both employers and employees could benefit from it.

Maharashtra Labour Welfare Fund-An Overview

The Maharashtra state government enacted the Maharashtra Labour Welfare Fund Act in 1953. The Act applies to all employers in the state except for businesses that are not self-financing. It also does not apply to state government agencies and employees.

The Act was intended to ensure that workers affected by a business or changing industry closure could receive a pension through a central fund. This has been cited as one of its primary benefits.

Its substantial penalties include a financial penalty for failing to comply with the law, which is noted as rather costly for small businesses, and the potential for imprisonment for employers who commit fraud against the Fund or neglect their duties under the law.

Significance of Maharashtra Labour Welfare Fund Act

The Maharashtra State Government established the Maharashtra Labour Welfare Fund Act in 1953 to provide social security to workers employed in establishments where a labour welfare fund was created. The state government recognizes the importance of providing support to workers and their families and has passed the Act based on this realization.

The Act is significant because it provides immediate financial benefits to workers in case of severe injury or death and their families in case of death. It also includes mechanisms for filing complaints against employers who violate provisions of the Act.

The management of these funds is essential because they help provide medical aid, education, housing, and travel reimbursements to workers who cannot receive these services through their regular employment.

What is the purpose of the Maharashtra labour welfare fund Act?

The Maharashtra State Government has passed the Maharashtra Labour Welfare Fund Act, 1953. The Act came into force on December 15, 1959, to encourage industrial peace by establishing a welfare fund for workers and providing financial assistance.

The Act is aimed at:

– Providing to the workers employed in any industry or employment, other than works contract services, benefits from the welfare fund;

– Providing adequate financial assistance to such workers in case of accidents, illness or other emergencies that may render them helpless;

– Providing rehabilitation aid and monetary relief in case of accidents and deaths occurring during working hours or otherwise in connection with their employment;

– Providing to such workers and their families medical aid and also medical relief in certain other cases;

– Providing to such workers and their families care and monetary relief in old age or when they are incapacitated due to sickness or disablement;

– And generally providing for matters connected with or incidental to the protection and welfare of such workers.

What are the objectives of the Maharashtra labour welfare fund Act?

The Act also provides for a Maharashtra Labour Welfare Fund, administered by the Government of Maharashtra and contributes to it by both employers and employees. The objectives of this Act are as follows:

  • To provide relief, compensation or rehabilitation to any worker or their dependents in case of death, injury or permanent disability due to employment;
  • To secure contributory disability pension for any worker or their dependents in respect of permanent disability;
  • To provide welfare measures for the benefit of workers;
  • To provide assistance and facilities to workers during periods of emergency arising out of natural calamities etc.;
  • To maintain records and accounts in respect of such relief as may be provided under the Act;
  • To make provisions for safeguarding contributions made by employers and employees towards the Fund and also to secure their payment into the Fund;
  • To make provisions for imposing penalties for a false statement made or information furnished by an employer or employee concerning his contribution;

Benefits of Maharashtra Labour Welfare Fund Act

The Maharashtra Labour Welfare Fund Act is a law that provides the creation of a fund for labour welfare and regulates the establishment of welfare boards.

The Act also specifies the conditions under which welfare boards can make grants for providing labour welfare facilities and other purposes related to labour welfare. The Act is applicable throughout Maharashtra, except for Mumbai-city.

  • It extends the period for which a worker can claim compensation in case of injury or death from three years to five years.
  • It allows deserving workers to claim compensation in cases where they could not do so because of reasons beyond their control.
  • It increases the compensation amount from Rs10,000 to Rs15,000 in cases of death caused by injuries while performing work duties.
  • There would be no restriction on the number of times a worker can claim compensation.
  • A worker eligible for compensation can receive it either as an annuity, as a lump sum payment or as a combination of both.

What are the key features of the Maharashtra Labour Welfare Fund Act?

Section 1 of the Maharashtra Labour Welfare Fund Act provides the constitution. A trust fund was set up to manage and operate labour welfare schemes sponsored by the Government of Maharashtra. The project is managed by a trustee and used by a Managing Committee.

Section 2 provides for the composition of the trust and its term, which shall be 15 years from the date of its constitution.

Section 3 provides for the powers, duties and liabilities of the trustee, including regulation of the procedure for appointment and removal of trustees.

Section 4 provides for general functions of the trust, including being responsible for maintaining records of contributions, payments and investments in securities.

Section 5 provides for investments to be made by or under the trustee's direction following any investment policy formulated by it with prior approval from the Government.

Section 6 provides details on capital accumulation and withdrawals.

Section 7 requires that all labour welfare schemes sponsored or aided by the Government shall be managed by or under a trust deed approved by Development Commissioner or any officer authorized on this behalf.

Section 8 requires that any person desirous of sponsoring a new scheme must apply to the development commissioner or officer authorized by him on this behalf. After such an application is made, the development commissioner will examine it and approve it whenever he finds that such a scheme is bona fide.

Why is the Maharashtra Labour Welfare Fund Act necessary?

In the era of globalization, it's no secret that some companies are exploiting their workers to strengthen their bottom line. Some industries don't even pay minimum wage, and they're not afraid to fire employees and hire new people when they need to.

From shoddy work environments to long hours without breaks or overtime pay, these practices are dangerous for the employees' health and undermine their ability to provide for their families, which puts a strain on communities.

The Maharashtra Labour Welfare Fund Act addresses this issue by requiring employers to set aside 3% of all employee wages into a fund meant for their retirement, providing medical care in case of injury or illness, and offering financial assistance for any worker who is injured or falls ill during their employment.

Corporations that do not comply with these regulations will be fined up to 100 times the amount set aside from each worker's paycheck.

This mandatory contribution aims to help support and develop welfare programs for workers in the state. The Maharashtra Government created the Fund to help provide various benefits and services for workers, including health care and retirement benefits.

Wrapping Up

Maharashtra Labour Welfare Fund Act is a significant step taken by the Government to create awareness for the labourers who are not getting their dues on time.

This Act reveals that the Government is concerned about their citizens, and they will take all possible measures to ensure their welfare. The Act will be implemented across Maharashtra state, which would give labourers hope to get their due on time and improve their well-being.

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Key Takeaways

  • The Maharashtra Labour Welfare Fund Act was established to provide for workers' welfare and create a system for the effective implementation of welfare measures. Here are a few key points about this Act that includes:

- Welfare of workers
- Effective implementation of welfare measures
- Establishment of committees
- Equality between men and women in employment matters
- Outlines the dangers of manual handling
- Requires measures to prevent it

  • The MLWFA aims to achieve the objectives by assisting unemployed persons, workers who have incurred injuries during employment, their dependents, and medical treatment for disabled workers and their dependents.
  • It is also employed to develop skills, training, and research in labour welfare through special programs funded through grants from Governmental agencies/private bodies or individuals with due approval from State Government.
  • The objective is to promote cooperation between Governmental agencies, employers' organizations, trade union organizations, voluntary organizations for maintaining harmony between workers and employers; to encourage greater cultural exchange between India and other countries through international conventions convened by ILO etc.; and to undertake any other documentary or welfare activity incidental or conducive to achieving the above objectives
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