Section 6

The Bombay Labour Welfare Fund Act,1953(Bombay Act XL of 1953) As Extended To The Union Territory of Delhi

Resignation of office by member and filling up casual vacancies
A member may resign his office by giving notice thereof in writing, to the Administrator, and on such resignation being accepted, shall deemed to have vacated his office.
A casual vacancy in the office of a member shall be filled up, as soon as conveniently may be, by the authority concerned and a member so nominated shall hold office for the unexpired portion of the term of the office of his predecessor.
No act or proceedings of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in constitution of the Board.
Power to appoint Committees

For the purpose of advising the Board in the discharge of its functions and also for carrying into effect any of the matters specified in sub-section (2) of section 7, the Board may constitute one or more Committees, of which at least one on each Committee shall be a member of the Board.

Unpaid acumulations and claims there to
All unpaid accumulations shall be deemed to be abandoned property.
Any unpaid accumulations paid to the Board in accordance with the provision of section 3 shall on such payment, discharge an employer of the liability to make payment to an employee in respect thereof but to the extent only or the amount paid to the Board, and the liability to make payment to the employee to the extent aforesaid shall subject to the succeeding provisions of this section be deemed to be transferred to the Board.
  As soon as possible after the payment of any unpaid accumulations is made to the Board, the Board shall by notice (containing such particulars as may be prescribed)-
exhibited on the notice-board of the factory or establishment in which the unpaid accumulation was earned and
deleted by Maharashtra 22 of 1964
also published in any two newspapers circulating and in the language commonly understood in the area in which the factory or establishment in which the unpaid accumulation was earned is situate, or in such other manner as may be prescribed, regard being had to the amount of the claim, invite claims by employees for any payment due to them. The notice shall be inserted in the manner aforesaid in June and December of every year, for a period of three years from the date or the payment of the unpaid accumulation to the Board.
If any question arises whether the notice referred to in sub-section (3) was, given as required by that sub-section, a certificate of the Board that it was so given shall be conclusive.
If a claim is received whether in answer to the notices or otherwise, within a period of four years from the date of first publication of the notice in respect of such claim, the Board shall transfer such claim to the Authority appointed under section 15 of the payment of Wages Act, 1936 (IV of 1936), having jurisdiction in the area in which the factory or establishment is situated, and the Authority shall proceed to adjudicate upon and decide, such claim. In hearing such claim, the Authority shall have the powers conferred by, and follow the procedure (in so far as it is applicable) for lowed in giving effect to the provisions of that Act.
If the Authority aforesaid is satisfied that any such claim is valid so that the right to receive payment is established, it shall decide that the unpaid accumulation in relation to which the claim is made shall cease to be deemed to be abandoned property, and shall order the Board to pay the whole of the dues claimed, or such part thereof as the Authority decides are properly due, to the employees; and the Board shall make payment accordingly:
Provided that, the Board shall not be liable to pay any sum in excess of that paid under sub-section (1) of section 3 to the Board as unpaid accumulations, in respect of the claim.
If a claim for payment is refused, the employee shall have a right of appeal to the District Court, and the Board shall comply with any order made in appeal. An appeal shall lie within sixty days of the decision of the Authority.
The decision of the Authority, subject to appeal aforesaid, and the decision in appeal of the District Court, shall be final and conclusive as to the right to receive payment, the liability of the Board to pay and also as to the amount, if any.
If no claim is made within the time specified in sub-section (5), or a claims has been duly refused aforesaid by the Authority, or on appeal by the Court, then the unpaid accumulations in respect of such claim shall accrue to, and vest in, the State as bona vacantia and shall thereafter, without further assurance be deemed to be transferred to, form part of, the Fund.
The contribution payable under this Act in respect of an employee in an establishment shall comprise contribution, payable by the employers (here-in-after referred to as 'the employers contribution') contribution payable by such employee (here-in-after referred to as 'the employee's contribution') and the contribution payable by the Administrator and shall be paid to the Board and form part of the Fund.
The amount of contribution payable every six months in respect of every employee shall be 75 paise, only if the name of such employee stands on the register of an establishment on 30th June and 31st December, respectively; and in respect of an employer for each such employee shall be 225 paise payable every six months.
Every employer shall pay to the Board both the employer's contribution of 225 paise and the employee's contribution of 75 paise, before the 15th day of July and 15th day of January.
Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and any rules, the employer shall in the case of any such employee be entitled to recover from the employee that employee's contribution by deduction from his wages, and not otherwise; and such deduction shall be deemed to be a deduction authorised by or under the Payment of Wages Act, 1936 (4 of 1936).
Provided that, no such deduction shall be made in excess of the amount of the contribution payable by such employee, not shall be made from any wages other than the wages for the months of June and December.
Provided further that, if through inadvertance or otherwise, no deduction has been made from the wages of an employee for the months aforesaid, such deduction may be made from the wages of such employee for any subsequent months or months with the permission in writing of the Inspector appointed under this Act.
Notwithstanding any contract to the contrary, no employer shall deduct the employer's contribution from any wages payable to an employee or otherwise recover it from the employee.
Any sum duly deducted by an employer from the wages of an employee under this section shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.
An employer shall may the employer's and the employee's contribution to the Board by check, money order or in cash, and he shall bear the expenses of remitting to the Board such contributions.
The Welfare Commissioner shall submit to the Administrator as soon as possible after the end of July and January every year in the prescribed form a statement showing the total amount of the employee's contribution and the employees' contribution in respect of employees in each establishment. On receipt of the statement from the Welfare Commissioner the Administrator shall pay to the Board, a contribution of an amount equal to twice the employees contribution in respect of that establishment.
6B. Interest on unpaid accumulations or fines after notice of demand
If an employer does not pay to the Board any amount of unpaid accumulations, or fines realised from the employees or the amount of the employer's and employee's contributions under section 6BB within the time he is required by or under the provisions of this Act to pay it, the Welfare Commissioner may cause to be served a notice on Such employer to pay the amount within the period specified therein, which shall not be less than thirty days from the date of service of such notice.
If the employer fails, without sufficient cause, to pay any such amount within the period specified in the notice, he shall, in addition to that amount, pay in the Board simple interest-
(a) in the case of a failure to pay any amount of unpaid accumulations or fines realised from the employees:-
for the first three months, at one per cent, of the said amount for each completed months, after the last date by which he should have paid it according to the notice; and
thereafter, at one and a half per cent of that amount for each completed month, during the time he continues to make default in the payment of that amount;
in the case of a failure to pay any amount of the employer's and employees' contributions under section 6BB,-
for the first three months, at one per cent of the said amount for each completed month, after the last date by which he should have paid it in accordance with the provisions of sub-section (3) of section 6BB; and
thereafter, at one and a half percent of that amount for each completed month, during the time he continues to make default in the payment of that amount;
Provided that, the Welfare Commissioner may, subject to such conditions as may be prescribed, remit the whole or any part of the penalty in respect of any period.

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Last Updated : 23 Mar,2014