It provides facilities to labourers to improve their working conditions, provide social security, and raise their standard of living. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer.
To provide social security to workers, the government has introduced the Labour Welfare Fund Act. This Act has been implemented only in 15 states out of 34 states, including Union Territories.
The employer needs to make the deduction from the salary of the employee and submit the same to the Labour Welfare Fund Board in the prescribed form before the due date.
The Labour Welfare Fund Act does not apply to all categories of employees working in the establishment. It depends upon the wages earned and designation of the employee. Also, one needs to check the total number of employees working before extending this Act to their establishment.