Andhra Pradesh - Labour Welfare Fund Act 1976

The Andhra Pradesh State Government has enacted legislation, first enacted as Andhra Pradesh Labour Welfare Fund Act, 1987 and last amended in 2015. The Act was established to promote the welfare of labourers and employees engaged in factories, mines, establishments and other workplaces by establishing and maintaining a labour welfare fund within the prescribed limits.

The Act provides rights to safeguards and benefits to labourers and employees working under any establishment. It has various sections detailing the new fund for welfare, the establishment of the board of trustees for management etc.

The legislation has been passed to protect the interests of working people in the State. The governmental authorities are responsible for collecting funds through tax, and they allocate welfare money, such as a pension, gratuity, etc., with the help of the Labour Welfare Fund. This fund is also used for active labour welfare measures and schemes as per the Act's provisions.

Table of Contents

What is the Andhra Pradesh Labour Welfare Fund Act, 1987?

The Andhra Pradesh Labour Welfare Fund Act, 1987 is better known as the Andhra Pradesh Labour Welfare Fund. The Andhra Pradesh, Labour Welfare Fund, is a statutory fund established by the state government for the welfare of workers in the unorganised sector. The fund's primary purpose is to provide financial assistance (loan) to poor workers who cannot meet their needs due to various reasons like illness, accident etc.

It was started to provide financial assistance to the unemployed youth and women in rural areas and backward classes by providing employment opportunities. The scheme also aims to provide financial assistance for social security schemes such as old age pension, widow pension, disability allowance etc.

This Act aims to ensure that all workers receive fundamental rights like minimum wages, social security benefits, pension schemes, etc., and to provide a welfare fund from which these benefits can be paid out.

The Act also lays down specific duties and responsibilities of employers towards their employees. It allows for establishing Labour Courts and Labour Appellate Tribunals to adjudicate disputes between employers and employees.

The Andhra Pradesh Labour Welfare Fund Act, 1987 is legislation passed by the Government of Andhra Pradesh to provide social security to the unorganised labour in the State. The Act provides for the setting up of a Labour Welfare Fund, which will be administered by a Board of Trustees appointed by the Government.

Significance of Andhra Pradesh Labour Welfare Fund Act

The Andhra Pradesh Labour Welfare Fund Act, 1987, was enacted to provide for the creation of a fund called Labour Welfare Fund to provide benefits under this Act. The fund is to be constituted by employers' contributions in accordance with the State Government's rules. The Act also provides for the setting up of state labour welfare boards and district labour welfare boards at the state and district levels.

The Act aims at providing financial assistance to workers in distress, providing medical facilities and insurance to them and their dependents. The Act provides for the Andhra Pradesh Labour Welfare Fund (APLWF), consisting of contributions from the employers, employees and State Government toward the welfare of workers.

The purpose of this Act is to establish an adequate system of providing financial assistance to workers injured in industrial accidents or suffer from occupational diseases or who die in an accident or because of an occupational disease.

The Andhra Pradesh Labour Welfare Fund Act provides benefits to workers employed in industrial establishments, such as wages, provident fund contributions and other benefits. The APLWF Act protects the interests of industrial workers by providing social security benefits and welfare measures.

It provides for registration of industrial establishments under its purview and lays down conditions for registration like a minimum number of employees etc. It also prescribes the periodicity of payments like a contribution towards provident fund etc.

What is the purpose of the Andhra Pradesh Labour Welfare Fund Act?

The provisions of this Act shall apply to any establishment having more than ten workers on its rolls at any time during a year in which contribution under this Act becomes due. However, suppose there are less than ten workers on the rolls. In that case, such establishment shall be exempted from making contributions under this Act but not from payment of contributions under any other law.

The main objective of the Andhra Pradesh Labour Welfare Fund Act, 1987 is to establish a fund called the "Labour Welfare Fund" to provide financial assistance to workers who have become unemployed due to closure or cessation of work in any establishment. The purpose behind establishing this fund is also to provide amenities like housing accommodations, medical facilities and other facilities like education etc.

The contribution payable by an employer under this Act would be equal to one per cent of the total wages paid during a year by him in respect of his employees employed at any time during such year in an establishment where more than ten persons were employed time during that year.

The Act aims to ensure social security and protect workers' interests. It also provides for establishing a Labour Welfare Fund by collecting contributions from employers towards this fund. The fund is to be used exclusively for such purposes as may be prescribed by rules made by the Government from time to time.

What are the objectives of the Andhra Pradesh Labour Welfare Fund Act?

The Andhra Pradesh Labour Welfare Fund Act, 1987, was enacted to establish a fund for the benefit of workers. The Act's main objective is to provide workers benefits in case of accidents at work, illness and retirement. Contributions from employers and employees fund the scheme.

The main objectives of the Andhra Pradesh Labour Welfare Fund scheme are:

To make provision for relief to persons employed in any industrial establishment who may be injured by accident or disease arising out of and in the course of employment
To make provision for compensation to families of persons who may die by accident or disease arising out of and in the course of employment
To make suitable arrangements for providing relief in cases of natural calamities like drought or floods
To make provision for medical relief to persons suffering from accident or disease arising out of and in the course of employment
To provide medical facilities for treatment of such persons as are referred by an employer or his representative
To provide financial assistance for social security schemes such as old age pension, widow pension, disability allowance
To make provision for training facilities at least at the primary level for those who lose their employment because they do not possess requisite skills
To undertake research work concerning occupational hygiene, safety
To provide performance-related incentives and bonuses related to festivals like Diwali

Benefits of the Andhra Pradesh Labour Welfare Fund Act

The main objective of the Andhra Pradesh Labour Welfare Fund Act 1987 is to establish a fund to provide financial assistance to workers in distress. The Government has passed an act for the welfare of workers in the State. It provides for various facilities such as employment, education, health and housing facilities for the workers.

The Act provides for employment by providing employment opportunities to unemployed or under-employed persons to increase their income earning capacity through wage or salary employment. Employment opportunities are provided to those who cannot gain employment due to unemployment or under-employment or whose earnings have been reduced due to fluctuations in market prices of agricultural produce and other factors affecting their earnings.

It provides for a Labour Welfare Fund to be created from the contributions made by employers and employees. The fund would be used to assist workers in distress and provide medical facilities for them and their dependents.

The Andhra Pradesh Labour Welfare Fund Act, 1987 provides for the following facilities:

Providing a medical facility for diseases arising out of employment
Providing medical facilities for injuries sustained by employees during employment
Providing lump sum compensation in case of death or permanent disability arising from accidents at work
Providing a monthly pension to persons rendered permanently incapacitated by accident or disease occurring during employment
Providing gratuity to specific categories of employees
Establish Labour Welfare Boards in each district to plan and implement programmes for the welfare of labourers

Why is the Andhra Pradesh Labour Welfare Fund Act necessary?

The Andhra Pradesh Labour Welfare Fund Act, 1987 is a state act which was introduced to facilitate and promote the welfare of the workers and their families in the State of Andhra Pradesh. The state government has set up the Andhra Pradesh Labour Welfare Fund to provide financial assistance to workers in case of death or disablement due to an industrial accident. It also provides for medical treatment for such workers under certain circumstances.

The Act is necessary because it provides a welfare fund for workers in the State. This is an attempt on behalf of the Government to provide social security benefits to workers, which will help them in times of distress like accidents or illness.

The Labour welfare fund has been created as a corpus where contributions made by employers towards welfare measures would be deposited and utilised for providing benefits to workers and their families in case of loss of employment due to reasons beyond their control.

As per the Rules set by the Gazette authority, the Act works annually with the employer contribution accounting for Rs. 70 and an employee contribution to Rs. 30, respectively. The payment can be made online on the labour welfare fund's official website: https://labour.ap.gov.in or https://aplabourwelfareboard.ap.gov.in and can be done after successful registration on the website. The applicant will even obtain a receipt as the acknowledgement of the payment.

Wrapping Up

Since the inception of the modern factory system in the late nineteenth century, the conditions of workers have deteriorated considerably. The growth in industrialisation has been accompanied by a rise in accidents and other work-related illnesses. Workers suffer injuries because of unsafe working conditions and a lack of awareness and training among workers regarding safety precautions at the workplace.

The Andhra Pradesh Labour Welfare Fund Act was enacted to fill this lacuna by establishing a fund for providing medical aid and rehabilitation facilities for injured workers and their families.

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Key Takeaways

The Andhra Pradesh Labour Welfare Fund Act, 1987 aims to provide financial assistance to workers who have suffered a loss of wages or income due to any injury sustained in employment. It also provides medical aid and rehabilitation facilities for injured workers and their families.

It is an attempt by the Government to ensure that the labourers are provided with some benefits such as medical facilities, insurance cover and other facilities like housing loans and other advantages which would ensure a better living standard for them. The Act also provides an appropriate mechanism for distributing funds collected under it among various beneficiaries.

The purposes of this fund are as follows :

The welfare of labour through social security schemes
Promotion of education, health, housing and other amenities for labourers
Development of safety and security among labourers
Encouragement of industrial democracy by giving representation to workers in the management of industries; the State Government shall consult with the labour unions before taking any decision affecting the interests of workers
The objective of setting up this fund was to help workers in the unorganised sector get access to savings, loans and insurance facilities at reasonable interest rates
It includes other benefits, including medical care and unemployment allowance