Is Bombay Labour Welfare Fund Act Applicable For IT Company - CiteHR
Industrial Relations And Labour Laws
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Is Bombay Labour Welfare Fund Act Applicable for IT company
We are a IT company with a size of 80 employees, Today inspector form Bombay Labour Welfare Fund Act visited our office & asked yes to pay the contribution for the same.
Kindly let me know are Software company exempted form this contribution? as it clearly stated it is applicable for those working below in the managerial or supervisory.
kindly share the information if any one have offical document on this.
Vishal G

Dear Vishal G,
If no one from your state member is replying then purchase the book on Bombay Labour Welfare Fund Act from the Labour Law Book-seller of your area & then go through the definition of the employee & the contribution provisions of this Act or otherwise do as the Inspector directs you.

If the Inspector has directed to contribute Labour Welfare Fund, you have to pay. If the Bombay Labour Welfare Fund Act exempts persons who are either managers or in supervisory capacity from the definition of an employee as is the case under many other labour enactments, then exempt them from contribution and contribute Labour welfare Fund in respect of others.

Being an IT company can you say that all those who are working in your company are "managerial or Supervisory" employees? What is meant by an employee having managerial or supervisory powers? If you simply say that one person is a supervisor, the same may not be accepted unless you prove that he has any supervisory powers, at least to sanction a leave to his subordinate employee or to appraise the performance of a subordinate.

It is not even possible to imagine that an establishment can work without "employees" but only with "Managers". IT sector may enjoy some benefits but not exempted from operation of basic laws. Therefore, if your IT Company is given licence to run under the Maharashtra Shops and Commercial Establishments Act, you are bound to pay welfare fund also subject to such conditions as provided under the Act.



Welfare Fund is a state subject and, therefore, the contribution and returns thereto should also be sent for each unit separately to each state’s welfare fund board. Regards, Madhu.T.K
Dear all
actually our company is registers in Noida. As per our business we are deployed our employee across India at client site. we want know that in Noida their is no applicability of LWF. weather we are libel to pay LWF of Deployed employees in each state or not. Please Revert ASAP.
Prakash tiwari
Edit/Delete Message

If separate offices in different states where your employees work have separate Shops and Establishment Registration you have to contribute as per that state's policy irrespective of the location of head office and coverage of LWF to it.

Thanks!! Madhu.T.K giving your valuable advice. could you please tell me what is criteria to submit LWF return in different applicable state. thanks!!! Prakash Tiwari
There will be an Inspector/ Executive Officer under the Welfare Funds of each State who represents a district. Contact him for details. Regards, Madhu.T.K
Dear All
In the light of the judgment of the Bombay High Court Standard Chartered Bank ..Petitioner. Vs.Vandana Joshi and another the defenition of worker has undergone a change .In that citation there is a reference to "Software Industry".Pls take specialist legal advice to avoid any coverage.
With Regards

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