Labour Welfare Fund (LWF) - CiteHR
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Adoni Suguresh
Sr.executive (per & Adm)
Management Consultants Legal & Hr
Hr & Admin
Private Consultant On Labour Laws
A Bit Knowledge Of Payoll & Hr
+1 Other

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Dear All
We got 100+ employees in three different location (Chennai, Coimbatore & Kerala). Till last year we paid LWF in chennai itself (for all location employees). Kindly advise whether it is correct or wrong?
Recently our Company auditor advised us to pay LWF in respective places. Is it correct or wrong? if correct pls explain.

Labour Offices are state specific. How LWF for Kerala can be deposited for TN Govt? Pon
Hi Could u pls provide me location wise employee count and nature of ur business.
good question
It should be payable in respective state so that the employees can be benefitted more if flood in their area they will get benefits from LWF like ESI. Also if its factory, monthly will get towel / soap. pl check lwf web u can easily understand this has happened 5 to 7 yrs before. but govt is doing the practice

Dear Mr. John,
Your query is not clear. You please mention your Companys locations, whether it will fall under State Government or Central Government. How you are paying the Labour Welfare Fund to the Commissioner. As the Labour Welfare Fund Organization is differ from state to Central. What is your companys product. If you furnish all these, it will be appropriate to the experts to give their opinion. Always be free and frank while seeking any advice.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

Dear John,

Your Company auditor has advised you correctly to pay the LWF in respective places. It is basically wrong to pay the LWF at one place when your establishment has been located at different places that too in three different states.I think it is more important you to understand the very purpose of labour welfare fund ,which refers to basic facilities provided to labour by the STATE in order to improve their working conditions, provide social security and raise their standard of living particularly for the working class in unorganized sector. Now the labour welfare fund deposited in Chennai for the workers who are working in Coimbatore & Kerala has no access to the labor welfare fund schemes available in Chennai.All three states have framed their own labour welfare funds acts for the working class in their states,as such you may go through those and comply with their rules.

As regards the postings of Sh Adoni Suguresh,I wish to clarify him that the labour welfare funds run by the State Government or Central Government are quite different and has no relevence with one another.The Central Government collects cess from the employers and frames various welfare schemes for the mines, beedi and cine workers whereas the states collects the labour welfare funds from the employers of establishments,factories etc to provide various labour welfare schemes to their working class, which differs from states to states.

BS Kalsi

with pertaining to above issue,
LWF can be paid in Chennai even for Coimbatore employees. (with in same state)
Kerala: Seperate LWF to be Paid.
we are having 10 branches across Pan india. for Coimbatore Employees LWF are being paid in chennai for the past 4 years.
for PT : with in the state if we have more than two branches then PT to be paid in that Location particular location.

Dear John,
In short I wish to answer in response to your query.
Your auditor has rightly pointed out you to pay LWF in respective places. You may be aware that LWF is a State Act and rate varies from State to State.Moreover, employees will get benefit under the said Act if the LWF contributions are deposited in respective States / Places where they are employed.
Hence, for different States, you have to obtain separate Registration number after fulfilling formalities for the purpose of correct compliance as well welfare of employees who are covered under the said Act.

— — — — — — - Pl.let me know whether all these employees are inter-changeable/transferable or they will be permanently posted in their respective states.
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