As per the Haryana Shops & Establishment Act, the Labour Welfare Fund (LWF) is a statutory contribution that aims to provide social security and welfare benefits to laborers. In the case of contractual employees working in different states, the applicability of LWF can vary based on the specific state laws and regulations.
Here are the steps to determine whether you need to deduct LWF for your contractual employees working in different states and where to submit the contributions:
1. Check Applicable Laws: Review the Shops & Establishment Act of each state where your contractual employees are working to understand the provisions related to LWF.
2. Employee Count Criteria: Some states mandate LWF deductions based on the number of employees. Ensure you meet the minimum employee count threshold as specified by the respective state laws.
3. State-wise Compliance: If the state laws require LWF deductions for contractual employees, you should deduct the contributions from their salaries as per the applicable rates in each state.
4. Submission Location: Generally, LWF contributions are submitted in the state where the employees are employed. Therefore, if your contractual employees are working in Ahmedabad, Andhra Pradesh, Chennai, etc., you would need to submit the LWF contributions in the respective states where they are employed.
5. Consult Legal Experts: To ensure compliance with the diverse state regulations and avoid any penalties, it is advisable to consult with legal experts or labor law consultants who are well-versed in the specific requirements of each state.
By following these steps and adhering to the relevant state laws, you can ensure proper compliance with LWF regulations for your contractual employees across different states.