1[(1) Every employee shall contribute a sum not exceeding ten rupees, per year, as may be prescribed, from time to time, to the Fund and every employer shall, in respect of each such employee, contribute a sum not exceeding twenty rupees, per year, as may be prescribed, from time to time, to the Fund and the Government shall, in respect of each such employee, contribute a sum not exceeding ten rupees, per year, as may be prescribed, from time to time, to the Fund]
(2) Notwithstanding anything contained in any other law for the time being in force the employer shall be entitled to recover from the employee the employee’s contribution by deduction from his wages in such manner as may be prescribed and such deduction shall be deemed to be a deduction authorized by or under the payment of Wages Act, 1936 (Central Act IV of 1936) 2[or the Tamil Nadu Shops and Establishments Act, 1947 (Tamil Nadu Act XXXVI of 1947)].
16. Grants and advances by the Government.--- The Government may, from time to time, make grants or advance loans to the Board for the purposes of this Act on such terms and conditions as the Government may, in each case, determine.
1 Subs. by Act 44 of 1995, s. 2 (w.e.f. 30th May, 1996).
2 Ins. by Act 37 of 1982, s. 5 (w.e.f. 15th September, 1982) 8
17. Vesting and application of Fund. --- (1) The Fund shall vest in, and be held and applied by, the Board as trustees subject to the provisions, and for the purposes, of this Act. The moneys therein shall be utilised by the Board to defray the cost of carrying out measures which may be specified by the Government from time to time to promote the welfare of employees and of their dependants.
(2) Without prejudice to the generality of the provisions of sub-section (1), the moneys in the Fund may be utilised by the Board to defray expenditure on the following, namely: --
(a) community and social education centres;
(b) vocational training;
(c) community necessities;
(d) entertainment and other forms of recreation;
(e) convalescent homes for tuberculosis patients;
(f) holidays home in health resorts;
(g) part-time employment for housewives of employees;
(h) pre-schools;
(i) nutritious food to children of employees;
(j) employment opportunities to the disabled employees 1[or the widows of the deceased employees];
(k) cost of administering this Act including the salaries and allowances of the staff appointed for the purposes of this Act; and
(l) such other objects as would, in the opinion of the Board, improve the standard of living 1[and education] and ameliorate the social conditions of labour:
Provided that the Fund shall not be utilised in financing any measure which the employer is required under any law for the time being in force to carry out:
Provided further that unpaid accumulations and fines shall be expended by the Board under this Act notwithstanding anything contained in the Payment of Wages Act, 1936 (Central Act IV of 1936) or any other law or agreement for the time being in force.
(3) The Board may, with the approval of the Government, make grants from the Fund to any local authority or any other body in aid of any activity for the welfare of employees.
(4) If any question arises whether any particular expenditure is or is not debitable to the Fund, the matter shall be referred to the Government whose decision thereon shall be final.
(5) The Board may accept the transfer of any Labour Welfare Fund of any establishment and may continue any activity financed from such Labour Welfare Fund if the said Fund is duly transferred to the Board.