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THE KERALA LABOUR AUTHORITY BILL, 2002

A Bill to establish a labour authority in the State to serve as an apex body to co-ordinate, regulate, stream line, monitor and guide the activities of the Labour Welfare Schemes and advise the Government for the matters relating to Labour administration and Labour Welfare and for matters connected therewith or incidental thereto.

Preamble.- WHEREAS, it is desirable in public interest to establish a labour authority in the State to serve as an apex body to co-ordinate, regulate, stream line, monitor and guide the activities of the Labour Welfare Schemes framed under this Act and advise the Government in matters relating labour administration and labour welfare and for matters connected therewith or incidental thereto;

BE it enacted in the Fifty-third Year of the Republic of India as follows:-

CHAPTER I

Preliminary

1. Short title, extent and commencement.- (1) This Act may be called The Kerala Labour Authority Act, 2002.

(2) It extends to the whole of the State of Kerala.

(3) It shall come into force at once.

2. Definitions.- In this Act, unless the context otherwise requires,-

(a) “contribution” means the sum of money payable to the Fund under section 11 of the Act;

(b) “employee” means an employee as defined in the Kerala Labour Welfare Fund Act, 1975 (11 of 1977);

(d) “fund” means the ‘Kerala Labour Authority Fund’ established under section 8 of the Act.

(e) “Government”, means the Government of Kerala;

(f) “labour Authority”, means the Kerala Labour Authority constituted under section 3 of the Act;

(g) “member”, means a member of the Labour Authority;

(h) “member Secretary”, means the Member Secretary of the Labour Authority and the Labour Commissioner of the State;

(i) “prescribed”, means prescribed by rules made under this Act;

(j) “schedule”, means a schedule to this Act;

(k) “scheme”, means a scheme framed under section 7 of the Act;

(l) “year” means the financial year;

CHAPTER II

Constitution, Powers and Functions of Labour Authority

3. Constitution of Labour Authority.- (1) The Government may, by notification in the Gazette, constitute with effect from such date as may be specified therein an Authority to be called ‘the Kerala Labour Authority’ for the administration of the Fund to supervise or carry out the activities financed from the Fund and to serve as an apex body to co-ordinate, regulate, streamline, monitor and guide the activities of Labour Welfare Schemes framed under this Act;

(2) The Labour Authority shall be a body corporate by the name aforesaid having perpetual succession and common seal and shall by the said name sue and be sued.

(3) The Labour Authority shall consist of the following members, namely:-

(i) (a) The Secretary to Government, Labour Department, ex- officio; who shall be the Chairman of the Labour Authority.

(b) The Labour Commissioner, ex-officio who shall be the Chief Executive Officer and Member, Secretary of the Labour Authority;

(ii) seven members representing the employees in the State;

(iii) seven members representing the employers;

(4) The Government shall publish in the Gazette the names of the members of the Labour Authority.

(5) The Labour Authority may, with the previous approval of the Government delegate to the Member Secretary or any Member of the Board such of its powers and functions under this Act or of the scheme it may consider necessary for the efficient administration of the Fund, subject to such restrictions and conditions, if any, as it may specify.

4. Term of Office of the members.- (1) Non- official members of the Labour Authority shall hold office during the pleasure of the Government or for a period of three years from the date such member assumes office, which ever is less.

Provided that a member may continue as such until his successor assumes office.

(2) Any nominated member may resign his office, by giving notice in writing to the Chairman, but shall continue in office until his resignation is accepted by the Chairman.

(3) A casual vacancy in the office of a member may be filled up, as soon as may be, by the Government and a member so appointed to fill such vacancy shall hold office for the un-expired portion of the term of office of the member whose place he fills.

5. Removal of non-official members.- (1) The Government may, by notification in the Gazette, remove any non-official member of the Labour Authority from office,-

(a)If he has, without the permission of the chairman been absent from the meeting of the Labour Authority from three consecutive meetings:

Provided that such absence may be condoned by the chairman before publishing the notification in the gazette.

(b)If in the opinion of the Government, he is unsuitable or has become incapable of acting as a member or has so abused his position as a member as to render his continuance as such member detrimental to the public interest;

Provided that before removing a member under this sub-section, he shall be given a reasonable opportunity to show cause why he should not be removed.

(2) A non- official member of the Labour Authority removed under clause (a) of sub-section (1) shall be disqualified for re-nomination as a member of the Labour Authority for a period of three years from the date of his removal unless otherwise ordered by the Government.

(3) A non- official member of the Labour Authority removed under clause (b) of sub section (1), shall not be eligible for re-nomination until he is declared by an order of the Government to be no longer ineligible.

6. Powers and functions of the Labour Authority.- Subject to the provisions of this Act, the Labour Authority shall have the following powers and functions, namely:-

(a) to advise the Government on matters relating to Labour Administration, Labour Welfare and other matters pertaining to labour.

(b) to administer the existing non- Statutory Welfare Funds and Schemes transferred by the Government to the Labour Authority;

(d) to prepare project reports for getting financial assistance from international organisations, Government of India and other agencies;

(e) to set up a training fund for the training of workers;

(f) to utilise the financial assistance received from various agencies for the

common welfare of workers.

CHAPTER III

Welfare Schemes

7. Framing of Schemes.- (1) The Government may, in consultation with the Labour Authority and after pre-publication, frame welfare schemes for any class of employment and entrust the same to the Labour Authority for implementation.

(2) The Scheme shall provide for all or any of the matters mentioned in the Schedule.

(3) The Government may, by notification in the Gazette, add to, amend or vary the scheme framed under this Act either prospectively or retrospectively.

(4) Every Scheme famed under this section shall be laid, as soon as may be, after it is issued, before the Legislative Assembly while it is in session for a total period of fourteen days, which may be comprised in one session or in two sucessive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the scheme, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however; that any such modification or annulment shall be without prejudice to the validity of anything previously done under that scheme.

CHAPTER IV

Funds of The Labour Authority

8. Funds of the Labour Authority.- (1) As soon as may be after the commencement of this Act, the Labour Authority shall establish a fund, called, “The Kerala Labour Authority Fund’.

(2) There shall be credited to the Kerala Labour Authority Fund;

(a) the amount borrowed by the Labour Authority under section 9.

(b) grants, loans or advances made by the State Government or the Government of India;

(d) contribution received from employees and employers under any scheme administered by the Labour Authority;

(e) any amount transferred from the existing non-statutory schemes and unclaimed or untied funds with the existing welfare boards.

(f) contribution by the employer under section 11;

(g) contribution by employees and Labour Welfare Fund Boards;

(h) contributions, if any, from Government and Non Governmental Organisations.

(3) The Kerala Labour Authority Fund may be utilised for all or any of the following purposes, namely:-

(a) implementation of common Welfare Schemes for the beneficiaries;

(b) setting up and functioning of the institutions envisaged in this Act.

(d) the salaries and allowances of the staff appointed for the various welfare schemes administered under this Act.

(e) for capacity building of workers to equip them to meet the emerging skill requirements in the Labour market;

(f) to introduce appropriate institutional mechanism for manpower development, training and retraining to develop a scientifically trained work force which would cater to the emerging work needs;

(g) for any other purposes specified in the Scheme.

(6) The amount in the Funds of the Labour Authority shall be credited to the Scheduled Banks or Co-operative Banks.

9. Power of Labour Authority to borrow.- (1) The Labour Authority may, from time to time, with the previous sanction of the Government and subject to such conditions as the Government may, by general or special order determine, borrow any sum required for the purposes of this Act whether by the issue of bonds or debentures or otherwise or by making arrangements with Banks or Institutions approved by the Government in that behalf.

(2) Bonds or debentures issued by the Labour Authority under this section shall be issued, transferred, dealt with or redeemed in such manner as the Government may, by general or special order, direct.

10. Guarantee by Government of Loans.- (1) The Government may guarantee, in such manner as they think fit, the payment of the principal and interest of any loan proposed to be raised by the Labour Authority under section 9.

(2) The Government shall, so long as any such guarantee is in force, lay before the State Legislature in every year during the budget session, a statement of the guarantee, if any, given during the current financial year and up-to-date accounts of the total sums, if any, which have been paid out of the Consolidated Fund of the State by reason of any such guarantee or paid into the said Fund towards repayment of any moneys paid out.

11. Contribution to the Kerala Labour Authority Fund. - (1) Every employer shall contribute one rupee for each employee engaged by him per mensem to the Labour Authority and it shall be paid before such date and in such manner as may be specified by the Government.

(2) The Fund shall be collected by the Labour Authority through Labour Welfare Fund Boards or other agencies as may be specified by the Government.

CHAPTER VI

Miscellaneous

12. The staff of the Kerala Labour Welfare Fund Board to assist the Labour Authority.- The Kerala Labour Welfare Fund Board shall be the nodal agency of the Labour Authority and the staff of the Kerala Labour Welfare Fund Board shall assist the Labour Authority.

13. Protection of action taken in good faith.- No suit or other legal proceedings shall lie against the Government or any member of the Labour Authority or any other person in respect of anything which is in good faith done or intended to be done under this Act or under the rules or schemes made thereunder.

14. Directions by the Government.- The Government may after consultation with the Labour Authority give to the Labour Authority general directions, to be followed by the Labour Authority.

(2) In the exercise of the powers and the performance of its duties under this Act, the Labour Authority shall not depart from any general directions issued under sub-section (1), except with the previous permission of the Government.

15. Audit of accounts of the Labour Authority.- (1) The Government shall appoint auditors to audit the accounts of the Labour Authority.

(2) the accounts of the Labour Authority shall be examined and audited by such auditors, once in every year.

16. Annual report and audited statement of accounts.- (1) The annual report of the Labour Authority shall be prepared under the direction of the Labour Authority and after approval by the Labour Authority, a copy of the report together with an audited statement of accounts, shall be submitted to the Government before the end of July every year.

(2) the Government shall as soon as the annual report is received , cause the same together with the audited statement of accounts to be laid on the table of the Legislative Assembly.

17. Bar of jurisdiction of civil courts.- No civil court shall have jurisdiction to settle, decide or deal with any question or to determine any matter which is by or under this Act or the scheme required to be settled, decided or dealt with or to be determined by the Government, the Labour Authority, the Chief Executive Officer or any officer authorised by the Labour Authority.

18. Special provisions for transfer of collection from the Welfare Fund established by any Scheme.- (1) Notwithstanding anything contained in any law for the time being in force the Government may by order transfer all non- statutory welfare schemes together with the funds administered by the Government or by any existing Welfare Fund Boards to the Labour Authority for its administration.

(2) The Labour Authority shall administer the scheme transferred under sub-section (1) in accordance with the provisions of this Act.

19. Penalties.- (1) Whoever, for the purpose of avoiding any payment to be made by him under this Act or under the Scheme or of enabling any other person to avoid such payment, knowingly makes or cause to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees, or with both.

(2) Whoever contravenes or makes default in complying with any of the provisions of this Act or the Scheme shall, if no other penalty is elsewhere provided by or under this Act for such contravention or non- compliance, be punishable with imprisonment for a term which may extend to six months or with fine which may extend to two thousand five hundred rupees or with both.

(3) No court shall take cognizance of any offence punishable under this Act except on a report in writing of the acts constituting such offence made with the previous sanction of the chief executive officer.

20. Enhanced punishment for second or subsequent offence.-Whoever, having been convicted by a court of an offence punishable under this Act , again commits the same offence shall be punishable for every such subsequent offence with imprisonment for a term which may extend to two years, but which shall not be less than three months, or with fine which may extend to ten thousand rupees or with both:

Provided that the court may for any adequate and special reasons to be recorded in the judgement, impose a sentence of imprisonment for a term less than three months.

21. Acts of Labour Authority not to be invalidated by infirmity, vacancy etc._ No act done or proceeding taken under this Act by the Labour Authority shall be invalidated merely on the ground.-

(a) of any vacancy or defect in the constitution of the Labour Authority;

(b) of any defect or irregularity in the appointment of a person acting as a member thereof; or

22. Mode of recovery of money due from any person.- Any amount due from any person in pursuance of the provisions of this Act or the scheme may, if the amount is in arrears be recovered with interest at the rate of twelve percent per annum in the same manner as arrears of public revenue due on land as per the provisions contained in the Revenue Recovery Act for the time being in force.

23. Members of the Labour Authority etc, to be public servants.- . Every member of the Labour Authority, the Chief Executive Officer and other officers and members of the staff of the Labour Authority shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860(Central Act 45 of 1860)

24. Power to remove difficulties.- (1) If any difficulty arises in giving effect to the provisions of this Act, Government may, by order, published in the Gazette, do anything not inconsistent with the provisions of this Act which appears to them necessary to remove the difficulty:

Provided that, no such order shall be passed after two years from the date of commencement of this Act.

(2) Every order under this section shall, as soon as, may be after it is made, be laid before the Legislative Assembly.

25. Power to make rules.- (1) The Government may, by notification in the Gazette, make rules, either prospectively or retrospectively for the purposes of carrying into effect the provisions of the Act.

(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly, while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions and if, before the expiry of the session which it is so laid or the session immediately following, the Legislative Assembly makes any modification the rule or decides that the rule should not be made, the rule shall, thereafter, have effect only in such modified from or be of no effect, as the case maybe; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

SCHEDULE

(See sub-section (2) of section 7)

1. Name and beneficiaries of the Scheme.

2.Constitution of any committee to assist the Labour Authority for the implementation of the Scheme.

3. The time and manner in which contribution shall be made to the Fund by the employees; self employed persons and employers mentioned in the Scheme.

4. The conditions under which Fund may be expended for payment of relief to the workers during distress.

5. The amount and the conditions and procedures for payment of pensions, grant and advances from the Fund.

6. The purposes for which the Fund may be utilised for the welfare of employees or their dependants.

7. The registers and records to be maintained by the Labour Authority with respect to employees and the returns to be furnished by employers.

8. The form or design of any identity card, token or disc for the purpose of identifying any employee, and for issue, custody and replacement thereof.

9. The fee to be levied for any of the purposes specified in this schedule.

10. The further powers, if any, which may, be exercised by the Labour Authority.

11. Any other matter which is to be provided for in the Schedule or which may be necessary or proper for the purpose of implementing the scheme.

STATEMENT OF OBJECTS AND REASONS

A number of Welfare Funds have been created in the State for different categories of works and Welfare Fund Boards to administer the funds have been created by law. A number of Welfare Funds have improved the social security of workers but those relating to agriculture, handloom, Beedi etc., are not found to be viable. Therefore, it was considered necessary to create a Labour authority to administer all labour welfare schemes to be framed and also to administer the existing Non-Statutory Welfare Funds and Schemes.

The Authority will also to serve as an apex body to co-ordinate, regulate, stream line, monitor and advise the Government in matters relating to labour administration and labour welfare.

The Bill seeks to achieve the above objects.

FINANCIAL MEMORANDUM

Clause 3 of the Bill provides for the constitution of labour authority. For the establishment of such an authority and cost incurred as salaries and allowances for the staff appointed for various welfare schemes administered under the Act shall incur some additional expenditure from the consolidated fund of the State which cannot with accuracy by estimated at this stage.

Memorandum Regarding Delegated Legislation

1. Clause 3 of the Bill seeks to empower the Government to constitute with effect from such date an authority called Kerala Labour Authority.

2. Clause 5 of the Bill seeks to empower Government to remove any non-official member of the Labour Authority from office, by notifying in the gazette.

3. Sub-clause 1 of clause 7 of the Bill empowers the Government to frame separate schemes for each class of employment.

4. Sub-clause (3) of clause 7 of the Bill seeks to empower the Government to add to or amend or vary the scheme framed under the Act either prospectively or retrospectively.

5. Sub-clause (1) of clause 9 of the Bill seeks to empower the Government to specify the condition under the Labour Authority can borrow among sum required for the purpose of the Act.

6. Sub-clause (1) of clause 11 of the Bill seeks to empower the Government to specify the date and manner of payment of contribution by the workers.

7. Sub-clause 127 of clause 11 of the Bill seeks to empower the Government to specify the Boards and genuine through which fund shall be collected.

8. Sub-clause (1) of clause 15 of the Bill seeks to empower the Government to appoint auditors to audit the accounts of the Labour Authority.

9. Sub-clause (1) of clause 24 of the Bill seeks to empower the Government to do anything not inconsistent with the provision of this Act to remove any difficulty.

10. The above are matters of administrative or routine nature or matters of detail. Further, the rules, after they are made, are subject to the scrutiny of the Legislative Assembly. The delegation of Legislative powers is, therefore, of a normal character.