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Workers’ Welfare Fund Ordinance, 1971

SECTIONS

CONTENTS

 

Preamble

 

CHAPTER I

PRELIMINARY

1

Short title, extent and commencement

2

Definitions

 

CHAPTER II.

CONSTITUTION OF WORKER’S WELFARE FUND

3

Constitution of Workers’ Welfare Fund

4

Mode of, payment by, and recovery from, industrial establishments

4-A

Payment of further amount

5

Liability to be discharged by certain persons

6

Purposes to which moneys in the Fund may be applied

 

CHAPTER. III

GOVERNING BODY

7

Constitution of the Governing Body

8

Appointment of Secretary and other employees of the Fund

9

Governing Body to lay down procedure, etc.

10

Functions of the Governing Body.

10-A

Vesting of money allocated from the Fund

11

Maintenance of books of account, etc

 

CHAPTER III-A 

WORKERS WELFARE BOARDS

11-A

Constitution of Workers’ Welfare Boards

11-B

Board to be a body corporate, etc

11-C

Power, etc. of the Board

11-D

Recovery of rent

11-E

Eviction

11-F

Finality of order

 

CHAPTER IV

MISCELLANEOUS

12

Delegation of powers

13

Power to remit or reduce amount due

14

Protection of persons acting under this Ordinance

15

Power to make rules

 

The

Workers’ Welfare Fund

Ordinance, 1971

XXXVI OF 1971
9TH December, 1971
An Ordinance to provide for the establishment of a Workers Welfare Fund

Preamble  : —

Whereas it is expedient to provide for the establishment of a Workers’ Welfare Fund, for providing residential accommodation and other facilities for workers and for matters connected therewith or incidental thereto;

Now, therefore, in pursuance of the Proclamation of the 25th day of March, 1969, read with the Provisional Constitution Order, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance: –

CHAPTER I
PRELIMINARY

1. Short title, extent and commencement. (1) This Ordinance may be called the Workers’ Welfare Fund Ordinance, 1971.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.

2. Definitions. In this Ordinance, unless there is anything repugnant in the subject of context,
(a) Omitted by the Federal Laws (Revision and Declaration) Ordinance, XXVII of 981:
(b) ’employer’ has the same meaning as in Section 2 of the Industrial Relations Ordinance, 1969 (XXIII of 1969);
(c) ‘Fund’ means the Workers’ Welfare Fund constituted under Section 3;
(d) ‘Governing Body’ means the Governing Body of the Fund constituted under Section 7;
(e) ‘Income-tax Officer’ means a person appointed to be an Income-tax Officer under the [Ordinance];
(f) ‘industrial establishment’ means-
[(ff) ‘Ordinance’ means the Income Tax Ordinance, 1979 (XXXI of 1979);
(i) any concern owning or managing a factory, workshop or other establishment in which articles are produced, adapted or manufactured with the aid of electrical, mechanical, thermal, nuclear or any other form of energy transmitted mechanically and not generated by human or animal agency;
(ii) any concern working a mine or quarry or natural gas or oil field;
(iii) any concern running a tramway or motor omnibus service;
(iv) any concern engaged in the carriage of men and goods by inland mechanically propelled vessels;
(v) any concern engage in the growing of tea, coffee, rubber or cinchona; and
(vi) any other concern or establishment which the Federal Government may, by notification in the official Gazette, declare to be an industrial establishment for the purposes of this Ordinance. but does not include any concern or establishment which is owned by Government or by a Corporation established by the Government or by a Corporation the majority of the shares of which is owned by Government;
(g) ‘prescribed’ means prescribed by rules made under this Ordinance;
(h) ‘Secretary’ means the Secretary of the Fund;
(i) ‘total income’ has the same meaning as in the [Ordinance];
(j) ‘worker’ has the same meaning as in Section 2 of the Industrial Relations Ordinance, 1969 (XXIII of 1969).

 

 

 

 

CHAPTER II
CONSTITUTION OF WORKER’S WELFARE FUND

3. Constitution of Workers’ Welfare Fund. (1) There shall be constituted for the purposes of this Ordinance a Fund to be called the Workers’ Welfare Fund.
(2) The Fund shall consist of..
(a) an initial contribution of ten crores of rupees to be made by the Federal Government;
(b) such moneys as may, from time to time, be paid by the industrial establishments under Section 4 [and Section 4-A]
[(bb) the amount transferred to the Fund from time to time, under clause (d) of paragraph 4 of the scheme set out in the Schedule to the Companies Profits (Workers Participation) Act, 1968 (XII of 1968);
(c) voluntary contributions in the shape of money or building, land or other property made to it from time to time by any Government or by any person;
(d) income from the investment made and properties and assets acquired from out of the fund, [and]
[(e) proceeds of loans raised by the Governing Body.]

4. Mode of, payment by, and recovery from, industrial establishments. (1) Every industrial establishment, the total income of which in any year of account commencing on or after the date specified by the Federal Government in the official Gazette in this behalf is not less than one lakh of rupees shall pay to the Fund in respect of that year a sum equal to two percent of so much of its total income as is assessable under the [Ordinance] or would have been so assessable but for the exemption made by Section [48] thereof.
(2) Every industrial establishment which is liable under sub-section (1) shall pay the amount due from it to the Income-tax Officer having jurisdiction over the industrial establishment for purposes of the [Ordinance].
(3) The industrial establishment shall, on or before the date on which it is required to furnish a return of income under [Section 55 of the Ordinance], pay the amount due from it under sub-section (1) calculated with reference to the total income reported in the said return.
(4) At the time of making an assessment under [the Ordinance], or as soon thereafter as may be, the Income-Tax Officer shall, by order in writing, determine the amount due from industrial establishment under sub-section (1), if any, on the basis of the income so assessed after taking into account the amount paid by the industrial establishment under sub-section (3) in respect of the year. and the industrial establishment shall pay the amount so determined on or before the date specified in the order.
(5) Any change by way of enhancement or reduction in the assessed income subsequent to the assessment made under the [Ordinance] shall be given effect to by adjustment of the amount due under sub-section (1).
(6) Any amount paid by an industrial establishment under sub-section (3) which is found, on the basis of an order in appeal or revision under the [Ordinance], to have been paid in excess shall be refunded to it by the Income-tax Officer.
(7) The payment made by an industrial establishment to the Fund under sub-section (1) shall be treated as an expenditure for purposes of assessment of income-tax.
(8) Where any industrial establishment fails to pay the amount due from it as required under this section, it shall, without prejudice to any other liability to which it may be subject under this Ordinance or any other law, be liable to pay an additional amount equal to eight per cent per annum of the amount due from it from the date on which it was originally payable to the date on which it is paid.
(9) The provisions of the [Ordinance] relating to the mode and time of recovery of the income-tax leviable under the Act shall, so far as may, apply to the recovery of the amount due under sub-section (1).

[4-A. Payment of further amount. (1) Every industrial establishment referred to in sub-section (1) of Sec. 4 shall, in addition to the amount payable by it under the sub-section in respect of any year of account, pay such amount as the Federal Government may determine on the recommendation of a committee appointed under sub-section (2), thereafter in this section referred to as the committee.
(2) For the purposes of sub-section (1), the Provincial Government may appoint one or more committees in the Province and, where it appoints more than one committee, shall specify the area or class of industrial establishments in relation to which each such committee shall perform its functions.
(3) A committee appointed under sub-section (2) shall consist of an officer of the Provincial Government who shall be its Chairman and not more than five other members to be appointed by the Provincial Government of whom–
(a) not less than two shall be appointed from amongst the employers in the Province or, as the case may be, in the area of class of industrial establishments in relation to which the committee is to perform its functions, and
(b) not less than two shall be appointed from amongst the workers in the Province or, as the case may be, in the area or class of industrial establishments in relation to which the committee is to perform its functions.
(4) The Committee shall examine the financial and other circumstances of each of the industrial establishments and make recommendations as to the further amount, if any, to be paid by such establishment in addition to the amount payable by it under sub-section (1) of Sec. 4.
(5) The committee shall submit its recommendations to the Provincial Government who shall forward them, together with its own observations, if any, to the Federal Government.
(6) The committee shall have power to ask any industrial establishment to furnish such information as it may consider necessary for the performance of its functions under sub-section (4).
(7) if an industrial establishment fails to furnish the required information under sub-section (6) the committee shall make its recommendations under sub-section (1) of that section.]
(8) The provisions of Sec. 4 shall, so far as may be, apply to an amount payable under sub-section (1) as if it were an amount payable under sub-section (1) of that section.

5. Liability to be discharged by certain persons. Any liability imposed on an industrial establishment by this Ordinance shall be deemed to be the liability of the person who is liable to pay income-tax in respect of the income relatable to such industrial establishment.

6. Purposes to which moneys in the Fund may be applied. Moneys in the Fund shall be applied to–
(a) the financing of projects connected with the establishment of housing estates or construction of houses for the workers;
(b) the financing of other measures for the welfare of workers;
(c) the meeting of expenditure in respect of the cost of management and administration of the Fund;
(d) the repayment of loans raised by the Governing Body; and
(e) investment in securities approved for the purpose by the [Federal Government].

 

 

 

 

CHAPTER. III
GOVERNING BODY

7. Constitution of the Governing Body. (1) As soon as may be after the commencement of this Ordinance, the Federal Government shall, by notification in the official Gazette, constitute a Governing Body of the Fund to whom shall be entrusted the management and administration of the Fund.
[(2) The Governing Body shall consist of the Secretary to the Government of Pakistan in the Ministry dealing with matters relating to labour welfare, who shall be its Chairman and not more than eighteen other members to be appointed by the Federal Government of whom-
(a) at least one shall be appointed from each Province upon the recommendation of the Provincial Government concerned;
(b) at least one shall be appointed from each Province from amongst the workers; and
(c) at least one from each Province shall be appointed from amongst the employers.]
(3) The members of the Governing Body other than the Chairman shall hold office for such period and on such terms and conditions as may be prescribed.
(4) No act or proceeding of the Governing Body shall be invalid by reason only of the existence of a vacancy in, or defect in the constitution of, the Governing Body.

8. Appointment of Secretary and other employees of the Fund. (1) The Governing Body may, with the previous approval of the Federal Government, appoint a Secretary who shall be’ the executive officer of the Fund.
(2) The Governing Body may appoint such other employees as it may consider necessary for the efficient performance of the functions of the Fund.
(3) The Governing Body shall determine the terms and conditions of service of the Secretary and the employees with the previous approval of the Federal Government.
(4) The Secretary and every employee shall be deemed to be a public servant within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

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