On October 10, 2024, the Kerala Labour Department introduced significant amendments to the Kerala Labour Welfare Fund Rules, 1977, aimed at modernizing compliance and payment processes for employers.
1. Streamlined Payment Options for Employers
One of the most notable amendments is in Rule 3, which deals with the payment of fines and unpaid accumulations. Previously, employers were required to settle these financial obligations through cash or money order. With the new rules, they can now also opt for online payments, providing greater flexibility and convenience.
2. Modernizing Fund Disbursement
The amendments to Rule 10 focus on how payments are made to beneficiaries from the Fund. All payments may now be transferred using National Electronic Fund Transfer (NEFT) or other modern banking systems. This change is expected to enhance the efficiency of transactions, ensuring beneficiaries receive their funds promptly.
3. Flexible Contribution Payments
In Rule 11, there’s an important update regarding the payment of contributions. Employers can now remit both their and their employees’ contributions via cheque, money order, cash, or online methods. This flexibility is crucial for businesses looking to streamline their payroll processes.
4. Enhanced Transparency with Submission Statements
Also under Rule 11, employers are required to submit a statement in Form “A” to the Commissioner alongside their payment. This statement must include details of the amount paid and the names of the employees on whose behalf the payment was made. The new amendment allows for this submission to be made mutually or online, promoting greater transparency in reporting.
5. Electronic Record Keeping
Finally, the amendments to Rule 21 emphasize the importance of record-keeping. Employers are now required to maintain specified registers either manually or electronically. This shift encourages better organization and easier access to essential records.
Effective date : October 10th 2024
