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Harish   03 January 2020

Labour welfare fund

Hello Experts,

In my company employees categories are from Support Staff, Executive, Assistant Manager, Associate Manager, Manager, Divisional Manager, AVP and VP etc..

As per the defination of "Employees" (MLWF) means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, clerical, supervisory or technical in an establishment directly by the employer or through contractor or any other agency.

Exceptions are who are in a managerial capacity and supervisory capacity, draws wages exceeding three thousand and five hundred rupees per mensem.

Now, I am not able to find out the defination of who are managerial capacity and supervisory capacity. If I refer the factories Act or Shop Act then all employees are covered under the defination of Workers.

What is your views on this?

Thanks in advance and Happy New Year 2020 !!



Learning

 4 Replies

Raksha Joshi   07 January 2020

Hello Harish, 

Happy New Year to you too!!

Thank you for the question.

Managerial capacity means an assignment within an organization in which the employee primarily manages the organization, or a department, subdivision, function, or component of the organization.

Supervisory capacity means when the employee supervises and controls the work of other supervisory, professional, or managerial employees.

The employee having these capacities also has the authority to hire and fire or recommend those as well as other personnel actions (such as promotion and leave authorization) if another employee or other employees are directly supervised, or, if no other employee is directly supervised, functions at a senior level within the organizational hierarchy or with respect to the function managed.

They also exercise discretion over the day-to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor’s supervisory duties unless the employees supervised are professional. 

If a person has these capacities and wages exceeding 3500, then he/she is an exception to the act and hence won't benefit from this act,

Having said that, The Maharashtran Labour Welfare Fund Act, 1953 is only applicable to Maharashtra, whereas The Factory Act, 1948, extends to all of India. 

Hope this helps! 

 

Raksha Joshi   07 January 2020

Hello Harish, 

Happy New Year to you too!!

Thank you for the question.

Managerial capacity means an assignment within an organization in which the employee primarily manages the organization, or a department, subdivision, function, or component of the organization.

Supervisory capacity means when the employee supervises and controls the work of other supervisory, professional, or managerial employees.

The employee having these capacities also has the authority to hire and fire or recommend those as well as other personnel actions (such as promotion and leave authorization) if another employee or other employees are directly supervised, or, if no other employee is directly supervised, functions at a senior level within the organizational hierarchy or with respect to the function managed.

They also exercise discretion over the day-to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor’s supervisory duties unless the employees supervised are professional. 

If a person has these capacities and wages exceeding 3500, then he/she is an exception to the act and hence won't benefit from this act,

Having said that, The Maharashtran Labour Welfare Fund Act, 1953 is only applicable to Maharashtra, whereas The Factory Act, 1948, extends to all of India. 

Hope this helps! 

 

Raksha Joshi   07 January 2020

Hello Harish, 

Happy New Year to you too!!

Thank you for the question.

Managerial capacity means an assignment within an organization in which the employee primarily manages the organization, or a department, subdivision, function, or component of the organization.

Supervisory capacity means when the employee supervises and controls the work of other supervisory, professional, or managerial employees.

The employee having these capacities also has the authority to hire and fire or recommend those as well as other personnel actions (such as promotion and leave authorization) if another employee or other employees are directly supervised, or, if no other employee is directly supervised, functions at a senior level within the organizational hierarchy or with respect to the function managed.

They also exercise discretion over the day-to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor’s supervisory duties unless the employees supervised are professional. 

If a person has these capacities and wages exceeding 3500, then he/she is an exception to the act and hence won't benefit from this act,

Having said that, The Maharashtran Labour Welfare Fund Act, 1953 is only applicable to Maharashtra, whereas The Factory Act, 1948, extends to all of India. 

Hope this helps! 

 

Raksha Joshi   07 January 2020

Hello Harish, 

Happy New Year to you too!!

Thank you for the question.

Managerial capacity means an assignment within an organization in which the employee primarily manages the organization, or a department, subdivision, function, or component of the organization.

Supervisory capacity means when the employee supervises and controls the work of other supervisory, professional, or managerial employees.

The employee having these capacities also has the authority to hire and fire or recommend those as well as other personnel actions (such as promotion and leave authorization) if another employee or other employees are directly supervised, or, if no other employee is directly supervised, functions at a senior level within the organizational hierarchy or with respect to the function managed.

They also exercise discretion over the day-to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor’s supervisory duties unless the employees supervised are professional. 

If a person has these capacities and wages exceeding 3500, then he/she is an exception to the act and hence won't benefit from this act,

Having said that, The Maharashtran Labour Welfare Fund Act, 1953 is only applicable to Maharashtra, whereas The Factory Act, 1948, extends to all of India. 

Hope this helps! 

 


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