Section 6 in The Gujarat Shops and Establishments (Employees Life Insurance) Act, 1980
6. Contributions.
(1)(a)The contribution payable under this Act in respect of a qualified employee shall comprise of-(i)contribution payable by the employer (hereinafter referred to as "the employee's contribution"), and(ii)contribution payable by the qualified employee (hereinafter referred to as "the employee's contribution"),(b)The contribution shall be paid to such insurer and at such rates as specified in the scheme.(2)A year shall be the unit in respect of which all contributions shall be payable.(3)The contribution payable in respect of each year shall fall due on the 1st January of the year to which it relates.(4)Every employer shall be liable to pay to the insurer specified in the scheme both the employer's and employee's contribution and such contribution shall be paid before the 15th January of the year to which the contribution relates.(5)Notwithstanding anything contained in any enactment but subject to the provisions of this Act and the rules made thereunder, the employer shall be entitled, to recover from the qualified employee, the employee's contribution by deduction from his wages in twelve equal monthly instalments but not otherwise, and such deduction shall be deemed to be the deduction authorised by or under the Payment of Wages Act, 1936 (4 of 1936):Provided that no such deduction shall be made from any wages other than such as relate to the period in respect of which the contribution is payable or in excess of the sum representing the employee's contribution for the period.(6)Notwithstanding any contract to the contrary no employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from the employee.(7)Any sum duly deducted by an employer from the wages of the employee under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.(8)The employer shall remit the employee's contribution to the insurer by cheque, money order or in cash and shall bear the expenses of such remittance.(9)Where a qualified employee in respect of whom the employer has paid contribution under sub-section (4) ceases at any time during the year to which the contribution relates, to be an employee of an establishment, he may at any time before the amounts due to him is paid by the employer as a result of such cesser, or, within one month, of such cesser, whichever is less be called upon by the employer to exercise at any time before such cesser the option of continuing to have the benefit of the insurance scheme till the end of the year in which he ceases to be such employee.(10)Where a qualified employee exercises under sub-section (9) the option to continue to have benefit of the insurance scheme, the employer shall be entitled to deduct from the amounts due from the employer to the employee, the aggregate of the employee's contributions which would have become deductible from his wages till the end of the year if the employee had not ceased to be such employee.(11)Where a qualified employee does not exercise the option within the time specified in sub-section (9) or exercise the option of not continuing the benefit, the employer shall be entitled to the refund of the contribution paid by him under sub-section (4) in so far as it relates to the period from the date of the cesser upto the end of the year.
