The Beedi Workers Welfare Fund Act, 1976 is the Central enactment that is applicable to the entire Indian Territory including the State of Jammu and Kashmir. The Act came into effect on February 15, 1977. The interpretation clause of the enactment describes the term ‘Fund’ as the fund that is constituted for the interests of the beedi workers according to Section 3 of the enactment. Moreover, a person is supposed to be working in an industry, if that person is working in such industry directly or by an agent devoid of the fact that such person is working for remuneration for performing any task related with such industry. Such worker may be trained or inexperienced, physical or administrative, but such person shall also consist of a person who takes raw materials from the owner of the industry or service provider to complete the manufacture of beedi at the place of residence. Such person shall also include a person who is not working under the employer or the supplier but performing his work under the consent employer or supplier or through a contract entered between them. Where some of the terms are not described under the interpretation clause, such terms shall be construed similar to that of the meaning specified under the Beedi and Cigar Workers (Conditions of Employment) Act, 1966 particularly with respect to the industries engaged in the production of beedis.

The Act provides for the constitution of the Beedi Workers Welfare Fund. To that fund, some amounts shall be credited in the mode explicitly provided under the enactment. Such fund shall be added with an amount that the Government of India may subsequent to necessary alteration made by the legislative body by approving legislation give from the tax that is collected as per the provisions of the Beedi Workers Welfare Fund Act, 1976. This shall be done subsequent to the subtraction of the cost incurred on collecting the amount as fixed by the Government in this regard. The fund shall also be included with the earnings from the savings of the amount accredited as mentioned above along with other funds established by the Government to accomplish the purposes under the enactment. The fund shall be used by the Union for the expenses that are sustained in relation with the methods and facilities that are essential or convenient to support the interests of person who are undertaking the works in the beedi industries.

It shall also be employed to defray the rates of methods for the well-being of those persons who are intended for the advancement of health conditions and cleanliness, protection from disease and terms and enhancement of medical aid etc. Such funds shall also be used for the welfare of persons who work for the supply of drinking water, advancement of educational and learning opportunities and chances for lodging and leisure, improving the living conditions, nutritional food and restructuring of social situations, family interests, framing strategies and other upgrading facilities as specified under the enactment. Likewise, the fund shall also be used for giving loans to the Governments of the States, other authorities or other officials who are under any of the plans that are sanctioned by the Government of India which are related with the interests of persons who works under beedi industries. The fund shall be employed for the purpose of paying yearly financial assistance to the Government of the States or other local bodies that fulfills the standard fixed by the Central Government.

The Act provides for the establishment of an Advisory Committee for the beedi manufacturing States according the methods and procedure specified under the present enactment. The fundamental function of the Committee shall be to advice the Central Government on the matters related with the fund. The Union Government is entrusted with the duty to appoint Welfare Commissioners including the administrators as provided under the Act.