registered; VUAY LAw SERI cstablishmentshallbe " the matters whichshall1tbe referred by thee Standing Commit. Corporationfor decision: tee tothe which anyvco contribution payable under " the mannerin and collected; beassessed this Ac shall the rate of interest higher than twelve per cent on paynent of contributions: delayed " rckoning of wages for the purpose of fixing the "the registerofemployees to be maintained by the contribution empl the entitlement of sickness benefit or disablement oyer, termporary disablement on any day on which person works or remains on leave or on holiday and in respect of which he receives wages or for any day on which he remains on strike: the certification of sicknesssand : eligibility for any cash the method of determining whether an insured personbenefit, is suf. fering frorm the diseases specified in the Third Schedule ete
Employees Provident Funds Act,
1952/ Scope and object of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 mployees Provident Funds Act, 1952 is a beneficial leg E islationenacted for theepurpose of institutingaProvident Fund for the benefit of employees establishments. The provisions workingmade forthe betterf have been1 : other in factoriessand ofthe incase industrial of his deathworker inon his retirementtand for the dependants while emplo the Actis under astatutory employment. The employer under percent- age ofthe obl ig ation to deductthe specifiedi contribution.contribution the employee Ssalaryand matching from LABOUR LAW-I| 33
Scope of thee, Act: The Act is designedItto provide for some retire- nent benefit. Itenvisages the institution of compulsorycontributory providentfund in certain industrial undertakingst mentioned in Sched- ule-i of theAct. The Act may be made applicable to other estab ishments also, if the CentralGovermment thinks fit. by anotification in the official gazette. Object of the Act: The primary object of the Act is to provide social security and to inculcate amongst the workers a spirit of sav ings while they are gainfully emploved and to make provision for their benefitafter they retire from service and for the members of family after their death. Applicability of the Act: The Employees Provident Funds and ex Miscellaneous Provisions Act 1952 apply to thewhole of India cept the State of Jammuand Kashmir. This Act applies to: in Schedule I a. every factory engaged in any industry specified b. every establishment in which 20 or more are emploved more c. any class of suchestablishment employing 20 or Govemment d. any establishments notified by the Central Regional Provident Fund In Bikaner Cold Storage Co. Ltd v. held that Commissioner AIR 1974 SC337 the Supreme Court as emplovees casual or temporary workers cannot be considered under the Act. Provident Fund Commis In Andhra University ». Regional Supreme Court held that an sioner (1986) I LLJ155(SC) the specitied establishment which is a factory engaged in any activity ACt. provisions of the The inSchedule I will be covered by the Andhra University mere factthat a printing press being run by purview ofthe fae carrying on an activity may not fall within the nature ofthe department which is covered tory, will not aftectthe Act. This makes clear that a manufac- by the provisions ofthis separated from a non-manufacturing turing process has to be applyto the process andthe Act shall manutacturing process oniy. 34 VuAY Aw Eligibility: Any person who is employedlor Wotk of ian employed throughcontractor in or in conncchom establsh, work of an cstablishment is eligibleforthe benefits under thewitA Iment or h the Benefits: Employees coveredenjoy aabenefit of SocialSecurity in the fon of an unattachable, unwithdrawable financial benefit Ihis sum is payable normally on retirement or death. 0ther Benefits include Employes Pension Schemeanddimplkoye'sDeasit l nked insurancc Fund. Constitutional validity of the Act: The Act was challenged as unconstitutional onthe ground that itis discriminativeein i nature, and is violative of the equality principles laid down under. Aricle 14 of the Constitution of India because it applies only to a particular class of industries. The Supreme Court did not approve this viewand said that the Act is constitutionally valid. The Court observed tht there is no diserimination or violation of the principles of cquality The power conferred on the Government is to apply the provisions of the Act only for acertain class of industries is only areasonable classification which is valid.
Schemes Under Employees Provident Funds Act Kinds of Provident Funds
chemes under Employees Provident Funds Act: The
Constitution of India under Directive Principles ofSat: Policy provides that the State shall withinthc limits ofits eco nomic capacity make effective provision for securinggtherighr w work, to cducation and to public ses of unemplo assistance ment, old-age, sickness, disablement in cases want. Pre and undeserved ently. the following three schermes are in operation underthe Act They are. 35
1. Employees' Provident Fund Scheme, 1952
2. Employees Deposit Linked Insurance Scheme, 1976 3. Employees'Family Pension Scheme, 1995 1. Employees" Provident Fund Scheme, 1952: Section 5(1): be The Central Government is authorized toframe a scheme to called the Employees' Provident Fund Scheme for the establish for any ment of provident funds under this Act for employees orclass or of class of employees and specify the establishments establishments to which the said Scheme shall apply and there shall be established, as soon as may be after the framing of the ofthis Act Scheme, aFund in accordance with the provisions and the Scheme. Deposit Linked Insurance Scheme, 1976: Sec 2. Employees' Government is authorized to frame a tion 6(1): The Central the Employees' Deposit-linked Insurance scheme to be called purpose of providing life insurance benefits to the Scheme for the establishments to which this Act applies. The employees ofany devised that it acts as an incentive benefit under the Scheme is so Provident Fund Account. save more in their tothe members to (A): The Family Pension Scheme, 1995:Section 3. Emplovees' authorized to frame a scheme to be called Central Government is Family Pension Scheme for the purpose of pro the Employees' life insurance benefit to theemployees viding family pensionand of establishmentsto which thisAct class of anyestablishmentor Family Pension Schemeprovides for applies. The Employees' following benefitpackage: member, on retirement and invalidation. the a. Pensionfor lifeto thefam1ly upon death ofthemember: b. To the members ofreturn on option formula basis capital c. Facility for ofpensionup to 1/3rd of pensionamount d. Commutation till attaining the age of58 years. ofmembership e. Retention VUAY LAW Si 36
Administration of Provident Fund Scheme dministration of provident fund scheme: t the Central Board cons be administeredIby This A Scheme shall tuted under section 5-A of the Act. The Employees Pro. dent Fund Act has made provision:for the constitution and appoirt- authoritiesfortthe effective implemerntation of ment of the following. framed. the Act and the Schemes Govermment may h 1. Central Board: Section 5-A:The Central notification in the Official Gazette, constitute the Central Board The Central Board shall subject to the provisions of section 6 and section 6Cadminister the Fund vested in it in such manner s may be specified in the Scheme. It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activiies and the Central Government shallcause a copy of the annua report, the audited accounts together with the report of the Comp troller and Auditor-General of ndia and the comments of tie Central Board thereon to be laid before each House of Parlia ment.
2. Executive Committee: Section 5-AA: The Central Gove
ment may, by notification in the Oficial Gazette.constitute, an Executive Committee to assist the Central Board in the per formance of its functions. 3. State Board: Section 5-B: The Central Government may. after consultation with the by 1 'notificationin Government any' of State. the Oficial Gazette, constitute the State Boardin suchmaner s may be provided for in the Scheme. ASAState Board:shallexer cise such powers and perform such :Central Gov duties as the LABOUR LAw-| 37
ernment may ass1gn to it from time to time.
ARegionalCommittee: Until such time a State Board is consti tuted for a State, the Central Covemment may set up a Regional Committee. The Commitee willfunction underthe control of the Central Board. The Regional Committee shall advisethe Central Board on the following matters; a. matters which are referred to it from time to time by the Cen tral Board and b. allmatters which are connected with the administration of the scheme in the State such as progress ofrecovery of provident fund contribution and other charges, speedy disposal of pros ecutions, speedy settlement of claims and speedy sanction of advances. The Central Gov 5. CentralProvident Fund Commissioner: Commissioner ernment shall appoint a Central Provident FundCentral Board. of the who shall be the Chief ExecutiveOfficer Deputy and RegionalProvident Fund Commissioner: The 6. as many Deputy Provi Central Government may also appoint Provident Fund Com Regional dent Fund Commissioners and Central Provident Fund deem fitto assist the missioners as it may The Central Board the Discharge ofhis duties. Commissioner in other officers and employees as it may con may appoint such efficient administration ofthe various sider necessary for the schemes undertheAct.
