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Il Epf
Il Epf
PROVIDENT FUNDS
AND
MISCELLANEOUS
PROVISIONS ACT,
1952
Foreword
The employees provident funds and
miscellaneous act,1952:
is a piece of social legislation
a beneficent measure,
enacted for the purpose of institution of
provident fund for employees in factories
and other establishments.
Provident fund is an effective old-age and
survivorship benefit.
HISTORICAL BACKGROUND
WITH THE INDUSTRIAL GROWTH
Some big employers introduced schemes of PF
for welfare of workers.
But these were private and voluntary
Workers of small employers remained deprived
Therefore grouse of deprived workers gained
momentum.
Contd...
In 1946, Labour Investigation committee was
formed to investigate the functioning of the
above mentioned private and voluntary PF
schemes.
Contd
But the Central Government is empowered to
apply the provisions of this act to any
establishment
Employing less than 20 persons
contd...
Not more than fifteen persons representing
the Government of the States;
Contd...
.
also perform such other functions as it
may be required to perform by or under
any provisions of the Employees Provident
Fund Scheme and the Insurance Scheme
under the Act.
EXECUTIVE COMMITTEE
Contd...
The Central Govt may also appoint:
A Financial Adviser and Chief Accounts
Officer to assist the Central Provident Fund
Commissioner in the discharge of his
duties; and
As many Additional Provident Fund
Commissioners, Regional Provident Fund
Commissioners, Assistant Provident Fund
Commissioners, and such other officers and
employees as it may consider necessary.
CONTRIBUTIONS TO BE MADE
INTO THE PROVIDENT FUND
Each employer shall, in respect of an
employee employed by him either directly or
through a contractor
pay ten percent of the basic wages, dearness
allowance and retaining allowance (only in
cases where retaining allowance is being paid)
payable to such employee.
Contd...
Each employee shall contribute to the Provident
Fund
an amount equalling the contribution made by
the employer,
but shall be free to make a contribution over and
above the sum made by the employer, but in
such a case, there shall be no obligation on the
employer to match such excessive contribution
made by the employee
Contd...
However, the Central Government shall be
free, after making due inquiry, to issue a
Gazette Notification fixing the quantum of
contribution of both employers and
employees at twelve percent in any
establishment or class of establishments.
DETERMINATION OF MONEY
FROM EMPLOYERS
Section 7.A provides that ANY Provident
Fund Commissioner may:
In a case where a dispute arises regarding
the applicability of this Act to an
establishment, decide such dispute; and
Determine the amount due from any
employer under any provision of this Act
Review of Orders passed under
sub-section 1 of section 7(A)
Any person
who is aggrieved by an order passed,
but from which no appeal has been
preferred under the Act and
who, from the discovery of new and
important matter of evidence, desires to
have the order made reviewed, may apply
for a review of that order to the officer
who made the order.
EMPLOYEES PROVIDENT FUND
APPELLATE TRIBUNAL
The Central Govt may constitute one or more
employees provident fund appellate tribunal
which shall have jurisdiction in respect of
establishments situated in such area as notified in
notification constituting the tribunal.
A tribunal shall consist of only one person who will
be the presiding officer
Contd...
A person can not be the presiding
officer of a tribunal unless he is, or
has been, or is qualified to be,-
(i) a judge of a high court; or
Contd...
A Tribunal shall send a copy of every
order passed to the parties to the appeal.
Contd...
Contd...
Makes copies of, or take extracts from, any
book, register or other document maintained
in relation to the establishment and, where he
has reason to believe that any offence under
this Act has been committed by an employer,
seize with such assistance as he may think fit,
such book, register or other document or
portions thereof as he may consider relevant
in respect of that offence;
Exercise such other powers as the Schemes
under the Act may provide
Penalties under the Act
Contd...
Similarly, an employer who contravenes the
provision of the Act in relation to the payments
to be made into the Pension Scheme or makes
default in payment of inspection charges
stipulated under the Act
shall be punishable with imprisonment which
may extend to three years
NOTE : Such punishment ,
shall not be less than one year and a fine of ten thousand
rupees in case of default in payment of the employees
contribution which has been deducted from his wage.
And in all other cases, the punishment shall not be less than
imprisonment for a period of six months and a fine of five
thousand rupees.
However, the Court has been given adequate powers to
impose a lesser sentence, provided there are sufficient
reasons for so doing, which has been noted in the
judgement.
Contd...
An employer who contravenes the provisions of
the Act relating to the payments to be made
into the Employees Deposit Linked Insurance
Scheme:
shall be punishable with imprisonment for a
term which may extend to one year, but shall
not be less than six months,
and shall also be liable for a fine which may
extend to five thousand rupees. (In this case
also the court can impose lesser sentence)
Contd...
Offences mentioned, when committed by a
Company,
Then every person in charge of the Company
at the time of the offence or who was
responsible to the Company for the conduct of
the business of the company shall be
proceeded against, along with the company
and shall be punished accordingly.
However, if the person so proceeded against is
able to prove that the offence was committed
without him having known about it, or that he
took reasonable care to prevent the
commission of the offence, then he shall not
be proceeded against.
What happens in the case of
repeating offenders?
A person who has previously been
convicted for any of the offences above
mentioned is found to have committed the
same offence again shall be
subject for every such subsequent offence
to imprisonment for a term which may
extend to five years, but shall not be less
than two years,
and shall also be liable to a fine of twenty
five thousand rupee
Transfer of Accounts
If an employees leaves his employment in an
establishment and joins any other
establishment then the amount of
accumulations to the credit of such employee
in the Provident Fund shall be transferred
within such time as specified by the Central
Govt. to the credit of his account in the
Provident Fund of the establishment in which
he is re-employed, if the employee so desires
and the rules in relation to that PF permit
that transfer.
EMPLOYEES
PROVIDENT FUND
FORM
EMPLOYEES
PENSION SCHEME
FORM
Concluding remark
Though the Employees Provident Fund
and Miscellaneous Provisions Act is a much
more comprehensive Statute incorporating
much more details, the discussed things
could very well be identified as the crux of
the Statute as they reflect the heart and
soul of the Act and brings out its welfare
nature.