Employees Provident Fund and Miscellaneous Provisions Act, 1952

Employees Provident Fund and Miscellaneous Provisions Act, 1952

Annexury- Recovery of Damages from Employers

Matters for which provisions may be made in a Scheme.

1. The employees or class or employees who shall join the Fund and the conditions under which employees may be exempted from joining the Fund or from making any contribution.

2. The time and manner in which contributions shall be made to the Fund by the employers and by, or on behalf of employees (Whether employed by him directly or by or through a contractor), the contributions which an employee may, if he so desires, make under Sec.6, and the manner in which such contributions may be recovered.

2A. The manner in which employees’ contributions may be recovered by contractors from employees employed by or through such contractors.

3. The payment by the employer of such sums of money as may be necessary to meet the cost of administering the Fund and the rate at which and the manner in which the payment shall be made.

4. The Constitution of any committee for assisting any Board of Trustees.

5. The opening of regional and other offices of any Board and Trustees.

6. The manner in which accounts shall be kept, the investment of moneys belonging to the Fund in accordance with any directions issued or conditions specified by the Central Government, the preparation of the budget, the audit of accounts and the submission of reports to the Central Government or to any specified State Government.

7. The conditions under which withwrawals from the Fund may be permitted and any deduction or forefeiture may be madde and the maximum amount of such deduction or forefeiture.

8. The fixation by the Central Government in consultation with the boards of trustees concerned of the rate of interest payable to members.

9. The form in which an employee shall furnish particulars about himself and his family whenever required.

10. The nomination of person to receive the amount standing to the credit of a member after his death and the cancellation or variation of such nomination.

11. The registers and records to be maintained with respect to employees and the returns to be furnished by employers or contractors.

12. The form or design of any identity card, token or dise for the purpose of identifying any employee, and for the issue, custody and replacement thereof.

13. The fees to be levied for any of the purposes specified in this Schedule.

14. The contraventions or defaults which shal be punsihable under subsection (2) of Sec.14.

15. The further powers, if any, which may be exercised by inspectors.

16. The manner in which accumulations in any existing provident fund shall be transferred to the Fund under Sec.15, and the mode of valuation of any assets which may be transferred by the employers in this behalf.

17. The conditions under which a member may be permitted to pay premia of life insurance from the Fund.

18. Any other matter (Which is to be provided for in the Scheme or) which may be necessary or proper for the purpose of implementing the Scheme.

1. Short title extent and application –

Each cable operator shall maintain a register in Form 5 for each month of the year for which the registration is granted.

2. Definitions

In this Act unless the context otherwise requires :

(a) “appropriate government” means –

(i) in relation to an establishment belonging to or under the control of the Central Government or in relation to an establishment connected with a railway company a major port a mine or an oil field or a controlled industry or in relation to an establishment having departments or branches in more than one State the Central Government; and

 (ii) in relation to any other establishment the State Government;

(aa) “authorised officer” means the Central Provident Fund Commissioner Additional Central Provident Fund Commissioner Deputy Provident Fund Commissioner Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government by notification in the Official Gazette;

(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him but does not include :

 (i) the cash value of any food concession;

(ii) any dearness allowance (that is to say all cash payments by whatever name called paid to an employee on account of a rise in the cost of living) house-rent allowance overtime allowance bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;

 (iii) any presents made by the employer;

(c) “contribution” means a contribution payable in respect of a member under a scheme or the contribution payable in respect of an employee to whom the Insurance Scheme applies;

(d) “controlled industry” means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest;

(e) “employer” means :

 (i) in relation to an establishment which is a factory the owner or occupier of the factory including the agent of such owner or occupier the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under clause (f) of sub-section

(1) of section 7 of the Factories Act 1948 the person so named; and

(ii) in relation to any other establishment the person who or the authority which has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager managing director or managing agent such manager managing director or managing agent;

(f) “employee” means any person who is employed for wages in any kind of work manual or otherwise in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer and includes any person

(i) employed by or through a contractor in or in connection with the work of the establishment;

 (ii) engaged as an apprentice not being an apprentice engaged under the Apprentices Act 1961 or under the standing orders of the establishment;

(ff) “exempted employee” means an employee to whom a Scheme or the Insurance Scheme as the case may be would but for the exemption granted under section 17 have applied;

 (fff) “exempted establishment” means an establishment in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme or the Insurance Scheme as the case may be whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein;

(g) “factory” means any premises including the precincts thereof in any part of which a manufacturing process is being carried on or is ordinarily so carried on whether with the aid of power or without the aid of power;

[(gg)

(ggg) Omitted w.e.f. 16-11-1995]

(h) “Fund” means the provident fund established under a Scheme;

(i) “industry” means any industry specified in Schedule I and includes any other industry added to the Schedule by notification under section 4;

(ia) “Insurance Fund” means the Deposit-linked Insurance Fund established under sub-section (2) of section 6C;

(ib) “Insurance Scheme” means the Employees’ Deposited-linked Insurance Scheme framed under sub-section (1) of section 6C;

(ic) “manufacture” or “manufacturing process” means any process for making altering repairing ornamenting finishing packing oiling washing cleaning breaking up demolishing or otherwise treating or adapting any article or substance with a view to its use sale transport delivery or disposal;

(j) “member” means a member of the fund;

(k) “occupier of a factory” means the person who has ultimate control over the affairs of the factory and where the said affairs are entrusted to a managing agent such agent shall be deemed to be the occupier of the factory;

(kA) “Pension Fund” means the Employees’ Pension Fund established under sub-section (2) of section 6A;

(kB) “Pension Scheme” means the Employees’ Pension Scheme framed under sub-section (1) of section 6A;

 (ka) “prescribed” means prescribed by rules made under this Act;

 (kb) “Recovery Officer” means any officer of the Central Government State Government or the Board of Trustees constituted under section 5A who may be authorised by the Central Government by notification in the Official Gazette to exercise the powers of a Recovery Officer under this Act;

(l) “scheme” means the Employees’ Provident Fund Scheme framed under section 5;

 (ll) “superannuation” in relation to an employee who is the member of the Pension Scheme means the attainment by the said employee of the age of fifty-eight years”.

 (m) “Tribunal” means the Employees’ Provident Funds Appellate Tribunal constituted under section 7D.

2A. Establishment to include all departments and branches

For the removal of doubts it is hereby declared that where an establishment consists of different departments or has branches where situated in the same place or in different places all such departments or branches shall be treated as parts of the same establishment.

3. Power to apply the Act to an establishment which has a common provident fund with another establishment –

Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is common to the employees employed in that establishment and employees in any other establishment the Central Government may by notification in the Official Gazette direct that the provisions of this Act shall also apply to such other establishment.

4. Power to add to Schedule

(1) The Central Government may by notification in the Official Gazette add to Schedule I any other industry in respect of the employees whereof it is of opinion that a provident fund scheme should be framed under this Act and thereupon the industry so added shall be deemed to be an industry specified in Schedule I for the purposes of this Act.

 (2) All notifications under sub-section (1) shall be laid before Parliament as soon as may be after they are issued.

5. Employees’ Provident Funds Scheme –

(1) The Central Government may by notification in the Official Gazette frame a Scheme to be called the Employees’ Provident Funds Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply and there shall be established as soon as may be after the framing of the Scheme a Fund in accordance with the provisions of this Act and the Scheme.

(1A) The Fund shall vest in and be administered by the Central Board constituted under section 5A.

 (1B) Subject to the provisions of this Act a Scheme framed under sub-section (1) may provide for all or any of the matters specified in Sch. II.

(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.

5A. Central Board 

(1) The Central Government may by notification in the Official Gazette constitute with effect from such date as may be specified therein a Board of Trustees for the territories to which this Act extends (hereinafter in this Act referred to as the Central Board) consisting of the following persons as members namely :

(a) a Chairman and a Vice-Chairman to be appointment by the Central Government;

 (aa) the Central Provident Fund Commissioner ex officio;

(b) not more than five persons appointed by the Central Government from amongst its officials;

 (c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf appointed by the Central Government;

 (d) ten persons representing employers of the establishments to which the Scheme applies appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf; and

 (e) ten persons representing employees in the establishments to which the Scheme applies appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government in this behalf.

 (2) The terms and conditions subject to which a member of the Central Board may be appointed and the time place and procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.

 (3) The Central Board shall subject to the provisions of section 6A and section 6C administer the fund vested in it in such manner as may be specified in the Scheme.

 (4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the Scheme Family Pension Scheme and the Insurance Scheme.

 (5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the Central Government may after consultation with the Comptroller and Auditor-General of India specify in the Scheme.

 (6) The accounts of the Central Board shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Central Board to the Comptroller and Auditor-General of India.

 (7) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular shall have the right to demand the production of books accounts connected vouchers documents and papers and inspect any of the offices of the Central Board.

 (8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointment by him in this behalf together with the audit report thereon shall be forwarded to the Central Board which shall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor-General.

 (9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities and the Central Government shall cause a copy of the annual report the audited accounts together with the report of the Comptroller and Auditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament.

5AA. Executive Committee

(1) The Central Government may by notification in the Official Gazette constitute with effect from such dates as may be specified therein an Executive Committee to assist the Central Board in the performance of its functions.

(2) The Executive Committee shall consist of the following persons as members namely :

(a) a Chairman appointed by the Central Government from amongst the members of the Central Board;

 (b) two persons appointed by the Central Government from amongst the persons referred to in clause (b) of sub-section (1) of section 5A;

(c) three persons appointed by the Central Government from amongst the persons referred to in clause (c) of sub-section (1) of section 5A;

(d) three persons representing the employers elected by the Central Board from amongst the persons referred to in clause (d) of sub-section (1) of section 5A;

 (e) three persons representing the employees elected by the Central Board from amongst the persons referred to in clause (e) of sub-section (1) of section 5A;

 (f) the Central Provident Fund Commissioner ex officio.

 (3) The terms and conditions subject to which a member of the Central Board may be appointed or elected to the Executive Committee and the time place and procedure of the meetings of the Executive Committee shall be such as may be provided for in the Scheme.

5B. State Board

(1) The Central Government may after consultation with the Government of any State by notification in the Official Gazette constitute for that State a Board of Trustees (hereinafter in this Act referred to as the State Board) in such manner as may be provided for in the Scheme.

 (2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time to time.

(3) The terms and conditions subject to which a member of a State Board may be appointed and the time place and procedure of the meetings of a State Board shall be such as may be provided for in the Scheme

5C. Board of Trustees to be body corporate

Every Board of Trustee constituted under section 5A or section 5B shall be a body corporate under the name specified in the notification constituting it having perpetual succession and a common seal and shall by the said name sue and be sued.

5D. Appointment of officers 

(1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the chief executive officer of the Central Board and shall be subject to the general control and superintendence of that Board.

 (2) The Central Government may also appoint a Financial Advisor and Chief Accounts Officer to assist the Central Provident Fund Commissioner in the discharge of his duties.

(3) The Central Board may appoint subject to the maximum scale of pay as may be specified in the Scheme as many Additional Central Provident Fund Commissioners Deputy Provident Fund Commissioners Regional Provident Fund Commissioners Assistant Provident Fund Commissioners and such other officers and employees as it may consider necessary for the efficient administration of the Scheme the Family Pension Scheme and Insurance Scheme.

(4) No appointment to the post of the Central Provident Fund Commissioner or a Financial Advisor and Chief Accounts Officers or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group ‘A’ or Group ‘B’ post under the Central Government shall be made except after consultation with the Union Public Service Commission.

Provided that no such consultation shall be necessary in regard to any such appointment

 (a) for a period not exceeding one year or

(b) if the person to be appointed is at the time of his appointment

 (i) a member of the Indian Administrative Service or

 (ii) in the service of the Central Government or a State Government or the Central Board in a Group ‘A’ or Group ‘B’ post.

 (5) A State Board may with the approval of the State Government concerned appoint such staff as it may consider necessary.

(6) The method of recruitment salary and allowances discipline and other conditions of service of the Central Provident Fund Commissioner and the Financial Adviser and Chief Accounts Officer shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Fund.

 (7)(a) The method of recruitment salary and allowances discipline and other conditions of service of Additional Central Provident Fund Commissioner Deputy Provident Fund Commissioner Regional Provident Fund Commissioner Assistant Provident Fund Commissioner and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay :

Provided that where the Central Board is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid it shall obtain the prior approval of the Central Government.

 (b) In determining the corresponding scales of pay of officers and employees under clause (a) the Central Board shall have regard to the educational qualifications method of recruitment duties and responsibilities of such officers and employees under the Central Government and in case of any doubt the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.

 (8) The method of recruitment salary and allowances discipline and other conditions of service of officers and employees of State Board shall be such as may be specified by that Board with the approval of the State Government concerned.

 Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be invalidated on certain grounds

No act done or proceeding taken by the Central Board or the Executive Committee constituted under section 5AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in or any defect in the constitution of the Central Board or the Executive Committee or the State Board as the case may be.

5E. Delegation  

 The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a State Board may delegate to its Chairman or to any of its officers subject to such conditions and limitations if any as it may specify such of its powers and functions under this Act as it may deem necessary for the efficient administration of the Scheme the Family Pension Scheme and the Insurance Scheme.

6. *Contributions and matters which may be provided for in the Scheme 

 The contribution which shall be paid by the employer to the Fund shall eight and one-third per cent of the basic wages dearness allowances and retaining allowance (if any) for the time being payable to each of the employees (whether employed by him directly or by or through a contractor) and the employees’ contribution shall be equal to the contribution payable by the employer in respect of him and may if any employee so desires and if the Scheme makes provision therefore be an amount not exceeding eight and one-third per cent of his basic wages dearness allowances and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section;

 Provided that in its application to any establishment or class of establishments which the Central Government after making such inquiry as it deems fit may by notification in the Official Gazette specify this section shall be subject to the modification that for the words “eight and one-third per cent” at both the places where they occur the words “ten per cent” shall be substituted :

 Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee the Scheme may provide for the rounding off of such fraction to the nearest rupee half of a rupee or quarter to a rupee.

 Explanation 1 : For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.

Explanation 2 : For the purposes of this section retaining allowance means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working for retaining his services.

6A. Employees’ Pension Scheme 

 (1) The Central Government may by notification in the Official Gazette frame a scheme to be called the Employees’ Pension Scheme for the purpose of providing for :

 (a) superannuation pension retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Act applies; and

 (b) widow or widower’s pension children pension of orphan pension payable to the beneficiaries of such employees.

 (2) Notwithstanding anything contained in section 6 there shall be established as soon as may be framing of the Pension Scheme a Pension Fund into which there shall be paid from time to time in respect of every employee who is a member of the Pension Scheme :

 (a) such sums from the employer’s contribution under section 6 not exceeding eight and one-third per cent of the basic wages dearness allowance and retaining allowance if any of the concerned employees as may specified in the Pension Scheme;

 (b) such sums as are payable by the employers of exempted establishments under sub-section (6) of section 17;

 (c) the net assets of the Employees’ Family Pension Fund as on the date of the establishment of the Pension Fund;

 (d) such sums as the Central Government may after due appropriation by Parliament by law in this behalf specify.

 (3) On the establishment of the Pension Fund the Family Pension Scheme (hereinafter referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall stand transferred to and all liabilities under the ceased scheme shall be enforceable against the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw the benefits not less than the benefits they were entitled to under the ceased scheme from the Pension Fund.

 (4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in the Pension Scheme.

(5) Subject to the provisions of this Act the Pension Scheme may provide for all or any of the matters specified in Schedule III.

(6) The Pension Scheme may provide that all or any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in that behalf in that Scheme.

 (7) A Pension Fund Scheme framed under sub-section (1) shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the scheme or both Houses agree that the scheme should not be made the scheme shall thereafter have effect only in such modified form or be of no effect as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that scheme”.

6C. Employees’ Deposit Linked Insurance Scheme 

 (1) The Central Government may by notification in the Official Gazette frame a Scheme to be called the Employees’ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies.

 (2) There shall be established as soon as may be after the framing of the Insurance Scheme a Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee in relation to whom he is the employer such amount not being more than one per cent of the aggregate of the basic wages dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee as the Central Government may by notification in the Official Gazette specify.

Explanation : For the purposes of this sub-section the expressions “dearness allowance” and “retaining allowance” have the same meanings as in section 6.

 [(3) Omitted w.e.f. 16-11-1995]

(4)(a) The employer shall pay into the Insurance Fund such further sums of

money not exceeding one-fourth of the contribution which he is required to make under sub-section (2) as the Central Government may from time to time determine to meet all the expenses in connection with administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that Scheme.

 [(b) Omitted w.e.f. 16-11-1995]

(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as may be specified in the Insurance Scheme.

(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.

 (7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in that Scheme.