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Employees Provident Funds Act, 1952

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Employees Provident Funds Act, 1952


Dr. T.K. Jain.

AFTERSCHOOL
Centre for social entrepreneurship Bikaner M: 9414430763 tkjainbkn@yahoo.co.in www.afterschool.tk, www.afterschoool.tk
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Applicability of the law


(a) Every establishment which is a factory engaged in industry specified in Schedule I to the Act and in which 20 or more persons are employed and (b) any other establishment or class of establishment employing 20 or more persons which may be specified by Central government by notification in official gazette. - Central Government can also apply provisions of the Act to any establishment even if it employs less than 20 persons. [section 1(3)]
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Act not to apply to


establishments employing less than 20 employees. (However, once Act becomes applicable, it continues to apply even if subsequently, the number is lower than 20) * Banks doing business in more than one State * Coal mines * Units established under Cooperative Societies Act employing less than 50 workers and working without aid of power * Other establishments belonging to or under control of Central Government or State Governments and whose employees are entitled to benefits of contributory provident fund or pension. * Tea factories in Assam * Exemption granted by Central Government by a special notification
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Temporary workers not to be counted


RPFC v. T S Hariharan 1971 Lab IC 951 (SC), ----- it was held that temporary workers should not be counted to decide whether the Act would apply.

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Applicability of the act for less than 20 workers


CPFC can apply the provisions to that (where workers & employer are willing to implement PF) establishment by issuing a notification in Official Gazette. [section 1(4)]. Once the provisions of Act become applicable, it continues to be applicable even if number of employees fall below 20. [section 1(5)].
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PF to apply to branches also


Once an establishment is covered under PF, all its departments and branches wherever they are situated are also covered.

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How will you count the number?


Where an establishment consists of different departments or has branch es, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment. [section 2A]. - - Thus, if factory is covered, the head office and branches will also be covered under the Act.
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Besides factories
Besides factories, other establishments employing 20 or more persons can be covered under the Act u/s 1(3)(b). Various notifications have been issued extending the provisions of PF Act to non-factory establishments. Some major among them are plantation, mines, coffee, hotels and restaurants, cinema and theatres, trading and commercial establishments, laundry, canteens, establishments of attorneys/CA/ ICWA/engineers/ architects/medical practitioners, hospitals, financial establishments,building and construction industry, poultry, university, college, schools, scientific institutions etc.
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Applicability of the act


20 or more workmen are employed as contract labour or were so employed anytime during last 12 months. [section 1(3)(a)] .this act will not apply to establishment where work of an intermittent or casual nature is performed. [section 1(5)(a)].

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Requirements
You will find contract labour in most of the factories, establishments, construction firms, organisations in all these places typically, the company hires employees through a contractor this is called contract labour. This labour is regulated through the law on contract labour.

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Who is a contract labour?


A workman is deemed to be employed as contract labour in or in relation to work of the establishment, if he is hired for such work by or through a contractor, with or without knowledge of principal employer. [section 2(1)(b)].

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Contractor
who employs 20 or more workmen. [section 1(3)(b)]. The contractor shall be licensed. [section 12]. Contractor is required to maintain muster roll and register of wages. [section 29]. - He is required to follow other provisions as may be contained in Rules made by Appropriate Government. Contractor is required to pay wages to workmen on time, in presence of authorised representative of principal employer. [section 21]
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Mode of payment of wages.


Contractor to issue wage slips to workman and obtain signature or thumb impression on wage register. if contractor fails to make payment of wages, Principal Employer is liable to make payment of wages to contract labour. He can recover this amount from contractor. [section 21(4)].
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Facilities to be provided to the workers.


Contractor is required to provide canteen facilities, first-aid, rest rooms, drinking water, latrines and washing facilities, as per rules made by State Government. [sections 16 and 17].

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Abolition of contract
Government can issue notification u/s 10 abolishing contract labour only after following prescribed procedure regarding consultation etc. - if such a notification is issued, the employees with contractor will not be automatically absorbed in the employment of the company, if the contact was genuine. However, company will give preference to them. (Steel authority of India Ltd. V/s national union water Front 2001 )
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About AFTERSCHOOL
PGPSE - Worlds most comprehensive programme on social entrepreneurship after class 12th Flexible fast changing to meet the requirements Admission open throughout the year Complete support from beginning to the end from idea generation to making the project viable.
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Branches of AFTERSCHOOL
PGPSE programme is open all over the world as free online programme. Those who complete PSPSE have the freedom to start branches of AFTERSCHOOL A few branches have already started one such branch is at KOTA (Rajasthan).

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Workshop on social entrepreneurship


We conduct workshop on social entrepreneurship all over India and out of India also - in school, college, club, association or any such place - just send us a call and we will come to conduct the workshop on social entrepreeurship. These workshops are great moments of learning, sharing, and commitments.
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FREE ONLINE PROGRAMME


AFTERSCHOOL is absolutely free programme available online any person can join it. The programme has four components : 1. case studies writing and analysing using latest tools of management 2. articles / reports writing & presentation of them in conferences / seminars 3. Study material / books / ebooks / audio / audio visual material to support the study 4. business plan preparation and presentations of those plans in conferences / seminars
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100% placement / entrepreneurship


AFTERSCHOOL has the record of 100% placement / entrepreneurship till date Be assured of a bright career if you join AFTERSCHOOL

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Pursue professional courses along with PGPSE


AFTERSCHOOL permits you to pursue distance education based professional / vocational courses and gives you support for that also. Many students are doing CA / CS/ ICWA / CMA / FRM / CFP / CFA and other courses along with PGPSE. Come and join AFTERSCHOOL

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