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THE EMPLOYEES PROVIDENT FUNDS AND

MISCELLANEOUS PROVISIONS ACT,1952

Application of the Act

The act extends to the whole of India [sec .1(2)]

To every establishment which is a factory engaged in

any industry specified in schedule I and in which20 or more persons are employed [sec. 1(3) (a)],

and

(a) To any other establishment employing 20 or more

persons or class of such establishments which the

central government may, by notification in the

official gazette, specify in this behalf [sec. 1(3) (b)].

by Dr. M.latha Natarajan

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Powers to apply act to an establishment which hasa common provident fund with anotherestablishment.

Power to add to Schedule I Establishment to include all departments and

branches.

Definitions

Appropriate government [sec. 2(a)]- central or state govt.

Authorised officer [sec. 2(aa)]

- Central P.F. Commissioner

- Additional Central P.F. Commissioner- Deputy Central P.F. Commissioner

- Regional Central P.F. Commissioner

Basic wages [sec. 2(b)]


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Contribution [sec. 2(c)]

-employee & employer contribution towards P.F

Controlled industry [sec. 2(d)]

-All the industries specified in the First schedule of theindustries Act 1951.

Employer [sec. 2(e)]

- owner or the occupier of the factory

- the authority who have ultimate control over the affairs.

Employee [sec. 2(f)]

-who is employed directly or through agent.

Exempted employee [sec. 2(ff)] Exempted establishment [sec. 2(fff)]

Factory[sec. 2(g)]

Premises, manufacturing process


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Family pension Fund [sec. 2(h)] Industry [sec. 2(i)] Manufacture or manufacturing process [sec. 2(i-c)]

Member [sec. 2(j)] Occupier of a factory [sec. 2(k)]-who has ultimate control over the affairs of thefactory

Pension fund [sec. 2(kA)] Pension scheme [sec. 2(kB)] Recovery officer [sec. 2(kb)]

-any officer of the central govt., state govt. or theBoard of Trustees; notification under official gazette.

Superannuation [sec. 2(ll)] Tribunal [sec. 2(m)]

- the employees Provident Funds Appellate TribunalConstituted under law.


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Administration of the schemes

Central board

- A chairman and a Vice-chairman-Central P.F. commissioner

-15persons appointed by central govt.

-15 persons appointed by sate govt.

-10 persons representing employers and 10 personsrepresenting employees

Executive committee

- A chairman. 10 persons each by central and state govt., 3persons each from representing employees and employers.

State board

Appointment of officers

- Appointment of financial advisor, chief account officer, unionpublic service commission.


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DETERMINATION OF MONEYS DUE FROM

EMPLOYERS,THEIR RECOVERY AND

EMPLOYEES PROVIDENT FUNDS APPELATE

TRIBUNAL Setting up an independent machinery for recovery of the

outstanding amount of provident fund

Determination of money dues from employer (sec 7(a))

- in a case where a disputes arises-determining the due amount from any employer

* Central P.F. Commissioner, - Additional Central P.F.Commissioner, - Deputy Central P.F. Commissioner

- Regional Central P.F. Commissioner :-> rights t conduct

enquiry and make necessary claim from the employer Review of orders passed under Sec. 7-A

- The officer made some mistake or error apparent on theface to the record.

- Review his order if he is satisfied.

Determination of escaped amount (sec 7-C)by Dr. M.latha Natarajan

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Employees provident Funds Appellate Tribunal (secs.7-D)

Constitution of appellate tribunal (sec. 7-D)

- membership; 1 person appointed by central govt.

Term of office (sec 7-E); act as a presiding officer

Appeals to tribunal (sec 7-I); dealing with dues fromemployer

Orders of tribunal (sec 7-L)

- Ratification of mistakes

- opportunity of hearing the employer- A copy of order to be sent to parties

- order of tribunal not to be questionable

Filling up of vacancies (sec 7-M)

-vacancy occurs in the office of the presiding officer of atribunal, the central govt. shall appoint another person.

Interest payable by the employer (sec 7-Q)

- 12% of interest per annum; ,if any due from the employer


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Recovery of moneys due from employers

Modes of recovery

-any contributions payable to the employees

-Damages recovery

-any charges payable by the employer to the govt.

Issues of certificate to the recovery officer

-Sale of the movable or immovable property

-arrest of the employer-the authorised officer have to produce the related documents

Validity of certificate and amendment thereof

- Certification about disputes and corrections of the amount

-the recovery officer have to produce no objectioncertificate after all verifications.

Stay of proceedings under certificate and amendmentor withdrawal thereof

any amount of payment and time granted for payment.


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Recovery of moneys by employer and

contractors

Fund to be recognised under the Indian income-taxact,1961

Protection against attachment (after death of employeenominee can apply for the claims such as p.f .pension)

Priority of payment of contributions over other debts

- In the case of winding up or insolvent-any contribution payable by the employer

-any contribution towards family pension scheme

-any contribution to the insurance fund

-any charges payable to the govt. Employer not to reduce wages

- The employer do not have any rights to reduce the totalquantum of benefits ; old-age pension and life insurance


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Inspectors

-appointed by central govt.

Powers

-inquiring into the correctness

-ascertaining the provisions of the act

-ascertaining applications of p.f., insuranceschemes of the establishment

-rights to enquire the employer also

-at any reasonable time rights to enter theestablishment

-to make copies of records and registers


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MISCELLANEOUS

Special provisions relating to existing provident funds

Act not to apply to certain establishments*Cooperative societies

* Any other establishments newly set up, until the expiry of aperiod 3 years

Authorising certain employers to maintain providentfund accounts

100 or more employees

-obligation by the employer

-cancellation of authorisation:- any information fails, employercommits any offence

Power to exempt the notifications granting suchemployments

Transfer of accounts re-employment


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Penalties

-If any person knowingly makes any false statement- Makes any false representation

*Imprisonment from a term to 1 year

*Or with a fine Rs.5,000*or with both

*1 year and a fine of Rs.10,000 in case of

default to payment of the employees


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