The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952

 

Introduction

It was in 1952 that the Provident Funds Act was enacted to provide for the institution of compulsory provident fund for the employees working in factories and other establishments. The Act was amended in 1971 to provide for family pension and life insurance benefits also and it was renamed as “the Employees Provident Funds and Family Pension Fund Act, 1952”. The Labour Provident Fund Laws (Amendment) Act, 1976 made further provision for deposit-linked insurance fund. It changed the title of the Act to “The Employee’s Provident Funds, Family Pension Fund, and Deposit-linked Insurance Fund Act, 1952. The Act was further amended to incorporate the Employees Pension Scheme, 1995.

Objects of the Act

The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 (EPF and MP Act) is a part of social security and welfare measures taken by the Government. It is intended to provide security for old age to the industrial workers who are not able to save out of their meager emoluments for their future. Under the Act, the employees and employers are required to contribute sums as prescribed under the Act to the Provident Fund for the benefit of the employees. As stated in the preamble of the Act, the object of the Act is to provide for the institution of provident funds for employees in factories and other establishments.

Applicability of the Act

Subject to the provisions contained in Section 16, the Act applies-
(a) To every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and
(b) To any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf ;
(c) Provident that the Central Government may, after giving not less than two month’s notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification. [Sec. 1(3)]

Exemption from the Application of the Act

Section 16 provides that the following establishments are exempted from the application of this Act:
(1) Any establishment registered under the C0-operative Societies Act, 1912 or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power, or
(2) To any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any Scheme or rule framed by the Central Government or the State Government governing such benefits;
(3) To any other establishment set up under any Central, Provincial or State Act and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance with any scheme or rule framed under that Act governing such benefits; or
(4) To any other establishment newly set up, until the expiry of a period of three years from the date on which such establishment is, or has been set up.

Broad Features of Act

The salient features of the Employees Provident Funds Act are as under:
1. The object of the Act is to make some provision for the industrial worker for the future so that he may utilize this after retirement and his dependents may not suffer on account of his retirement or premature death.
2. The Act is applicable to any establishment if the following conditions are fulfilled :
(a) The establishment is engaged in an industry specified in Schedule I.
(b) At least 20 persons have been employed in it.
(c) In case of an establishment employing fifty or more persons, three years and in case of an establishment employing twenty or more but less than fifty persons, five years must have elapsed from the date of its establishment.

3. The following four schemes have been framed under the Act by the Central Government:
(a) The Employee’s Provident Funds Scheme, 1952
(b) The Employees’ Family Pension Scheme, 1971
(c) The Employee’s Deposit-Linked Insurances Scheme, 1976
(d) The Employee’s Pension Scheme, 1995

4. The scheme under the Act are financed by contributions from the employees and the employers and also the grants given by the Central Government.
5. There are more than 26 million subscribers to the provident fund, family pension and deposit linked insurance schemes.
6. The wage ceiling limit for coverage under the EPF and MP Act is Rs. 6,500 per month.

Sections	Content
1	Short title, extent and application
2	Definitions
2A	Establishment to include all departments and branches
3	Power to apply the Act to an establishment which has a common provident fund with another establishment
4	Power to add to Schedule I
5	Employees Provident Funds Scheme
5A	Central Board
5AA	Executive Committee
5B	State Board
5C	Board of Trustees to be body corporate
5D	Appointment of officers
5DD	Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be invalidated on certain grounds
5E	Delegation
6	Contributions and matters which may be provided for in the Scheme
6A	Employee’s Pension Scheme
6C	Employee’s Deposit Linked Insurance Scheme
6D	Laying of Schemes before Parliament
7	Modification of Scheme
7A	Determination of moneys due from employers
7B	Review of orders passed under section 7A
7C	Determination of escaped amount
7D	Employee’s Provident Funds Appellate Tribunal
7E	Term of Office
7F	Resignation
7G	Salary and allowances and other terms and conditions of service of Presiding Officer
7H	Staff of Tribunal
7I	Appeals to Tribunal
7J	Procedure of Tribunal
7K	Right of appellant to take assistance of legal practitioner and of government, etc. to appoint presenting officers
7L	Orders of Tribunal
7M	Filling up of vacancies
7N	Finality of orders constituting a Tribunal
7O	Deposit of amount due, on filing appeal
7P	Transfer of applications of Tribunal
7Q	Interest payable by the employer
8	Mode of recovery of moneys due from employers
8A	Recovery of moneys by employers and contractors
8B	Issue of certificate to the Recovery Officer
8C	Recovery Officer to whom certificate is to be forwarded
8D	Validity of certificate and amendment thereof
8E	Stay of proceedings under certificate and amendment or withdrawal thereof
8F	Other modes of recovery
8G	Application of certain provisions of Income Tax Act
9	Fund to be recognized under Act 11 of 1922
10	Protection against Attachment
11	Priority of payment of contributions over other debts
12	Employer not to reduce wages etc.
13	Inspectors
14	Penalties
14A	Offences by companies
14AA	Enhanced punishment in certain cases after previous conviction
14AB	Certain offences to be cognizable
14AC	Cognizance and trial of offences
14B	Power to recover damages
14C	Power of court to  make orders
15	Special provisions relating to existing provident funds
16	Act not to apply to certain establishments
16A	Authorizing certain employers to maintain provident fund accounts
17	Power to exempt
17A	Transfer of accounts
17AA	Act to have effect notwithstanding anything contained in Act 31 of 1956
17B	Liability in case of transfer of establishment
18	Protection of action taken in good faith
18A	Presiding officer and other officers to be public servants
19	Delegation of powers
20	Power of Central Government to give directions
21	Power to make rules
22	Power to remove difficulties
Schedule I	Matters of Industry engaged in Manufacture
Schedule II	Matters for which provision may be made in a Scheme
Schedule III	Matters for which provision may be made in the Pension Scheme
Schedule IV	Matters to be provided for in the Employee’s Deposit insurance Scheme