Miscellaneous
3.1 Special
provisions relating to existing provident funds (Sec. 15)
i.
Every employee who is a subscriber to a existing provident
fund to which this Act applies shall continue to be entitled to the benefits
accruing to him in the same manner. However, Sec. 17 empowers the appropriate
Government to exempt certain establishments from the operation of all or any of
the provisions of any scheme. [Sec. 15 (1)]
ii. On application
of any Employees' Provident Fund Scheme to an establishment, the accumulations
in any provident fund of the establishment standing to the credit of the
employees shall be transferred to the accounts of the employees under the
Employees' Provident Fund Scheme.[Sec. 15 (2)]
3.2 Authorising
employers to maintain provident fund accounts
i.
The Central Government may allow certain employers to
maintain the Provident Fund accounts, if an application is made by the employer
and majority of the employees of an establishment employing 100 or more
employees provided that employer has not committed any offence under the Act
during earlier three years (s.16A)
ii.
Provident Fund under the authorization of an employer shall
be maintained as per specified terms and condition. Failing to comply with any
of the terms shall be subject to cancellation of the authorization.
3.3 Exemption
from the Act (Sec. 17)
a.
The Central Provident Fund Commissioner may grant exemption where
the appropriate Government is of the opinion that the rules in force regarding
the rates of contribution and other provident fund benefits are not less
favourable to employees than the benefits provided in the Act. (s.17(1)(b)) [H.P. Agro Industries Corporation Ltd v. Regional Provident Fund
Commissioner]
b. The exemption
under this section however shall be made after consultation with the Central
Board.
i.
Terms for exemption The exemption shall be subject to some
specified conditions:
-
The exemption may be given prospectively or retrospectively.
-
The exemption may be given from the operation of all or any
of the provisions of any scheme.
ii. Applicability
of provisions on exempted establishment
a.
The provisions of (sec. 6, 7A, 8 and 14B) shall apply to the
employer of the exempted establishment. (s.17(1A)(a))
b. A Board of
Trustees shall be formed by the employer for the administration of the Fund, as
specified in the scheme 17(1-A) (b).
c. The Board of
Trustees shall be responsible for –
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maintaining detail accounts of the employee,
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submit Returns to the Regional Provident Fund Commissioner,
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invest the fund money as per direction of Central Government,
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transfer the fund account of an employee where necessary,
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perform other duties as specified in the scheme.
d.
The terms and conditions as may be specified in the
notification granting exemption shall apply to the exempted establishment.
(s.17(1A)(c))
e.
If the employer contravenes, or makes default in complying
with any of the said provisions of conditions or any other provision of this
Act, he shall be punishable under sec. 14 as if the said establishment had not
been exempted. (s.17(1B))
iii.
Exemption from Employees'
Provident Fund Scheme (sec. 17(2))
Exemption may be granted to any person
or class of person employed in an establishment covered under the scheme, if any
person or class of person is entitled to benefits (such as PF, gratuity or
old-age pension) which are not less favorable to employees than the benefits
provided in the Act. However such
exemption shall be allowed only if the appropriate government thinks so.
iv.
Exemption from Employees'
Deposit-linked Insurance Scheme
Exemption
under Employees' Deposit-linked Insurance Scheme may be granted by the Central
Provident Fund Commissioner if –
-
the employees are getting benefit
(without making any separate contribution) in terms of life Insurance, whether
linked to there deposits in provident fund or not.
-
Benefits are more favourable to
the employees than the benefits under the scheme.
v.
Cancellation of exemption
The exemption
under this section can be cancelled in case of failure on the part of an
employer to comply with the terms and conditions on which the exemptions were
granted. In that case, the accumulations to the credit of an employee would be
transferred to the relative funds as per s.17(4) & 17(5).
In case of cancellation
of exemption, the liability for payment of contribution shall be from the date
the Employees' Provident Fund Scheme was applied (and not from the date when the cancellation by the
government was informed). [Lawley Sen & Co. v. R.P.F
Commr.]
3.4 Transfer
of accounts (Sec. 17-A)
a. For new establishment
covered under PF Act: If an employee who is a member of a Provident Fund leaves the
establishment and obtains re-employment in another establishment, the amount
standing to the credit shall be transferred to his account in Employer’s
Provident Fund or in the Provident fund of the new establishment.
b. For New establishment
not covered under the PF Act but has its own P F: In such case,
at the request of the employee, the amount standing in credit to the account of
the employee shall be transferred to the Provident Fund of the establishment in
which he is currently working, if the rules of that fund permit such transfer.
c. The old establishment
was not covered under the PF Act but had its own P F: If the new
establishment which he joins is covered under the Act, the amount standing in credit
to the account of the employee shall be transferred to the Provident Fund of
the new establishment.
3.5 Act to prevail over Life Insurance Corporation Act, 1956
(Sec. 17-AA)
The provisions
of the Act shall have effect notwithstanding anything inconsistent therewith
contained in the Life Insurance Corporation Act, 1956 (Sec. 17-AA).
3.6 Liability in case of transfer of establishment
(Sec.17-B)
i.
If an employer transfers his
establishment or any part thereof (whether by way of gift, sale, lease or any
other modes), he along with the transferee of the establishment shall be
jointly responsible for contributions and other sums due upto the date of
transfer of establishment.
ii.
However such liability shall be
limited with respect to the period up to the date of transfer and upto the
value of the assets obtained by him by such transfer.
3.7 Protection
of action taken in good faith (Sec. 18)
No legal
proceedings can be brought against the appropriate officer or any other person
for anything which is done in good faith or intended to be done in pursuance of
this Act.
3.8 Presiding
Officer and other officers to be public servants (Sec. 18-A)
The Presiding
Officer of a Tribunal, its officers and other employees, the authority referred
to in Sec. 7-A and every Inspector shall be deemed to be public servants (Sec.
18-A).
3.9 Powers of
Government
3.9.1
Delegation of powers (Sec. 19)
The appropriate government may delegate any power or authority under the
Act.
3.9.2 Power of
Central Government to give directions (Sec.20)
The Central Government may direct the Central Board at its will for efficient
administration of this Act and the Board must follow such directions.
3.9.3 Power to
make rules (Sec. 21)
The Central Government may make rules regarding –
-
the terms and conditions of
service of the Presiding Officer and the employees of a Tribunal
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the procedure for filing an appeal before a Tribunal
and its related fees
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the manner of certifying the copy of the certificate to be
forwarded to the Recovery Officer under Sec. 8-C (2)
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any other matter prescribed by rules under this Act
3.9.4 Power to
remove difficulties (Sec. 22)
In case of any
doubt and difficulties arises in giving effect to the provisions of this Act,
the Central Government may make necessary provisions. Such order shall be made within the expiry of three years from the date
of receipt of assent from the President.
Every order
made under Sec. 22 shall, as soon as may be after it is made, be laid before
each House of Parliament [Sec. 22 (2)].
3.10 Rules to be laid before
Parliament (Sec. 21(3))
Every rule made
under this Act shall be laid before Parliament. Both houses of the parliament
takes the ultimate decisions regarding any modifications, implementation or
cancellation of such rule.
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