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Section 16: Act not to apply to certain establishments

The Employees‟ Provident Funds and Miscellaneous ProvisionsUnion territory Act of Chandigarh · Act 19 of 1952

4 [(1) This Act shall not apply—

(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 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 5 [(b) 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; or

(c) 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;

6 *** 7 * * * * * 8 [(2) If the Central Government is of opinion that having regard to the financial position of any class of 9 [establishments] or other circumstances of the case, it is necessary or expedient so to do, it may, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt 10 [whether prospectively or retrospectively] that class of 9 [establishments] from the operation of this Act for such period as may be specified in the notification.]

11 [16A. Authorising certain employers to maintain provident fund accounts.—(1) The Central Government may, on an application made to it in this behalf by the employer and the majority of employees in relation to an establishment employing one hundred or more persons, authorise the employer, by an order in writing, to maintain a provident fund account in relation to the establishment, subject to such terms and conditions as may be specified in the Scheme:

Provided that no authorisation shall be made under this sub-section if the employer of such establishment had committed any default in the payment of provident fund contribution or had committed any other offence under this Act during the three years immediately preceding the date of such authorisation.

1. Subs. by Act 94 of 1956, s. 3, for “factory”.

2. Subs. by Act 37 of 1953, s. 14, for certain words.

3. Subs. by Act 94 of 1956, s. 3, for “a factory”.

4. Subs. by Act 46 of 1960, s. 5, for sub-section (1) (w.e.f. 31-12-1960).

5. Subs. by Act 33 of 1988, s. 21, for clause (b) (w.e.f. 1-8-1988).

6. The word “or” omitted by Act 10 of 1998, s. 5 (w.e.f. 22-9-1997).

7. Omitted by s. 5, ibid. (w.e.f. 22-9-1997).

8. Ins. by Act 37 of 1953, s. 15.

9. Subs. by Act 94 of 1956, s. 3, for “factories”.

10. Ins. by Act 33 of 1988, s. 21 (w.e.f. 1-8-1988).

11.Section 16 A shall stand ins (date to be notified) by s. 22, ibid.

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(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), the employer in relation to such establishment shall maintain such account, submit such return, deposit the contribution in such manner, provide for such facilities for inspection, pay such administrative charges, and abide by such other terms and conditions, as may be specified in the Scheme.

(3) Any authorisation made under this section may be cancelled by the Central Government by order in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where he commits any offence under any provision of this Act:

Provided that before cancelling the authorisation, the Central Government shall give the employer a reasonable opportunity of being heard.]

1 [17. Power to exempt.—(1) The appropriate Government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, 2 [exempt, whether prospectively or retrospectively, from the operation] of all or any of the provisions of any Scheme—

(a) any 3 [establishment] to which this Act applies if, in the opinion of the appropriate Government, the rules of its provident fund with respect to the rates of contribution are not less favourable than those specified in section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this Act or any Scheme in relation to the employees in any other 3 [establishment] of a similar character; or

(b) and 3 [establishment] if the employees of such 3 [establishment] are in enjoyment of benefits in the nature of provident fund, pension or gratuity and the appropriate Government is of opinion that such benefits, separately or jointly, are on the whole not less favourable to such employees than the benefits provided under this Act or any Scheme in relation to employees in any other 3 [establishment] of a similar character:

4 [Provided that no such exemption shall be made except after consultation with the Central Board which on such consultation shall forward its views on exemption to the appropriate Government within such time limit as may be specified in the Scheme.]

5 * * * * * 6 [(1A) Where an exemption has been granted to an establishment under clause (a) of sub-section

(1),—

(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the employer of the exempted establishment in addition to such other conditions as may be specified in the notification granting such exemption, and where such employer contravenes, or makes default in complying with any of the said provisions or conditions or any other provisions of this Act, he shall be punishable under section 14 as if the said establishment had not been exempted under the said clause (a);

(b) the employer shall establish a Board of Trustees for the administration of the provident fund consisting of such number of members as may be specified in the Scheme;

(c) the terms and conditions of service of members of the Board of Trustees shall be such as may be specified in the Scheme;

1. Subs. by Act 37 of 1953, s. 16, for section 17.

2. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988).

3. Subs. by Act 94 of 1956, s. 3, for “factory”.

4. Added by Act 33 of

Where this provision sits

ActThe Employees‟ Provident Funds and Miscellaneous Provisions
Section16
Marginal noteAct not to apply to certain establishments
JurisdictionUnion territory of Chandigarh
StatusIn force as published by the source

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