REGISTERED No. D. 221 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 26] NEW DELHI, SATURDAY, SEPTEMBER, 7 1963/BHADRA 16, 1885 MINISTRY OF LAW (Legislative Department) New Delhi, the 7th September, 1963/Bhadra 16, 1885 (Saka) The following Act of Parliament received the assent of the President on the 7th September, 1963, and is hereby published for general information: — THE EMPLOYEES' PROVIDENT FUNDS (AMENDMENT) ACT, 1963 No. 28 OF 1963 [7th September, 1963] 19 of 1952.
An Act further to amend the Employees' Provident Funds Act,
1952.
BE it enacted by Parliament in the. Fourteenth Year of the Republic of India as follows: —
1. (7) This Act may be called the Employees' Provident Funds (Amendment) Act, 1963.
(2) It shall come into force on such date as the Central-Government may, by notification in the Official Gazette, appoint.
2. In section 2 of the Employees' Provident Funds Act, 1952 (hereinafter referred to as the principal Act),—
(a) in clause (ff), the words, brackets and figure "sub-section (i) of" shall be omitted;
(b) for clause (ia), the following clause shall be substituted, namely: — '(ia) "manufacture" or "manufacturing process" means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or Short title end commencement.
Amendment of section 2.
(299) 3OO THE GAZETTE OF INDIA EXTRAORDINARY [PAHT II Amendment of section 5.
Insertion of new sections SA, 5B, 5C, 5D and 5E.
Central Board.
substance with a view to its use, sale, transport, delivery or disposal;'.
3. In section 5 ol the principal Act,- after sub-section (/), the following sub-sections shall be inserted, namely:-- "(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section 5A.
(IB) Subject to the provisions of this Act, a Scheme framed under sub-section (I) may provide for all or any of the matters specified in Schedule II.".
4. After section 5 of the principal Act, the following sections shall • be inserted, namely: — "5A. (1) The Centra] Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to which this Act extends (hereinafter in -thli Act referred to as the Central Board) consisting of Lhe following persons, namely: —
(a) a Chairman to be appointed by the Central Government;
(b) not more than five persons appointed by the Central Government from amongst its officials;
(e) not more th;->n fifteen persons representing Governments of such States as the Central Government may specify in this behalf, appointed by the Central Government;
(d) six persons representing employers of the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employers us may bo rccK?nir;ed by the Central Government in this behalf; ?nd
(e) six persons representing employees in the establishments to which the Scheme: applies, appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government in this behalf.
(2) The terms ?nd conditions subject to which a member of the Central Bo^rd may be appointed and the time, place and'procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.
(3) The" Central Board shall administer the Fund vested in it in such manner as may be specified in the Scheme.
SEC. 1J THE GAZETTE Of INDIA EXTRAORDINARY 301
(4) The Central .Bowl Khali perform such other functions as it may be required to perform by or under any provisions of the Scheme.
5B. (1/ The Central Government may, after consultation :
with r i ° Oowrjni?nt of any State, by notification in xhe Official Gazc'le, conciliate for that State a Board of Trustees (hereinaiiar in this Act referred to as 1he State Board) in such manner as may be provided for in the Scheme.
(2) A State Board shall exorcise such powers and perform such duties as the Central Government may assign to it from time to time.
(3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meeting,'; 01' a Slate Board ."hall be such as may be provided far in the Scheme.
5C. Every Board ot Trustees const'Luted under section 5A or section 5B shall be a b^dy corporate under the name specified in the notification constitutiiip, it, having vxvpelual succession and a common seal and shall by the said name sue and be- sued.
5D. (/) The Central Government shall appoint a Central Provident Fund Comrcussionei who shall be the chief executive officer of the Central Hoard! and shall be subject to the general control and superintendence of that Board.
(2) The Central Government may also appoint as many Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners and other officers whose maximum monthly salary is not less ihan five hundred rupees, as it may consider necessary to assist the Central Provident Fund Commissioner in the discharge of his duties.
(3) The Central Board may appoint such other officers and employees as it may consider necessary for the efficient administration of the Scheme.
(4) No appointment to 1he po^l of the Central Provideni Fund Commissioner or Deputy Provident Fund Commissioner 01 Regional Provident Fund Commissioner or to any other posi under the Central Board carrying a maximum monthly salary o:
not less than five hundred rupees shpll be made except aftej consultation with the Union Public Service Commission:
Provided that no such consultation shall be necessary ii regard to any such appointment—
(a) for a period not exceeding one year; or State Board.
Board of Trustees to be body corporate.
Appointment of officers.
}b2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Delegation, Am*ndaiem ot section 6-
(b) if the person to be appointed is at the time of his appointment—
(i) a member of the Indian Administrative Service, or
(ii) in the service of the Central Government or a State Government or the Central Board in a Class I or Class II post.
(5) A State Board may, with the approval of the State Government concerned, appoint such staff as it may consider necessary.
(6) The method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund Commissioner, Deputy Provident Fund Commissioner and Regional Provident Fund Commissioner shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Fund.
(7) The method of recruitment, salary and allowances, discipline and other conditions of service of the other officers and employees of the Central Board shall be such as may be specif vJ by the Central Board with the approval of the Central Government.
(8) The method ol recruitment, salary and allowances, discipline and other conditions of service of officers and employees of a State Board shall be such as may be specified by that Board, with the approval of the Slate Government concerned.
5E. The Central Board may, with the prior approval of the Central Government and a State Board may, with the prior approval of the State Government concerned, delegate to its chairman or to any of its officers, subject to such" conditions and limitations, if any, as it may specify, such of its powers and functions under this Act as it may deem necessary for the efficient administration of the Scheme.".
5. In section 6 of the principal Act,—
(a) the brackets and figure "(1)" and sub-sections (2) and
(3) shall be omitted;
(b) after the words "each of the employees", the brackets and words "(whether employed by him directly or by or through a contractor)" shall be inserted;
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 303
(c) for the word "sub-section" wherever it occurs, the wjfd "section" shall be substituted.
5 of 1908.
6. After section 7 of the principal Act, the following section shall be inserted, namely: — "7A. (/) The Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner or any Regional Provident Fund Commissioner may, by order, determine the amount due from any employer under any provision of this Act or of the Scheme and for this purpose may conduct such inquiry as he may deem necessary.
(2) The officer conducting the inquiry under sub-section (/) shall, for the purposes of such inquiry, have the same powers as are vested in a court under the Code of Civil Procedure, 1908, for trying a suit in respect of the following matters, namely:—
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of witnesses;
and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code.
Insertion of new section 7A, De'crm n tion of moneys due from employers.
iS of i860.
(3) No order determining the amount due from any employer shall be made under cub-section ( i ) , unless the employer is given a reasonable opportunity of representing his case.
(4) An order made under this section shall be final and shall not be questioned in any court of law.".
7. In section 8 of the principal Act, in clause (a), after the word and figures "section 15", the words, brackets and figures "or under sub-seciion (5) of section 17" shall be inserted.
8. After section 8 of the principal Act, the following section shall be inserted, namely: — '8A. (1) The amount of contribution (that is to say the employer's contribution as well as the employee's contribution), and any charges on the basis of such contribution for meeting the cost of administering the Fund paid or payable by an em- Amendrnent of section 8.
Insertion of new section
8A.
Recovery of monies by employers end contractors.
304 THE GAZETTE OF INDIA EXTRAORDINARY [PART II ployer in respect of an employee employed by or through a contractor may be recovered by such employer from the contractor, either by deduction irom any amount payable to the contiactoi under any contract or as a debt payable by the contractor.
(2) A contractor from whom the amounts mentioned in subsection (7) may be recovered in respect of any employee employed by or through him, may recover from such employee the employee's contribution by deduction from the basic wages, dearness allowance and retaining allowance (if any) payable to such employee.
(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer's contribution or the charges referred to in sub-section (1) from the basic wages, dearness allowance, and retaining allowance (if any) payable to an employee employed 'by or through him or otherwise to recover such contribution of charges from such employee.
Explanation.—In this section, the expressions, "dearness allowance" and "retaining allowance" shall have the same meanings as ID section 6-'.
Ainendnicru of section t3.
9. In section 13 of the principal Act—
(a) in subjection (2) —
(i) in clause (a), alter the word "employer", the words "or any contractor from whom any amount is recoverable under section 8A" shall be inserted;
(ii) in clause (b), for the word "enter", the words "and with such assistance, if any, as he may think fit, enter and search" shall be substituted;
(Hi) in clause (c), after the word "employer", the words "or any contractor from whom any amount is recoverable under section 8A" shall be inserted;
(iv) for clause (d), the following clause shall be substituted, namely.— " (d) make copies of, or take extracts from, any book, register or other document maintained in relation to the establishment and, where he has reason to believe that any offence under this Act has been com- SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY ^0< 5 of is98.
mitted by an employer, seize with such assistance as he may think fit, such book, register or other document or portions thereof as he may consider relevant in respect of that offence;";
(b) after sub section (2), the following sub-section shall be inserted, namely: — " (2A) The provisions of the Code of Criminal Procedure, 1898 shall, so fav as may be, apply to any seirch or seizure under sub-section (2) as they apply to any search or seizure made under the authority of a warrant issued under section 98 of the said Code.".
10. In section 14B of the principal Act, after the word and figures "section 15", the words, brackets and figures "or sub-section (5) of section 17" shall be inserted.
11. In section 17 of the principal Act,—
(a) in sub-section (/), the Explanation shall be omitted;
(b) for sub-section (3), the following sub-sections shall be substituted, namely: — " (.3) Where in respect of any person or class of persons employed in pn establishment an exemption is granted under this section from the operation of all or any of the provisions of anv Scheme (whether such exemption has been granted to the establishment wherein such person or class of persons is employed or to the person or class of persons as such), the employer in relation to such establishment—
(a) shall, in relaf n to the provident fund, pension and grptuity to vhich any such person or class of persons is entitled, rr- ' i tain such account?, •s'lbrrrii such returns, make such investment, provide for .such facilities for inspection and pay such inspection charge", as the Central Government may direct;
(h) shall not, at any time after the exemption, without the leave of the Central Government, reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to which any such person or class of persona was entitled at the time of the exemption; and
(c) shall, where any such person leaves his employment and obtains re-employment in another establishment to which this Act applies, transfer within such Amendment of sect*011
14B.
Amendment of section 17- 306 THE GAZETTE OF INDIA EXTRAORDINARY [PART tf time as may be specified in this behalf by the Central Government, the amount of accumulations to the credit of that person in the provident fund of the establishment left by him to the credit of that person's acctmnt in the provident fund of the establishment in which he is re-employed or, as the case may be, in the Fund established under the Scheme applicable to the establishment
(4) Any exemption granted under this section may be cancelled by the authority which granted it, bv order in writing, if an employer fails to comply,—
(a) in the case of an exemption granted under subsection (7), with any of the conditions imposed under that sub-section or with any of the provisions of subsection (3); and
(b) in the case of an exemption granted under subsection (2), with any of the provisions of sub-section (3).
(5) Where any exemption granted under sub-section
(2) or sub-section (2) is cancelled, the amount of accumulations to the credit of every employee to whom such exemption applied, in the provident fund of the establishment in which he is employed shall be transferred, within such time as may be specified in the scheme, to the credit of his account in the Fund.".
Insertion of new section
17A.
Transfer of accounts.
12. After section 17 of the principal Act, the following section shall be inserted, namely: — "17A, (/) Where an employee employed in an establishment to which this Act applies leaves his employment and obtains re-employment in another establishment to which this Act does not apply, the amount of accumulations to the credit of such employee in the Fund, or as the case may be, in the provident fund of the establishment left by him shall be transferred, within such time as may be specified by the Central Government in this behalf, to the credit of his account in the provident fund of the establishment in which he is re^mployed, if the employee so desires and the rules in relation to that provident fund permit such transfer.
(2) Where an employee employed in an establishment to which this Act does not apply leaves his employment and obtains re-employment in another establishment to which this Act applies, the amount of accumulations to the credit of such SBc. 11 THE GAZETTE OF INDIA EXTRAORDINARY 307 employee in the provident fund of the establishment left by him may, if the employee so desires and the rules in relation to such provideit fund permit, be transferred to the credit of his account in the Fund or as the case may be, in the provident fund of the establishment in which he is re-employed.".
13. In Schedule II to the principal Act,—•
(a) for the brackets, words and figures "[See section 6(2)]", the brackets, words, figures and letter "[See section 5(JB)]" shall be substituted;
(b) in item 2,—
(i) after the word "employees", the brackets and words " (whether employed by him directly or by or through a contractor)" shall be inserted;
(ii) the words, brackets and figure "sub-section (/) of" shall be omitted;
(c) after item 2, the following item shall be inserted, namely: — "2A. The manner in which employees' contributions may be recovered by contractors from employees employed by or through such contractors.";
(d) for items 4 and 5, the following items shall be substituted, namely: — "4- The constitution of any committee for assisting any Board of Trustees.
5. The opening of regional and other offices of any Board of Trustees.";
(e) in item 11, after the word "employers", the words "01 contractors" shall be inserted;
(/) in item 18, after the words "other matter", the wordt "which is to be provided for In the Scheme or" shall be inserted.
Amendment of Schedule II.
3o8 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT II—^EC IT Transitory pr v's on.
14. UntiJ the constitution oi the Central Board under section 5A o(" the principal Act as amonded by this Act, the Central Board conslit it* I un lei th( Em^lojees' Provident Funds Scheme, 1952 and functioning immediately before the commencement of this Act shall be deemed to be the Central Board constituted under that section and shall continue to function as if this Act had not been passed.
R. C. S. SARKAR, Secy, to the Govt, of India.
PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OP INDIA PRESS, NEW DELHI AND PUBLISHED BY THE MANAGER OP PUBLICATIONS, DELHI 1933