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.
28
(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 1988, s. 23 (w.e.f. 1-10-1988).
5. The Explanation omitted by Act 28 of 1963, s. 11 (w.e.f. 30-11-1963).
6. Subs. by Act 33 of 1988, s. 23, for sub-section (IA) (w.e.f. 1-10-1988).
29
(d) the Board of Trustees constituted under clause (b) shall—
(i) maintain detailed accounts to show the contributions credited, withdrawals made and interest accrued in respect of each employee;
(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer as the Central Government may direct from time to time;
(iii) invest the provident fund monies in accordance with the directions issued by the Central Government from time to time;
(iv) transfer, where necessary, the provident fund account of any employee; and
(v) perform such other duties as may be specified in the Scheme.
(1B) Where the Board of Trustees established under clause (b) of sub-section (1A) contravenes, or makes default in complying with, any provisions of clause (d) of that sub-section, the Trustees of the said Board shall be deemed to have committed an offence under sub-section (2A) of section 14 and shall be punishable with the penalties provided in that sub-section.
1 [(1C)The appropriate Government may, by notification in the Official Gazette, and subject to the condition on the pattern of investment of pension fund and such other conditions as may be specified therein, exempt any establishment or class of establishments from the operation of the Pension Scheme if the employees of such establishment or class of establishments are either members of any other pension scheme or propose to be members of such pension scheme, where the pensionary benefits are at par or more favourable than the Pension Scheme under this Act.]]
(2) Any Scheme may make provision for exemption of any person or class of persons employed in any 2 [establishment] to which the Scheme applies from the operation of all or any of the provisions of the Scheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuity or old age pension and such benefits, separately or jointly, are on the whole not less favourable than the benefits provided under this Act or the Scheme:
Provided that no such exemption shall be granted in respect of a class of persons unless the appropriate Government is of opinion that the majority of persons constituting such class desire to continue to be entitled to such benefits.
3 [(2A) 4 [The Central Provident Fund Commissioner may, if requested so to do by the employer, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt, whether prospectively or retrospectively, any establishment from the operation of all or any of the provisions of the Insurance Scheme, if he is satisfied] that the employees of such establishment are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of life insurance, whether linked to their deposits in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the Insurance Scheme.
(2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme may provide for the exemption of any person or class of persons employed in any establishment and covered by that Scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the Insurance Scheme.]
1. Subs. by Act 25 of 1996, s. 7, for sub-section (IC) (w.e.f. 16-11-1996).
2. Subs. by Act 94 of 1956, s. 3, for “factory”.
3. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).
4. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988).
30 1 [(3) Where in respect of any person or class of persons employed in an establishment an exemption is granted under this section from the operation of all or any of the provisions of any 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 relation to the provident fund, pension and gratuity to which any such person or class of persons is entitled, maintain such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct;
(b) 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 persons 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 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 account 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.
2 [(3A) Where, in respect of any person or class of persons employed in any establishment, an exemption is granted under sub-section (2A) or sub-section (2B) from the operation of all or any of the provisions of the Insurance Scheme (whether such exemption is 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 relation to the benefits in the nature of life insurance, to which any such person or class of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, make such investments, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct;
(b) 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 life insurance to which any such person or class of persons was entitled immediately before the date of the exemption;
3 *** 4 * * * * *
(4) Any exemption granted under this section may be cancelled by the authority which granted it, by order in writing, if an employer fails to comply,—
(a) in the case of an exemption granted under sub-section (1), with any of the conditions imposed under that sub-section 5 [or sub-section (1A)] or with any of the provisions of sub-section (3);
6 *** 7 [(aa) in the case of an exemption granted under sub-section 8 [(IC)], with any of the conditions imposed under that sub-section; and]
(b) in the case of an exemption granted under sub-section (2), with any of the provisions of sub-section (3);
1. Subs. by Act 28 of 1963, s. 11, for sub-section (3) (w.e.f. 30-11-1963).
2. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).
3. The word “and” omitted by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).
4. Omitted by s. 23, ibid. (w.e.f. 1-10-1988).
5. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).
6. The word “and” omitted by Act 16 of 1971, s. 27 (w.e.f. 23-4-1971).
7. Ins. by s. 27, ibid. (w.e.f. 23-4-1971).
8. Subs. by Act 33 of 1988, s. 23, for “(IA)” (w.e.f. 1-10-1985).
31 1 [(c) in the case of an exemption granted under sub-section (2A), with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3A);
(d) in the case of an exemption granted under sub-section (2B), with any of the provisions of sub-section (3A).]
2 [(5) Where any exemption granted under sub-section (1), sub-section 3 [(IC)] 4 [, sub-section (2), sub-section (2A) or sub-section (2B)] is cancelled, the amount of accumulations to the credit of every employee to whom such exemption applied, in the provident fund 4 [the 5 [pension] fund or the insurance fund] of the establishment in which he is employed 6 [together with any amount forfeited from the employer‟s share of contribution to the credit of the employee who leaves the employment before the completion of the full period of service] shall be transferred within such time and in such manner as may be specified in the Scheme or the 5 [Pension] Scheme 4 [or the Insurance Scheme] to the credit of his account in the Fund or the 5 [Pension] Fund 4 [or the Insurance Fund], as the case may be.
(6) Subject to the provisions of sub-section 3 [(IC)] the employer of an exempted establishment or of an exempted employee of an establishment to which the provisions of the 5 [Pension] Scheme apply, shall, notwithstanding any exemption granted under sub-section (1) or sub-section (2), pay to the 5 [Pension] Fund such portion of the employer‟s contribution 7 *** to its provident fund within such time and in such manner as may be specified in the 5 [Pension] Scheme.]]] 8 [17A. Transfer of accounts.—(1) 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-employed, 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 employee in the provident fund of the establishment left by him may, if the employee so desires and the rules in relation to such provident 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.]
9 [17AA. Act to have effect notwithstanding anything contained in Act 31 of 1956.—The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Life Insurance Corporation Act, 1956.]
10 [17B. Liability in case of transfer of establishment.—Where an employer, in relation to an establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under any provision
1. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).
2. Subs. by Act 16 of 1971, s. 27, for sub-section (5) (w.e.f. 23-4-1971).
3. Subs. by Act 33 of 1988, s. 23, for “(IA)” (w.e.f. 1-10-1985).
4. Subs. by Act 99 of 1976, s. 27, for certain words (w.e.f. 1-8-1976).
5. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
6. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).
7. The words “as well as the employees‟ Contribution” omitted by Act 25 of 1996, s. 7 (w.e.f. 16-11-1995).
8. Ins. by Act 28 of 1963, s. 12 (w.e.f. 30-11-1963).
9. Ins. by Act 99 of 1976, s. 35 (w.e.f. 1-8-1976).
10. Ins. by Act 40 of 1973, s. 8 (w.e.f. 1-11-1973).
32 of this Act or the Scheme or 1 [the 2 [Pension] Scheme or the Insurance Scheme], as the case may be, in respect of the period up to the date of such transfer:
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.]
3 [18. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall lie against the Central Government, a State Government, the Presiding Officer of a Tribunal, any authority referred to in section 7A, an Inspector or any other person for anything which is in good faith done or intended to be done in pursuance of this Act, the Scheme, the 2 [Pension] Scheme or the Insurance Scheme.