EMPLOYEES PROVIDENT
FUNDS AND MISCELLANEOUS
PROVISIONS ACT, 1961
(Act No. XV of 1961)
THE JAMMU AND KASHMIR EMPLOYEES PROVIDENT
FUNDS AND MISCELLANEOUS PROVISIONS ACT , 1961
(Act No. XV of 1961)
CONTENTS
Preamble.
Section.
1. Short title, extent and application.
2. Definitions.
3. Establishment to include all De-
partments and branches.
4. Power to apply Act to an estab-
lishment which has a common
Provident Fund with another es-
tablishment.
5. Power to add to Schedule.
6. Employees Provident Fund
Schemes.
7. Contributions and matters which
may be provided for in schemes.
8. Modification of scheme.
8-A. Determination of moneys due
from employees.
8-B. Review.
8-C. Appeal.
9. Mode of recovery of moneys due
from employers .
9-A. Recovery of moneys by employ-
ers and contractors.
Section.
10. Protection against attachment.
11. Priority of payment of contribu-
tion over other debts.
12. Employer not to reduce wages,
etc.
13. Inspectors.
14. Penalties.
15. Offences by Companies.
16. Power to recover damages.
17. Special provisions relating to ex-
isting Provident Funds.
18. Act not to apply to establishments
registered under
Co-operative Societies Act and
infant establishments.
19. Power to exempt .
20. Protection for acts done in good
faith.
21. Delegation of powers.
22. Power to remove difficulties.
–––––––
504 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
Amendments made by:––
1. Act No. XV of 1966.
2. XVI of 1974.
3. XI of 1980.
4. XVII of 1984.
5. XIV of 1999.
6. IV of 2010.
7. IV of 2013.
–––––––
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 505
THE JAMMU AND KASHMIR EMPLOYEES’ PROVIDENT
FUNDS 1[AND MISCELLANEOUS PROVISIONS] ACT, 1961
(Act No. XV of 1961)
[Received the assent of the Sadar-i-Riyasat on 21st March, 1961 and
published in Government Gazette dated 31st March, 1961.]
An Act to provide for the institution of Provident Funds for employees in
factories and other establishments.
Be it enacted by the Jammu and Kashmir State Legislature in the Twelfth Year
of the Republic of India as follows :––
1. Short, title, extent and application.––(1) This Act may be called the
Jammu and Kashmir Employees’ Provident Funds and Miscellaneous provisions
Act, 1961.
(2) It extends to the whole of the State of Jammu and Kashmir.
(3) Subject to the provisions contained in section 18, it applies––
(a) to every establishment which is a factory engaged in any industry
specified in Schedule I and in which 2[five or more persons] are 3[em-
ployed at any time ; and]
(b) to any other establishment or business which the Government may
by notification in the Government Gazette, declare to be an establish-
ment for the purposes of this Act.
(4) Notwithstanding anything contained in sub-section (3) of this section
or sub-section (1) of section 18, where it appears to the Government, whether on
an application made to it in this behalf or otherwise, that the employer and the
majority of employees in relation to any establishment have agreed that the pro-
visions of this Act should be made applicable to the establishment it may, by
notification in the Government Gazette, apply the provisions of this Act to that
establishment.
(5) An establishment to which this Act applies shall continue to be gov-
erned by this Act notwithstanding that the number of persons employed therein
at any time falls below 4 [five].
1. Words inserted by Act XIV of 1999, s. 2.Substituted by Act XI of 1980, s. 2.
2. Substituted by Act XI of 1980, s. 2.
3. Substituted by Act XVII of 1984, s. 2.
4. Substituted by Act XI of 1980, s. 2.
506 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
2. Definitions.––In this Act, unless the context otherwise requires,––
(a) “basic wages” means all emoluments which are earned by an employee
while on duty or on leave with wages in accordance with the terms of the
contract of employment and which are paid or payable in cash to him, but
does not include––
(i) the cash value of any food concession ;
(ii) any dearness allowances (that is to say all cash payments by
whatever name called paid to an employee on account of a rise in
the cost of living), house-rent allowance, overtime allowance,
bonus, commission or any other similar allowance payable to the
employee in respect of his employment or of work done in such
employment ;
(iii) any presents made by the employer ;
(b) “contribution” means a contribution payable in respect of a member
under a scheme ;
(c) “Employer” means––
(i) in relation to an establishment which is a factory, the owner or occu-
pier of the factory, including the agent of such owner or occupier,
the legal representative of a deceased owner or occupier and, where
a person has been named as a Manager of the factory under clause
(f) of sub-section (1) of section 7 of the 1[Jammu and Kashmir Facto-
ries Act, 1957], the person so named ; and
(ii) in relation to any other establishment, the person who or the
authority which, has the ultimate control over the affairs of the
establishment, and where the said affairs are entrusted to a
manager, managing director or managing agent, such manager,
managing director or managing agent ;
(d) “Employee” 2[means any persons whose services are non-pensionable
and] who is employed for wages in any kind of work, manual or otherwise
in or in connection with the work of an establishment and who gets his
wages directly or indirectly from the employer and includes any person
employed by or through a contractor in or in connection with the work of
establishment ;
1. Now the Factories Act 1948 (Central Act 63 of 1948).
2. Substituted by Act XVII of 1984, s. 3.
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 507
(e) “exempted employee” means an employee to whom a scheme would
but for the exemption granted under sub-section (1) of section 19, have
applied ;
(f) “exempted establishment” means an establishment in respect of which
an exemption has been granted under section 19 from the operation of
all or any of the provisions of any scheme, whether such exemption has
been granted to the establishment as such or to any person or class of
persons employed therein ;
(g) “factory” means any premises, including the precincts thereof, in any
part of which a manufacturing process is being carried on or is ordi-
narily so carried on, whether, with the aid of power or without the aid of
power ;
(h) “Fund” means the provident fund establishment under a scheme ;
(i) “Industry” means any industry specified in Schedule I, and includes any
other industry added to the Schedule by notification under section 5 ;
(j) “manufacture” means making, altering, ornamenting, finishing or oth-
erwise treating or adapting any article or substance with a view to its
use, sale, transport, delivery or disposal ;
(k) “member” means a member of the Fund ;
(l) “occupier of a factory” means the person who has ultimate control
over the affairs of the factory, and where the said affairs are entrusted
to a Managing Agent such Agent shall be deemed to be the occupier of
the factory ;
(m) “scheme” means a scheme framed under this Act.
3. Establishment to include all Departments and branches.––For the removal
of doubts, it is hereby declared that where an establishment consists of different
departments or has branches, whether situated in the same place or in different
places, all such departments or branches shall be treated as parts of the same
establishment.
4. Power to apply Act to an establishment which has a common Provident
Fund with another establishment.––Where immediately before this Act becomes
applicable to an establishment there is in existence a provident fund which is com-
mon to the employees employed in that establishment and employee in any other
establishment, the Government may, by notification in the Government Gazette,
direct that the provisions of this Act shall also apply to such other establishment.
508 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
5. Power to add to Schedule.––The Government may, by notification in the
Government Gazette, add to Schedule I any other industry in respect of the employees
whereof it is of opinion that a provident fund scheme should be framed under this Act,
and thereupon the industry so added shall be deemed to be an industry specified in
Schedule I for the purposes of this Act.
1 6. Employees’ Provident Fund Schemes.––(1) The Government may, by noti-
fication in the Government Gazette, frame a scheme to be called, the Employees’
Provident Fund Scheme for the establishment of Provident Funds under this Act, for
employees or for any class of employees and specify the establishments or class of
establishments to which the said scheme shall apply and there shall be established,
as soon as may be after the framing of the scheme, a Fund in accordance with the
provisions of this Act and the Scheme.
(2) A scheme framed under sub-section (1) may provide that any of its
provisions shall take effect either prospectively or retrospectively on such date
as may be specified in this behalf in the scheme.
7. Contributions and matters which may be provided for in schemes.––(1)
The contribution which shall be paid by the employer to the Fund shall be 2 [8.33%]
of the basic wages, dearness allowance and retaining allowance (if any) for the time
being payable to each of the employees, and the employees’ contribution shall be
equal to the contribution payable by the employer in respect of him and may, if any
employee so desires and if the scheme makes provision therefor, be an amount, not
exceeding 3 [fourteen percent,] of his basic wages, dearness allowance and retain-
ing allowance (if any) :
Provided that where the amount of any contribution payable under this Act
involves a fraction of a rupee, the scheme may provide for the rounding off of such
fraction to the nearest rupee, half a rupee or quarter of a rupee.
Explanation 1:––For the purposes of this sub-section, “dearness allowance” shall
be deemed to include also the cash value of any food concession
allowed to the employee.
Explanation II:––For the purposes of this sub-section, “retaining allowance” means
an allowance payable for the time being to an employee of any
factory or other establishment during any period in which the
establishment is not working, for retaining his services.
1. Employees Provident Funds Scheme, 1961 framed under Health Department Notification
No. 327 LAB/61 published in Government Gazette dated 03-10-1961(Extraordinary).
2. Substituted by Act XVI of 1974, s. 2.
3. Substituted by Act IV of 2013, s. 2. For earlier amendment see Act XVI of 1974.
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 509
(2) Subject to the provisions contained in sub-section (1), any scheme may
provide for all or any of the matters specified in Schedule II.
(3) Where under the provisions of any scheme, any board of trustees is
constituted for administering the Fund, such board of trustees shall be a body
corporate under the name specified, in the scheme, having perpetual succession
and a common seal and shall by the said name sue and be sued.
1 [7-A. Employees’ Deposit-Linked Insurance Scheme.––(1) The Government
may, by notification in the Government Gazette, frame a scheme to be called the
Employees’ Deposit-Linked Insurance Scheme for the purpose of providing life
insurance benefits to the employees of any establishment or class of establish-
ments to which this Act applies.
(2) There shall be established, as soon as may be after the framing of the
Insurance Scheme, a Deposit-Linked Insurance Fund into which shall be paid by
the employer from time to time in respect of every such employee in relation to
whom he is the employer, such amount, not being more than one percent of the
aggregate of the basic wages, dearness allowance and retaining allowance (if any)
for the time payable in relation to such employee as the Government may, by noti-
fication in the Government Gazette, specify].
8. Modification of Scheme.––The Government may, by notification in the
Government Gazette, add to, amend or vary any scheme framed under this Act.
2 [8-A. Determination of moneys due from employers.––(1) Any officer
authorised by the Government in this behalf may, by order, determine the amount
due from any employer under any provision of this Act or the Scheme and for this
purpose may conduct such inquiry as he may deem necessary.
(2) The officer while holding any inquiry under this section, shall have such
powers as are vested in a court under the Code of Civil Procedure, Samvat 1977, 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 ;
1. Section 7-A inserted by Act XIV of 1999, s. 3.
2. Section 8-A inserted by Act XI of 1980, s. 3.
510 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
(d) issuing commission for examination of witness ;
and any such inquiry shall be deemed to be a judicial proceeding within the mean-
ing of sections 193 and 228 and for the purpose of section 196 of the Ranbir Penal
Code, Samvat, 1989.
(3) No order determining the amount due from any employer shall be made
under sub-section (1), unless the employer is given a reasonable opportunity of
representing his case.
1
(4) Deleted.
2[8-B. Review.––Any person who is aggrieved by an order passed under
section 8-A, but from which no appeal has been filed under section 8-C may,
within twenty days from the date of order, apply for a review of the order to the
officer authorized who passed the order and the officer authorized may, after
affording an opportunity of being heard to the applicant and other interested
parties, issue such orders thereon as he thinks fit :
Provided that such officer may also on his own motion but after affording a
reasonable opportunity of being heard to the parties concerned review his order
if he is satisfied that it is necessary to do so on any justifiable ground.
8-C. Appeal.––(1) Any person aggrieved by an order passed under section
8-A or section 8-B may prefer an appeal to the Provident Fund Commissioner
within twenty days from the date of such order and the Provident Fund
Commissioner may, after affording a reasonable opportunity of being heard to
the parties concerned, make such order thereon as he thinks fit.
(2) An order made under this section shall be final and shall not be
questioned in any court of law].
9. Mode of recovery of moneys due from employers.––Any amount due––
(a) from the employer in relation to an establishment to which any scheme
applies in respect of any contribution payable to the Fund, damages
recoverable under section 16, accumulations required to be transferred
under sub-section (2) of section 17 or any charges payable by him under
any other provision of this Act or of any provision of the scheme ; or
(b) from the employer in relation to an exempted establishment in respect
1. Sub-section (4) deleted by Act No. IV of 2010, s. 2.
2. Sections 8-B and 8-C inserted ibid, s. 3.
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 511
of any damages recoverable under section 16 or any charges payable
by him to the Government under any provision of this Act or under any
of the conditions specified under section 19 ;
may, if the amount is in arrear, be recovered by the Government in the same manner
as an arrear of land revenue.
1[9-A. Recovery of moneys by employers and contractors.––(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 employer in respect of an
employee employed by or through a contractor may be recovered by such em-
ployer from the contractor, either by deduction from any amount payable to the
contractor, under any contract or as debt payable by the contractor.
(2) A contractor from whom the amounts mentioned in sub-section (1) 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 in
section 7.]
10. Protection against attachment.––(1) The amount standing to the
credit of any member in the Fund or of any exempted employee in a provident
fund shall not in any way be capable of being assigned or charged and shall
not be liable to attachment under any decree or order of any Court in respect of
any debt or liability incurred by the member or the exempted employee and no
such amount shall be liable to be taken over by any receiver appointed under
any law relating to insolvency for the time being in force.
(2) Any amount standing to the credit of a member in the Fund or of an
exempted employee in a provident fund at the time of his death and payable to his
nominee under the scheme or the rules of the provident fund shall, subject to any
1. Section 9-A inserted by Act XV of 1966.
512 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
deduction authorised by the said scheme or rules, vest in the nominee and shall be
free from any debt or other liability incurred by the deceased or the nominee before
the death of the member or the exempted employee.
11. Priority of payment of contributions over other debts.––Where any
employer, is declared to be insolvent or, being a company an order for its winding
up is made, the amount due––
(a) from the employer in relation to an establishment to which any scheme
applies in respect of any contribution payable to the Fund, damages
recoverable under section 16, accumulations required to be transferred
under sub-section (2) of section 17 or any charges payable by him under
any other provision of this Act or of any provision of the Scheme, or
(b) from the employer in relation to an exempted establishment in respect of
any contribution to the provident fund in so far as it relates to exempted
employees, under the rules of the provident fund, damages recoverable
under section 16 or any charges payable by him to the Government
under any provision of this Act or under any of the conditions specified
under section 19 ;
shall, where the liability therefor has accrued before the order of adjudication or
winding up is made, be deemed to be included among the debts which under any
law relating to insolvency or companies for the time being in force in the State, are
to be paid in priority to all other debts in the distribution of the property of the
insolvent or the assets of the company being wound up, as the case may be.
12. Employer not to reduce wages, etc.––No employer in relation to an
establishment to which any scheme applies shall, by reason only of his liability
for the payment of any contribution to the Fund or any charges under this Act or
the Scheme, reduce, whether directly or indirectly, the wages of any employee to
whom the scheme applies or the total quantum of benefits in the nature of old age
pension, gratuity or provident fund to which the employee is entitled under the
terms of his employment, express or implied.
13. Inspectors.––(1) The Government may, by notification in the Government
Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of
this Act or of any scheme, and may define their jurisdiction.
(2) Any Inspector appointed under sub-section (1) may, for the purpose
of inquiring into the correctness of any information furnished in connection
with this Act or with any scheme or for the purpose of ascertaining whether
any of the provisions of this Act or of any scheme have been complied with in
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 513
respect of an establishment to which any scheme applies or for the purpose of
ascertaining whether the provisions of this Act or any scheme are applicable
to any establishment to which the scheme has not been applied or for the
purpose of determining whether the conditions subject to which exemption
was granted under section 19 are being complied with by the employer in
relation to an exempted establishment––
(a) require an employer to furnish such information as he may consider
necessary ;
(b) at any reasonable time enter any establishment or any premises
connected therewith and require any one found in charge thereof
to produce before him for examination any accounts, books, regis-
ters and other documents relating to the employment of persons or
the payment of wages in the establishment ;
(c) examine, with respect to any matter relevant to any of the purposes
aforesaid, the employer, his agent or servant or any other person
found incharge of the establishment or any premises connected
therewith or whom the Inspector has reasonable cause to believe
to be, or to have been, an employee in the establishment ;
(d) make copies of, or take extracts from, any book, register or other
documents maintained in relation to establishment ;
(e) exercise such other powers as the scheme may provide.
(3) Every Inspector shall be deemed to be a public servant, within the
meaning of section 21 of the Jammu and Kashmir Ranbir Penal Code, Svt. 1989.
14. Penalties.––(1) Whoever, for the purpose of avoiding any payment to
be made by himself under this Act or under any scheme or of enabling any other
person to avoid such payment knowingly makes or causes to be made any false
statement or false representation shall be punishable with imprisonment for a
term which may extend to six months, or with fine which may extend to one
thousand rupees, or with both.
(2) A scheme framed under this Act may provide that any person who
contravenes or makes default in complying with any of the provisions thereof,
shall be punishable with imprisonment for a term which may extend to six
months, or with fine which may extend to one thousand rupees, or with both.
(3) Whoever contravenes or makes default in complying with any provision
514 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
of this Act or of any condition subject to which exemption was granted under
section 19 shall, if no other penalty is elsewhere provided by or under this Act for
such contravention or non-compliance, be punishable with imprisonment which
may extend to three months, or with fine which may extend to one thousand rupees,
or with both.
(4) No Court shall take cognizance of any offence punishable under this Act
or under any scheme except on a report in writing of the facts constituting such
offence made with the previous sanction of such authority as may be specified in
this behalf by the Government, by an Inspector appointed under section 13.
15. Offences by Companies.––(1) If the person committing an offence under
this Act or the scheme made thereunder is a company, every person, who at the time
the offence was committed was incharge of, and was responsible to, the company
for the conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly :
Provided that nothing contained in this sub-section shall render any such
person liable to any punishment, if he proves that the offence was committed without
his knowledge or that he exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence
under this Act or the scheme thereunder has been committed by a company and it
is proved that the offence has been committed with the consent or connivance of,
or is attributable to, any neglect on the part of, any director or manager, secretary or
other officer of the company, such director , manager, secretary or other officer
shall be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation.––For the purpose of this section––
(a) “Company” means any body corporate and includes a firm and other
association of individuals ; and
(b) “Director” in relation to a firm, means a partner in the firm.
16. Power to recover damages.––Where an employer makes default in the
payment of any contribution to the Fund or in the transfer of accumulations required
to be transferred by him under sub-section (2) of section 17 or in the payment of any
charges payable under any other provision of this Act or of any scheme or under
any of the conditions specified under section 19, the Government may recover from
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 515
the employer such damages not exceeding twenty-five percent of the amount of
arrears, as it may think fit to impose.
17. Special provisions relating to existing provident funds.––(1) Subject to
the provisions of section 19, every employee who is a subscriber to any provident
fund of an establishment to which this Act applies shall, pending the application of
a scheme to the establishment in which he is employed, continue to be entitled to
the benefits accruing to him under the provident fund, and the provident fund shall
continue to be maintained in the same manner and subject to the same conditions
as it would have been if this Act had not been passed.
(2) On the application of any scheme to an establishment, the accumula-
tions in any provident fund of the establishment standing to the credit of the
employees who become members of the fund established under the scheme
shall, notwithstanding anything to the contrary contained in any law for the time
being in force or in any deed or other instrument establishing the provident fund
but subject to the provisions, if any, contained in the scheme, be transferred to
the Fund established under the scheme, and shall be credited to the accounts of
the employees entitled thereto in the Fund.
1[18. Act not to apply to establishments registered under Co-operative Societies
Act.––(1) This Act shall not to apply to any establishment registered or deemed to
have been registered under the Jammu and Kashmir Co-operative Societies Act,
1960 or under any other law for the time being in force relating to co-operative
societies, employing less than five persons and working without the aid of power].
(2) If the Government is of opinion that having regard to financial position
of any class of establishments or other circumstances of the case, it is necessary
or expedient so to do, it may, by notification in the Government Gazette and
subject to such conditions as may be specified in the notification, exempt that
class of establishments from the operation of this Act for such period as may be
specified in the notification.
19. Power to exempt.––(1) The Government may, by notification in the
Government Gazette, and subject to such conditions as may be specified in the
notification, exempt from the operation of all or any of the provisions of any
scheme––
(a) any establishment to which this Act applies if, in the opinion of the
Government, the rules of its provident fund with respect to the rates of
contribution are not less favourable than those specified in section 7
1. Substituted by Act XIV of 1999, s. 4.
516 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
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 establishment of a similar character ; or
(b) any establishment if the employees of such establishment are in
enjoyment of benefits in the nature of provident fund, pension or
gratuity and the Government is of opinion that such benefits,
separately or jointly, or 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 establishment of a
similar character.
Explanation :––The following conditions shall be deemed to be always included
in the conditions which may be specified in a notification under
clause (a), namely :––
(i) the amount of accumulations in the provident fund shall be invested in
such manner as the Government may direct ;
(ii) the amount of accumulations to the credit of an employee in the
provident fund shall, where he leaves his employment and obtains
re-employment in another establishment to which this Act applies,
be transferred, within such time as may be specified in this behalf
by the Government, to the credit of his 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) Any scheme may make provision for exemption of any person or class of
persons employed in any 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 Government is of opinion that the majority of persons
constituting such class desire to continue to be entitled to such benefits.
(3) Where any person or class of persons employed in an establishment is
exempted from the operation of all or any of the provisions of any scheme under
sub-section (2), the employer in relation to such an establishment––
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 517
(a) shall, in relation to the provident fund, old age pension and gratuity
to which 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 Government may direct ; and
(b) shall not, at any time after the exemption, without the leave of the
Government, reduce the total quantum of benefits in the nature of old
age pension, gratuity or provident fund to which such person or class
of persons was entitled at the time of the exemption.
20. Protection for acts done in good faith.––No suit or other legal proceeding
shall lie against an Inspector or any other person in respect of anything which is in
good faith done or intended to be done under this Act or under any scheme.
21. Delegation of powers.––The Government may direct that any power or
authority or jurisdiction exercisable by it under this Act or any scheme shall, in
relation to such matters and subject to such conditions, if any, as may be specified
in the direction, be exercisable also by such officer or authority subordinate to the
Government as may be specified in the notification.
22. Power to remove difficulties.––If any difficulty arises in giving effect to
the provisions of this Act, and in particular, if any doubt arises as to––
(i) whether an establishment which is a factory, is engaged in any industry
specified in Schedule I ;
(ii) whether any particular establishment or business is an establishment
falling within the class of establishments to which this Act applies by
virtue of a notification under clause (b) of sub-section (3) of section 1 ;
(iii) the number of persons employed in an establishment ; or
(iv) the number of years which have elapsed from the date on which an
establishment has been set up ; or
(v) whether the total quantum of benefits to which an employee is entitled
has been reduced by the employer,
the Government may, by order, make such provision or give such direction not
inconsistent with the provisions of this Act, as appear to it to be necessary or
expedient for the removal of the doubt or difficulty ; and the order of the
Government in such cases shall be final.
_______
518 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
SCHEDULE I
Any industry engaged in the manufacture of any of the following, namely:––
1. Cement.
2. Cigarettes.
3. Electrical, mechanical or general engineering products.
4. Iron and Steel.
5. Paper .
6. Textile made wholly or in part of cotton or wool or jute or silk, whether
natural or artificial
Explanation.––In this Schedule, without prejudice to the ordinary meaning
of the expressions used therein,––
(a) the expression “Electrical, mechanical or general engineering products”
includes––
(1) machinery and equipment for the generation, transmission,
distribution or measurement of electrical energy and motors
including cables and wires,
(2) telephones, telegraph and wireless communication apparatus,
(3) electric lamps (not including glass bulbs),
(4) electric fans and electrical domestic appliances,
(5) storage and dry batteries,
(6) radio receivers and sound reproducing instruments,
(7) machinery used in industry (including textile machinery) other
than electrical machinery and machine tools,
(8) boilers and prime movers, including internal combustion engines,
marine engines and locomotives,
(9) machine tools, that is to say, metal and wood working machinery,
(10) grinding wheels,
(11) ships,
(12) automobiles and tractors,
(13) bolts, nuts and rivets,
(14) power driven pumps,
EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 519
(15) bicycles,
(16) hurricane lanterns,
(17) sewing and knitting machines,
(18) mathematical and scientific instruments,
(19) products of metal rolling and re-rolling,
(20) wires, pipes, tubes and fittings,
(21) ferrous and non-ferrous castings,
(22) safes, vaults and furniture made of iron or steel alloys,
(23) cutlery and surgical instruments,
(24) drums and containers,
(25) parts and accessories of products specified in items 1 to 24 ;
(b) the expression “Iron and steel” includes pig iron, ingots, blooms,
billets and rolled or re-rolled products into basic forms and tool
and alloy steel ;
(c) the expression “Paper” includes pulp, paper board and straw-board ;
(d) the expression “textiles” includes the products or carding, spinning,
weaving, finishing, and dyeing yarn and fabrics, printing, knitting and
embroidering.
7. Matches.
8. Edible oils and fats.
9. Sugar.
10. Rubber and rubber products.
11. Electricity including the generation, transmission and distribution
thereof.
12. Tea.
13. Printing including the process of composing types for printing,
printing by letterpress, lithography, photogravure of other similar
process or book binding.
14. Glass.
15. Stoneware pipes.
16. Sanitary wares.
520 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
17. Electrical porcelain insulators of high and low tension.
18. Refractories.
19. Tiles.
20. The mineral oiling refining industry.
21. Heavy and fine chemicals, including––
(i) Fertilizers,
(ii) Turpentine,
(iii) Rosin,
(iv) Medical and pharmaceutical preparations,
(v) Toilet preparations,
(vi) Soaps,
(vii) Inks,
(viii) Intermediates, dyes, colour lacs and tonars, and
(ix) Fatty acids.
22. Indigo.
23. Lac including shellac.
24. Non-edible vegetable and animal oils and fats.
25. Tea plantations.
26. Coffee plantations.
27. Rubber plantations.
28. Cardamon plantations.
29. Pepper plantations.
30. Leather or leather goods.
31. Wood articles.
32. Sports articles.
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EMPLOYEES’ PROVIDUNT FUNDS ACT, 1961 521
SCHEDULE II
[See section 7(2)]
Matters for which provision may be made in a scheme.
1. The employees or class of employees who shall join the fund, and the
conditions under which employees may be exempted from joining the fund or from
making any contribution.
2. The time and manner in which contributions shall be made to the fund by
employers and by, or on behalf of employees, the contributions which an employee
may, if he so desires, make under sub-section (1) of section 7, and the manner in
which such contributions may be recovered.
3. The payment by the employer of such sums of money as may be necessary
to meet the cost of administering the fund and the rate at which and the manner in
which the payment shall be made.
4. The constitution of boards of trustees for the administration of funds,
each of which shall consist of––
(a) nominees of the Government ;
(b) representatives of the employers and employees concerned, nomi-
nated by the Government after consultation with the employers and
employees concerned or with such of their respective organizations
as are representative of their interests ; provided that the number of
representatives of the employees shall in no case be less than the
number of representatives of the employers.
5. The number of trustees on any board, the terms and conditions subject to
which they may be nominated, the time, place and procedure of meetings of the
board, the appointment of officers and other employees of the board, and the
opening of regional and other offices.
6. The manner in which accounts shall be kept, the investment of moneys
belonging to the fund in accordance with any directions issued or conditions
specified by the Government, the preparation of the Budget, the audit of accounts
and the submission of reports to the Government.
7. The conditions under which withdrawal from the fund may be permitted
and any deduction or forfeiture may be made and the maximum amount of such
deduction or forfeiture.
8. The fixation by the Government in consultation with the boards of trustees
concerned of the rate of interest payable to members.
522 EMPLOYEES’ PROVIDENT FUNDS ACT, 1961
9. The form in which an employee shall furnish particulars about himself and
his family whenever required.
10.The nomination of a person to receive the amount standing to the credit of
a member after his death and the cancellation or variation of such nomination.
11.The registers and records to be maintained with respect to employees and
the returns to be furnished by employers.
12.The form or design of any identity card, token or disc for the purpose of
identifying any employee, and for the issue, custody and replacement thereof.
13.The fees to be levied for any of the purpose specified in this Schedule.
14.The contraventions or defaults which shall be punishable under sub-
section (2) of section 14.
15.The further powers, if any, which may be exercised by Inspectors.
16.The manner in which accumulations in any existing provident fund shall
be transferred to the fund under section 17 and the mode of valuation of any assets
which may be transferred by the employers in this behalf.
17.The conditions under which a member may be permitted to pay premia on
life insurance, from the fund.
18.Any other matter which may be necessary or proper for the purpose of
implementing the scheme.
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