Employees' Provident Fund and Miscellaneous Provisions Act 1952
(1) This Act may be called the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Subject to the provisions contained in Section 16, it applies-
(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and
(b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf :
Provided that the Central Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be
In this Act, unless the context otherwise requires,--
(a) “appropriate Government” means--
(i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to an establishment connected with a railway company, a major port, a mine or an oilfield or a controlled industry or in relation to an establishment having departments or branches in more than one State, the Central Government ; and
(ii) in relation to any other establishment, the State Government.
(aa) “authorised officer” means the Central Provident Fund Commissioner. Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authoirsed by the Central Government, by notification in the Official Gazette;
(b) ‘basic wages’ means all emoluments which
For the removal of doubts, it is hereby declared that where an establishment consists of different department 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.
Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is common to the employees employed in that establishment and employees in any other establishment. The Central Government may, by notification in the Official Gazette, direct that the provisions of this Act shall also apply to such other establishment.
(1) The Central Government may, by notification in the Official 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.
(2) All notifications under sub_section (1) shall be laid before Parliament, as soon as may be, after they are issued.
(1)The Central Government may , by notification in the Official Gazette, frame a Scheme to be called the Employees’ Provident Fund Scheme for the establishment of provident fund under this Act for employees or for any class of employees and specify the establishment 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.
(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 (1) may provide for all or any of the matters specified in Scheme II.
(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 specif
(1) The Central 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 this Act referred to as the Central Board) consisting of the following persons, as members namely :-
(a) a Chairman and a Vice-Chairman to be appointed by the Central Government;
(aa) the Central Provident Fund Commissioner, ex-officio;
(b) not more than fifteen persons appointed by the Central Government from amongst its officials;
(c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf, appointed by the Central Government;
(d) ten persons representing employers, of the establishments to which the Scheme applies, appointed by the Central Government after
(1) The Central Government may, by notification in the Official Gazette, constitute with effect from such date as may be specified therein, an Executive Committee to assist the Central Board in the performance of its functions.
(2) The Executive Committee shall consist of the following persons as members, namely :-
(a) a Chairman appointed by the Central Government from amongst the members of the Central Board;
(b) two persons appointed by the Central Government from amongst the persons referred to in Clause (b) of sub_section (1) of Section 5A;
(c) three persons appointed by the Central Government from amongst the persons referred to in Clause (c) of sub_section (1) of Section 5A;
(d) three persons representing the employers elected by the Central Board from amongst the persons referred to in Clause (d) of sub_section (1) of Section 5
(1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette, constitute for that State a Board of Trustees (hereinafter in this Act referred to as the State Board) in such manner as may be provided for in the Scheme.
(2) A State Board shall exercise 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 meetings of a State Board shall be such as may be provided for in the Scheme.
Every Board of Trustees constituted under Section 5A or Section 5B shall be a body corporate under the names specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued.
(1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the Chief Executive Officer of the Central Board and shall be subject to the general control and superintendence of the Board.
(2) The Central Government may also appoint a Financial Advisor and Chief Accounts Officer, to assist the Central Provident Fund Commissioner in the discharge of his duties.
(3) The Central Board may appoint subject to the maximum scale of pay, as may be specified in the Scheme; as many additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and such other officers and employees as it mayn consider necessary for the efficient administration of the Scheme, the Pension Scheme and the Insurance Scheme.
(4) No appointment to the Post of the Central Provident Fund Commiss
No Act done or proceeding taken by the Central Board or the Executive Committee constituted under Sec. 5 AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of the Central Board or the Executive Committee or the State Board, as the case may be.
The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a State Board may 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 the Pension Scheme, and the Insurance Scheme.
[ x x x ] The Contribution which shall be paid by the employer to the Fund shall be ten percent, of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees whether employed by him directly or by or through a contractor and the employee’s contribution shall be equal to the contribution payable by the employers in respect of him and may, if any employee so desires, be an amount exceeding ten per cent of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to apy any contribution over and above his contribution payable under this section.
Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this Section shall be subject to the m
(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Pension Scheme for the purpose of providing for--
(a) superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.
(2) Notwithstanding anything contained in Section 6, there shall be established, as soon as may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme,--
(a) such sums from the employer’s contribution under Section 6, not exceeding eight and one-third per cent of the basic wages, dearness allowanc
[x x x ]
(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits tothe employees of any establishment or class of establishments in whch 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 per cent of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employees as the Central Government may, by notification in the Official Gazette, specify.
Explanation :- For the purpose of this sub_section, the expressions “dearness allowance” and
Every Scheme framed under Section 5, Section 6A and Section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, what it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme, or both Houses agree thatn the Scheme should not be framed, the Scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.
(1) The Central Government may, by notification in the Official Gazette, add to, amend or vary, either prospectivley or retrospectively, the Scheme, the Pension Scheme, or Insurance Scheme as the case may be.
(2) Every modification issued under sub_section (1) shall be laid, as soon as may be after it is issued before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification, or both Houses agree that the notification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything
The Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner or any Assistant provident Fund Commissioner may, by order,--
(a) in a case where a dispute arises regarding the applicability of this Act to an establishment, decide such dispute; and
(b) determine the amount due from any employer under any provision of this Act, the Scheme or the Pension Scheme or the Insurance Scheme, as the case may be, and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary;
(2) The officer conducting the inquiry under sub_section (1) shall, for the purposes of such inquiry, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), for trying a suit in respect of the following matters, namely :-
(a) e
(1) Any person aggrieved by an order made under sub_section (1) of Sec. 7A, but from which no appeal has been preferred under this Act, and who, from the discovery of new and important matter, or evidence which, after the exercise of due diligence was not within his knowledge or could not be produced by him at the time when the order was made, or on account of some mistake or error apparent on the fact of the record or for any other sufficient reason, desires to obtain a review of such order may apply for a review of that order to the officer who passed the order :
Provided that such officer may also on his own motion review his order if he is satisfied that it is necessary so to do on any such ground.
(2) Every application for review under sub_section (1) shall be filed in such form and manner and within such time as may be specified in the Scheme.
(3) Where it appears to the officer re
(1) The Central Government shall determine the nature and categories of the officers and other employees required to assist a Tribunal in the discharge of its functions and provide the Tribunal with such officers and other employees as it may think fit.
(2) The officers and other employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer.
(3) The salaries and allowances and other conditions of service of the officers and other employees of a Tribunal shall be such as may be prescribed.
(1) Any person aggrieved by a notifications issued by the Central Government, or an order passed by the Central Government or any authority, under the proviso to sub_section (3) or, sub_section (4) of Section 1 or Section 3, or sub_section (1) of Section 7A or Section 7B except an order rejecting an application for review referred to in sub_section (5) thereof or Section 7C, or Section 14B, may prefer an appeal to a Tribunal against such notification or order.
(2) Every appeal under sub_section (1) shall be filled in such form and manner, within such time and be accompanied by such fees, as may be prescribed.
No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five percent of the amount due from him as determined by an officer referred to in Sec. 7A:
Provided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this section.
The employer shall be liable to pay simple interest at the rate of twelve per cent annum or at such higher rate as may be specified in the Scheme on any amount due from him under this Act from the date on which the amount has become so due till the date of its actual payment :
Provided that higher rate of interst specified in the Scheme shall not exceed the lending rate of interest charged by any scheduled bank.
Where an order determining the amount due from an employer under Section 7A or Section 7B has been passed and if the officer who passed the order,--
(a) has reason to believe that by reason of the ommission or failure on the part of the employer to make any document or report available, or to disclose, fully and truly, all material facts necessary for determining the correct amount due from the employer, any amount so due from such employer for any period has escaped his notice;
(b) has, in consequence of information in his possession, reason to believe that any amount to be determined under Section 7A or Section 7B has escaped from his determination for any period notwithstanding that there has been no omission or failure as mentioned in Clause (a) on the part of the employer;
he may, within a period of five years from the date of communication he may, within a period of five years from
(1) The Central Government may, by notification in the Official Gazette, constitute one or more Appellate Tribunals to be known as the Employees’ Provident Funds Appellate Tribunal to exercise the powers and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in the notification constituting the Tribunal.
(2) A Tribunal shall consist of one person only to be appointed by the Central Government.
(3) A person shall not be qualified for appointment as the Presiding Officer of a Tribunal (hereinafter referred to as the Presiding Officer), unless he is, or has been, or is qualified to be,--
(i) a Judge of a High Court; or
(ii) a District Judge.
The Presiding Officer of a Tribunal shall hold office for a terms of five years from the date on which he entres upon his office or until he attains the age of sixty-two years, whichever is earlier.
(1) The Presiding Officer may, by notice in writing under his had addressed to the Central Government, resign his office :
Provided that the Presiding Officer shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(2) The Presiding Officer shall not be removed from his office except by an order made by the President on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the High Court in which such Presiding Officer had been informed of the charge against him and given a reasonable opportunity of being heard in respect of those charges.
(3) The Central Government may, by rules regulate t
The salary and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of, the Presiding Officer shall be such as may be prescribed :
Provided that neither the salary and allowances nor the other terms and conditions of service of the Presiding Officer shall be varried to his disadvantage after his appointment.
Procedure of Tribunals :- (1) A Tribunal shall have power to regulate its own prcedure in all matters arising out of the exercise of its power or of the discharge of its functions including the places at which the Tribunal shall have its sittings.
(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to in Section 7A and any proceeding before the Tribunal 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, 1860 (45 of 1860), and the Tribunal shall be deemed to be a Civil Court for all the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedur
Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint presenting officers :- (1) A person preferring an appeal to a Tribunal under this Act may, either appear in person take the assistance of a legal practitioner of his choice to present his case before the Tribunal.
(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legal practitioners or any of its officers to act as presenting officers and everyd person so authorised may present the case with respect to any appeal before a Tribunal.
Orders of Tribunal :- (1) A Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming , modifying or annulling the order appealed against or may refere the case back to the authority which passed such order with such directions as the Tribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additional evidence, if necessary.
(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub_section (1) and shall make such amendment in the order if the mistake is brought to its notice by the parties to the
Filling up of vacancies :- If, for any reason, a vacancy occurs in the office of the Presiding Officer, the Central Government shall appoint another person in accordance with the provisions of this Act, to fill the vacancy and the proceedings may be continued before a Tribunal from the stage at which the vacancy is filled.
Finality of orders constituting a Tribunal :- No order of the Central Government appointing any person as the Presiding Officer shall be called in question in any manner and no Act or proceeding before a Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of such Tribunal.
Transfer of certain applications to Tribunals :- All applicationms which are pending before the Central Government under Section 19A before is repeal, shall stand transferred to a Tribunal exercising jurisdiction in respect of establishments in relation to which such applications had been made as if such applications were appeals preferred to the Tribunal.
Mode of recovery of moneys due from employers :- Any amount due--
(a) from the employer in relation to an establishment to which any Scheme or the Insurance Scheme applies in respect of any contribution payable to the fund or, as the case may be, the insurance fund, damages recoverable under Section 14B, accumulations required to be transferred under sub_section (2) of Section 15 or under sub_section (5) of Section 17 or any charges payable by him under any other provision of this Act or any provision of this Act or any provision of the Scheme or the Insurance Scheme; or
(b) from the employer in relation to an exempted establishment in respect of any damages recoverable under Section 14B or
8B. Issue of certificate to the Recovery Officer :- (1) Where any amount is in arrear under Section 8, the authorised officer may issue, to the Recovery Officer, a certficate under his signature specifying the amount of arrears and the Recovery Officer, on recipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as the case may be, the employer, by one or more of the modes mentioned below :-
(a) attachment and sale of the movable or immovable property of the establishment or, as the case may be, the employer;
(b) arrest of the employer and his detention in prison ;
(c) appointing a receiver for the m
8F. Other mode of recovery :- (1) Notwithstanding the issue of a certificate to the Recovery Officer under Section 8B, the Central Provident Fund Commissioner or any other officer authorised by the Central Board may recover the amount by any one or more of the modes provided in this section.
(2) If any amount is due from any person to any employer who is in arrears, the Central Provident Fund Commissioner or any other officer authorised by the Central Board in this behalf may require such person to deduct from the said amount the arears due from such employer under this Act, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Provident Fund Commissioner or the Officer so authorised, as the case may
Recovery of money by employers and contractors :- (1) The amount of contribution (that is to say, the employer’s contribution as well as the employee’s contribution in pursuance of any Scheme and the employer’s contribution in pursuance of the Insurance Scheme), and any charges [x x x] 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 employer from the contractor either by deduction from any amount payable to the contractor, under any contract or as a 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 employe
Recovery Officer to whom certificate is to be forwarded :- (1) The authorised officer may forward the certificate referred to in Section 8B to the Recovery Officer within whose jurisdiction the employer--
(a) carries on his business or profession or within whose jurisdiction the principal pace of his establishment is situate; or
(b) resides or any movable or immovable property of the establishment or the employer is situate.
(2) Where an establishment or the employer has property within the jurisdiction of more than one Recovery Officers and the Recovery Officer to whom a certificate is sent by the authorised Officer--
Validity of certificate, and amendment thereof :- (1) When the authorised officer issues a certificate to a Recovery Officer under Section 8B, it shall not be open to the employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other gound shall also be entertained by the Recovery Officer.
(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.
(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing
Stay of proceedings under certificate and amendment or withdrawal thereof :- (1) Notwithstanding that certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time for the payment of the amount, and thereupn the Recovery Officer shall stay the proceedings until the expiry of the time so granted.
(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate.
(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been mo
Application of certain provisions of Income-tax Act :- The provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961), and the Income-tax (Certificate Proceedings) R8ules 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount mentioned in Section 8 of this Act instead of to the income-tax :
Provided that any reference in the said provisions and the rules to the “assessee” shall be construed as a reference to an employer as defined in this Act.
Fund to be recognised under Act 11 of 1922 :- For the purpose of the Indian Income Tax Act, 1922 the Fund shall be deemed to be a recognised provident fund within the meaning of Chapter IX-A of that Act :
Provided that nothing contained in the said Chapter shall operate to render ineffective any provision of the Schme (under which the Fund is established) which is repugnant to any of the provisions of that Chapter or of the rules made thereunder.
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 neither the official assignee appointed under the Presidency Towns Insolvency Act, 1909 (3 of 1909) nor any receiver appointed under the Provincial Insolvency Act, 1920 (5 of 1920) shall be entitled to, or have any claim on, any such amount.
(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 this nomin
Priority of payment of contribution over other debts :- Where any employer is adjudicated insolvent or, being a company, an order for winding up is made, the amount due--
(a) from the employer in relation to an establishment to which any Scheme or the Insurance Scheme applies in respect of any contribution payable to the fund or, as the case may be, the Insurance Fund, damages recoverable under Section 14B, accumulations required to be transferred under sub_section (2) of Section 15 or any charges payable by him under any other provision of this Act or of any provision of the Scheme or the Insurance Schme; or
(b) from the employer in relation to an exempted establishment in respect of any contribution to the provident fund
Employer not to reduce wages etc. :- No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall by reason only of his liability for the payment of any contribution to the Fund or Insurance Fund or any charges under this Act or the Scheme or Insurance Scheme, reduce, whether directly, or indirectly, the wages of any employee to whom the Scheme or Insurance Scheme applies or the total quantun of benefits in the nature of old age pension, gratuity provident fund or life insurance to which the employee is entitled under the terms of his employment, express or implied.
Section 12 of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, is a fundamental provision aimed at safeguarding the wages and benefits of employees covered under the Act. It ensures that employers do not reduce wages or benefits to evade their statutory obligations, thereby protecting the interests of the workmen and maintaining social justice.
Section 12 explicitly prohibits employers from reducing wages, benefits, or contributions related to provident fund, pension, or gratuity, whether directly or indirectly, in relation to employees covered under the Scheme or Insurance Scheme. It mandates that wages and benefits must be maintained at the agreed or statutory levels and prohibits any reduction that could undermine the social security of employees.
Section 12 of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, is a vital safeguard ensuring that employers do not diminish wages or employee benefits to escape statutory obligations. It emphasizes the sanctity of employee entitlements and provides a robust legal framework for enforcement, including penalties for violations, thereby reinforcing social justice and the welfare of workers across India.
Inspectors :- (1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act the Scheme the Pension Scheme or the Insurance Scheme and amy 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 the Insurance Schem or for the purpose of ascertaining whether any of the provisions of this Act or of any Scheme or the Insurance Scheme have been complied with in respect of an establishment to which any Scheme or the Insurance Scheme applies or for the purpose of ascertaining whether the provisions of this Act or any Sc
Penalties :- (1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act the Scheme the Pension Scheme or the Insurance 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 one year or with fine of five thousand rupees, or with both.
(1A) An employer who contravenes, or makes default in complying with, the provisions of Section 6 or clause (a) of sub_section (3) of Section 17 in so far as it relates to the payment of inspection charges, or paragraph 38 of the Scheme in so far as it relates to the payment of administratiavae charges, shall be punishable with the imprisonment for
Offences by companies :- (1) If the person committing an offence under this Act the Scheme or the Pension Scheme or the Insurance Scheme is a company, every person, who at the time the offence was committed wasin charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed tobe 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 preson liable to any punishment, if he proves that the offence was committed with9ut his knowledge or that he exercised all due diligence to prevent the commission of such offence.
Enhanced punishment in certain cases after previous conviction :- Whoever having been convicted by a Court of an offence punishable under this Act, the Scheme or the Pension Scheme or the Insurance Scheme, commits the same offence shall be subject for every such subsequent offence to imprisonment for a term which may extend to five years, but which shall not be less than two years, and shall also be liable to a fine of twenty-five thousand rupees.
Certain offences to be cognizable :- Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898) an offence relating to default in payment of contribution by the employer punishable under this Act shall be cognizable.
14B. Power to recover damages :- Where an employer makes default in the payment of any contribution tothe fund the Pension Fund or the Insurance Fund or in the transfer of accomulations required to be transferred by him under sub_section (2) of Sec. 15 of sub_section (5) of Section 17 or in the payment of any charges payable under any other provisions of this Act or any Scheme or Insurance Scheme or under any of the conditions specified under Section 17, the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government by notification in the Official Gazette in this behalf may recover from the employer by way of penalty such damages, not exceeding the amount of arrears, as may be specified in the Secheme.
Cognizance and trial of offences :- (1) No Court shall take cognizance of any offence punishable under this Act, the Scheme or the Pension Scheme or the Insurance Scheme except on a report in writing of the facts constitution such offence made with with previous sanction of the Central Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette, in this behalf, by an Inspector appointed under Section 13.
(2) No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act or the Scheme or the Pension Scheme or the Insurance Scheme.
Power of Court to make order :- (1) Where an employer is convicted of any offence of making default in the payment of any contribution to the Fund the Pension Fund or the Insurance Fund or in the transfer of accumulations required to be transferred by him under sub_section (2) of Section 15 or sub_section (5) of Section 17, the Court may , in addition to awarding any punishment by order in writing require him within a period specified in the order which the Court may, if it thinks fit and on application in that behalf, from time to time, extend, to pay the amount of contribution or transfer the accumulations , as the case may be, in respect of which the offence was committed.
(2) Where an order is made under sub_section (1), the em
Special provision relating to existing provident funds :- (1) Subject to the provisions of Section 17, 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 ot 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 accumulations in any provident fund of the establishment standing to the credit of the employees who become memebers of the fund establishe
Act not to apply to certain establishments :- (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, employeing less than fifty persons and working without the aid of power; or
(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
Authorising certain employers to maintain provident fund accounts :- (1) The Central Governmnt 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.
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, exempt, whether prospectively or retrospectively, from the operation of all or any of the provisions of any Scheme--
(a) any establishment to which this Act applies if, in the option of the appropriate Government, the rule 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 tothe employees in any other establishment of a similar cha
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 obtai
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.
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 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 provisions of this Act or the Scheme or the Pension Scheme or the Insurance Scheme, as the case may be, in respect of the period upto 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.
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 7-A, 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 Pension Scheme or the Insurance Scheme.
Presiding Officer and other officers to be public servants :- The Presiding Officer of a Tribunal, its officers and other employees, the authorities referred to in Section 7-A and every Inspector shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code (45 of 1860).
Delegation of powers :- The appropriate Government may direct that any power of authority or jurisdiction exercisable by it under this Act the Scheme the Pension Scheme or the Insurance Scheme shall, in relation to such matters and subject to such conditions if any, as may be specified in this direction, be exercisable also--
(a) where the appropriate Government is the Central Government by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification; and
(b) where the appropriate Government is a State Government, by such officer or authority subordinate
Power of Central Government ot give directions :- The Central Government may, from time to time, give such directions to the Central Board as it may think fit for the efficient administration of this Act and when any such direction is given, the Central Board shall comply with such direction.
Power to make rules :- (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely--
(a) the salary and allowances and other terms and conditions of service of the Presiding Officer and the employees of a Tribunal ;
(b) the form and the manner in which, and the time within which an appeal shall be filled before a Tribunal and the fees payable for filing such appeal;
(c) the manner of certifying the copy of the certificate, to be forwarded to the
Power to remove difficulties :- (1) If any difficulty arises in giving effect to the provisions of this Act, as amended by the Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Act, 1998, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for the removal of the difficulty :
Provided that no such order shall be made after the expirty of a period of three years from the date on which the said Amendment Act receives the assent of the President.
(2) Every order made under this section shall, as soon as may be after it is made, be laid b
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