Employees Provident Funds

Act, 1952

AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

www.afterschoool.tk
02/03/09 AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 1
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Employees Provident Funds
Act, 1952
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
www.afterschoool.tk
02/03/09 AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 2
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Applicability of the law…
• (a) Every establishment which is a factory
engaged in industry specified in Schedule I to
the Act and in which 20 or more persons are
employed and (b) any other establishment or
class of establishment employing 20 or more
persons which may be specified by Central
government by notification in official gazette. - -
Central Government can also apply provisions of
the Act to any establishment even if it employs
less than 20 persons. [section 1(3)]
02/03/09 AFTERSCHO☺OL's MATERIAL 3
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Act not to apply to …
• establishments employing less than 20 employees.
(However, once Act becomes applicable, it continues to
apply even if subsequently, the number is lower than 20)
* Banks doing business in more than one State * Coal
mines * Units established under Cooperative Societies
Act employing less than 50 workers and working without
aid of power * Other establishments belonging to or
under control of Central Government or State
Governments and whose employees are entitled to
benefits of contributory provident fund or pension. * Tea
factories in Assam * Exemption granted by Central
Government by a special notification

02/03/09 AFTERSCHO☺OL's MATERIAL 4

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Temporary workers not to be
counted…
• RPFC v. T S Hariharan 1971 Lab IC 951
(SC), ----- it was held that temporary
workers should not be counted to decide
whether the Act would apply.

02/03/09 AFTERSCHO☺OL's MATERIAL 5

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Applicability of the act for less than
20 workers…
• CPFC can apply the provisions to that
(where workers & employer are willing to
implement PF) establishment by issuing a
notification in Official Gazette. [section
1(4)]. Once the provisions of Act become
applicable, it continues to be applicable
even if number of employees fall below
20. [section 1(5)].

02/03/09 AFTERSCHO☺OL's MATERIAL 6

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 PF to apply to branches also…
• Once an establishment is covered under
PF, all its departments and branches
wherever they are situated are also
covered.

02/03/09 AFTERSCHO☺OL's MATERIAL 7

www.afterschoool.tk FOR PGPSE PARTICIPANTS
How will you count the number?
• Where an establishment consists of
different departments or has branch es,
whether situate in the same place or in
different places, all such departments or
branches shall be treated as parts of the
same establishment. [section 2A]. - -
Thus, if factory is covered, the head office
and branches will also be covered under
the Act.
02/03/09 AFTERSCHO☺OL's MATERIAL 8
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Besides factories…
• Besides factories, other establishments employing
20 or more persons can be covered under the Act
u/s 1(3)(b). Various notifications have been issued
extending the provisions of PF Act to non-factory
establishments. Some major among them are -
plantation, mines, coffee, hotels and restaurants,
cinema and theatres, trading and commercial
establishments, laundry, canteens, establishments
of attorneys/CA/ ICWA/engineers/ architects/medical
practitioners, hospitals, financial
establishments,building and construction industry,
poultry, university, college, schools, scientific
institutions etc.
02/03/09 AFTERSCHO☺OL's MATERIAL 9
www.afterschoool.tk FOR PGPSE PARTICIPANTS
02/03/09 AFTERSCHO☺OL's MATERIAL 10
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Applicability of the act
• 20 or more workmen are employed as
contract labour or were so employed
anytime during last 12 months. [section
1(3)(a)] .this act will not apply to
establishment where work of an
intermittent or casual nature is performed.
[section 1(5)(a)].

02/03/09 AFTERSCHO☺OL's MATERIAL 11

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Requirements…
• You will find contract labour in most of the
factories, establishments, construction
firms, organisations – in all these places
typically, the company hires employees
through a contractor – this is called
contract labour. This labour is regulated
through the law on contract labour.

02/03/09 AFTERSCHO☺OL's MATERIAL 12

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Who is a contract labour?
• A workman is deemed to be employed as
contract labour‘ in or in relation to work of
the establishment, if he is hired for such
work by or through a contractor, with or
without knowledge of principal employer.
[section 2(1)(b)].

02/03/09 AFTERSCHO☺OL's MATERIAL 13

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Contractor…
• who employs 20 or more workmen. [section
1(3)(b)]. The contractor shall be licensed.
[section 12]. Contractor is required to maintain
muster roll and register of wages. [section 29]. -
- He is required to follow other provisions as may
be contained in Rules made by Appropriate
Government. Contractor is required to pay
wages to workmen on time, in presence of
authorised representative of principal employer.
[section 21]
02/03/09 AFTERSCHO☺OL's MATERIAL 14
www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Mode of payment of wages.
• Contractor to issue wage slips to workman
and obtain signature or thumb impression
on wage register. if contractor fails to
make payment of wages, Principal
Employer is liable to make payment of
wages to contract labour. He can recover
this amount from contractor. [section
21(4)].

02/03/09 AFTERSCHO☺OL's MATERIAL 15

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Facilities to be provided to the
workers….
• Contractor is required to provide canteen
facilities, first-aid, rest rooms, drinking
water, latrines and washing facilities, as
per rules made by State Government.
[sections 16 and 17].

02/03/09 AFTERSCHO☺OL's MATERIAL 16

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Abolition of contract…
• Government can issue notification u/s 10
abolishing contract labour only after following
prescribed procedure regarding consultation etc.
- if such a notification is issued, the employees
with contractor will not be automatically
absorbed in the employment of the company, if
the contact was genuine. However, company will
give preference to them. (Steel authority of India
Ltd. V/s national union water Front 2001 )

02/03/09 AFTERSCHO☺OL's MATERIAL 17

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 About AFTERSCHO☺OL
• PGPSE - World’s most comprehensive
programme on social entrepreneurship –
after class 12th
• Flexible – fast changing to meet the
requirements
• Admission open throughout the year
• Complete support from beginning to the
end – from idea generation to making the
project viable.
02/03/09 AFTERSCHO☺OL's MATERIAL 18
www.afterschoool.tk FOR PGPSE PARTICIPANTS
Branches of AFTERSCHO☺OL
• PGPSE programme is open all over the
world as free online programme.
• Those who complete PSPSE have the
freedom to start branches of
AFTERSCHO☺OL
• A few branches have already started -
one such branch is at KOTA (Rajasthan).

02/03/09 AFTERSCHO☺OL's MATERIAL 19

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Workshop on social
entrepreneurship
• We conduct workshop on social
entrepreneurship – all over India and out
of India also - in school, college, club,
association or any such place - just send
us a call and we will come to conduct the
workshop on social entrepreeurship.
• These workshops are great moments of
learning, sharing, and commitments.

02/03/09 AFTERSCHO☺OL's MATERIAL 20

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 FREE ONLINE PROGRAMME
• AFTERSCHO☺OL is absolutely free
programme available online – any person can
join it. The programme has four components :
• 1. case studies – writing and analysing – using
latest tools of management
• 2. articles / reports writing & presentation of
them in conferences / seminars
• 3. Study material / books / ebooks / audio / audio
visual material to support the study
• 4. business plan preparation and presentations
of those plans in conferences / seminars

02/03/09 AFTERSCHO☺OL's MATERIAL 21

www.afterschoool.tk FOR PGPSE PARTICIPANTS
100% placement / entrepreneurship
• AFTERSCHO☺OL has the record of
100% placement / entrepreneurship till
date
• Be assured of a bright career – if you join
AFTERSCHO☺OL

02/03/09 AFTERSCHO☺OL's MATERIAL 22

www.afterschoool.tk FOR PGPSE PARTICIPANTS
 Pursue professional courses along
with PGPSE
• AFTERSCHO☺OL permits you to pursue
distance education based professional /
vocational courses and gives you support
for that also. Many students are doing CA
/ CS/ ICWA / CMA / FRM / CFP / CFA and
other courses along with PGPSE.
• Come and join AFTERSCHO☺OL

02/03/09 AFTERSCHO☺OL's MATERIAL 23

www.afterschoool.tk FOR PGPSE PARTICIPANTS