Retirement benefits are available to the employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
As on 31st December, 1981 it covered 166 industries, employing more than 20 persons all over India. It did not cover Jammu & Kashmir.
ADVERTISEMENTS:
This Act does not apply to establishments registered under the Co-operative Societies Act, 1912 and where the number of employees is less than 50 and where there is no power.
In a welfare State like India, it becomes the duty of the Government to provide some legislation for the benefit of employees in their old age.
Image Source: cdn.publishyourarticles.ne
It was with this aim that a scheme was devised for the benefit of the employees after retirement.
A Contributory Provident Fund Scheme was conceived in which both the employers and the employees contributed funds and the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 was enforced.
ADVERTISEMENTS:
Nature and Scope:
This Act is beneficial to the employees working in factories and other establishments. The Act applies to all kinds of factories engaged in any industry specified in Schedule I and other establishments which employ twenty or more workers.
The Act does not apply to any factory or establishment registered under the Co-operative Societies Act, 1912 or any other law relating to Co-operative Societies employing less than 50 persons and working without the aid of power.
Even the establishments covered by the Act are given infancy protection for 3 and 5 years. In other words, the new establishments are allowed to start the scheme after this period in order to avoid any financial hardship to them.
ADVERTISEMENTS:
The power vests in the Central Government to extend the Act to non- factory establishments also and to establishments employing even less than 20 workers.
Applicability and Extent:
The Employees’ Provident Fund Act extends to the whole of India excluding Jammu & Kashmir.
It applies to all factories engaged in the industries specified in Schedule I and in which 20 or more persons are employed and to any other establishment which may be specified by the Central Government by notification in the Official Gazette.
The Act does not apply to industries owned by the Central Government or State Government or local authority.
Conditions for Applicability:
The Act will apply when the following three conditions are cumulatively fulfilled:
(1) When manufacturing process is carried on in a unit;
(2) When an industry is engaged in the manufacture of any products as noted in the Schedule; and
(3) At least 20 persons must have been employed in it.