Page 193 - DCOM207_LABOUR_LAWS

Labour Laws

Notes

Notes A member of the fund is entitled to get full refund of both the shares of
contributions made by him as well as by his employer with interest thereon immediately
after leaving the service.

11.4.5 Account Slip
As soon as possible after the completion of each accounting year, every member of the fund shall
be supplied with an account slip showing:
1. The opening balance;
2. The amount contributed during the year;
3. The amount of interest credited or debited during the year; and
4. Closing balance,
Errors, if any, should be brought to the notice of the Commissioner within six months.

11.4.6 Exemption

An establishment/factory may be granted exemption under Section 17 if, (i) in the opinion of the
appropriate government, the rules of its provident fund with respect to the rates of contributions
are not less favourable than those specified in Section 6 of the Act, and (ii) if the employees are
also in enjoyment of other provident fund benefits which on the whole are not less favourable
than the benefits provided under the Act or any scheme in relation to the employees in any other
establishment of a similar character. While recommending to the appropriate government grant
of exemption under this section, the Employees’ Provident Fund Organisation usually takes into
consideration the rate of contribution, the eligibility clause, the forfeiture clause and the rate of
interest. Also, the totality of the benefits provided under the rules of the exempted funds is taken
into consideration.

Example: The Central Government is empowered to grant exemption to any class of and
soda security establishments from the operation of the Act for a specified period, on financial or
other grounds under section 16(2).

The exemption is granted by issue of notification in the Official Gazette and subject to such
terms and conditions as may be specified in the notification. The exemption does not amount
to total exclusion from the provisions of the Act. The exempted establishments are required to
constitute a Board of Trustees according to the rules governing the exemptions to administer the
fund, subject to overall control of the Regional Provident Fund Commissioner. The exempted
establishments are also required to maintain proper accounts, submit prescribed returns, invest
provident fund accumulations in the manner prescribed by the central Government from time
to time, and to pay inspection charges. Exemption is liable to be cancelled for breach of any of
these conditions.

Self Assessment

Fill in the blanks:

10. The statutory rate of contribution to the provident fund by the employees and the
employers, as prescribed in the Act, is .................. of the pay of the employees.
11. The nomination form shall be filled in duplicate and one copy duly accepted by the
.................. office will be kept by members.

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