A company is carrying on its work in 3 industrial units and all the 3 industrial units are located in the same place of the establishment. The first unit manufactures Metal Sheets, the second one Milling Paddy and the th

CS Professional · Labour Laws & Practice · PYQS · June 2024
A company is carrying on its work in 3 industrial units and all the 3 industrial units are located in the same place of the establishment. The first unit manufactures Metal Sheets, the second one Milling Paddy and the third one is a Saw Mill. Out of these only the first unit was an industry covered under the schedule of the Provident Fund Act of 1952. The PF Authorities however issued direction to the company to apply the Provident Fund scheme to the other two units as well. (i) Decide on the applicability of the Provident Fund & Miscellaneuous Provisions Act, 1952.

Answer & Explanation:

As per Section 1(3) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Act 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 specified in the notification. Further, as per Section 2(g) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, "factory" means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power. According to Section 1(3)(a) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Act is applicable to composite Industries or Factory. (RPF commissioner, Bombay Vs Sri Krishna Metal Co.) (1962, SC 1536)

Topics: Employees' Provident Funds and Miscellaneous Provisions Act, 1952

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