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. (ii) Whether the Provident Fund authorities are correct in issuing directions for its application to the company? Refer to legal provisions.

Answer & Explanation:

The Provident Fund Authorities are correct in issuing directions to the company for the application of the Provisions of the Act to all the units of the company as per Section 1(3)(a). The test for determining whether or not the Act is applicable to such type of composite factories is to examine what kind of activities are involved as primary and dominant and what kind of activities are feeder and incidental. If it is primary and dominant one, then all units come under the purview of the Act. Workers working in each of the units shall be 20 each as well. (RPF commissioner, Bombay Vs Sri Krishna Metal Co.) (1962, SC 1536)

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

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic