APPLICABILTY OF EPF ACT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011 I AM WORKING IN A PARTNERSHIP FIRM ( REGISTERED UNDER PARTNERSHIP ACT) ENGAGED IN REAL ESTATE BUSINESS SINCE THREE YEARS.
IT HAS THREE BRANCHES ALL OVER THE STATE. IT HAS MORE THAN 20 EMPLOYESS. MORE OVER IT IS PLANNING TO OPEN MORE BRANCHES THROUGHOUT THE STATE.

MY QUESTION IS WHETHER EPF ACT APPLIES OR NOT ?

IF YES , HOW AND WHY UNDER EPF ACT ?

AND IF NOT, WHY ?

Kumar Babu.G

Kumar Babu.G (Expert)
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08 February 2011 Below the relevant sections in EPF Act which clarify the above doubt are given:
Sub Section(3):Subject to the provisions contained in section 16 if EPF Act it 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.

Sub Section (4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16 where it appears to the Central Provident Fund Commissioner whether on an application made to him in this behalf or otherwise that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment he may by notification in the Official Gazette apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.

Sub Section(5) An establishment to which this act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty.

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