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Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2015 Dear Sir,

I have posted a topic under LAW, Industrial and Labour Law Section, the topic being - Applicability of EPF and ESI Act.

If you could spare a few moments on helping me out with the article i'd be greatly helped. Or if you could tell me some proper place to look for them because i have been searching but to no proper contentment.

Thanking You,

Regards,
Yash Choudhary.

Ankur Garg

Ankur Garg (Expert)

07 July 2015 APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT '1952

The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole India except Jammu & Kashmir.

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette.
Employing 20 or more persons .
Cinema Theatres employing 5 or more persons.

The Act does not apply to:

The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)

The establishment to which this Act applies shall continue to be governed by this Act , even if the number of employees falls below 20 at a later date. [ 1(5)].

16(1)(b) Establishments under the control of state/central Govt.& employees who are getting benefits in the nature of 16(1) (b) contributory P.F. or old age pension as per rules framed by the Govt.
16(1)(c) Establishment set up under any central, provincial or state act and the employees who are getting benefits in the nature of contributory P.F. or old age pension as per rules.

Voluntary Coverage

If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment ( voluntary coverage under section 1(4) )

Ankur Garg

Ankur Garg (Expert)

07 July 2015 APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of Indian Union.

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