Chapter: 7.1.2 The Modes in the Employees Provident Fund and Miscellaneous Provisions Act

Sec. 16 Act not to apply to certain establishments - This act shall not apply

a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state relating to co-operative societies, employing less than fifty persons and working without the aid of power; or
b) to any other establishment belonging to or under the control of the Central Government or a State Government and whose employees are entitled to the benefit of contributed provident fund or old age pension in accordance with any scheme or rule framed by the Central Government t or the State Government governing such benefits; or
c) To any other establishment setup under any Central provincial or State; act and whose employees are entitled to the benefits of contributory, provident fund or old age pension in accordance with any scheme or rule framed under that act governing such benefits.
On an application made by the employer and the majority of the employees in relation to an establishment employing more than 100 employees may authorize the employer by an order in writing to maintain a provident fund, in relation to the establishment. Provided that no authorization shall be made if the establishment has made a default or has committed an offence during the period of three years after the authorization.
Where the establishment is authorized to maintain a provident fund account the employer shall maintain such account submit such return deposit the contribution in such manner for the facilities of inspection and pay the charges and abide by such other terms and conditions as may be specified in the scheme.
The Government may by a notification in the Gazette exempt certain establishments from the purview of the Act.
The employer shall establish a Board of trustees for the administration of the provident fund consisting of such number of members as may be specified, t maintain detailed accounts, to show the contributions credited, withdrawals made and interest accrued in respect of each person and to invest the fund monies in accordance with the directions issued by the central government and to transfer where the provident fund account of any employee and perform such other duties as may be specified in the scheme.
Further the government may exempt the establishment or class of establishment from the operation of the pension scheme.
Where an employee employed in an establishment to which this act applies leaves his employment and obtains re-employment in another establishment to which this act does not apply, the amount of accumulations to the credit of such employee in the fund or as the case may be, shall be transferred within such time as may be to the credit of his account in the provident fund of the establishment in which he is reemployed and provided the employee permits the said transfer.
Where an employer in relation to an establishment transfers that establishment in whole or in part by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly and severally be liable to pay the contribution and other sums due from the employer under the act.