 the empl()yees' provident funds (amendment) bill, 1956ai passed" i lil til salma  corri gi!:ndato the employees' prlovident funds (amendm~nt) bill, 1956 -iit! inti 0 duc\id 1rx lok sybhg)  ai pass£d ~ trie lik saiha1 p3ge 1, line 8,-fq! "c ant aine d" re ad ii co nt aine d" 2 - p c1 g e 10,-for line 17, ~ -"to believe to be or to have been an employee in the f"=lctory;" new delhi, the 23rd november, 1956  a ai paiisi by the lok sal""further to amend the employees' providen~ fund! act, 1952 be it enacted by parliament in the seventh year of the republic of india as follows:-1 this act may be called the employees' provident funds short dde (amendment) act, 1956 , ! for sub-section (3) of section 1 of the employees' provident ameadmtdt 19 of ipsa funds act, 1952 (hereinafter referred to as the principal act), the of hctiod i following sub-section shall be substituted, namely:-<, "(3) subject to the provisions cantained in section 16, it applies-10 (a) to every establishment which is a factory engaged in any industry specified in schedule i and in which tuty or more persons are employed, and 15 (b) to any other establishment employing fifty 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 fifty as may be specified in the notification" substitutioll 3 in sub-section (4) of section 1, clauses (f) and (1ff) of section :e::~=ih- 2, sections 5, 8, 11, 12, 13, 15, 16, 17 and clauses (ii) and (iii) of eltabliahsection 19a of the principal act for the words "factory" "a factory" ment' add ' , 'eltab/ilhand "factories" wherever they occur, the words uestablishment", "an e ra' for, establishment" and uestablishments" respectively shall be substi- s act ~ tuted f8ct ea' 4 in section 2 of the principal act,-afmmdm~ of 1ccti0d 2 (a) for clause (a), the following clause shall be substituted, namely:-"(a) "appropriate government" means--10 (i) in relation to an establishment which is a factory engaged in a controlled industry, or a mine or an oil field, the central government, and (ii) in relation to any other establishment, the state governmentj" 1$ (b) for clause (e), the following clause shall be substituted, namely:-ii (e) 'employer' means-(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including 20 the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under clause <i) of sub-section (1) of section 7 of the factories act, 1948, the person so named; and 25 63 of 1948 (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrustea to a manager, managing director or managing agent, such manager, managing director or 30 managing agent;" 5 for section 3 of the principal act, the following section shall be substituted, namely:-substitution dnew lectioo for lectiod 3 "3 where immediately before this act -becomes applicable to an establishment there is in existence n provident fund which 35 is common to the employees employed in that establishment and employees in any other establishment, the central government power to apply iv!t to m establishmentwhich has a common provimay, by notification in the official gazette, direct that the provi- d~ lun~ sions of this act shall also apply to such other establishment" :tatill:bmeat 6 in section 19a of the principal act, for clause (i), the follow- 'rendjncdt ing clauses shall be substituted, namely:-~~ , "(i) whether an establishment which is a factory, is engaged in any industry specified in schedule i 10 (ia) whether any particular establishment is an establishment falling within the class of establishments to which this act applies by virtue of a notification under clause (b) of sub-section (3) of section 1"  statement of objects and reasonsthe employees' provident funds act, 1952, applied originally to factories engaged in the six industries specified in schedule i, namely, cement, cigarettes, electrical, mechanical or general engineering products, iron and steel, paper and textiles section 4 of the act, provides for the extension of the a~t to other factories by a notification in the official gazette of late, there has been a persistent demand for the extension of provident fund benefits to all industrial workers, and the act has recently been extended to seventeen additional factory industries by notification section 4, however, provides for application of the act to factory industries only there is no provision in the act enabling its extension to other establishments like plantations, mines, commercial establishments, etc it is, therefore, proposed to include an enabling provision in the act to the effect that, subject to the exemptions provided in section 16 the act shall apply to any establishment or class of establishmebts as may be specified by the central government by notification in the oftlcial gazette the bill seeks to provide for this object khandubhai k desai new delhi; the 7th november, 1956  financial memorandumthe bill contemplates the extension of the employees' provident funds act and the scheme framed thereunder to non-factory indw; tries like plantations, mines, commercial establishments, etc the cost of administering the act and the scheme will mainly be recovered from employers the centre's responsibility will be confined to supervision and co-ordination for this purpose some additional staff may be required in the central secretariat it is not possible to estimate accurately at present the extra staff required for the purpose, but the extra cost on this account is not likely to exceed rs 25,000/- per annum  memorandum regarding delegated legislationclause 2 of the bill amends sub-section 3 of section 1 of the act relating to its application the new section empowers the central government to bring under the purview of the act, by notification in the official gazette, any establishment or class of establishments, in respect of the employees whereof it is of the opinion that a provident fund scheme should be framed under the act the section as it now stands only provides for the extension of the act to factory industries and so power is being obtained to cover other establishments ' the delegation is of a normal character  extracts from the employees' provident funds act, 1952 (19 01' 1952) - • - • - •1 (1) - • - • - • short ride extent ani commence-(3) subject to the provisions contained in section 16, it applies ment in the first instance to all factories engaged in any industry specified in schedule i in which fifty or more persons are employed, but 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 all factories employing such number of persons less than fifty as may be specified in the notification and engaged in any such industry (4) notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16, where it appears to the central government, whether on an application made to it in this behalf or otherwise, that the employer and the majority of employees in relation to any factory have agreed that the provisions of this act should be made applicable to the factory, it may, by notification in the official gazette, apply the provisions of this act to that factory 2 in this act, unless the context otherwise requires,-(a) liappropriate government" means--(i) in relation to a factory engaged in a controlled industry or in an industry connected with a mine or an oilfield, the central government, and (ii) in relation to any other factory the state government; - • - • - (e) liemployer" in relation to a factory means the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause (/> of sub-section (1) of section 7 of the factories act, 1948 (lxiii of 1948), the person so named; (f) "employee" means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of a factory, and who gets his wages directly or indirectly from the employer and includes any person employed by or thrm,tgb a contractor in or in connection with the work of the factory; - • - • - • (fii> "exempted factory" means a factory in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any scheme, whether such exemption has been granted to the factory as such or to any person or class of persons employed therein; - • - • - • po~r ato 3 where immediately before this act becomes applicable to a app y ct to f t th   t 'd t f d h' h ' t establishac ory ere is 1d exis ence a provi en un w ic is common 0 mh edt which the employees employed in a factory to which this act applies and as a common employees in any other establishment the central government may, f!'~~i!: a by notification in the official gazette, direct that the provisions of factory this act shall also apply to that establishment and thereupon the employees' provident fund schemes establishment shall be deemed to be a factory for all the purposes of this act - - - - - 5 (1) the central government may, by notification in the official gazette, frame a scheme to be called the employees' provident fund scheme for the establishment of provident funds under this act for employees or for any class of employees and specify the factories or class of factories to which the said scheme shall apply and there shall be established, as soon as may be after the framing of the scheme,  a fund in "l!co~'(bnce with the provisions of this act and the scheme (2) a scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the scheme - - - - 8 any amount due-| mode        ||-------------|| lccoyery    || of          || mont:ys due || from em-    || ployers    |(a) from the employer in relation to a factory to which any scheme applies in respect of any contribution payable to the fund, damages recoverable under section 14b, accumulations required to be transferred under sub-section (2) of section 15 or any charges payable by him under any other provision of this act or of any provision of the scheme; or (b) from the employer in relation to an exempted factory in respect of any damages recoverable under section 14b or any charges payable by him to the appropriate government under any provision of this act or under any of the conditions speeifted under section 17, may, if the amount is in arrear, be recovered by the appropriate government in the same manner as an arrear of land revenue  - - - - 11 where any employer is adjudicated insolvent or, being a com- priority ot pany, an order for winding up is made, the amount due--pa)'dlctribdt !3f cal uuods· (4) from the employer in relation to a factory to which any ~:~~cr scheme applies in respect of any contribution payable to the fund damages recoverable under section 14b, accumulations required to be transferred under sub-section (2) of section 15 or any charges payable by him under any other provision of this act or of any provision of the scheme; or (b) from the employer in relation to an exempted factory in respect of any contribution to the provident fund (in so far u it relates to exempted employees), under the rules of the provident fund, damages recoverable under section 14b or any charges payable by him to the appropriate government under any provision of this act or under any of the conditions specified under section 17, ahall, where the liability therefor haa accrued before the order of adjudication or winding up is made, be deemed to be included 12 no employer in relation to a factory to which any scheme bmplojv applies shall, by reason only of his liability for the payment of any =~ contriblhion to the fund or any charges under this act or the will", etc scheme, reduce, whether directly or indirectly the wages of any employee to whom the scheme applies or the tow quantum of benefits in the nature of old age pension, gratuity or provident fund to which the employee is entitled under the terms of his employment, express or implied 13 (1) the appropriate government may, by notification in the inepectors otfteial gazette, appoint such persons as it thinks fit to be inspectors for the purposes of this act or of any scheme, and may define their jurisciietion (2) any inspector appointed under sub-section (1) may, for the purpose of inquiring into the correctness of any information furnished in connection with this act or with any scheme or for the purpose of ascertaining whether any of the provisions of this act or of any scheme have been complied with in respect of a factory to which any scheme applies or for the purpose of 8iioeriaining whether the provisions of this act or any scheme are applicable to any factory to which the scheme has not been applied or for the purpose of determining whether the conditions subject to which exemption was granted under section 17 are being complied with by the employer in relation to an exempted factory-(a) require an employer to furnish such information as he may consider necessary; (b) at any reasonable time enter any factory or any premises connected therewith and require anyone found in charge thereof to produce before him for examination any accounts books, registers and other documents relating to the employment of persons or the payment of wages in the factory; (c) examine, with respect to any matter relevant to any of the purposes aforesaid the employer, his agent or servant or any other person found in charge of the factory or any premises connected therewith or whom the inspector has reasonable cause or other documents maintained in relation to the factory; cd) make copies of, or take extracts from, any book, register or other documents maintained in relation to the factory; (e) exercise such other powers as the scheme may provide (3) every inspector shall be deemed to be a public 81ervant within the meaning of section 21 of the indian penal code (act xlv of 1860) - - - - s~ pro 15 (1) subject to the provisions of section 17, every employee vlsious re-- lating to who is a subscriber to any provident fund of a factory to which this :j~~l~o- act applies shall pending the application of a scheme to the factory-d •• in which he is employed, continue to be entitled to the benefits accruing to him under the provident fund, and the provident fund shall continue to be maintained in the same manner and subject to the same conditions as it would have been if this act had not been passed (2) on the application of any scheme to a factory, the accumulations in any provident fund of the factory standing to the credit of the employees who become members of the fund established under the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force or in any deed or other insti1l1rient establishing the provident fund but subject to the provisions if any, contained in the scheme, be transferred to the fund established under the scheme, and shall be credited to the accounts of the employees entitled thereto in' the fund 18 this act shall not apply to-act not to apply to i al factories (a) any factory belonging to the government or a oc belonging to authority, and government or local (b) any other factory, established whether before or after ::~~r::,yto the commencement of this act, unless three years have elapsed infant from its establishment factories 1'1 (1) the appropriate government may, by notification in the power to official gazette, and subject to such conditions as may be specified aempt in the notification, exempt from the operation of all or any of the provisions of any scheme-(a) any factory to which this act applies if, in the opinion of the appropriate government, the rules of its provident fund with respect to the rates of contributio~ are not less favourable than those specified in section 6 and the employees are also in enjoyment of other provident fund benefits which on the whole are not less favourable to the employees than the benefits provided under this act or any scheme in relation to the employees in any other factory of a similar character; or (b) any factory if the employees of such factory are in enjoyment of benefits in the nature of provident fund, pension or gratuity and the appropriate government is of opinion that such benefits separately or jointly, are on the whole not less favourable to such employees than the benefits provided under this act or any scheme in relation to erqployees in any other factory of a similar character explanation-the following conditions shall be deemed to be always included in the conditions which may be specified in a notification under clause (a), namely:-(i) the amount of accumulations in the provident fund shall be invested in such manner as the central government may direct; (ii) the amount of accumulations to the credit of an employee in the provident fund shall, where he leaves his employment and obtains re-employment in another factory to which this act applies be transferred, within such time as may be specified in this behalf by the central government, to the credit of his account in the provident fund of the factory in which he is reemployed or, as the case may be, in the fund established under the scheme applicable to the factory (2) any scheme may make provision for exemption of any person or class of persons employed in any factory to which the scheme applies from the operation of all or any of the proviaiodl of the scheme, if such person or class of persons is entitled to benefits in the nature of provident fund gratuity or old age pension and such benefits, separately or jointly, are on the whole not less favourable than the benefits provided under this act or the scheme: provided that no such exemption shall be granted in respect of a class of persons unless the appropriate government is of opinion that the majority of persons constituting such class desire to continue to be entitled to such benefits (3) where any person or class of persons employed in a factory is exempted from the operation of all or any of the provisions of any scheme under sub-section (2), the employer in relation to such a factory-(4) shall; in relation to -the provident fund, old age pension and gratuity to which such perlon or class of persons is entitled, maintain such accounts, submit such returns, make such investment, provide for such facilities for inspection and pay such inspection charges, as the central government may direct; and (b) shall not, at any time after the exemption, without the leave of the central government reduce the total quantum of benefits in the nature of old age pension, gratuity or provident  fund to which such person or class of persons was entitled at the time of the exemption - - - - ita if any difficulty arises in giving effect to the provisions of this act ~d in particular, if any doubt arises as to-power to remove: dull culdes (0 whether a factory is engaged in any industry specified in schedule i j or (ii) whether fifty or more persons are employed in a factory; or (iii) whether three years have elapsed from the establishment of a factory; or  a billfurther to amend the employees' provident funds act, 1952 - the president has in pursuance of clause (3) of article 117 of the constitution of india, recommended to lok sabha the consideration of the bill m n kaul secretary (shri khandubhai k desai, minister of labour) 