EPF and M.P Act 1952

The Employees' Provident Fund & MP Act,1952 is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to the workers . At present , the Act and the Schemes framed there under provides for three types of benefits -Contributory Provident Fund , Pensionary benefits to the employees/ family members and the insurance cover to the members of the Provident Fund.

The object of the Act in 1952 was the institution of the compulsory contributory Provident Fund to the employees to which both the employee and the employer would contribute . The Employees' Provident Fund Scheme was accordingly framed under the Act and it came into effect from 1-11-1952 .

Initally the title of the Act was , "The Provident Fund Act 1952".
On a review of the working of the scheme over the years , it was found that in the event of the premature death of the employees the accumulation in the Provident Fund were too meagre to the family of the deceased .Thus another social security benefit of providing Family Pension through the Employees' Family Pension Fund Scheme , 1971 was introduced by amending the Act . At this stage , the Act was renamed as "The Employees' Provident Fund & Family Pension Act , 1952" and the Employees' Family Pension Scheme came into force on 1-3-1971 .


The Act was further amended in the year 1976 to introduce another social security benefit to provide an insurance cover to the members of the Provident Fund in covered establishment . The Employees' Deposit Linked Insurance Scheme , 1976 came into force from 1-8-1976 . The name of the Act was then changed to the present one i.e. 'The Employees' Provident Fund & MP Act,1952' . From 16-11-1995 , the Employees' Pension Scheme has come into force which provides pension to retiring employees on reaching 50/58 years of age , widow pension , children pension and nominee pension on death of the member to his eligible family members . This replaces the Employees' Family Pension Scheme 1971 .

The provisions of the Employees' Provident Fund & MP Act , 1952 extends to whole of India except the State of Jammu & Kashmir and also the State of Sikkim where it has not been notified so far after its annexation with the Union of India .

The State Government of Jammu & Kashmir have instituted a seperate Provident Fund Scheme w.e.f. 1-6-1961 .

The Act initially applied to factories/establishments falling within six specified industries which had completed three years of existence and employed 50 or more persons. With effect from 31-12-1960 , the establishments employing 20 or more persons were also brought under the purview of the Act .

Under the infancy protection , the Act was not applicable for the establishment employing 50 or more persons , up to a period of three years from the date of set up . Infancy of five years was allowed in the case of establishment employing twenty or more persons but less than 50 persons .

With effect from 1-8-1988 , the Act is applicable to the establishment employing twenty or more persons on expiry of a period of three years from the date of set up . From 22-9-1997 this infancy of three years has been dispensed with and all the establishments employing 20 or more persons are brought under the purview of the Act from the very date of set up subject to fulfillment of other conditions . The provisions of the Act applies on its own force independently .
The Central Government has residual powers to apply this act to any establishment employing less than twenty employees . By virtue of these provisions , the Employees' Provident Fund Scheme has been extended to Cinema theaters employing five or more persons , w.e.f. 1-10-1984 .

Also there is a provision for voluntary application of the Act to any establishment upon joint request from the employer and majority of its employees , to whom it does not apply otherwise . 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 .


The Act does not apply to certain establishments as specified under Section 16 of the Act .
The Employees' Provident Fund organisation came into being following enactment of the Employees' Provident Fund Act in the year 1952 . The funds established under the Act vests in and administered by Central Board of Trustees constituted by Central Government which functions subject to overall regulatory control of the Central Government .

MEMBERSHIP:
At the inception of the scheme an employee who was in receipt of pay up to Rs.300/- p.m. , and who worked for one year was eligible for membership of the fund. As a result of amendments made from time to time , the conditions of eligibility for membership of the fund have been liberalised in favour of employee. Presently an employee at the time of joining the employment and getting wages upto Rs.6500/- is required to become a member. Now an employee is eligible for membership of fund from the very first date of joining a covered establishment.


The Act provides for :
-- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions.
-- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme.
-- appointment of inspector to secure compliance under the Act and the Schemes framed there under.
-- mode of recovery of moneys due from employers.

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Factory Licence, etc.

The Factories Act, 1948(Amended On 1987)

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The Factories Act is the principal legislation, which governs the health, safety, and welfare of workers in factories. The Act extends to the whole of India. Mines and Railways workers are not included as they are covered by separate Acts. The new Act addressed the issues of safety, health, and welfare. Many amendments were aimed to keep the Act in tune with the developments in the field of health and safety. However, it was not until 1987 that the elements of occupational health and safety, and prevention and protection of workers employed in hazardous process, got truly incorporated in the Act.

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A factory under the Act is defined as a place using power, employs 10 or more workers, or 20 or more workers without power or were working any day of the preceding 12 months. However, under section 85, the state governments are empowered to extend the provisions of the Act to factories employing fewer workers also. This section has been used to extend the coverage of the Act to workplaces like power looms, rice mills, flour mills, oil mills, saw mills, pesticide formulating units and other chemical units where hazards to health are considered to put workers at risk.

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Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises.


“Occupier” of a factory means the person who has ultimate control over the affair of the factory.

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The Act does not permit the employment of women and young in a dangerous process or operation. Children are defined, “who have not attained an age of 15 years”, are not permitted to be hired (Sec. 2, 67) and need to have medical fitness certificates if he/she is has to work and age is not confirmed (Sec 69).

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Section 11 to 20 deal with provision of environmental sanitation that protect the worker from hazardous environment. Cleanliness of the working place, privy, benches, stairs, wall etc. are explained (Sec. 11). Disposal of wastes and effluents should be without any risk (sec. 12). Ventilation, temperature inside factory, dust and fumes emission, lighting, artificial humidification, overcrowding (minimum of 50 cubic metres per person) are specified (Secs. 13-17). There should be a provision for sae and cool drinking water and provision of water in the latrine and urinal. One latrine for 25 female workers but one for 25 male workers up to 100 and one for 50 thereafter. One urinal for 50 person up to 500 men and after that one for every 100 more.

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Safety measures like fencing of machines, protection of eyes by use of goggles, precautions against fire, dangerous fumes, etc. are defined (Secs 21-40).

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Facilities for washing, and sitting, canteens, creche (one for more than 30 women) and first aid appliances are provided (Secs. 42-48). One Welfare Officer for 500 or more workers is suggested (Sec. 49).

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There is provision for one weekly holiday, and not more than 48 hours in a week an adult worker should work. There is at least half an hour rest after a stretch of 5 hours of continuous work. No women should be employed between 7 p.m. and 6 a.m. (Secs. 51-66). No person less than 14 years of age should work in the factory. No child should work more than 4 hours a day and should not work in the night between 10 p.m. to 6 a.m. One full wage leave should be given to an adult worker for every 20 days of work and one for every 15 days to the child worker. 12 weeks of maternity leave should be given to a woman.

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If an accident occurs in any factory causing death or bodily injury or prevents a worker from working for more than 48 hours, the manager must immediately send notice to the prescribed authority (i.e. Labour commissioner).

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Following are the Notifiable Diseases:


1. Lead poisoning or its sequelae2. Lead tetra-ethyl poisoning or its sequelae3. Phosphorus poisoning or its sequelae4. Mercury poisoning or its sequelae5. Manganese poisoning or its sequelae6. Arsenic poisoning or its sequelae7. Poisoning by nitrous fumes8. Carbon bisulphite poisoning9. Benzene and its derivatives poisoning or its sequelae10. Chrome ulceration or its sequelae11. Anthax12. Silicosis13. Poisoning by halogens or its derivatives of hydrocarbons14. Pathological manifestation due to radium, radioactive substances, or X-rays15. Primary epitheliomatous cancer of the skin16. Toxic anemia17. Toxic jaundice due to poisonous substances18. Oil acne or dermatitis due to mineral oil or its derivatives in any form19. Byssinosis20. Asbestosis21. Occupational or contact dermatitis caused by direct contact with chemical or paints. It could be primary irritants or allergic sensitisers.22. Noise induced hearing loss23. Beryllium poisoning24. Carbon monoxide25. Coal miner’s pneumoconiosis26. Phasgene poisoning27. Occupational cancers28. Isocyanates piosoning29. Toxic nepharitis


these diseases were inseted by act 20 of 1987.

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However, the Act do not have provision for some important places of work like hospitals, fire stations, and other where serious health and safety risks may exist.

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The process of automation and the industrial revolution heralded by microelectronics which has resulted in computer based production methods, increasing use of robots, lasers, and new welding technologies have totally transformed the workplace. Consequent upon this change, the role of labour inspection has also changed and needs reorientation. Inspectors need additional skills and expertise and a new approach when assessing and evaluating workplace hazards. This has not happened in India. The increasing complexity of workplace and transfer of technologies due to a burst in economic activities requires that inspectors should possess reasonable amount of knowledge of occupational safety and health. Many new chemicals and processes which could be hazardous like garment manufacturing, and colouring, ergonomic problems, should be included in notifiable diseases.

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It is more logical to notify the hazards exposure rather than diseases. From same exposure one can have many diseases or health effects. There is a difficulty of making diagnosis of occupational diseases because of non-availability of skilled manpowers and laboratories in the country.


Refernece


Govt of India. The Factories Act. 1948: Act No. 63 of 1948

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