Definitions (Section 2) under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 :
In this Act, unless the context otherwise requires :
(a) “Appropriate Government” means :
(i) in relation to an establishment belonging to, or under the control of Central Government or in relation to an establishment connected with ‘a railway’ company, a major port, a mine or an oilfield or a controlled industry, or in relation to an establishment having departments or branches in more than one State, the Central Government ; and
(ii) in relation to any other establishment, the State Government.
(b) “Basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include:
(i) the cash value of any food concessions ;
(ii) any dearness allowance (that is to say all cash payments, by whatever name called, paid to an employee on account of rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or pay and other similar allowance payable to the employee in respect of his employment or of work done in such employment ; or
(iii) any presents made by the employer.
Emoluments which are paid to all the employees of a concern while on duty shall constitute basic wages, whereas such emoluments which are paid to some of the employees of a concern, they do not form part of the basic wages. [Burmah Shell Oil Storage &Distributing Co. of India Ltd. V. R.P.F.Commr.(1981)2 LLJ 86 Del].
Production bonus and incentives wage is not the part of the basic wage.[Bridge and Roof Co. v. U.o.I,AIR(1963) SC 1474], whereas adhoc payments are like presents made by the employer, it cannot be included in basic wages but where adhoc payments are paid under a settlement for period during which employees were deemed to be on duty, there it will form the part of basic wages[Shree Changdeo Sugar Mills Vs.UoI,(2001)1 LLJ 698SC].
(e) “Employer” means :
(i) in relation to an establishment which is a factory- 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 manager of the factory under clause (f) of Sub-section (I) of Section 7 of the Factories Act, 1948 the person so named is the employer ; and
(ii) in relation to any other establishmen-, The person who, or the authority which, has ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager or managing director, such manager, managing director or managing agent is the employer.
(f) “Employee” means any person-(i) who is employed for wages in any kind of work, manual or otherwise, in or in connection with work of an establishment, and (ii) who gets his wages directly or indirectly from the employer.
Whereas term employee includes following person- (i) Any person employed by or through a contractor in or in connection with the work of the establishment ; (ii) Any person engaged as an apprentice, not being an apprentice engaged under the Apprentice Act, 1961 (52 of 1961), or under the standing orders of the establishment.
Whether a person is an employee or not, it rest on the relationship of master and servant [Mysore State Coop.Printing Works v. R.P.F.Commr.(1976)Lab IC 1307 Ker]. A partner is not considered as an employee of the firm as the partner cannot be an employer and employee at the same time.
(ff) “Exempted employee” means an employee to whom a Scheme/ the insurance scheme as the case may be would, but for the exemption granted under Section 17, have applied.
(fff ) “Exempted establishment” means an establishment 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 or the insurance scheme as the case may be, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein.
(g) “Factory” means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power.
(i) “Industry” means an industry specified in Schedule I, and includes any other industry added to the Schedule by notification under Section 4.
(ic) “Manufacture” or “Manufacturing process” means any process for making, altering, repairing, ornamenting, finishing, packing, washing, cleaning, breaking up, demolishing, otherwise treating or adapting any, article or substance with a view to its use, sale, transport, delivery or disposal.
(k) “Occupier of a factory” means the person who has ultimate control over the affairs of the factory and where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory.
Establishment to include all departments and branches (Section 2A): If an establishment consists of different departments or has branches whether situated in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.
Power to apply the Act to an establishment which has a common Provident Fund with another establishment (Section 3): When an establishment covered by this Act has a common Provident Fund with another establishment immediately before the Act came into force, the Central Government has the power to direct through a notification in the Official Gazette, that the provisions of this Act shall also apply to that another establishment.
The Central Government has also the power, by virtue of Section 4, to add to Schedule I any other industry in respect of the employees whereof it is of the opinion that a provident fund scheme should be framed under this Act. Thereupon, the industry so added must be deemed to be an industry specified in Schedule I for the purposes of this Act. The addition is to be made through a notification in the Official Gazette and the notification is required to be laid before Parliament as soon as possible after issue.
| Key Points
♦ The EPF & Miscellaeous Provisions Act,1952 provides for institution of provident fund, pension fund and deposit linked insurance fund for an employee in the establishments covered by it.This Act extends to the whole of India except Jammu & Kashmir. This Act applies to every establishment which is a factory engaged in any industry laid in schedule I and in which 20 or more persons are employed. ♦ Basic wages constitutes all emoluments which are earned by an employee as per the terms of the contract and which are paid /payable in cash to him. However ,it doesnot include- (i) Cash value of any food concession(ii) D.A (iii) HRA (iv) overtime allowance. ♦ Employer means-(i) in relation to an establishment which is a factory, the owner or occupier of the factory or the legal representative, and (ii) in relation to any other establishment, the person who, or the authority which, has ultimate control over the affairs of the establishment . ♦ Employee includes any person –(i) who is employed for wages in any kind of work, manual or otherwise, in or in connection with work of an establishment, and (ii) who gets his wages directly or indirectly from the employer. |