(9.1.1)     Exemption from the provisions of the Employees provident Funds Act. 1952.

The question of exemption of the constituent Laboratories/Institutes of the CSIR from the operation of the Employees Provident Funds Act, 1952 has been under our consideration for some time past.  It was stated that exemption under the Act could be allowed to the establishments under the CSIR to which the employees provident Funds Act applies, under Section 17(1) of the said Act, subject to the fulfillment of the following conditions.-

i)        that the provident fund or other retirement benefits ordinarily available in the establishments are not less favorable than those admissible under the Employees Provident Funds Act and the Scheme there-under;

ii)       that all temporary employees who during a continuous period of 12 months or less have actually worked for not less than 240 days are not eligible for pensionary benefits, should be given the benefits of a C.P.F. till they become eligible for pensionary benefit; and

iii)      that all employees employed by, or through, a contractor in, or in connection with the work of the establishments, are given the benefit of a Contributory Provident Fund on completion of 240 days' work as mentioned at (ii) above.

The employees of the CSIR are governed by the Pension Scheme introduced vide CSIR O.M. No. 5/96/60-PC dated 24.3.1961 which provides that the Government of India pension Rules will apply mutatis-mutandis to the Council Employees.  The condition at (1) above is thus satisfied, With a view to satisfying the condition at (ii) above, the Governing Body of the CSIR at its meeting held on 19.11.1966 has decided that temporary employees in CSIR Laboratories/Institutes to whom the Employees Provident Funds Act and the Scheme applies, will on completion of 240 days work in a continuous period of one year or less be eligible to the C.P.F. benefits in accordance with the CSIR C.P.F. Rules, till such employees are confirmed in regular posts. On their confirmation such employees will have to come over to the CSIR Pension Scheme.

Further, in order to satisfy condition at (iii) above the commitments to be entered into by the CSIR in respect of civil work or fabrication/erection of a plant should invariably include a condition that the contractor agrees to grant Employees Provident Fund in accordance with the provisions of the E.P.F. Act and Scheme there under to his workmen.  This shall be incorporated as part of every contract which envisages the employment of persons whose employment would fall under the Employees Provident Funds Act.

The Provisions of paragraph 2 above will have retrospective effect from the date of E.P.F. and the Scheme there under became applicable to the Establishment concerned in the CSIR.  The Pension Scheme and the CPF Rules of the CSIR will be deemed to have been amended to the above extent.

Action may be taken accordingly.  Further, action for obtaining exemption from the provisions of the E.P.F. Act, 1952, and the Scheme there under, wherever necessary, may be applied for direct to the respective State Government or the Regional Provident Fund Commissioner.  A report regarding such exemption may be sent to this office in due course.

(CSIR letter No.9(8)/65-CTE, dated 30th January, 1967)