Employees Provident Fund Scheme


Section 79-C: Composition of the Board of Trustees of the exempted establishments & the terms and conditions of service of the trustee

(1) The board of Trustees of the establishment granted exemption under clause (a) of sub-section (2) of Section 17 of the Act shall consist of not less than two and not more than six representatives each of the employers and employees. The number of Trustees shall be so fixed, as to afford, as far as possible, representations to employees of each branch or department of the establishment. In the case of common provident fund for a group of two or more establishments, there will be at least one representative each from the participating establishments:

(2) The employer shall nominate his representative on the Board of Trustees from amongst the officers employed in managerial or administrative capacity in the establishment .

(3) The representatives of the employees, on the Board of Trustees shall be nominated or elected in the following manner,

(a) Wherever there is a union recognised by the employer under the Code of Discipline in industry or under any Act, such union shall nominate the representatives of the employees ;
(b) Where there are more than one trade unions recognised by the employer, the representatives of employees shall be elected by the members of the union in an election to be held for the purpose on any working day;
(c) Where there is no union recognised by the employer under the Code of Discipline in industry or under any Act but there are more than one registered unions functioning in the establishment, the union having the largest number of members, subject to a minimum of 15% membership ,shall have the right to nominate employees representatives; and in case there is only one registered union, it shall have the right to nominate the employees representative, provided it has a minimum of 15% membership.

(4) The employer shall be the Chairman of the board of trustees. In the event of equality of votes, the Chairman may exercise a casting vote.

(5) The term of office of a Trustee shall be five years from the date of election or nomination. An outgoing trustee shall be eligible for re-election or re-nomination. A trustee elected or nominated to fill the casual vacancy shall hold office for the remaining period of the term of the trustee in whose place he is elected or nominated.

(6) A person shall be disqualified for being a Trustee if he,-
(a) is declared to be of unsound mind by a competent court;or
(b) has been convicted of an offence involving moral turpitude ; or
(c) is an undischarged insolvent; or
(d) is an employer of an exempted or un-exempted establishment which has defaulted in payment of any dues under the Act.

(7) A person shall cease to be a Trustee of the Board if, -
(a) he ceases to be an employee of the establishment ; or
(b) he ceases to be a member of the provident fund of the establishment ; or
(c) the union on whose behalf he was elected or nominated, ceases to be recognised by the employer; or
(d) he fails to attend three consecutive meetings of the Board without obtaining leave of absence from the Chairman of the Board of Trustees. The Chairman may, however, condone the absence of a Trustee if he is satisfied that there were reasonable grounds for such absence.

(8) The procedure for election or nomination of Trustees, the quorum at the meeting of the Board , records to be kept of the transaction of business and all other matters not specifically provided for in the Scheme shall be regulated as per the provisions of the approved fund rules of the establishment and the guidelines for the functioning of the Board of Trustees of the exempted establishments which the Commissioner may specify, from time to time .

(9) In case of any dispute or doubt, the matter shall be referred to the Regional Provident Fund Commissioner in whose jurisdiction, the Head Office of the establishment is located. The decision of the Commissioner in the matter shall be final and binding.