Employees Provident Fund Scheme
Nominations, Payments and Withdrawals From The Fund
Section 68-H: Grant of advance in special cases
(1) In case a factory or other establishment has been locked up or closed down for more than fifteen days and its employees are rendered unemployed without any compensation or in case an employee does not receive his wages for a continuous period of two months or more , these being for reasons other than a strike, the Commissioner or where so authorised by the Commissioner, any officer subordinate to him may on an application from an employee, who is a member of the Fund, in such form as may be prescribed, authorise payment to him,of one or more non-recoverable advances from his provident fund account not exceeding his own total contributions including interest thereon up to date the payment has been authorised.
(1-A) In case a provident fund member is discharged or dismissed or retrenched by the employer and such discharge or dismissal or retrenchment is challenged by the member and the cases are pending in a court of law, an officer not below the rank of Assistant Provident fund Commissioner may, on an application from the member in such form as may be prescribed, authorise payment to him of one or more non-recoverable advances from his Provident Fund Account not exceeding fifty per cent of his own share of contribution with interest thereon standing to his credit in the Fund on the date of such authorisation.
(2)(a) In case the factory or other establishment continues to remain locked up or closed down for more than six months, the Commissioner , or where so authorised by the Commissioner any officer subordinate to him, on being satisfied that a member who has already been granted one or more non-recoverable advances from his provident fund account under sub-paragraph (1) still continues to be unemployed and no compensation is likely to be paid to him at an early date, may, on receipt of an application therefor in such form as may be prescribed in this behalf, authorise payment to the member of one or more recoverable advances from his provident fund account up to the extent of 100% of the employers' total contribution including interest thereon up to date on which the payment has been authorised:
Provided that if the factory or establishment in which the member is employed remains closed for more than five years for reasons other than strike, recoverable advance may be converted into non-recoverable advance on receipt of a request in writing from the member concerned.
(b)The advance granted under clause (a) shall be interest-free.
(c) The advance granted under clause (a) shall be recovered by deductions from the wages of the member in such instalments subject to a maximum of thirty-six instalments as may be determined by the Commissioner or where so authorised by the Commissioner, any officer subordinate to him.The recovery shall
commence from the first wages paid to the member immediately after the re-start of the factory or establishment.
(d) The employer shall remit the amount so deducted to the Fund within such time in such manner as may be specified by the Commissioner or where so authorised by the Commissioner, any officer subordinate to him. The amount on receipt shall be credited to the member's account in the Fund.
Explanation.- For the purpose of grant of advance under this paragraph, the establishment, may be closed legally, illegally, with permission or without permission, so long as the establishment is closed.
Dismissal, Discharge, Termination