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Application of The Act
Under section 1 of the employees’ Provident Funds and miscellaneous provisions act 1952. Although application of the act is subject to the provisions of section 16. This applies to every factory or establishment engaged in any of those industries, which has employed twenty or more employees. Or some other establishment employing twenty or more employees engaged in any other industry.
The Central Government has the power to extend the provisions of the respected Act. Applies to any establishment including the co-operative society under Section 16. The provisions of the Act are not applicable to notification in Official Gazette. However, before notification is made, parties can opt out of such an agreement. Once an establishment falls within the purview of the Act.
It shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below twenty. Where an establishment to which this Act applied was divided among the partners. The Act would continue to apply to the part of each ex-partner. Even if the number of persons employed in each part is less than twenty.
Whereas a result of real and bona fide partition among the owners, an establishment was disrupted and separate and distinct establishments come into existence, allottees with no regular employee cannot be saddled with liability to pay minimum administrative charges as before. For compliance with the Act and the scheme, for an establishment there should be an employer and one or more employees are required to be in existence at least. When there is not even one employee, it would be difficult to contend that the Act continues to apply to the establishment.
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