Legal Question in Employment Law in India

Sir,

We are the employees of a PSU covered under Employees Provident Fund and Miscellaneous Provisions Act, 1952. Our organization is exempted to maintain its own fund by a Trusty under the requisite provision of the above act.

My question is that if our Trusty makes any rules which is better than the Central PF Act regarding terms & condition of PF loan for its employees of the PSU is it mandatory to get the necessary permission from Central PF Commissioner of the Govt. of India or any competent authority of PF Dept of the Govt. of India?

If yes / no, why?

regards,

TAPAN DAS


Asked on 10/17/12, 9:01 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

18.10.2012

Dear Tapan,

Yes, it is necessary that the Trustees get the necessary permission from the Central Provident Fund Commissioner appointed by the Government of India, the reason being the matter pertains to loans against Provident Fund of the employees of the Public Sector Undertaking.

It has been observed that many a times employees avail of different types of loans - Emergency Loan, Short Term Loan, Medium Term Loan and Long Term Loan during the tenure of service. It becomes the duty of the concerned PF Officer to ensure that the cap of 90% loan against PF is not exceeded, so that the balance 10% is given to the employee along with his final settlement on retirement or cessation of service.

Regards,

Fca Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 10/17/12, 8:50 pm


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