Applicability of pf rules

EMPLOYER HAS TO KEEP PROVIDENT FUND FOR ALL KINDS OF EMPLOYEE

It shall be appropriate to examine the standing orders of the bank, before you act. The Bank union and bank lawyers can also guide.

You may also examine the attachments.

1.EPF:

Link: All India Bank of Baroda Officers' Association - SERVICE ...

aiboboa.org/service_conditions

-“not being an apprentice engaged under the Apprentices Act

1961, or under the standing orders of the establishment.”

An apprentice means a person who according to the certified standing orders applicable

to a factory or establishment is an apprentice or who is declared to be an apprentice by

the authority specified by the appropriate government.

-Trainees:

It has been decided by the courts that trainees are not employees and are not covered by

the EPF Act. The court has held that stipend paid is not wages. It must be noted that

trainees were recruited under a particular Training Scheme and there was no guarantee of

employment after completion of the training period and that they were not entitled to

other benefits, which were available to other permanent employees

2. R E S E R V E B A N K O F I N D I A

EMPLOYEES' PROVIDENT FUND

REGULATIONS

Link: PROVIDENT FUND REGULATIONS - Reserve Bank of India

rbidocs.rbi.org.in/rdocs/content/pdfs/70975.pdf

(ii) An employee appointed on probation to a post in

which, if confirmed, he will become a permanent

employee shall be deemed to be a permanent

employee for the purpose of these Regulations from

the date of his first appointment.

However you may examine the possibilities in:

(iii) (a) A temporary employee other than an

employee who is already contributing to some other

provident fund may subscribe to the Fund, if so

permitted by the Administrators

It shall be appropriate to examine the standing orders of the bank, before you act. The Bank union and bank lawyers can also guide.

You may also examine the attachments.

1.EPF:

Link: All India Bank of Baroda Officers' Association - SERVICE ...

aiboboa.org/service_conditions

-“not being an apprentice engaged under the Apprentices Act

1961, or under the standing orders of the establishment.”

An apprentice means a person who according to the certified standing orders applicable

to a factory or establishment is an apprentice or who is declared to be an apprentice by

the authority specified by the appropriate government.

-Trainees:

It has been decided by the courts that trainees are not employees and are not covered by

the EPF Act. The court has held that stipend paid is not wages. It must be noted that

trainees were recruited under a particular Training Scheme and there was no guarantee of

employment after completion of the training period and that they were not entitled to

other benefits, which were available to other permanent employees

2. R E S E R V E B A N K O F I N D I A

EMPLOYEES' PROVIDENT FUND

REGULATIONS

Link: PROVIDENT FUND REGULATIONS - Reserve Bank of India

rbidocs.rbi.org.in/rdocs/content/pdfs/70975.pdf

(ii) An employee appointed on probation to a post in

which, if confirmed, he will become a permanent

employee shall be deemed to be a permanent

employee for the purpose of these Regulations from

the date of his first appointment.

However you may examine the possibilities in:

(iii) (a) A temporary employee other than an

employee who is already contributing to some other

provident fund may subscribe to the Fund, if so

permitted by the Administrators

 Valuable opinion of learned experts/members is sought on the following:

1. Can the bank deny PF to a probationer? Is a probationary officer an apprentice or a trainee, if yes, and then is the bank under legal obligation to make an explicit expression in the appointment letter? Can the bank choose to express probationary officer ineligible for PF in standing orders in place of making an explicit expression in appointment letter?

Can standing orders of the bank supersede the EPF rules?

2.  What is the correct interpretation of RBI PF regulations?

-Is it that after confirmation is the bank duty bound to open a new a/c of probationary officer , and then deduct the employee’s share and add employer’s share, from the 1s date of appointment, and deposit the amount in PF a/c?

In other words if the probation period is 2 years and the probationer successfully completes the probation, and is confirmed in writing then the bank is duty bound to deduct the employee’s share and add employer’s share, for period of 2 years and deposit the amount in PF a/c?

-If the employee who joins the bank as probationer, was already covered by EPF in his/her previous venture, ahs to apply for the approval of administrator of the bank for approval to grant him EPF cover, and administrator can grant or dent to grant?

Is the discretion of administrator lawful?

Probations and even traineers (other than the apprenticeship training under the Aprprenticship Act) are covered by the Provident Fund from day one.

vasudevan

Banking company is not in the schedule of EPF&MP Act 1952,  Bnaks can have their own scheme independent of EPFO.

The banks other than the nationalised banks established under the special Central Act are all covered by the Employees Provident Fund Scheme.

vasudevan

Doab! As you have produced RBI guidelines on the subject that the probationary office shall be entitled for the benefit of provident fund on his confirmation from the first date of his appointment so it is binding for all banks without raising any question mark over it.

If anyone has any grouse against the rule of RBI, he can go to high court seeking writ of mandamus directing RBI to amend its guidelines. We experts here are just for interprating law as prevalent and not what ought to be.

The banks are bound to adhere to the guidelines of RBI and the employee under discussion has got no lega right over and above the provision you mentioned in your reply.

Learned experts Mr. Makkad, Mr. Vasudevan,Mr. Sudhir Kumar,

Kindly accept heartfelt thanks for making this thread highly interactive, useful, informative and educative for the community of employees and all those who visit the forum. Kudos, to you and LCI.

@ vasant kulkarni

Kindly advice, your relative to proceed in line with available options. If your relative decides to stake claim for his/her rights, there is a clear cut possibility, of benefiting not only the self but setting precedence for times to come, for the community of employees. If the bank union takes up the cause in one shot the larger community of employees shall get benefited. Your friend can obtain the RBI rules thru RTI as well and post the matter to RBI to issue guidelines to the Bank's management and thus the matter can be resolved. RBI shall not issue a wrong/misleading/illegal interpretation of its own rules, applicable to the banks.

Kindly post the developments in the forum. This shall many who visit the forum. LCI has introduced a new feature: PRO, using which you can consult the learned experts, thus you can get in touch with learned experts for understanding the nuisances of the matter posted by you and obtain their professional opinion/services.