No: 15 Dated: Mar, 31 1961

THE JAMMU AND KASHMIR EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1961

(Act No. XV of 1961)

An Act to provide for the institution of Provident Funds for employees in factories and other establishments.

Be it enacted by the Jammu and Kashmir State Legislature in the Twelfth Year of the Republic of India as follows :––

1. Short title, extent and application. - (1) This Act may be called the Jammu and Kashmir Employees' Provident Funds [and Miscellaneous Provisions], Act, 1961.

(2) It extends to the whole of the State of Jammu and Kashmir.

(3) Subject to the provisions contained in section 18, it applies-

(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which [five or more persons] are [employed at any time; and]

(b) to any other establishment or business which the Government may by notification in the Government Gazette, declare to be an establishment for the purposes of this Act.

(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 18, where it appears to the Government, whether on an application made to it in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment it may, by notification in the Government Gazette, apply the provisions of this Act to that establishment.

(5) An establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below [five.]

2. Definitions. - In this Act, unless the context otherwise requires,-

(a) "basic wages" means all emoluments which are earned by an employee while on duty or on leave with wages in accordance which the terms of the contract of employment and which are paid or payable in cash to him, but does not include -

(i) the cash value of any food concession;

(ii) any dearness allowance (that is to say all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;

(iii) any presents made by the employer ;

(b) "contribution" means a contribution payable in respect of a member under a scheme ;

(c) "Employer" means-

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a Manager of the factory under clause (f) of sub-section (1) of section 7 of the [Jammu and Kashmir Factories Act, 1957], the person so named; and

(ii) in relation to any other establishment, the person who or the authority which, has ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;

(d) "employee" [means any persons whose services are non-pensionable and] who is employed for wages in any kind of work, manual or otherwise in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of establishment;

(e) "exempted employee" means an employee to whom a scheme would but for the exemption granted under sub-section (1) of section 19, have applied;

(f) "exempted establishment" means an establishment in respect of which an exemption has been granted under section 19 from the operation of all or any of the provisions of any scheme, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein ;

(g) "factory" means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether, with the aid of power or without the aid of power;

(h) "Fund" means the provident fund established under a scheme ;

(i) "Industry" means any industry specified in Schedule I, and includes any other industry added to the schedule by notification under section 5 ;

(j) "manufacture" means making, altering, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;

(k) "member" means a member of the Fund ;

(l) "occupier of a factory" means the person who has ultimate control over the affairs of the factory, and where the said affairs are entrusted to a Managing Agent such Agent shall be deemed to be the occupier of the factory;

(m) "scheme" means a scheme framed under this Act.

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