Clarification on Provident Fund (PF) Coverage
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to the whole of India except Jammu & Kashmir.
For establishments, the Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to:
- Every establishment engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by the Central Government in the Official Gazette (List of Industries/Establishments provided therein).
- Employing 20 or more persons.
- Cinema Theatres employing 5 or more persons.
The Act does not apply to:
- Co-operative societies employing fewer than 50 persons and working without the aid of power. (16(1)(a))
- Establishments under the control of state/central Government and employees who are receiving benefits in the nature of 16(1)(b) contributory P.F. or old age pension as per rules framed by the Government. (16(1)(b))
- Establishments set up under any central, provincial, or state act and the employees who are receiving benefits in the nature of contributory P.F. or old age pension as per rules. (16(1)(c))
Voluntary Coverage
If any establishment does not meet the above two conditions for coverage, and if the employer and the majority of employees are willing, the Act may be applicable to such establishment (voluntary coverage under section 1(4)).
Your post does not clarify the type of organization you work for. However, it seems that at some point, your organization had 20 or more employees and therefore was covered under PF. Subsequently, I presume the headcount decreased. Please note that the establishment to which this Act applies shall continue to be governed by this Act, even if the number of employees falls below 20 at a later date (as per 1(5) of the Employees' Provident Fund and Miscellaneous Provisions Act 1952).
If your company is statutorily covered under PF, deregistration is not permissible under normal circumstances. However, there must be genuine and adequate reasons for such a request for deregistration, such as likely closure, force majeure conditions, liquidation, etc. Any other reasons presented to the PF Commissioner and IT Commissioner must be extremely convincing.
I suggest there is no harm in visiting your RPFC to find out. They will inform you of the possibilities and documentation needed to proceed if they believe you can adequately demonstrate reasons for canceling registration.
Hope this clarifies your query.
Regards,
Rahul
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