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Whether Provident Fund Act is applicable to educational institutions
Yes. Provident Fund Act is applicable to educational institutions in India as provided in Para (xcvi) of The Employee’s Provident Fund Scheme, 1952 (“…as respects the educational, scientific, research and training institutions specified in the notification of the Government of India in the Ministry of Labour No. S.O. 986, dated the 19th February 1981, published in Part II, Section 3, sub-section (ii) of the Gazette of India, dated the 6th March 1982”).
The Notification was challenged by the Management of D.A.V College and some other institutions and the applicability of the Act was questioned in the matter of DAV College V/s RPFC (Writ Petition Nos. 6976 and 8000-01 of 1982, 2834, 5852, 5333-55, etc. of 1983 and 12791-94, 12642-54 and 1603 of 1984), as decided on 29.01.1988, where it was held that the Provident Fund Act is applicable to educational institutes.
The Supreme Court, in the above matter held –
“We do not find any substance in the contention of the petitioners in these cases that the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952 has no application to the educational institutions who are petitioners in these cases. We, therefore, dismiss all these cases.”
The Court further said, “We direct that the petitioners shall comply with the Act and the schemes framed there under regularly with effect from 1.2.1988…”