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CMA Intermediate · Business Laws and Ethics · Employees Provident Fund and Miscellaneous Provisions Act, 1952

Before the Code on Social Security, 2020 came into force, an establishment had been granted an exemption under the repealed Employees' Provident Funds and Miscellaneous Provisions Act, 1952. What is the position under the Code?

The exemption continues in force until its validity expires, or it ceases to operate under the Code, or a direction is made for that purpose. Section 164(2)(c) saves such exemptions. The one-year period applies to the old schemes and rules, not to exemptions.

  1. AThe exemption lapses immediately on repeal of the Act
  2. BThe exemption continues to be in force till its validity expires or it ceases to operate under the Code or till any direction is made for that purposeCorrect
  3. CThe exemption continues for exactly one year from commencement of the Code and then lapses
  4. DThe exemption becomes permanent under the Code

Explanation

Section 164(2)(c) says any exemption given under a repealed enactment continues in force till its validity expires or it ceases to operate under the Code or till any direction is made for that purpose. The one-year limit applies to the Schemes and Tribunal rules in clause (b), not to exemptions. A one-year period is therefore wrong.

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