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

Under the Code on Social Security, 2020, an employer of an establishment employing 100 or more persons applies, together with the majority of employees, to maintain its own provident fund account. Who may grant the authorisation?

The Central Government may grant the authorisation, by an order in writing. The Code requires an application from the employer and the majority of employees for an establishment employing 100 or more persons. Neither a State Government, a Commissioner acting orally nor the ESI Corporation has this power.

  1. AThe Central Government, by an order in writingCorrect
  2. BThe State Government, by a notification
  3. CThe Regional Provident Fund Commissioner, orally
  4. DThe Employees State Insurance Corporation

Explanation

The Code says the Central Government may, on an application by the employer and the majority of employees, authorise the employer by an order in writing. The other bodies named have no such power under this provision.

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