The definition
of Excluded employee has been provided under The Employees’ Provident Fund Scheme, 1952 Section.
There are only two conditions has been laid down under the Para 2 (f) of the
scheme.
Reference:
2 (f) “excluded employee” mean—
(i)
an employee
who, having been a member of the Fund, withdrew the full amount of his
accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of
paragraph 69;
(ii)
an employee
whose pay at the time he is otherwise entitled to become a member of the Fund,
exceeds [Fifteen thousand rupees] per month;
There is no provision in the scheme which provides an option
to the employee to opt out / or employer to not cover employee who has been
member of the scheme previously.
Provisions pertains to mandatory membership also laid
down in the scheme CHAPTER IV Classes of employees entitled and
required to join the fund 26 (1) (a)
and Retention of membership 26
(A) (1).
Reference:
CHAPTER IV
Membership of
the Fund
26. Classes
of employees entitled and required to join the fund
(1)(a) Every
employee employed in or in connection with the work of a factory or other
establishment to which this scheme applies, other than an excluded employee,
shall be entitled and required to become a member of the Fund from the day this
paragraph comes into force in such factory or other establishment.
26A.
Retention of membership
(1)
A
member of the Fund shall continue to be member until he withdraws under
paragraph 69 the amount standing to his credit in the Fund or is covered by a
notification of exemption under section 17 of the Act or an order of exemption
under paragraph 27 or paragraph 27A.
Also it is mandatory for employees to disclose his / her
membership details under Chapter VI (34) Declaration by persons
taking up employment after the Fund has been established.
Considering above fact it is
concluded that “There
is no provision in the scheme which provides an option to the employee to opt
out / or employer to not cover employee who has been member of the scheme
previously.” And it is employer responsibility to ensure that employee get all
the membership benefits.
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