Coal Ministry proposes changing present Provident Fund Act for mine employees, aligning with current situation

Seeking to advance social safety legal guidelines and adjusting them to “present situation and circumstances”, the Ministry of Coal Tuesday floated a draft session to repeal the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948. The proposed laws, standing as a invoice at current, intends to obviate the “current difficulties” of the coal sector and align it with developments with respect to industrial dispute decision, working circumstances, social safety, wage regulation and digitalisation, based on the ministry. “This will guarantee its effectiveness in assembly the current and future wants of the coal sector,” reads the draft laws.

The 1948 laws offers for framing a provident fund scheme, a deposit linked insurance coverage scheme and a bonus scheme for coal mine employees. Though the act has been amended seven occasions since its inception, the newest was roughly three a long time again in 1996. The ministry is soliciting feedback till November 7.

Legalising fund administrator, reconstitution of board

The invoice seeks to legalise the Coal Mines Provident Fund Organisation (CMPFO) and inducing parity with the Employees Provident Fund and Miscellaneous Provision Act, 1952, and different related social safety legal guidelines. In different phrases, imbibing an official recognition because the chief administrator of the fund, as current at current, meant for welfare of coal mine employees.

However, in a serious alteration, it seeks to switch the Board of Trustees, which is the executive physique of the CMPFO, with a extra consultant Coal Mines Employees’ Provident Fund Board. The ministry underlined the structure of the board could be altered to make sure “environment friendly governance, sufficient illustration and efficient oversight” of the provident fund. Additionally, it will mandate that of the six folks representing staff (within the board), at the least one member should be a lady.

At current, the board of trustees consistsof the Secretary, the Commissioner — as an ex-officio member — who’s the general in-charge alongside Joint Secretary on the Ministry of Coal and eleven different members representing staff.

De-criminalises provisions

The invoice seeks to partially decriminalise penal provisions of the act substituting them with financial penalties and extra penalties. This is in direction of guaranteeing [a] extra “pragmatic and reformative method”. Additionally, it proposes the appointment of adjudicating officers to find out violations and impose penalties. This is to facilitate a “truthful and expeditious casual adjudication course of”, the explanatory notice states. However, the precise contours of the penal provisions weren’t enumerated within the explanatory notice. Presently, any contravention of the act requires an imprisonment time period of as much as six months and fines as much as ₹1,000, and one 12 months for a repeat offence.