What are the advantages to the employer and employees when the employer chooses to form a trust for the purpose and applicability of Employees Provident Fund Act?
(a) He has to pay inspection charges wages instead of administrative charges. Of course he has to bear all the expenses of the Trust including its operational staff. Thus the Trust with larger number of employees and higher wages are benefited.
(b) The visits of the Inspector are less frequent.
(c) The employer can bargain with the employees in giving better service conditions.
(d) In case of belated payment, incidence of damages under section 14-B of E.P.F. Act is reduced.
2. The employees are wholly benefited in the following ways:
(a)They can have higher rate of P.F.
(b) Speedy settlement of P.F. account and expeditious sanction of advances.
(c) Provision of refundable loans can also be made in rules, which is not admissible under the EPF Scheme, 1976.
(d) They have power to bargain with the employer who has the entire control over the Provident Fund
(e) Their rights as per the E.P.F. Scheme, 1952 are ensured by the P.F. department.
