Section 1 of EPFMA : Section 1: Short Title, Extent And Application

Explanation using Example

Imagine a scenario where "XYZ Manufacturing Ltd." is a factory that produces automotive parts. This factory is located in Pune, India, and employs 25 workers. According to Section 1(3)(a) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, since XYZ Manufacturing Ltd. is engaged in an industry specified in Schedule I and employs more than 20 individuals, it is required to register under this Act.

Further, if a new IT company "Tech Innovations Pvt. Ltd." starts operating in Bangalore with 22 employees, the Central Government can, as per Section 1(3)(b), notify that such an establishment is also covered under the Act, requiring the company to provide provident fund benefits to its employees.

Additionally, if a small handicraft business with 18 employees, which is normally not covered under the Act, decides that they want to provide EPF benefits to their workers, the Central Provident Fund Commissioner has the authority under Section 1(4) to apply the Act to this establishment upon agreement between the employer and the majority of the employees.

Lastly, if "XYZ Manufacturing Ltd." experiences a downturn and the number of employees reduces to 17, Section 1(5) ensures that the Act will still apply to the factory, and the existing employees will continue to receive the benefits under the Act.