Rule 3: Manner and conditions of making the provisions of Chapter III or Chapter IV inapplicable to an establishment

Finin2min analysis — operative rule mechanics

Full notified text — Rule 3

3. Manner and conditions of making the provisions of Chapter III or Chapter IV inapplicable to
an establishment.– (1) The employer of an establishment to which the provisions of Chapter III or
Chapter IV have been made applicable under sub-section (5) or sub-section (7) of section 1 of the
Code, may apply electronically on the specified portal to the Central Provident Fund Commissioner or
the Director General, as the case may be, for making such provisions inapplicable to the
establishments, subject to the condition that the employer and the majority of the employees of that
establishment agree in writing to such request.

(2) The Central Provident Fund Commissioner or the Director General, as the case may be, shall
decide the application under sub-section (5) or sub-section (7) of section 1 of the Code within a period
of sixty days from the date of receipt of the application:

         Provided that if no decision is taken by the Central Provident Fund Commissioner or the
Director General, as the case may be, within the period of sixty days from the date on which the
application is made, the permission under sub-section (5) or sub-section (7) of section 1of the Code,
as the case may be, shall be deemed to have been granted with effect from the date of completion of
such sixty days:

         Provided further that no such application shall be entertained if the provisions of Chapter III
or Chapter IV have become applicable, in terms of sub-section (4) of section 1of the Code, to the
establishment at any time subsequent to the notification under sub-section (5) or sub-section (7) of
section 1 of the Code, as the case may be:

         Provided also that no such application shall be made by the employer of the establishment
before five years of such coverage under the provisions of Chapter III or Chapter IV, as the case may
be:

         Provided also that no such application shall be entertained unless the employer has furnished
all returns, paid all dues under the Code and submitted a self-certification to that effect along with the
application.

Application and evidence

1. Primary statutory test — (1) The employer of an establishment to which the provisions of Chapter III or Chapter IV have been made applicable under sub-section (5) or sub-section (7) of section 1 of the Code, may apply electronically on the specified portal to the Central Provident Fund Commissioner or the Director General, as the case may be, for making such provisions inapplicable to the establishments, subject to the condition that the…
2. Additional operative limb — (2) The Central Provident Fund Commissioner or the Director General, as the case may be, shall decide the application under sub-section (5) or sub-section (7) of section 1 of the Code within a period of sixty days from the date of receipt of the application:
3. Qualification / exception to test — Provided that if no decision is taken by the Central Provident Fund Commissioner or the Director General, as the case may be, within the period of sixty days from the date on which the application is made, the permission under sub-section
4. Numerical or timing control — (2) The Central Provident Fund Commissioner or the Director General, as the case may be, shall decide the application under sub-section (5) or sub-section (7) of section 1 of the Code within a period of sixty days from the date of receipt of the application:
5. Code Section mapping — 1. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker.

Cross-references & prescribed forms

Worked example

Q&A — Rule 3

Primary sources