Rescinding of SO 434 and SO 272 wrt Air India Intl Coop and the Indian Airlines Coop

## Report on Rescission of Notifications Related to Air India and Indian Airlines Provident Funds **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Labour and Employment on December 15, 2021, which rescinds previous notifications (S.O. 434 and S.O. 272) related to the application of the Provident Funds Act, 1925 to the Air India International Corporation and the Indian Airlines Corporation. The core purpose of this rescission is to facilitate the transfer of the existing provident funds of employees of these corporations to the Employees Provident Fund Organisation (EPFO) on a voluntary basis, following an agreement by the majority of employees. The key finding is that this amendment removes the applicability of the 1925 Act to these corporations, paving the way for their inclusion under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. **2. Introduction:** This report provides a detailed overview and analysis of the notification issued by the Ministry of Labour and Employment, Government of India, on December 15, 2021, regarding the rescission of specific notifications related to the provident funds of employees of Air India International Corporation and the Indian Airlines Corporation. The analysis is based solely on the information provided within the notification text. **3. Policy Overview:** * This is an amendment to existing policy. * The original policies being amended are S.O. 434, dated February 1, 1962, and S.O. 272, dated January 25, 1963. These notifications applied the provisions of the Provident Funds Act, 1925 to the Air India International Corporation and the Indian Airlines Corporation. * **Core Objective:** To rescind the applicability of the Provident Funds Act, 1925 to Air India International Corporation and the Indian Airlines Corporation. This facilitates the transfer of existing provident funds to the EPFO. **4. Background and Rationale:** The amendment is likely prompted by the desire to integrate the provident fund management of Air India International Corporation and the Indian Airlines Corporation with the broader EPFO framework. The text specifically mentions that the majority of employees have agreed to transfer their provident funds to the EPFO on a voluntary basis, as required under subsection 4 of section 1 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The rescission is a necessary step to enable this transfer and ensure uniform provident fund coverage for employees under the 1952 Act. **5. Key Provisions / Changes:** This amendment focuses on the rescission of earlier notifications. * **Specific Part of Original Policy Changed:** The entire applicability of the Provident Funds Act, 1925 as established by S.O. 434 and S.O. 272 to Air India International Corporation and the Indian Airlines Corporation is being removed. * **New Rule/Provision:** S.O. 434, dated February 1, 1962, and S.O. 272, dated January 25, 1963, are rescinded, meaning they are no longer in effect from January 1, 2022. The rescission is prospective, meaning it does not affect actions taken before January 1, 2022, under the rescinded notifications. * **Difference/Effect:** This change removes the legal basis for managing the provident funds of employees of Air India International Corporation and the Indian Airlines Corporation under the Provident Funds Act, 1925. This clears the path for these employees to be covered under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected by this amendment are: * Employees of the Air India International Corporation and the Indian Airlines Corporation. * The Air India International Corporation and the Indian Airlines Corporation themselves. * The Employees Provident Fund Organisation (EPFO). * Ministry of Labour and Employment. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Labour and Employment issued the notification. The EPFO is responsible for managing the transferred provident funds. * **Timeline:** The notification comes into effect on January 1, 2022. This date marks the beginning of the implementation period. * **Specific to the Changes:** Implementation requires the formal transfer of existing provident fund assets from the previously governed system to the EPFO. This likely involves administrative procedures to ensure a seamless transition for employees. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes is the seamless integration of the provident fund management of employees of Air India International Corporation and the Indian Airlines Corporation into the EPFO system. The amendment aims to: * Provide uniform provident fund coverage under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. * Potentially offer employees access to the broader benefits and services provided by the EPFO. * Simplify the administration of provident funds for these corporations by consolidating management under a single entity (the EPFO). **9. Conclusion:** The notification rescinding S.O. 434 and S.O. 272 signifies a shift in the provident fund management framework for Air India International Corporation and the Indian Airlines Corporation. By removing the applicability of the Provident Funds Act, 1925, the amendment facilitates the transfer of existing provident funds to the EPFO. This integration is intended to provide streamlined administration, consistent coverage, and access to the EPFO's broader benefits for the employees of these corporations.

Key Entities Referenced