Seeking to advance social security laws and adjusting them to “current scenario and circumstances”, the Ministry of Coal Tuesday floated a draft consultation to repeal the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948. The proposed legislation, standing as a bill at present, intends to obviate the “present difficulties” of the coal sector and align it with developments with respect to industrial dispute resolution, working conditions, social security, wage regulation and digitalisation, according to the ministry. “This will ensure its effectiveness in meeting the present and future needs of the coal sector,” reads the draft legislation.

The 1948 legislation provides for framing a provident fund scheme, a deposit linked insurance scheme and a bonus scheme for coal mine workers. Though the act has been amended seven times since its inception, the latest was approximately three decades back in 1996. The ministry is soliciting comments until November 7.

Legalising fund administrator, reconstitution of board

The bill seeks to legalise the Coal Mines Provident Fund Organisation (CMPFO) and inducing parity with the Employees Provident Fund and Miscellaneous Provision Act, 1952, and other relevant social security laws. In other words, imbibing an official recognition as the chief administrator of the fund, as existing at present, meant for welfare of coal mine workers.

However, in a major alteration, it seeks to replace the Board of Trustees, which is the administrative body of the CMPFO, with a more representative Coal Mines Employees’ Provident Fund Board. The ministry underlined the constitution of the board would be altered to ensure “efficient governance, adequate representation and effective oversight” of the provident fund. Additionally, it would mandate that of the six people representing employees (in the board), at least one member must be a woman.

At present, the board of trustees consistsof the Secretary, the Commissioner — as an ex-officio member — who is the overall in-charge alongside Joint Secretary at the Ministry of Coal and eleven other members representing employees.

De-criminalises provisions

The bill seeks to partially decriminalise penal provisions of the act substituting them with monetary penalties and additional penalties. This is towards ensuring [a] more “pragmatic and reformative approach”. Additionally, it proposes the appointment of adjudicating officers to determine violations and impose penalties. This is to facilitate a “fair and expeditious informal adjudication process”, the explanatory note states. However, the exact contours of the penal provisions were not enumerated in the explanatory note. Presently, any contravention of the act calls for an imprisonment term of up to six months and fines up to ₹1,000, and one year for a repeat offence.