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University Grants Commission - Sri Lanka

Commission Circular No: 253

2nd February, 1984.

 

Vice-Chancellors of Universities,
Directors of Institutes.

DEDUCTIONS FROM PROVIDENT FUND CONTRIBUTIONS UNDER
SECTION 94 OF THE UNIVERSITIES ACT. NO.16 OF 1978

Further to Commission Circular No. 155 of 02nd February, 1982, you reference is drawn to Part XII of the Universities act entitled “Universities Provident fund”.

In terms of the Circular referred to above, the present practices is for the Higher educational Institution concerned to furnish to the Secretary/UGC all particulars of any outstanding amount in order to enable him to effect recovery at the time when the amount lying to the credit of any contributor is refunded.

According to section 94 of the Act. Only the “amount of any loss or damage sustained by the Commission or a Higher Educational Institution by reason of the dishonesty or negligence of the contributor at any time during the period of his employment and payments due on any loan taken by the contributor may be deducted at the time when any payment is made in accordance with the provisions of section 93”.

The University grants commission, at its 144th meeting held on 17th September, 1983 decided on legal advice to advise the Universities that monies relating to contractual obligations do not constitute a proper charge on the Provident Fund contributions within the meaning of section 94 of the Act.

In the circumstances, in the event of any violation or breach of any contractual agreement/bond, the principal executive officer of the Higher Educational Institution concerned should take appropriate steps as may be specified in the Agreement/bond or such other course of action as may be legally permissible for the recovery of such monies.

 

(Secretary)

 

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