ANALYSIS OF SCHEMES NOW IN FORCE. 
23 
Rules as to Forfeiture of Provident Fund. 
Where a fund is collective (i.e., for the benefit of all em 
ployees alike and not credited to them individually) employees 
leaving 1 a company’s employment for reasons other than those of 
sickness, old age, &c., would generally forfeit their rights to 
participation. Where, however, sums have been credited to them 
individually, employees leaving in such circumstances may 
usually recover these sums, either at once or after a period.( a ) 
An exception is provided by the rules of No. 29, by which the fund 
standing to an employee’s credit is forfeited if he is discharged for 
reasons other than those of ill-health, or leaves without the firm’s 
assent; while if he leaves with the firm’s assent, one-half of the 
fund may be claimed. A number of schemes provide for the 
forfeiture of bonus in cases of fraud( b ) or serious misconduct. (°) 
In the case of No. 20 it is provided that any loss or damage caused 
to the company by an employee may be made good from his 
deferred bonus. 
Provident Funds, how Invested. 
The amounts standing to the credit of the various provident funds 
are usually left in the hands of the firms; where they are regarded 
as deposits accumulating at interest (as is invariably the case 
where amounts are credited to individual employees) the rate of 
interest specified varies from 3 per cent, to 5 per cent., 4 per cent, 
being the most usual rate. In the case of No. 30 the money is 
deposited in the Post Office Savings Bank; in two cases( d ) 
the firm reserves to itself the right to deposit the money in a 
savings bank, at the current rate of interest therein, instead of 
allowing its own rate of interest; while in the case of No. 29 the 
firm retains the right to invest the fund as may be expedient. In 
the case of No. 49 the money is held in trust by the Employees’ 
Society (.see pp. 49-52). It is utilised by No. 37 for the purchase 
of pensions in the Royal National Pension Fund for Nurses. 
Shares issued to Employees as Gift or on Special Terms. 
Where employees hold shares which have been bought in the 
open market, they are not considered to be employed under the 
method of Profit-sharing. But where shares, or their equivalent 
for purposes of dividend, are issued to employees either (1) without 
exacting any payment or (2) on specially favourable terms as to 
purchase price or method of paying up instalments, &c., this is 
a form of Profit-sharing. An example of (1) is provided by 
Nos. 52(«), 103 (see pp. 29-36), and 104.( f ) In none of these cases 
( a ) Within a fortnight of the next half-yearly stocktaking, providing the time 
waited is at least three months, is specified by No. 20. In the case of No. 23 
employees must wait for the period during which they would have had to be 
employed to entitle them to the payment of their deferred bonus. With No. 41 
payment is deferred for 12 months if an employee leaves of his own desire. 
'(’>) Nos. 11, 20. 24, 55, 82, 93, 96, 98, 99, 105,107, 108, 111, 123. 
(«) Nos. 5, 41, 91. 
( d ) Nos. 20, 23. (°) Special employees’ shares. 
( f ) A fixed number of Ordinary Shares have been set aside by the Company 
for the benefit of selected employees, who receive nominations entitling them 
to the dividend upon shares, the shares themselves being retained by the 
Company.