Professional Documents
Culture Documents
ESI Corporation
The Employees’ State Insurance Act, 1948 is beneficial and social legislation. Its
main aim is to provide for compensation to certain employees and their
dependents for employment injuries. The ESI Corporation under this Act plays
a very important role in this regard. It is responsible for regulating employers’
contribution, paying compensation, ensuring compliances, etc.
ESI Corporation
According to Section 2(6), the term “Corporation” under the Act refers to the
Employees’ State Insurance Corporation.
Section 3 of the Act further states that the Central Government has to establish
the Corporation as per given provisions.
The Corporation is basically a body corporate that has features like perpetual
succession. It also has a common seal like other commercial body corporates in
India. Hence, the Corporation functions as a regular body corporate.
In order to achieve these tasks, the Act allows the Corporation to exercise
various powers through its members and officers.
Each State Government also gets to appoint one representative for itself in the
Corporation. Another person that the Central Government appoints
collectively represents all Union Territories.
Finally, the Corporation also has a Director General whose post is ex-officio.
Three Members of Parliament (2 from Lok Sabha and 1 from Rajya Sabha) also
become members.
Their appointment lasts for four years from the date of notification of their
appointment. All other members of the Corporation may not have such a fixed
tenure.
Firstly, Section 17 allows the Corporation to appoint staff members and officers
for carrying out its business effectively. It may bestow provident fund, gratuity
and other similar benefits on its staff.
Secondly, the Corporation has powers to purchase and sell movable as well as
immovable properties. It can even raise loans and invest its money with the
Central Government’s sanction.
In order to ensure compliance with provisions of the Act, the Corporation can
appoint Social Security Officers. These officers function in their local limits and
exercise jurisdiction over factories and establishments therein.
All employers to whom this Act applies have to pay some contribution for the
benefit of employees. The Corporation has powers to determine how much this
contribution should be.
For example, every year the Corporation has to make a budget of its probable
income and expenditure. It has to submit this report to the Central Government
for its approval.
Previous Next
Modern Organization Theory - Systems Modern Organization Theory - Contingency
Theory Theory
5 th 6 th 7 th 8 th
9 th 10 th 11 th 12 th
9 10 11 12
GET STARTED
GET STARTED
BROWSE
Employees’ State Insurance Act, 1948
Leave a Reply
Subscribe
BROWSE
Employees’ State Insurance Act, 1948
ESI Benefits
ESI Corporation
Stuck with a
Question Mark?
Have a doubt at 3 am? Our experts are
available 24x7. Connect with a tutor
instantly and get your concepts
cleared in less than 3 steps.
REGISTER NOW
ASK Download
NEWS NCERT Notes and Solutions