Unit 3

Q 1. Employees State Insurance Act, 1948- Objective & Functions

Answer
Introduction-The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare
legislation enacted primarily with the object of providing certain benefits to employees in
case of sickness, maternity and employment injury and also to make provision for certain
others matters incidental thereto.The Act in fact tries to attain the goal of socio-economic
justice enshrined in the Directive principles of state policy under part 4 of our constitution, in
particular articles 41, 42 and 43.

Objectives of ESI Act, 1948-

 The ESI Act is a social welfare legislation enacted with the object of providing certain
benefits to employees in case of
o sickness,
o maternity and
o employment injury.
o Under the Act, employees will receive:
o medical relief,
o cash benefits,
o maternity benefits,
o pension to dependents of deceased workers and
o compensation for fatal or other injuries and diseases.
Salient Features of ESI Act 1948-
1. The ESI Act serves as a constitutional instrument because of its practice of providing
insurance and medical insurance. While the ESI Act is mostly executed through the ESI
Corporation, the Central Government takes control of most of the proceedings The Act
Facilitates coverage of smaller factories;
2. It includes all medical care facilities for the person who is insured as well as
dependent members of his/her family from day one.
3. Enhancing the age limit of dependent children for eligibility to dependants benefit;
4. Streamlining the procedure for assessment of dues from defaulting employers;
5. Providing an Appellate Authority within the Corporation against an assessment to
avoid unnecessary litigation;
6. Continuing medical benefit to insured persons retiring under VRS scheme or taking
premature retirement;
7. Treating commuting accidents as employment injury;
8. Streamlining the procedure for grant of exemptions;
9. Third party participation in commissioning and running of the Hospitals;
 10. Opening of medical/dental/paramedical/nursing colleges to improve the quality of
medical care;
11. It includes medical coverage for a certain specific illness which includes cash benefits.
This covers 70% of the employee’s wages until 91 days. For this benefit to avail, the
workers required to contribute at least 78 days for a period of 6 months.
12. There is a special benefit for women employees regarding maternity leave or for
medical problem in pregnancy etc. For maternity leave, there is a period of 26 weeks
which can be extended by one month. But there is no change in wage slab. They will
get at the rate of full wage to contribution for 70 days.
13. For an unemployed person, this scheme is also applicable. They are also eligible for
being insured for at least three years, provided they will disclose details regarding
their previous place of work and retrenchment letter. In such case, a monthly
payment of 50%of their wage in cash for a maximum of 2 years can be availed by the
employees.
14. Empowering State governments to set up autonomous Corporations for administering
medical benefit in the States for bringing autonomy and efficiency in the working.
Constitutionality of the Act-
 The ESI Act serves as a constitutional instrument because of its practice of providing
insurance and medical insurance. While the ESI Act is mostly executed through the ESI
Corporation, the Central Government takes control of most of the proceedings.
 This control by the Central Government largely contributes to the constitutionality of
the Act, because Insurance, be it public or private, is listed in the Seventh Schedule of
the Indian Constitution as a Union List subject i.e. it can only be legislated by the
Central Government.
Applicability
 The ESI Act extends to the whole of India.
 It applies to all the factories including Government factories (excluding seasonal
factories), which employ 10 or more employees and carry on a manufacturing process
with the aid of power and 20 employees where manufacturing process is carried out
without the aid of power.
 The act also applies to shops and establishments. Generally, shops and establishments
employing more than 20 employees are covered by the Act.
 The act does not apply to any member of Indian Naval, Military or Air Forces.
 All employees including casual, temporary or contract employees drawing wages less
than Rs 10,000 per month are covered.
 Apprentices covered under the Apprenticeship Act are not covered under this Act.
 Compensation under the Workmen’s Compensation Act cannot be claimed in respect
of employment injury.No benefits can be claimed under the Maternity Benefits Act.
Administration of the Act
  The provisions of the Act are administered by the Employees State Insurance
Corporation. It comprises members representing employees, employers, the central
and state government, besides, representatives of parliament and medical profession.
 A standing committee constituted from amongst the members of the corporation, acts
as an executive body.
 The medical benefit council, constituted by the central government, is another
statutory body that advises the corporation on matters regarding administration of
medical benefit, the certification for purposes of the grant of benefits and other
connected matters.
DEFINITION OF ESI-
 “Appropriate government” means, in respect of establishment under the control of
the central government or (a railway administration) or a major port or mine or
oilfield, the central government, and in all other cases, the state government;
 “Contribution” means the sum of money payable to the corporation by the principal
employer in respect of an employee and includes any amount payable by or on behalf
of the employee in accordance with the provisions of this Act;
 “Sickness” means a condition which requires medical treatment and attendance and
necessitates abstention from work on the medical ground;
Conclusion-
 For a working-class employee in India, the ESI Act is an essential utility that works in
their favour, while also being beneficial for sectors outside that of the working class.
 The ESI Act is unique in the fact that it works in advantageous ways for both
employees and employers. While employees are insured under the act and get
financial aid in case of an injury, the employers are also protected from being
jeopardised twice in lieu of paying compensation to the employees.
 The Employees’ State Insurance Act, apart from medical benefits provided to
employees, also controls many more indirect aspects of efficiently managing the
Corporation established by the Act, be it its sales proceedings, account management
or separation of powers amongst its various officers.

Q2. Employees State Insurance Corporation

Answer
Introduction-The ESI Act exercises its function through the Employees’ State Insurance
Corporation, established via Section 3, a body created to maintain social security. It was
established on 24 February, 1952. The corporation is supposed to grant relief to the
employees in case of medical emergencies.
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.
Functions of ESIC-
 The main function of this Corporation is to implement provisions of the ESI Act and
carry out its duties.
 Furthermore, it has to pay compensation to employees, regulate employers, frame
rules and budgets for contribution, etc.
 In order to achieve these tasks, the Act allows the Corporation to exercise various
powers through its members and officers.
 Constitution of ESI Corporation-The ESI Corporation is an apex body under the
Employees’ State Insurance Act. Thus, many important functionaries and experts play
a role in its functioning.
 Establishment of Employees’ State Insurance Corporation-Section 3(2) provides that
“The Corporation shall be a body corporate by the name of Employees’ State
Insurance Corporation having perpetual succession and a common seal and shall by
the said name sue and be sued.”
Constitution of Corporation- According to Section 4 The Corporation shall consist of the
following members:
a. a Chairman to be appointed by the Central Government
b. a Vice-Chairman to be appointed by the Central Government
c. not more than five persons to be appointed by the Central Government
d. 1 person each representing each of the Statesin which this Act is in forceto be
appointed by the State Government concerned
e. 1 person to be appointedby the Central Government to represent the Union
territories
f. 10 persons representing employers to be appointedby the Central Government
in consultation with such organisations of employers as may be recognised for
the purpose by the Central Government
g. 10 persons representing employees to be appointed by the Central
Government in consultation with such organisations of employees as may be
recognised for the purpose by the Central Government
h. 2 persons representing the medical profession to be appointedby the Central
Government in consultation with such organisations of medical practitioners as
may be recognised for the purpose by the Central Government
i. three members of Parliament of whom two shall be members of the House of
the People (Lok Sabha) and one shall be a member of the Council of States
(Rajya Sabha) elected respectively by the members of the House of the People
and the members of the Council of States and
j. the Director-General of the Corporation, ex-officio.
Term of office of the members of the Corporation [Section 5]-
1. Save as otherwise expressly provided in this Act, the term of office of members of the
Corporation, other than the members referred to in clauses (a), (b), (c), (d) and (e) of
 section 4 and the ex-officio member, shall be 4 years commencing from the date on
which their appointment or election is notified.
Provided that a member of the Corporation shall notwithstanding the expiry of the
said period of four years, continue to hold office until the appointment or election of
his successor is notified.
2. The member of the Corporation referred to in clauses 3[(a), (b), (c), (d) and (e)] of
section 4 shall hold office during the pleasure of the Government appointing them.

Rights Of Corporation-
1. The Corporation can convene its meetings.
2. The right of administration of the funds lies with it.
3. Corporation can receive grants and presents from Central and State Governments.
4. Corporation has to grant approval for the appointment for the operation of the fund
by the Standing Committee.
5. It has right to possess and purchase property.
6. It can take loans also under Section 29 (3).
7. Corporation can manage fund for its staff or for any class of it.
8. All the properties earned before the establishment of the corporation shall vest in it.
9. All the contributions made shall vest in the corporations.
10. Newly inserted Section 59B empowers the Corporation to manage for imparting
medical and para medical education. The Corporation may establish Medical Colleges,
Nursing Colleges and training institutes for its paramedical state and other employees
with a view to improve the quality of services provided under the E.S.I. Scheme.
11. The power to prescribe the rate of contribution.
12. Right to receive returns from the employers, and power to givedirections in regard to
their proforma etc.
13. The Corporation has power to appoint social security officers also.
Duties of Corporation-
1. The main duties of the corporation is to administer theinsurance fund.
2. The corporation shall deposit the amount payable in this fund, under the provisions,
or other rules or regulations framed for this purpose, in the Reserve Bank of India or
any other bank which has been approved by the Central Government.
3. The proper management of the fund by the Corporation is essential. (4) The
Corporation shall defray the charge of audit from this fund.
4. The Corporation shall send the yearly reports of its transactions and activities to the
Central Government.
5. The duty of valuation of its assets and liabilities lies on theCorporation.
Conclusion-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.

Q3#Contributions
Introduction- “Contribution” is provided under Section 38-45 I of Employees State Insurance
Act, 1948. Section 38 provides that All employees to be insured i.e. “Subject to the provisions
of this Act, All employees in factories or establishments to which this act applies shall be
insured in the manner provided by this Act.
Contribution [Section 39]-
 The contribution is a determinable amount of money payable by both the employer
and the employee, as per the situation, to the corporation.
 The rates, while usually prescribed by the government, are not set in stone, and are
subject to change. Rates defined by the government are mostly set as the unit
standard for the contribution payable by the employer.
 In the case of the employee’s contribution, the wage period in relation to the
respective employee shall be held as a unit to determine the compensation payable,
and are normally due on the last day of the wage period.
 Failure to pay contributions by the employer will make him liable to pay an interest
rate of 12%.
••Case Law:E.S.I.C. v. Amalgamations Repco Ltd., Madras: it was held that contribution is
leviable under Section 39 by which the management is liable to contribute on itsown accord
and such payment is not made conditional on any demand by the E.S.I. Corporation.
Principal employer to pay contribution in the first instance [Section 40]-
 The primary employer has to collectively pay the contribution, both his own and that
of his employees, regardless of whether they are directly employed under him or are
working through an immediate employer.
 If a directly employed employee fails to pay his contributions, then the employer can
recover that contribution only by deducting the wages of said employee.
 The employer bears all the transfer costs of the payment to the Corporation.
 Recovery of contribution from the immediate employer [Section 41]-
 In the case of an employee who is indirectly employed under the principal employer,
via an immediate employer, the principal employer shall be entitled to recover the
payment made on behalf of an indirect employee, from the immediate employer, as a
debt payable to him.
 The immediate employer also has to prepare a list of all the employees under him and
submit the same to the principal employer, before paying his dues.
General provisions as to payment of contribution [Section 42]-In case an employee’s wage
falls below the prescribed wage range prescribed by the Central Government, the employee
shall not be liable for his contribution and it shall not be payable.
Method of payment of contributions [Section 43]-The manner for payments which the Act
provides regulations for, has been elaborated in the following conditions:
 The nature and time of contribution being paid.
 Payment which involves the usage of stamps or other adhesives fixed upon the books
of accounts, or any other documents.
 The evidence of the contributions, which reaches the Corporation, is to be dated.
 The different entries in the books of accounts along with the details of the insured
persons.
 The replacement of documents which have been lost, destroyed or defaced.
Social Security Officers and their functions [Section 45]- ESIC has the power to appoint persons
as Social Security Officers. Their functions are mostly to serve a role in inspecting the function of the
corporation.
 If required, he can acquire any information from any employer as he sees fit.
 He can enter any corporation at any time and can get all the accounts, books and
other employment documents presented to him without any due notice. This can
include information like wages, expenses, etc.
 He can inspect and look into any matter regarding the employers and employees as
and when required under the jurisdiction of the court.
 He can make copies or take extracts from any register or account back as per his
discretion.
Determination of Contribution in certain cases [Section 45A]-
 A Social Security offer is restricted from exercising his functions and discharging his
duties, if the accounting statements of the factory/establishment are not submitted,
or not maintained in accordance with Section 44 of the ESI Act.
 As such, the Corporation may, with the available information, determine the
contribution(defined under Section 39) amount payable to employees.
 However, this procedure will not take place until after the person in charge has been
given a reasonable opportunity to be heard regarding the absence of such records.
 Case Law:South India Viscose Co-operative Stores Ltd. V. Regional Director, E. S.I.
Corporation: It was held that ability to pay contribution is not relevant and it cannot
be pleaded as a ground against liability imposed by the Act. If that were so every body
will escape liability by pleading financial inability to pay contribution. Also, Liability to
pay contribution is not made to depend on the benefits to be received by the
members in respect of whom the contribution is sought for.
Appellate Authority [Section 45 AA]- In the scenario specified in Section 45A, once the
employer in charge is heard, and he is not satisfied with the verdict given by the corporation,
he may prefer an appeal to an appellate authority as may be provided by regulation, within
sixty days of the date of the verdict. He must also pay a sum of 25% of his calculated
contribution, in order to file the appeal. In case he is successful, the corporation will also
refund the contribution paid by him.
Recovery of contributions [Section 45B]- Any and all contributions which are payable under
the provisions of ESI Act, can be recovered, termed as ‘arrears of land revenue’.
Other modes of recovery [Section 45G]- Some of the other modes of recovery are:
 The defaulting employer may be required to pay a sum which was deducted from the
arrears after the sale of the property.
 There might not be any penalty issued but the defaulting employer would be required
to pay the entire outstanding amount directly to the Director-General of the
Corporation.
 Any joint shareholders who held money with the defaulting employer might be forced
to give up their shares to the Corporation until they are equal to the defaulting
employer’s shares, as compensation.
Conclusion- The ESI Act is unique in the fact that it works in advantageous ways for both
employees and employers. While employees are insured under the act and get financial aid in
case of an injury, the employers are also protected from being jeopardised twice in lieu of
paying compensation to the employees.

[Issue of certificate to the Recovery Officer [Section 45C]- In lieu of Section 45B, where the
contribution is to be recovered, an authorised officer of the corporation issues a certificate
bearing his signature and the amount to be recovered, to a Recovery Officer, who then
proceeds to recover the amount specified from the factory where the default took place. He
does this via:
 Attachment or sale of the property of the factory, or the employer, as per the
situation.
 The arrest of the employer and getting him detained in prison.
 Appointing a receiver for the management of the property acquired, be it from the
factory or the employer.

Recovery Officer to whom the certificate is to be forwarded [Section 45D]- For the
contribution certificate to be forwarded to the Recovery Officer, the factory employer must
be under the jurisdiction of the Officer in the following ways:

 The location where the employer carries on his business and where the factory is
located.
 The location where the employer resides or he has any personal property situated
within the Officer’s jurisdiction.
 The inability to recover the amount solely through the sale of property alone.
The inability to recover the amount solely through the sale of property alone- The analysis of
the recovery amount, as per the certificate issued to the Recovery Officer, operates on his
word only. The factory or any authority related to it cannot question the Officer on the
correctness of the amount, and no objection shall be entertained. However, with a prior
intimation, an arithmetical mistake can be corrected by an authorised officer, along with any
orders about withdrawal or cancellation of a certificate.

Stay of proceedings under certificate and amendment or withdrawal thereof [Section 45F]-
 It is at the discretion of the Recovery Officer, within the boundaries of the ESI Act, to
halt legal proceedings if the time he has allocated for the recovery of an amount, has
expired.
 The Recovery Officer is also entitled to receive constant updates about the status of
payment of any due amount.
 If, as a result of an appeal, the amount due is decreased, then the Recovery Officer
temporarily halts the recovery of the now decreased amount.
 Application of certain provisions of the Income-tax Act [Section 45H]- The arrears of
the amount of contributors, which are to be sold to cover the remaining costs, can be
 affected by decisions from the Assessing Tax Officer or Tax Recovery Officer. They can
make changes which shall apply to all the interests and damages.]

Q Medical Benefit Council

Introduction-
 The promulgation of Employees’ State Insurance Act by the Parliament in 1948 was
the first major legislation on comprehensive Social Security for Workers in
Independent India.
 The Act insures social protection of workers in the organised sector in contingencies,
such as sickness, maternity, death or disablement due to employment injury and
occupational disease.
 Based on the principle of “pooling of risks and resources”, the unique,
multidimensional health insurance Scheme guarantees a fair deal to the covered
members by providing full medical facilities to the beneficiaries, besides, adequate
cash compensation to insured persons for loss of wages or earning capacity in times of
physical distress arising out of sickness or employment injury or unemployment.
The main benefits provided under ESI Scheme are: •Sickness Benefit • Disablement Benefit •
Dependant’s Benefit • Maternity Benefit • Medical Benefit
Medical benefit-Section 56 (1) of ESI Act, 1948 provides, “an Insured Person or (where such
medical benefit is extended to his family) a member of his family whose condition requires
medical treatment and attendance shall be entitled to receive medical benefit”
 The insured person/family member of an insured person can avail the medical
treatment under this Scheme till the insured person is in insurable employment. Full
medical care (all facilities including hospitalization) for insured person and their family
members is provided.
 An insured person and his/her family member become eligible for primary &
secondary medical benefit under the ESI Scheme from day one of entering insurable
employment.
 Section 56 (3) of ESI Act, 1948 provides, “A person shall be entitled to medical benefit
during any period for which contributions are payable in respect of him or in which he
is qualified to claim sickness benefit or maternity benefit (or is in receipt of such
disablement benefit as does not disentitle him to medical benefit under the
regulations)”.

Medical Benefit Council [Section 10]-The Medical Benefit Council is an advisory body on
matters related to the administration of medical benefits under the ESI scheme.

Constitution of Medical benefit Council [Section 10(1)]- According to Sec 10(1) The Central
Government shall constitute a Medical Benefit Council consisting of—
a) the Director General, the Employees' State Insurance Corporation, ex officio as
Chairman;
b) Director-General, Health Services, ex officio, as Co-Chairman;
 c) the Medical Commissioner of the Corporation, ex officio;
d) one member each representing each of the States (other than Union territories) in
which this Act is in force to be appointed by the State Government concerned;
e) three members representing employers to be appointed by the Central Government in
consultation with such organisations of employers as may be recognised for the
purpose by the Central Government;
f) three members representing employees to be appointed by the Central Government
in consultation with such organisations of employees as may be recognised for the
purpose by the Central Government; and
g) three members, of whom not less than one shall be a woman, representing the
medical profession, to be appointed by the Central Government in consultation with
such organisations of medical practitioners as may be recognised for the purpose by
the Central Government.
Tenure of the members of the Medical Benefit council
 [Section 10(2)]- Save as otherwise expressly provided in this Act, the term of office of
a member of the Medical Benefit Council, other than a member referred to in any of
the clauses (a) to (d) of sub-section (1), shall be four years from the date on which his
appointment is notified:
Provided that a member of the Medical Benefit Council shall, notwithstanding the expiry of
the said period of four years continue to hold office until the appointment of his successor is
notified.
 Section 10(3)]-A member of the Medical Benefit Council referred to in clauses (b) and
(d) of sub-section (1) shall hold office during the pleasure of the Government
appointing him.
Duties of MBC [Section 22]-The Medical Benefit Council shall-
a) advise [the Corporation and the Standing Committee] on matters relating to the
administration of medical benefit, the certification for purposes of the grant of
benefits and other connected matters;
b) have such powers and duties of investigation as may be prescribed in relation to
complaints against medical practitioners in connection with medical treatment and
attendance; and
c) perform such other duties in connection with medical treatment and attendance as
may be specified in the regulations.
Conclusion-As per the provisions of ESI Act, 1948, the State Governments are responsible for
providing the medical benefits through the network of ESI Dispensaries (for primary medical
services) and ESI Hospitals (for secondary medical services).

Q#Benefits
Introduction- Section 46-73 provides for various benefits that are available to the employees
under the ESI Act,1948.
Section 46 of the ESI Act grants benefits to employees as social security in case of injury,
which can be availed during the course of employment. There are 6 types of benefits that can
be availed:
1.Sickness benefit. 2.Maternity benefit. 3.Disablement benefits. 4.Dependants’ benefits.
5.Medical benefit. 6.Other benefits.
(1) Sickness Benefit.-According to Section 47, a person qualified to claim sickness benefit,
shall be entitled to receive such benefits at the rates specified in the First Schedule, only for
the period of sickness. The claimant must be in such a condition which requires medical
treatment, and abstention from work. This fact should be certified by a competent recognized
medical practitioner. Such benefit cannot be given for more than 56 days and for first days of
sickness.
(2) Maternity Benefits. An insured woman can claim this benefit for confinement, but not for
exceeding a period of 12 weeks of which not more than 6 shall precede the expected date of
confinement (delivery). In case the insured woman dies within this period, the child born
shall get the benefit if alive for whole of that period, or her legal nominee or legal
representative shall get the benefit.
(3) Disablement Benefit.-According to Section 51, if any person who sustains temporary
disablement for not less than 3 days, excluding the day of accident shall be entitled to
periodical payment for the period of such disablement. For permanent disablement, he will
get in accordance with the provisions of First Schedule. Such person should be certified to be
entitled to such benefit by the prescribed authority under the regulation. Accident should
have arisen in course of employment.-Regional Director E.S.I.C. v. Lakshmi, 1979 Lab IC 167.
(4) Dependant Benefit.-The dependants of the deceased shall be entitled to such benefits
provided he died due to the accident arising out of and in the course of employment. The
dependants, claiming the benefit should prove that they were really wholly or partially
depending on the earnings of the deceased. They should come under the purview of
dependants as defined under Section 6-A. Such benefit may be reviewed.
(5) Medical Benefits.-According to Section 56 an insured person or (where benefits extended
to his family also) any member of his family, which requires medical treatment or attendance,
will be entitled to the medical benefit, either as outdoor patient in the hospital or by visits to
the home by the doctors. Even the casual employees can get this benefit. They shall not be
entitled to claim reimbursement from Corporation of any expenses incurred by him except
what is thus provided.
(6) Other Benefits.- ‘Other benefits’ refer to the miscellaneous benefits apart from the five
major benefits that can be availed by the employees.
These are as follows:
o Funeral Expenses: Such benefit shall be given to the senior most member of the family
of the deceased if he had family, but which was not living with him, or to the person
who really borne the funeral expenses. Compensation of Rs. 10,000 is granted to the
eldest surviving member of an employee’s family to perform his last rites.
o Vocational Rehabilitation: The benefit is payable to disabled employees undergoing
rehabilitation.
o Old age medical care: This benefit is available for retired employees, or those who eft
employment after suffering an injury, with general compensation being Rs. 120 p/m.
Some Important Information-
 o It may be noted that the benefits shall not be combined; for example both sickness
benefit or maternity benefit, or both sickness and disablementbenefit; or maternity
benefit and disablement benefit.
o Central Government may frame a scheme for other beneficiaries for medical facilities
with members of the insured person's family. Such facility may be provided in any
hospital established by the Corporation in any area which is underutilised on payment
of user charges which shall be deemed to be the contribution and shall form part of
Employees' State Insurance Fund.
o The amendment of 2010 in Section 58 provides that the State Government, may in
addition to the Corporation under this Act with the previous approval of the Central
Government, establish such organisation by whatever name called to provide for
benefits to employees in case of sickness, maternity and employment injury. Such
established organisation shall have such structure and discharge functions, exercise
powers and undertake such activities as may be prescribed by the scheme framed by
the Central Government.

Exception for providing Benefits- Amended section 87 says:

o Provided that such exemption may be granted only if the employees in such factories
or establishments are otherwise in receipt of benefits substantially similar or superior
to the benefits provided under this Act.
o Provided further that an application for renewal shall be made three months before
the date of expiry of the exemption period and a decision on the same shall be taken
by appropriate government within two months of the receipt of such application.

Q#Employee Insurance Court

Constitution of Employees' State Insurance Court.-
 Section 74 provides that, the State Government may constitute an Employee's
StateInsurance Court by notification in the Official Gazette for such local area as is
specified in the notification.
The Insurance Court will consist of such number of judges as the Government thinks fit.
Following persons are qualified for being a Judge who:
(1) is or has been a judicial officer, or. (2) a legal practitioner for five years.
 The State Government may appoint the same Court for two or morelocal areas or two
or more Courts for the same local area and may regulatethe distribution of business
between them. (Jiyaji Rai Cotton Mills v.E.S.1. Court, 1962)
Matters to be decided by the Employees' State Insurance Court.-Section 75 provides that
Court shall decide:
1. whether a person is an employee, or whether he is liable to pay theemployees'
contribution; or
2. the rate of wages and the rate of contribution payable by the principal employer in
respect of an employee; or
 3. any dispute, whether a person who is or was the principal employer in respect of any
employee thereof; or
4. the right of any person to any benefit and to amount and durationthereof; orany
direction issued by the Corporation under Section 55-A on reviewof any payment; or
any other matter which is in dispute between a principal employer and the
Corporation or between the principal and immediate employer or between an
employee and the principal or immediate employer in respect of any contribution or
payment or benefit or other dues recoverable.
5. Claim for recovery of contributions from the principal employer.
6. Claim against principal employer under Section 68.
7. Claim under Section 70 for the recovery of the value or amount of the benefits
received by a person when he is not lawfully entitled thereto; and
8. A claim on the recovery of any benefit allowed by this Act.

Case:M/s. Paneswar Mechanical Works Pvt Ltd. Ludhiana, v. E.S.I. Corporation, Amritsar,
1972: The question of liability and quantum being a matter of dispute between the
corporation and the employer fully comes within Section 70 (i) (g).

Institution of proceedings.
1. All proceedings are to be instituted in the Court which is constituted for that local area
under the rules.
2. Court may transfer a proceeding pending before it to some other Insurance Court in
the same State. It will transfer the relevant documents to the other Court.
3. The State Government may also transfer any proceeding to any other Court in the
same State or any other State.
4. The Court to which the proceeding is transferred shall continue the proceedings as if
they have been instituted in it.
Commencement of proceeding.- Section 77:theproceeding shall commence.(1)on an
application to be made by the aggrieved person, within a period of 3 years from the date on
which the cause of action arose, (2)the application shall be in such form and contain such
particulars as may be prescribed by the rules made by the State Government in consultation
with the Corporation.
Powers of the Insurance Court.-According to Section 78, the Court shall have all the powers of
a Civil Court for the purpose of
a) summoning and enforcing the attendance of witnesses.
b) compelling the discovery and production of documents and materialobjects necessary
for the matter in dispute.
c) administering oath and recording evidence.
 Such Court shall be deemed to be a Civil Court within the meaning of Section 195 and
Chapter XIV of the Code of Criminal Procedure, 1973. All costs incidental to
 proceedings before such Court, shall be in the discretion of the Court. The Court shall
follow the procedure made by the State Government in this behalf.
 The legal practitioners, or official of the registered Trade Union mayrepresent the
parties and appear on their behalf, if authorized in writing.Insurance Court can refer
any question of law for decision to the HighCourt.

Appeal- According to Section 82, an appeal may be preferred within 60 days of the order of
the Insurance Court. An appeal shall lie to the High Court:
a) if involves a substantial question of law.
b) it is made in time prescribed for making an appeal.

Delay in filing an appeal may be condoned by the Court, reasonable and sufficient cause is
shown by the appellant and the Court is fully satisfied with the reasons given. The satisfaction
of the Court is material on this point.

Case Laws: ••Tutikoran Power Station Co. Society Ltd. v. Deputy Director, E.S.I. Corporation,
Madurai,2005: Supreme Court held that if adequate remedy is available under Section 75,
then writ petition under Article 226 or 32 cannot be presented. ••Meenakshi Mills Ltd tv. Its
Workmen, AIR 1958: No new point can be raised in appeal for the first time, if it is not raised
earlier. The payment of any sum directed to be paid by the order under appeal shall be
stayed during the pendency of an appeal and the sum shall be disposed of in accordance with
the decision of appeal. The Appellate Court will ascertain, whether the question is entirely
based on facts or it is a question of law or mixed question of law and facts.

QStanding Committee
Constitution of Standing Committee.-Section 8 provides the procedure for the constitution of
the Standing Committee. According to this section, following members will constitute it:
(a) a chairman, nominated by the Central Government;
(b) three members of the Corporation, nominated by the Central
(bb) three members of the corporation representing such three states as the Central
Government may notify:
(c)eight members elected by the Corporation in the following
o three members representing employers;
o three members representing employees;
o one member representing medical profession, and
o one member from those who have been elected by Parliament;
(d) the Director General of the Corporation shall be ex-officio memberof the Standing
Committee.
Terms of office.- •The members mentioned in clauses (a) (b) or (bb) of Section 8, shall hold
office for two years from the date of notification oftheir selection. •They shall continue in
their office until their successor's election is notified. A member shall cease to hold, the office
when he ceases to be the member of the corporation.
Powers of Standing Committee.-Section 18 enumerates the powers of Standing Committee as
follows:
 It shall administer the affairs of the corporation and may exercise any of the powers
and perform any of the functions of Corporation.
 The Standing Committee shall submit for consideration and decision of the
Corporation all such cases and matters as may be specified in regulations made in this
behalf.
 The Standing Committee may in its discretion, submit any othercase of matters for the
decision of the corporation.
Supersession of the Standing Committee.-The Central Government has been empowered by
Section 21 (1) to supersede the Standing Committee if the Committee: (a) in the opinion of
the Central Government persistently makes default in performing the duties imposed on it,
or(b) in the opinion of the Central Government, abuses the power bestowed upon it. The
Government should form opinion to supersede it. (State of Bombay v. Amar Singh, 1963)

Q. The Industrial Employment (Standing Orders) Act, 1946

Answer
 This act came into force on 23 April 1946.
 It applies to the whole of India. 
 It contains rules and regulations regarding industrial employment.
 This act was enacted to bring uniformity, industrial peace and to establish a cordial
relationship between management and workers of all organizations for smooth
functioning and to enhance productivity.
 It applies to those industries where the number of employees is 100 or more and even
for a single day in the preceding 12 months, the workmen were 100 or more of that
particular industry.
 An appropriate government (state or central government) is empowered to apply this
act in such industrial establishment where the number of workers is less than 100 by
giving a two months notice, under section 1 of Industrial Employment (Standing
Order).
 There are some industrial establishments that are controlled by the central
government so in this case, the central government will be the appropriate
government to make decisions for that industry like Indian Railway administration,
major ports, oil fields, (according to section 2B).
Definition
According to section 2G of this act, a standing order is the rules relating to matters set out in
the schedule to the Act. This act came up with some standard rules or standing orders which
will be followed by every industrial establishment. It requires employers to clearly define the
rules and working conditions of employment.

Objective of the Standing Orders Act, 1946:

 1. To define, with sufficient precision, the principal conditions of employment in
industrial establishments under them ad to make the said conditions known to
workmen employed by them.
2. To regulate standards of conduct of the employers and employees so that labour-
management relations could be improved.
3. To maintain proper discipline, harmonious working conditions and achieve higher
productivity by providing satisfactory employment and working conditions.
4. To provide for redressal of grievances arising out of employment or relating to unfair
treatment of wrongful exaction on the part of the employers against the employees.
5. To specify the duties and responsibilities of both the employers and employees.
6. To provide statutory sanctity importance to the Standing Orders.
Case Law: In S.S Rly Co. v. Workers’ Union AIR 1969
 Supreme Court said that Industrial Employment (Standing Order), 1946 is an act
specially designed to define the terms of employment of workmen in industrial
establishments to give the workmen collective voice in defining the terms of
employment and to subject the terms of employment to the scrutiny of quasi- judicial
authorities by the application of the test of fairness and reasonableness.
 Agra Electric Supply Co. Ltd. v. Aladdin (1969) 2 SCC 598 [9]; U.P. Electric Supply Co.
Ltd. v. Their Workman, (1972) 2 SEC 54[10]. :Beginning with the target the Standing
Orders Act, out of which there are three. The principal target expresses that the
demonstration is to give standard standing orders to manufacturing plants, laborers
and the primary expert or working relationship

Features of Industrial Employment [Standing Orders] Act, 1946

 To provide regular standing orders (standardization) for factories, workers and the
main professional or working relationship.
 To define, with sufficient precision, the principal conditions of employment in
industrial establishments under them and to make the said conditions known to
workmen employed by them.
 To regulate standards of conduct of the employers and employees so
that labour-management relations could be improved.
 To maintain proper discipline, harmonious working conditions and achieve higher
productivity by providing satisfactory employment and working conditions.
 To provide for redressal of grievances arising out of employment or relating to unfair
treatment of wrongful exaction on the part of the employers against the employees.
 To specify the duties and responsibilities of both the employers and the employees.
 To provide statutory sanctity and importance to the Standing Orders.
 To support the promotion of industrial peace and harmony by supporting fair
industrial practices.
Nature and Scope of Standing Orders Act, 1946
 The nature of Standing Orders has been considered as contractual at times, and an ‘award’ at
others. Meanwhile, the argument that the nature of Standing Order is ambiguous and
inconclusive seems to stand corrected as it fails to be put in one category without solid
arguments against the claim of its nature as statutory, contractual or an award.
Statutory nature of Standing Orders:
Case Law:
1. The Bagalkot Cement Co. Ltd. Vs. R.K. Pathan & Ors.: wherein the Supreme Court
stated that: The object of the Act as we have already seen, was to require the
employers to make the conditions of employment precise and definite and the act
ultimately intended to prescribe these conditions in the from of standing orders so
that what used to be governed by a contract hereto before would now be
governed by the statutory standing orders
2.  Tata Chemicals Ltd. And Ors. vs Kailash C. Adhvaryu : High Court of Gujarat in this case
wherein the judge distinguished between a statutory obligation and a contractual
obligation and therefore came to the conclusion that certification of standing
orders under the IESO Act creates statutory rights and obligations
3. In Sudhir Chandra Sarkar v. Tata Iron and Steel Company 1984 it was clearly stated
by Supreme Court that the conditions of service laid down in the Standing Order is
either Statutory in character or has the statutory flavor.
A special kind of contract
Case Laws:
1. Buckingham and Carnatic Co. v. Venkatayga 1964, Justice Gajendragadkar said:
The Other view is that of the Standing Orders is a special kind of contract, The
certified standing order represent the relevant terms and conditions of service in
a statutory form and they are binding on the parties at least as much, if not
more, as private contract embodying similar terms and conditions of services”.
2. Mettur Industries v. Verma 1958 Madras High Court observed that:
“Reading the Act as whole it is clear that the Standing orders from part of the
contract between the management and every one of its employees”.
Award
This is argued on the basis of Section 4(b) which says that “it shall be function of certifying
officer … to adjudicate upon the fairness and reasonableness of the provisions of any
standing orders”. However under Section 2(b) of the Industrial Disputes Act, 1947 Standing
Orders cannot be an “award”.
Case Law:
1. In Indian Air Gases Mazdoor Sangh v. Indian Air Gases Ltd. 1977 in which it was ruled
that the function of the certifying officer is quasi – judicial

Scope:
There are some industrial establishments who are exempted from this act.
 According to section 1 of the Standing Orders Act, this Act doesn’t apply to those
industrial establishments where provisions of Chapter VII of the Bombay Industrial
Relations Act, 1946 applies and, also where provisions of Madhya Pradesh Industrial
Employment (Standing Orders) Act, 1961 applies.
  As mentioned in section 13 B of this Act, it has exempted some more industrial
establishments from the domain of this Act like those industrial establishments where
the workmen employed are the persons to whom the Fundamental and
Supplementary Rules, Civil Services (Classification, Control, and Appeal) Rules, Civil
Service (Temporary Services) Rules, Revised Leave Rules, Civil Service Regulations,
Civilians in Defence Service ( Classification, Control, and Appeal) Rules or the Indian
Railway Establishment Code. And, also appropriate government (central or state) can
notify through Official Gazette to exempt any other establishmentfrom this Act.
 Moreover, according to section 14 of this Act, the appropriate government is
empowered to exempt any of the industrial establishment, conditionally or
unconditionally from all or any of the provisions of this Act.
Conclusion
When we consider the nature of Standing Orders individually as statutory, contractual or as
an award, we can conclude positively that it doesn’t fit under any one category completely.
There are solid arguments against successful categorization of Standing Orders and thus the
nature of Standing Orders can be concluded as amorphous and ambiguous in nature.

Q2: Standing Orders, Certifying and adoption of Standing order

Ans:
Introduction: The concept of ‘Standing Orders’ is one of the recent growth in relation to
Indian labour- management. Prior to 1946, there existed chaotic conditions of employment,
wherein the workmen were engaged on an individual basis with uncertain and vague terms
of employment. The Act was enacted as a simple measure to remedy this situation – by
bringing about uniformity in the terms of employment in industrial establishments so as to
minimize industrial conflicts.
Definition:
Standing orders: Section 2(g) of the Act states that “standing orders” are the rules relating to
matters set out in the Schedule, i.e. with reference to:
 The classification of workmen;
 Manner of intimation to workers about work and wage-related details;
 Attendance, and conditions of granting leaves, etc.;
 Rights & liabilities of the employer/ workmen in certain circumstances; 
 Conditions of ‘termination of’/‘suspension from’ employment; and
 Means of redressal for workmen, or any other matter.
Certification Process
Submission of Draft Standing Orders: Section 3
 According to section 3(1) of IESOA requires every employer of an “industrial
establishment” to submit draft Standing Orders i.e. , “rules relating to matter set out
in the Schedule” proposed by him for adoption in his industrial establishment.
 It is the liability of the employer to submit individually or jointly five copies of the
Draft Standing Orders within the six months of its applicability to the industrial
establishment.
Section 4 sets out certain condition for certification of Standing Orders which are as follows:
a) Provision is made therein for every matter set out in the schedule which is applicable
to the industrial establishment; and
b) They are otherwise in conformity with the provisions of this Act; and
c) They are fair and reasonable
The draft of standing orders should contain every matter set out in the schedule of the Act with the
additional matter prescribed by the Government as are applicable to the industrial establishment.
Case Laws:
 Indian Express Employees Union v. Indian Express (Madurai) Ltd. 1998 the Kerala High
Court held: that the framing of the Standing Orders is to be conformity with the
provisions of the Act
 In Rashtriya Chemicals and Fertilizers Ltd. v. General Secretary, FCI Workers Union 1997: the
Division Bench of the Bombay High Court held that the word ‘conformity’ means that it should
not be inconsistent
Procedure for Certification of Standing Orders (Section 5)
1. On receipt of the draft Standing Order, the Certifying Officer shall forward a
copy to the trade union of the workmen if any, or where there is no such trade
union, to the workmen in such manner as may be prescribed, together with a
notice in the prescribed form requiring objections, if any,which the workmen
may desire to make to the draft standing orders to be submitted to him within
fifteen days from the receipt of the notice.
2. After giving the employer and the trade union or such other representatives of
the workmen as may be prescribed, an opportunity of being heard, the
Certifying Officer shall decide whether or not any modification of or addition
to the draft submitted by the employer is necessary to render the draft
standing orders certifiable under this Act, and shall make an order in writing
accordingly.
3. The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may
require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order under
sub-section (2) to the employer and to the trade union or other prescribed
representatives of the workmen.
 Appeals: Section 6- The authority authorized by the appropriate government to
approve, reject, or certify the Draft Standing Orders is known as a Certifying Officer. If
any party is dissatisfied with the certifying officer's decision, the party may file an
appeal with the appellate authority.The aggrieved parties may appeal to the appellate
authority within 30 days, and the decision of the appellate authority is final. After
making the final decision, the appellate authority will give copies of the decision to
the parties involved within 7 days.
 Date of operation of standing orders Section 7 .-Standing orders shall, unless an
appeal is preferred under section 6, come into operation on the expiry of thirty days
from the date on which authenticated copies thereof are sent under sub-section (3) of
 section 5, or where an appeal as aforesaid is preferred, on the expiry of seven days
from the date on which copies of the order of the appellate authority are sent under
sub-section (2) of section 6.
 Register of standing orders  Section 8.-A copy of all standing orders as finally certified
under this Act shall be filed by the Certifying Officer in a register in the prescribed
form maintained for the purpose, and the Certifying Officer shall furnish a copy
thereof to any person applying therefore on payment of the prescribed fee.
 Posting of standing orders  Section 9.-The text of the standing orders as finally
certified under this Act shall be prominently posted by the employer in English and in
the language understood by the majority of his workmen on special boards to be
maintained for the purpose at or near the entrance through 
 Modification of Standing Order: Section 10- A :Certified Standing Order cannot be
changed unless the connected parties agree to do so within six months of the previous
modification or operation of the standing order under Section 7. The parties may also
apply to the Certifying Officer for adjustments to the standing order by annexing five
copies of the proposal or a certified copy of the agreement for revisions, subject to
Section 10(1) and other requirements of this Act.
Case Law: In Indian Express Employees Union v. Indian Express(Madurai) Ltd, 1999 it
was held that if there are 2 trade union one major another minor, then if application
for modification is made by a minority union, the majority union can object to such
modification. Kerala High Court also held that as there is no time limit is given in
Section 19(2) for making modification application so after expiry of 6 month from the
last modification. A modification application can also be made even after a decade.
 Interpretation of Standing Orders : Section 13-A- Any matter pertaining to the
implementation or interpretation of this Act may be brought to the Labour Courts,
which will provide a final and binding ruling on all parties.
o Case Laws: In Messrs Deoria Sugar Mills Ltd. v. Deputy Labour Commissioner
1977 the Allahabad High Court held that under Section 13A it is permissible for
the workmen concerned to produce any evidence which is relevant and related
to workmen concerned and what was its probative value and whether it was
sufficient to rebut the initial presumption in favor of the entry in the provident
fund records
o Legal status of Standing Orders -The full Bench of the Rajasthan High Court in
Bhanwar Lal v. Rajasthan State Road Transport Corporation 1984 was invited
to consider whether clause 13 of the Standing Orders was violative of Article 14
and 16 of Constitution. Lodha J., who delivered the majority judgment, held
that clause 13 had the force of law like any other statutory instrument and was
liable to test trail and scrutiny of the equality under Article 14.
 Delegation of Power: Section 14-A- The relevant Government may delegate its powers
under the Act to a Central or State Government officer or subordinate authority, as
the case may be, subject to the directives set forth in the notification.
Conclusion- The Act is a legislative framework that explicitly defines the employment
relationship between the employer and the workers/trade union. The notion of
 "standing orders," which is amorphous in nature and is a statutorily issued contract
that represents the desire of the parties regulated, is a key innovation of this Act.

Q3.Appeals
Answer:
Introduction: In law, an appeal is the process in which cases are reviewed by a higher
authority, where parties request a formal change to an official decision. Appeals function
both as a process for error correction as well as a process of clarifying and interpreting law.
[1]
 Although appellate courts have existed for thousands of years, common law countries did
not incorporate an affirmative right to appeal into their jurisprudence until the 19th century
Meaning of Appeal: The term appeal means the judicial examination by a higher court of the
decision of an inferior court. Appeal in other word means the removal of a cause from an
inferior court to superior court for purpose of testing the soundness of the decision of inferior
court. An Appeal in legal parlance is held to mean the removal of a cause from an inferior or
subordinate to superior tribunal or forum in order to test and scrutinize the corrections of
impugned decisions.
the Act say about appealing against standing orders
Any employer, worker or trade union aggrieved by a standing order approved by a Certifying
Officer, can appeal to an ‘appellate authority’, which may decide to modify the order.

Certification Process
Submission of Draft Standing Orders: Section 3
 According to section 3(1) of IESOA requires every employer of an “industrial
establishment” to submit draft Standing Orders i.e. , “rules relating to matter set out
in the Schedule” proposed by him for adoption in his industrial establishment.
 It is the liability of the employer to submit individually or jointly five copies of the
Draft Standing Orders within the six months of its applicability to the industrial
establishment.
Section 4 sets out certain condition for certification of Standing Orders which are as follows:
d) Provision is made therein for every matter set out in the schedule which is applicable
to the industrial establishment; and
e) They are otherwise in conformity with the provisions of this Act; and
f) They are fair and reasonable
The draft of standing orders should contain every matter set out in the schedule of the Act
with the additional matter prescribed by the Government as are applicable to the industrial
establishment.
Case Laws:
 Indian Express Employees Union v. Indian Express (Madurai) Ltd. 1998 the Kerala High
Court held: that the framing of the Standing Orders is to be conformity with the
provisions of the Act
 In Rashtriya Chemicals and Fertilizers Ltd. v. General Secretary, FCI Workers Union
1997: the Division Bench of the Bombay High Court held that the word ‘conformity’
means that it should not be inconsistent
Procedure for Certification of Standing Orders (Section 5)
4. On receipt of the draft Standing Order, the Certifying Officer shall forward a
copy to the trade union of the workmen if any, or where there is no such trade
union, to the workmen in such manner as may be prescribed, together with a
notice in the prescribed form requiring objections, if any,which the workmen
may desire to make to the draft standing orders to be submitted to him within
fifteen days from the receipt of the notice.
5. After giving the employer and the trade union or such other representatives of
the workmen as may be prescribed, an opportunity of being heard, the
Certifying Officer shall decide whether or not any modification of or addition
to the draft submitted by the employer is necessary to render the draft
standing orders certifiable under this Act, and shall make an order in writing
accordingly.
6. The Certifying Officer shall thereupon certify the draft standing orders, after
making any modifications therein which his order under sub-section (2) may
require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order under
sub-section (2) to the employer and to the trade union or other prescribed
representatives of the workmen.
Appeals(Section 6)
 Section 6 deals with the provision of appeal against an order passed by the
Certifying officer.
 The section lays down that any employer, workman, Trade Union or other
prescribed representatives of the workman aggrieved by the order of the certifying
officer may, within 30 days from the date on which copies are sent to the parties
concerned, appeal to the Appellate Authority, whose decision shall be final.
The Appellate Authority, shall-
o Confirm or uphold the order appealed against,
o Repeal or reverse the order,
o Modify the order, suitably,
o Add something to the order as he thinks necessary.
 The Appellate Authority, within 7 days from its order, shall send the copies of the
order to the certifying officer, workmen; or Trade union, or the prescribed
representatives of the workmen.
 This order of the Appellate Authority shall be final, and authenticated and shall
come into operation as they are finally certified at appellate stage.
 An Appellate Authority will have power of a Civil Court as mentioned above, i.e.,
taking evidence, compelling the attendance of witnesses, compelling discovery and
production of documents, relevant to the matter concerned. There is no appeal or
revision provided under the Act against the decision of the
 Appellate Authority. In case the Appellate Authority has confirmed the Standing
Orders with modifications, the copies of his order should be accompanied by copies
of the Standing Orders as certified by it.
 Bijli Majdoor Sangh v. Resident Engineer, Allahabad, AIR 1970 All. 589:  The
 Standing Orders cannot be completely cancelled. They can either be Confirmed or
modified
 It may be noted that if any matter or objection is not raised before the labour Court,
or in special leave petition, it cannot be allowed to be raised at the level of appeal
which is pending before the certifying officer.

 Any employer, worker or trade union aggrieved by a standing order approved by a
Certifying Officer, can appeal to an ‘appellate authority’, which may decide to modify
the order.
Conclusion
Appeals function both as a process for error correction as well as a process of clarifying and
interpreting law. The Act is a regulatory regime to formally define the employment relations
between the workmen/trade union and the employer. A very prominent initiative of this Act
is the concept of ‘standing orders’ which is amorphous in nature being a contract
promulgated statutorily, that represent the will of the parties so regulated. Finally, it may be
stated that, though it lays an exemplary notion, it requires thorough reforms in respect of the
present scenario of employment practised by the principal employer so as to fulfil the
Constitutional objective of securing socio-economic justice substantially.

Q4: Certifying Authority

Answer:
Meaning: All the Deputy Labour Commissioners of the field and Joint Labour Commissioner,
Headquaters have been declared as Certifying Officers under the provision of this Act
Definition:
According to Section 2(C): "Certifying Officer "means a Labour Commissioner or a Regional
Labour Commissioner, and includes any other officer appointed by the appropriate
Government, by notification in the Official Gazette, to perform all or any of the functions of a
Certifying Officer under this act.
Appointment of certifying authority
 It is mandatory for every employer covered under the Industrial Employment
(Standing Orders) Act has to get standing orders certified by submitting five draft
copies of the standing orders to the certifying officer such as labour commissioner or a
regional labour commissioner and also includes any other officer appointed to
perform the functions of certifying officer.
 Certifying officer is appointed by the Appropriate governments by notification in the
official Gazette to perform all or any of the functions of Certifying official
 He is the statutory representative of the society.
Section 11: Certifying Officers to have powers of Civil Court 
1. Every Certifying Officer and appellate authority shall have all the powers of a Civil
Court for the purposes of receiving evidence, administering oaths, enforcing the
attendance of witnesses, and compelling the discovery and production of documents,
and shall be deemed to be a Civil Court within the meaning of [sections 345 and 346
of the Code of Criminal Procedure, 1973 (2 of 1974)].
 2. Clerical or arithmetical mistakes in any order passed by a Certifying Officer or
appellate authority, or errors arising therein from any accidental slip or omission may,
at any time, be corrected by that Officer or authority or the successor in office of such
Officer or authority, as the case may be.
Case Laws:
 Associated Industries v. B. B. Singh, AIR 1972: Compelling the discovery and
production of documents. They shall be deemed to be a Civil Court within the meaning
of Sections 345 and 346 of the Code of Criminal Procedure, 1973. But this
power will not convert the certifying officer and the Appellate Authority
into a Court.
 N.G.E.F. Ltd. v. Tribunal. AIR 1970 Mysore 249: they have power to correct clerical or
arithmetical mistakes in any order passed by them. Errors or lapse may arise from any
accidental slip, or omission, and they may be corrected. For this the
employer may draw the attention by an application. For example, error regarding the
leave who shall grant it and for how many days. But correction cannot be made in
such way which is likely to change the decision wholly, or substantially proving
detrimental to any party
Other Powers
 To get the draft ‘standing orders’ from the employer.
 To get the additional document if requires.
 The Certifying Officer will be empowered to modify or add to the draft standing orders
so as to render them certifiable under the Act.

Duties:
1. The function] of the Certifying Officer or appellate authority to adjudicate upon the
fairness or reasonableness of the provisions of any standing orders
Case Laws:
o Indian Oil Corporation Ltd. v. Joint Chief Labour Commissioner, (1990) 76
FJR 93 (Del): A duty is cast on the Certifying Officer to see that the draft
standing orders or the modification thereof not only should conform with
the Model Standing Orders but also he has to see to adjudicate whether
the same is reasonable or fair;
2. On receipt of the draft under section 3, the Certifying Officer shall forward a copy
thereof to the trade union, if any, of the workmen, or where there is no such trade
union, to the workmen in such manner as may be prescribed, together with a notice in
the prescribed form requiring objections, if any
3. The Certifying Officer shall decide whether or not any modification of or addition to
the draft submitted by the employer is necessary to render the draft standing orders
certifiable under this Act, and shall make an order in writing accordingly
4. The Certifying Officer shall thereupon certify the draft standing orders, after making
any modifications therein which his order under section 5(2) may require
5. A copy of all standing orders as finally certified under this Act shall be filed by the
Certifying Officer in a register in the prescribed form maintained for the purpose, and
 the Certifying Officer shall furnish a copy thereof to any person applying therefore on
payment of the prescribed fee.
Conclusion: Certifying officer is appointed by the Appropriate governments by notification in
the official Gazette to perform all or any of the functions of Certifying official He is the
statutory representative of the society. The Certifying Officer will be empowered to modify or
add to the draft standing orders so as to render them certifiable under the Act. The function]
of the Certifying Officer or appellate authority to adjudicate upon the fairness or
reasonableness of the provisions of any standing orders