UNIT – IV - Legal Recognition:

- A registered trade union is considered a legal entity, distinct

FEATURES OF Trade Union Act, 1926 from its members.

The Trade Union Act, 1926, is a crucial piece of legislation in
India that governs the formation, registration, and functioning
of trade unions. The primary objective of the Act is to provide
legal recognition to trade unions and to regulate their activities
to ensure fair labor practices and industrial peace. Here's an
overview of the key aspects of the Trade Union Act:
1. Formation and Registration:
- Right to Sue and be Sued:
- A registered trade union has the right to sue and be sued in
its registered name.
- Immunity from Certain Acts:
- Office bearers and members of registered trade unions enjoy
immunity from certain forms of legal actions when acting in
contemplation or furtherance of a trade dispute.

- Definition of Trade Union: 4. Privileges and Immunities:

- The Act provides a comprehensive definition of a trade union,
encompassing associations formed to regulate relations between
workmen and employers or between workmen and workmen.
- Registration Process:
- Trade unions seeking legal recognition and privileges must
undergo a registration process outlined in the Act.
2. Eligibility and Conditions:
- Collective Bargaining:
- Trade unions, once registered, can engage in collective
bargaining on behalf of their members with employers.
- Political Activities:
- Registered trade unions are allowed to engage in political
activities, including establishing and maintaining a political
fund.

- Membership Criteria: 5. Cancellation and Re-Registration:

- A trade union must consist of seven or more members who
are workmen. - Cancellation of Registration:
- The Registrar of Trade Unions can cancel the registration of a
- Conditions for Registration: trade union under specific grounds.
- Trade unions must fulfill specific conditions, including having
a minimum membership, existence for a certain period, and - Re-Registration:
compliance with rules regarding internal democracy. - Trade unions canceled may apply for re-registration under
certain conditions.
3. Rights and Liabilities:

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6. Funds and Financial Management:
1. Definition of Trade Union:
- Sources of Funds:
- Feature:
- Trade unions can raise funds through subscriptions,
- The Act provides a comprehensive definition of a trade union,
contributions, donations, and entrance fees.
stating that it is an organization or combination of workmen
formed primarily for the purpose of regulating the relations
- Audit and Investment:
between workmen and employers or between workmen and
- The Act mandates the audit of accounts and allows for the
workmen.
investment of funds in specified modes.

2. Registration of Trade Unions:

7. Legal Framework for Industrial Relations:

- Feature:
- Industrial Disputes:
- One of the primary features is the provision for the
- The Act plays a role in the resolution and prevention of
registration of trade unions. A trade union must register under
industrial disputes by providing a recognized structure for
the Act to attain legal recognition and certain privileges.
representing the interests of workers.

- Rationale:
Conclusion:
- Registration provides a formal acknowledgment of the
existence of the trade union and grants it legal status. It also
OVERVIEW OF The Trade Union Act, 1926
facilitates the protection of the rights and privileges conferred
by the Act.
The Trade Union Act, 1926, serves as a comprehensive
framework for the organization and functioning of trade unions
3. Conditions for Registration:
in India. By establishing legal recognition, rights, and
responsibilities, the Act contributes to the maintenance of
- Feature:
industrial peace, the protection of workers' interests, and the
- The Act specifies certain conditions that trade unions must
promotion of fair labor practices within the country. It forms a
fulfill to be eligible for registration. These conditions include
cornerstone of the legal infrastructure that governs industrial
having a minimum membership, existence for a specific period,
relations in India.
and compliance with rules regarding internal democracy.
The Trade Union Act, 1926, is a significant piece of legislation
- Rationale:
in India that governs the registration, rights, and liabilities of
- The conditions aim to ensure that registered trade unions are
trade unions. Here are the key features of the Trade Union Act,
genuine representatives of the interests of the workers and
1926:
maintain democratic structures within their organizations.

2

4. Rights and Liabilities of Registered Trade Unions:
- Feature:
- Registered trade unions enjoy certain rights and protections
under the Act, such as the right to hold and dispose of property,
the right to sue and be sued, and the immunity from certain
forms of civil and criminal liability.
- Rationale:
- Granting rights and immunities to registered trade unions
encourages the formation of organized bodies to represent
workers and engage in collective bargaining without facing
undue legal hindrances.
5. Immunity from Civil and Criminal Liability:
- Feature:
- The Act provides immunity to registered trade unions and
their members from certain civil and criminal liabilities arising
from actions taken in furtherance of trade disputes.
- Rationale:
- This immunity protects trade unions and their members from
legal consequences when engaging in legitimate trade disputes,
fostering the ability of unions to negotiate and advocate for
workers' interests.
6. Amalgamation and Dissolution:
- Feature:
- The Act outlines provisions for the amalgamation of trade
unions and the circumstances under which a trade union may be
dissolved.
- Rationale:
- These provisions provide a legal framework for restructuring
and organizational changes within trade unions while ensuring
that such processes adhere to established norms.
7. Political Fund:
- Feature:
- The Act allows registered trade unions to establish and
maintain a political fund, subject to certain conditions and
limitations.
- Rationale:
- This provision acknowledges the right of trade unions to
engage in political activities and contribute to political funds
within specified constraints.
8. Penalties:
- Feature:
- The Act includes provisions for penalties in case of certain
offenses, such as obtaining registration by fraudulent means or
willfully supplying false information.
- Rationale:
- Penalties serve as a deterrent against fraudulent practices and
violations of the Act, maintaining the integrity of the
registration process and the functioning of trade unions.
Conclusion:
The Trade Union Act, 1926, plays a crucial role in regulating the
activities of trade unions in India. Its features aim to provide
legal recognition to trade unions, protect their rights, and
ensure that their operations align with democratic principles
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and legal standards. The Act serves as a cornerstone for the
organized representation of workers and the promotion of
harmonious industrial relations.
IMPORTANT DEFINITIONS:
1. Trade Union (Section 2(h)):
- Definition:
- A trade union, as per Section 2(h) of the Act, is defined as any
combination or association of persons—
- (i) Whether temporary or permanent,
- (ii) Primarily for the purpose of regulating the relations
between workmen and employers, or
- (iii) Between workmen and workmen, or
- (iv) Between employers and employers, or
- (v) For imposing restrictive conditions on the conduct of any
trade or business, and includes the federation of two or more
trade unions.
- Significance:
- This definition encompasses a broad scope, including both
temporary and permanent associations formed to regulate
relations within the workforce, between different workmen, or
between employers and employees. It acknowledges the
diversity of purposes for which trade unions may be formed.
2. Workman (Section 2(s)):
- Definition:
- Section 2(s) defines a workman as any person employed in
trade or industry, whether skilled or unskilled, manual or
clerical, and includes an employed person who has been
dismissed, discharged, or retrenched in connection with or as a
consequence of any dispute.
- Significance:
- This definition provides a comprehensive coverage of
individuals engaged in various capacities within trade or
industry. It includes both manual and clerical workers and
acknowledges the protection of individuals affected by disputes
leading to dismissal, discharge, or retrenchment.
3. Trade Dispute (Section 2(q)):
- Definition:
- A trade dispute, under Section 2(q), includes any dispute
between employers and workmen, or between workmen and
workmen, or between employers and employers, which is
connected with the employment or non-employment, or the
terms of employment, or with the conditions of labor, of any
person.
- Significance:
- This definition establishes the scope of trade disputes,
encompassing conflicts related to employment status, terms of
employment, and conditions of labor. It recognizes that disputes
can arise between different parties within the industrial
framework.
4. Registered Trade Union (Section 2(l)):
- Definition:
- A registered trade union, as per Section 2(l), means a trade
union registered under the Act.
- Significance:
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 - This definition is straightforward, indicating that a registered
trade union is one that has completed the registration process
as outlined in the Act, thereby enjoying the legal recognition and
rights conferred by the legislation.
5. Appropriate Government (Section 2(a)):
- Definition:
- Appropriate Government, under Section 2(a), means, in
relation to any trade union or class of trade unions, the Central
Government in the case of trade unions whose objects extend
beyond one state, and the State Government in the case of other
trade unions.
- Significance:
- This definition designates the authority responsible for
dealing with matters related to trade unions. The distinction
between the Central Government and State Government is based
on whether the trade union operates beyond one state.
Conclusion:
The important definitions in The Trade Union Act, 1926, lay the
foundation for the understanding and application of the
legislation. These definitions provide clarity on the entities
covered by the Act, the types of disputes addressed, and the
status of trade unions based on their registration status. They
form the basis for the legal framework that governs the
functioning of trade unions in India.
REGISTRATION PROCESS OF TRADE UNIONS
The registration of trade unions under The Trade Union Act,
1926, is a crucial process that confers legal recognition and
certain privileges upon trade unions in India. Here's an overview
of the registration process:
1. Eligibility for Registration:
- Conditions:
- To be eligible for registration, a trade union must consist of
seven or more members who are workmen (as defined by the
Act).
- The members should pay a nominal entrance fee and regular
subscriptions.
- Exclusivity:
- Trade unions seeking registration must be formed for the
primary purpose of regulating the relations between workmen
and employers or between workmen and workmen.
2. Application for Registration:
- Submission:
- The application for registration must be made to the Registrar
of Trade Unions appointed for the relevant territory.
- Content:
- The application should include the name, address, and
objectives of the trade union.
- It should also include the names, occupations, and addresses
of the office bearers of the trade union.
- Accompanying Documents:
- The application must be accompanied by a copy of the rules
of the trade union and a statement of the assets and liabilities
of the trade union.
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3. Scrutiny by the Registrar: - Office bearers and members of registered trade unions enjoy
immunity from certain forms of legal actions when acting in
contemplation or furtherance of a trade dispute.
- Verification:
- The Registrar scrutinizes the application to ensure it
6. Change in Rules or Office Bearers:
complies with the requirements of the Act.

- Intimation to Registrar:
- Verification of Documents:
- A registered trade union must inform the Registrar about any
- The Registrar verifies the correctness of the rules and the
change in its name, address, office bearers, or rules within a
details provided in the application.
prescribed period.
4. Decision on Registration:
7. Cancellation of Registration:
- Approval or Rejection:
- Grounds:
- If the Registrar is satisfied with the application, the trade
- The Registrar has the authority to cancel the registration of
union is registered, and a certificate of registration is issued.
a trade union on grounds such as a merger with another union
- If there are deficiencies or non-compliance with the Act, the
or the union ceasing to exist.
Registrar may reject the application.

- Appeal:
- Appeal:
- The cancellation can be appealed to the appropriate
- In case of rejection, an appeal can be made to the appropriate
government.
government within a prescribed period.

Conclusion:
5. Privileges of Registration:

The registration of trade unions under The Trade Union Act,

- Legal Recognition:
1926, is a significant step that grants legal recognition and
- A registered trade union is considered a legal entity, distinct
provides certain privileges to trade unions. It ensures that
from its members.
unions comply with specific criteria, contributing to the
organized and regulated functioning of trade unions in India.
- Right to Sue and be Sued:
The process also establishes a formal framework for dispute
- A registered trade union has the right to sue and be sued in
resolution and collective bargaining between workers and
its registered name.
employers.
- Immunity from Certain Acts:

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AMALGAMATION OF TRADE UNIONS
The amalgamation of trade unions under The Trade Union Act,
1926, refers to the process of combining two or more trade
unions into a single union. This process is regulated by the Act,
and here is an overview of the amalgamation provisions:
1. Conditions for Amalgamation:
- Consent of Members:
- Amalgamation requires the consent of the majority of the
members of each of the trade unions involved in the process.
- Notice to Registrar:
- A notice of the intended amalgamation, along with a copy of
the resolution passed by the members, must be sent to the
Registrar of Trade Unions.
2. Application to Registrar:
- Joint Application:
- The trade unions involved in the amalgamation must make a
joint application to the Registrar for the amalgamation of their
unions.
- Accompanying Documents:
- The application should be accompanied by a copy of the
resolution of the general meeting of the members of each trade
union approving the amalgamation.
3. Registrar's Approval:
- Examination of Documents:
- The Registrar examines the documents submitted and ensures
that the conditions for amalgamation, including the consent of
the majority of members, have been met.
- Certificate of Amalgamation:
- If satisfied, the Registrar issues a certificate of amalgamation,
declaring the trade unions as amalgamated into a single union.
4. Effect of Amalgamation:
- Single Entity:
- Upon the issuance of the certificate of amalgamation, the
amalgamated trade union becomes a single entity, and the
original trade unions cease to exist independently.
- Rights and Liabilities:
- The rights and liabilities of the original trade unions are
transferred to the amalgamated union.
5. Cancellation of Registration of Original Unions:
- Registrar's Action:
- The Registrar may cancel the registration of the original trade
unions involved in the amalgamation.
- Notification:
- The cancellation of registration is notified in the official
gazette.
6. Transfer of Funds:
- Disposition of Funds:
- The funds and properties of the original trade unions are
transferred to the amalgamated union.
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7. Effect on Pending Proceedings:
- Continuation or Disposal:
- Any legal proceedings or disputes involving the original trade
unions may be continued or disposed of by or against the
amalgamated union.
Conclusion:
The amalgamation process outlined in The Trade Union Act,
1926, provides a structured mechanism for trade unions to
merge into a single entity with the consent of their members.
This process aims to facilitate the consolidation of trade unions,
streamlining their operations and enhancing their collective
bargaining strength. The issuance of a certificate of
amalgamation by the Registrar formalizes the amalgamated
union's status and triggers the transfer of rights, liabilities,
funds, and properties from the original unions to the newly
formed entity.
CANCELLATION AND RE-REGISTRATION OF TRADE UNIONS
1. Cancellation of Registration:
# Grounds for Cancellation (Section 10):
The Registrar of Trade Unions is empowered to cancel the
registration of a trade union based on specific grounds:
- Ceasing to Exist:
- If the trade union ceases to exist, the Registrar may cancel
its registration.
- Contravention of Act:
- The Registrar may cancel registration if satisfied that the
trade union has willfully and without reasonable excuse
contravened any provisions of The Trade Union Act, 1926.
# Notice to Show Cause (Section 11):
- Before canceling registration, the Registrar must provide
notice to the trade union, informing it of the intention to cancel
registration, and affording the union an opportunity to show
cause.
# Appeal against Cancellation (Section 11A):
- The trade union has the right to appeal to the appropriate
government against the cancellation of its registration within a
specified period.
2. Effect of Cancellation (Section 13):
- Corporate Existence Ceases:
- Upon cancellation, the trade union ceases to be a body
corporate.
- Vesting of Property:
- All property of the trade union becomes vested in the
members of the trade union on behalf of whom the property was
held.
# Disposal of Funds and Property (Section 15):
- After cancellation, the funds and properties of the trade union
may be disposed of in accordance with the rules of the trade
union.
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3. Re-Registration of Trade Unions (Section 8):
# Application for Re-Registration:
- If a trade union is canceled, its members may apply for re-
registration within a specified period from the date of
cancellation.
# Procedure for Re-Registration (Section 9):
- The application for re-registration must be made in the
prescribed manner and accompanied by a copy of the rules of
the trade union as altered up to the date of the application.
- The conditions for re-registration include compliance with the
provisions of The Trade Union Act, 1926, and submission of
necessary documents.
# Effect of Re-Registration (Section 9(4) and 9(5)):
- Resumption of Corporate Existence:
- Upon re-registration, the trade union resumes its corporate
existence and becomes entitled to all rights and privileges as if
it had not been canceled.
- Transfer of Property:
- Any property vested in the members of the trade union by
virtue of the cancellation becomes revested in the trade union
upon re-registration.
Conclusion:
The cancellation and re-registration provisions in The Trade
Union Act, 1926, establish a regulatory framework for the
existence and functioning of trade unions. Cancellation is a
consequence of specific grounds, and the process ensures
fairness by providing the union with an opportunity to show
cause and appeal. Re-registration, on the other hand, allows a
trade union to regain its legal status, resume corporate
existence, and reclaim vested property after complying with the
requisite conditions. These mechanisms contribute to the
accountability, transparency, and stability of trade unions in the
context of industrial relations in India.
AMALGAMATION OF TRADE UNIONS
The amalgamation of trade unions under The Trade Union Act,
1926, refers to the process of combining two or more trade
unions into a single union. This process is regulated by the Act,
and here is an overview of the amalgamation provisions:
1. Conditions for Amalgamation:
- Consent of Members:
- Amalgamation requires the consent of the majority of the
members of each of the trade unions involved in the process.
- Notice to Registrar:
- A notice of the intended amalgamation, along with a copy of
the resolution passed by the members, must be sent to the
Registrar of Trade Unions.
2. Application to Registrar:
- Joint Application:
- The trade unions involved in the amalgamation must make a
joint application to the Registrar for the amalgamation of their
unions.
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- Accompanying Documents:
- The application should be accompanied by a copy of the
resolution of the general meeting of the members of each trade
union approving the amalgamation.
3. Registrar's Approval:
- Examination of Documents:
- The Registrar examines the documents submitted and ensures
that the conditions for amalgamation, including the consent of
the majority of members, have been met.
- Certificate of Amalgamation:
- If satisfied, the Registrar issues a certificate of amalgamation,
declaring the trade unions as amalgamated into a single union.
4. Effect of Amalgamation:
- Single Entity:
- Upon the issuance of the certificate of amalgamation, the
amalgamated trade union becomes a single entity, and the
original trade unions cease to exist independently.
- Rights and Liabilities:
- The rights and liabilities of the original trade unions are
transferred to the amalgamated union.
5. Cancellation of Registration of Original Unions:
- Registrar's Action:
- The Registrar may cancel the registration of the original trade
unions involved in the amalgamation.
- Notification:
- The cancellation of registration is notified in the official
gazette.
6. Transfer of Funds:
- Disposition of Funds:
- The funds and properties of the original trade unions are
transferred to the amalgamated union.
7. Effect on Pending Proceedings:
- Continuation or Disposal:
- Any legal proceedings or disputes involving the original trade
unions may be continued or disposed of by or against the
amalgamated union.
Conclusion:
The amalgamation process outlined in The Trade Union Act,
1926, provides a structured mechanism for trade unions to
merge into a single entity with the consent of their members.
This process aims to facilitate the consolidation of trade unions,
streamlining their operations and enhancing their collective
bargaining strength. The issuance of a certificate of
amalgamation by the Registrar formalizes the amalgamated
union's status and triggers the transfer of rights, liabilities,
funds, and properties from the original unions to the newly
formed entity.
THE PROVISIONS RELATED TO THE FUNDS OF TRADE UNIONS
UNDER THE TRADE UNION ACT, 1926
The provisions related to the funds of trade unions under The
Trade Union Act, 1926, outline the financial aspects and
10
management of funds within a registered trade union. Here is an
in-depth look at the relevant sections and details:
1. Sources of Funds (Section 15):
- Subscriptions and Contributions:
- The primary source of funds for a trade union comes from the
subscriptions and contributions paid by its members.
- Donations and Gifts:
- Trade unions are permitted to receive donations and gifts
from individuals or organizations.
- Entrance Fees:
- Entrance fees paid by new members joining the trade union
contribute to its funds.
- Fines:
- Any fines imposed on members as per the rules of the trade
union form part of its funds.
- Investment Income:
- Trade unions may earn income through investments made
from their funds.
2. Application of Funds (Section 15):
- Objectives of Trade Union:
- The funds of a trade union are to be applied towards the
fulfillment of the objectives specified in its constitution.
- Permissible Uses:
- Funds can be utilized for the payment of salaries, allowances,
and expenses to the officers and members of the trade union.
- They can also be applied for the payment of expenses for the
administration of the trade union, including legal expenses.
3. Audit of Accounts (Section 16):
- Appointment of Auditor:
- A registered trade union is required to appoint an auditor or
auditors to audit its accounts at least once a year.
- Submission of Audit Report:
- The audited accounts, along with the auditor's report, are to
be submitted to the Registrar within a specified period after the
end of the financial year.
4. Investment of Funds (Section 13A):
- Investment Powers:
- A registered trade union is empowered to invest its funds in
any of the modes specified in Section 13A, which includes
specified securities, fixed deposits in a scheduled bank, or any
other mode approved by the appropriate government.
5. Penalties for Misapplication of Funds (Section 16A):
- Offense:
- Misapplication of the funds of a trade union, or any willful
destruction, mutilation, or falsification of any account or record,
is considered an offense.
- Penalties:
- Individuals found guilty of such offenses may face penalties,
including fines or imprisonment.
11
Conclusion:
The provisions related to the funds of trade unions in The Trade
Union Act, 1926, ensure transparency, accountability, and
proper management of financial resources. By outlining
permissible sources of funds, specifying the objectives for which
funds can be utilized, and requiring the audit of accounts, the
Act aims to safeguard the financial integrity of trade unions.
Additionally, the ability to invest funds wisely and penalties for
misapplication serve to protect the interests of the members and
maintain the credibility of trade unions within the regulatory
framework.
THE EMPLOYEES' STATE INSURANCE ACT, 1948
The Employees' State Insurance Act, 1948, is a significant piece
of social welfare legislation in India that was enacted to provide
social security and health insurance benefits to employees in
certain employment categories. The Act aims to protect
employees and their dependents from the financial
consequences of sickness, maternity, disablement, and death
due to employment-related injuries. Here's an overview of the
key aspects of The Employees' State Insurance Act, 1948:
1. Objective and Purpose:
- Social Security:
- The primary objective of the Act is to provide comprehensive
social security benefits to employees in specific employment
sectors, ensuring their well-being and financial security during
periods of illness, disablement, maternity, and other
contingencies.
2. Applicability:
- Covered Employees:
- The Act applies to employees working in factories, certain
establishments, and specified categories of employment, subject
to certain wage and employment conditions.
3. Contribution and Financing:
- Employee-Employer Contribution:
- The financing of the scheme involves contributions from both
employers and employees, and the contributions are made as a
percentage of the employee's wages.
- Funds Utilization:
- The funds collected are utilized to provide various social
security benefits outlined in the Act.
4. Benefits Provided:
- Medical Benefits:
- Employees covered under the scheme are entitled to medical
benefits, including outpatient and inpatient treatment,
maternity care, and specialist services.
- Sickness Benefit:
- Sickness benefits are provided to employees during the
periods of certified sickness, offering financial assistance during
incapacitation.
- Maternity Benefit:
- Female employees are entitled to maternity benefits,
including paid leave and medical benefits during pregnancy and
childbirth.
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- Disablement Benefits:
- Permanent and temporary disablement benefits are provided
to employees who suffer employment-related injuries, leading to
partial or total disability.
- Dependent Benefits:
- In the event of an employee's death due to employment-
related injuries, dependent benefits are provided to the
surviving family members.
5. Administration and Management:
- Employees' State Insurance Corporation (ESIC):
- The Act establishes the Employees' State Insurance
Corporation, a statutory body responsible for the administration
and implementation of the ESI scheme.
- ESIC Hospitals and Dispensaries:
- The ESIC operates a network of hospitals, dispensaries, and
medical facilities to provide healthcare services to covered
employees.
6. Compliance and Penalties:
- Obligations of Employers:
- Employers are obligated to register their establishments,
maintain records, and comply with the provisions of the Act.
- Penalties for Non-Compliance:
- The Act prescribes penalties for non-compliance, including
fines and legal consequences for employers failing to adhere to
the statutory requirements.
7. Revision and Amendments:
- Updates and Amendments:
- The Act has undergone revisions and amendments over the
years to adapt to changing economic and social conditions,
ensuring its continued relevance.
Conclusion:
The Employees' State Insurance Act, 1948, represents a crucial
social welfare measure aimed at providing a safety net for
employees in specific employment sectors. By offering
comprehensive health and social security benefits, the Act
contributes to the well-being of workers and their families,
promoting a more equitable and secure working environment in
India.
OBJECTIVES OF THE EMPLOYEES' STATE INSURANCE ACT,
1948
The primary objective of The Employees' State Insurance Act,
1948, is to provide social security and health insurance coverage
to industrial and certain categories of non-industrial employees
in India. The Act aims to safeguard the interests of workers and
their dependents by offering financial protection during periods
of sickness, maternity, disablement, and death due to
employment-related injuries. Here's a detailed look at the key
objectives of the Act:
1. Social Security:
- Protection of Employees:
- The Act is designed to protect employees and their
dependents against the economic consequences of various
contingencies, such as sickness, maternity, disablement, and
death arising out of employment-related injuries.
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- Financial Assistance:
- It provides financial assistance and medical benefits to
covered employees, ensuring a safety net during times of need.
2. Healthcare Coverage:
- Medical Facilities:
- The Act establishes a comprehensive healthcare system,
providing employees with access to medical facilities, including
outpatient and inpatient services, specialist consultations, and
maternity care.
- ESIC Hospitals and Dispensaries:
- The Act facilitates the establishment and maintenance of
hospitals, dispensaries, and other medical infrastructure by the
Employees' State Insurance Corporation (ESIC).
3. Welfare Measures:
- Sickness Benefit:
- To address sickness, the Act provides sickness benefits,
offering financial support to employees during periods of
certified illness, ensuring they can recuperate without facing
financial hardship.
- Maternity Benefit:
- Maternity benefits are provided to female employees,
encompassing paid leave and medical benefits during pregnancy
and childbirth.
- Disablement Benefits:
- In the event of employment-related injuries leading to
disablement, the Act ensures that employees receive
appropriate benefits, both temporary and permanent, to
mitigate the financial impact of disability.
4. Dependent Benefits:
- Financial Support to Dependents:
- In the unfortunate event of an employee's death due to
employment-related injuries, the Act extends dependent
benefits to the surviving family members, ensuring financial
support and security.
5. Prevention of Employment-Related Health Risks:
- Safety and Welfare Measures:
- The Act promotes the implementation of safety and welfare
measures in workplaces to prevent employment-related health
risks and accidents.
6. Statutory Framework for Administration:
- Establishment of ESIC:
- The Act establishes the Employees' State Insurance
Corporation (ESIC) as the apex body responsible for the
administration and implementation of the ESI scheme.
- Role of ESIC:
- ESIC is tasked with managing funds, providing medical
services, and ensuring compliance with the Act's provisions.
7. Promotion of Social Welfare:
- Equitable Work Environment:
- By providing comprehensive social security and healthcare
benefits, the Act aims to contribute to the creation of a more
equitable and humane work environment.
14
Conclusion:
The Employees' State Insurance Act, 1948, stands as a pivotal
piece of legislation designed to address the social security and
healthcare needs of industrial and certain non-industrial
employees. Through its various provisions, the Act strives to
provide financial protection, promote the well-being of workers,
and establish a framework for equitable labor practices in India.
DEFINITIONS UNDER THE EMPLOYEES' STATE INSURANCE
ACT, 1948
The Employees' State Insurance Act, 1948, provides specific
definitions for various terms used in the Act. These definitions
clarify the scope, applicability, and meaning of key terms
relevant to the administration and implementation of the
Employees' State Insurance (ESI) scheme. Here are some
important definitions from the Act:
1. Appropriate Government (Section 2(6)):
- The term "Appropriate Government" refers to the central or
state government, depending on the context, to which the power
or function in question is assigned under the Act.
2. Contribution (Section 2(7)):
- "Contribution" means the amount payable by the employer
and employee under the ESI scheme.
3. Dependent (Section 2(8)):
- "Dependent" includes a spouse, legitimate or adopted
children, and certain other family members, as specified in the
Act, who are dependent on the insured person.
4. Employee (Section 2(9)):
- "Employee" refers to any person employed for wages or
otherwise in connection with the work of a factory or
establishment covered under the Act.
5. Employer (Section 2(10)):
- "Employer" includes any person or entity who employs
employees and is responsible for the direct or indirect payment
of wages.
6. Employment Injury (Section 2(8A)):
- "Employment injury" means a personal injury caused by an
accident or occupational disease arising out of and in the course
of employment.
7. Establishment (Section 2(12)):
- "Establishment" includes a factory, a specific group of
establishments, and other entities or premises as defined in the
Act.
8. Factory (Section 2(13)):
- "Factory" has the meaning assigned to it in the Factories Act,
1948.
9. Immediate Employer (Section 2(14)):
- "Immediate employer" refers to the person or entity directly
responsible for the supervision and control of employees in the
establishment.
10. Insured Person (Section 2(19)):
- "Insured person" is an employee who is covered under the ESI
scheme and for whom contributions are payable.
11. Medical Benefit (Section 2(21)):
- "Medical benefit" includes medical attendance, treatment,
hospitalization, and other services as specified in the Act.
15
 12. Parental Benefit (Section 2(22)):
- "Parental benefit" is a benefit payable to an insured woman
for a certain period during confinement and miscarriage.
13. Prescribed (Section 2(22A)):
- "Prescribed" means prescribed by regulations made under the
Act.
14. Principal Employer (Section 2(24)):
- "Principal employer" is a person responsible for the overall
control and management of the establishment.
15. Seasonal Factory (Section 2(29A)):
- "Seasonal factory" refers to a factory that is exclusively
engaged in specified seasonal manufacturing processes.
16. Wages (Section 2(22)):
- "Wages" include all remuneration paid or payable in cash to
an employee, subject to certain exclusions mentioned in the Act.
These definitions play a crucial role in interpreting the
provisions of the Employees' State Insurance Act, 1948, and in
determining the rights, obligations, and entitlements of various
stakeholders under the ESI scheme.
THE EMPLOYEES' STATE INSURANCE CORPORATION (ESIC)
The Employees' State Insurance Corporation (ESIC) is a pivotal
institution established under The Employees' State Insurance
Act, 1948. The ESIC plays a central role in the administration
and implementation of the Employees' State Insurance (ESI)
scheme, which provides social security and health insurance
benefits to employees in specific sectors. Here are key details
about the ESIC:
1. Establishment and Composition:
- Statutory Body:
- The ESIC is a statutory body established by the Central
Government under the provisions of The Employees' State
Insurance Act, 1948.
- Composition:
- The ESIC is composed of representatives of the Central
Government, State Governments, employers, employees, and
medical professionals.
2. Responsibilities and Functions:
- Administration of ESI Scheme:
- The primary function of the ESIC is the administration and
management of the ESI scheme, which includes providing social
security and healthcare benefits to covered employees.
- Setting Up Hospitals and Dispensaries:
- The ESIC is responsible for establishing and maintaining
hospitals, dispensaries, and other medical facilities to provide
medical services to insured persons.
- Collection and Utilization of Contributions:
- The ESIC collects contributions from employers and
employees and manages the funds to finance the various
benefits provided under the ESI scheme.
- Coordination with State Governments:
- The ESIC coordinates with State Governments for the
effective implementation of the ESI scheme, especially in
matters related to the establishment and functioning of medical
facilities.
16
 - The ESIC may constitute advisory committees for specific
3. Governing Body: purposes, such as medical benefit councils, to provide expert
advice on matters related to the ESI scheme.
- Central Board:
- The highest policymaking body of the ESIC is the Central 7. Cooperation with State Governments:
Board, which is responsible for formulating policies, reviewing
the financial position, and overseeing the overall functioning of - Coordination:
the ESIC. - The ESIC collaborates with State Governments to ensure
effective coordination and implementation of the ESI scheme,
4. Finances: particularly in matters related to medical services.

- Funding:
- The ESIC is funded through contributions from employers and
employees, and the funds are utilized for providing medical care
and cash benefits to insured persons.
- Audit and Accounts:
- The ESIC's accounts are audited regularly, and audited reports
are submitted to the appropriate government.
5. Regional and Local Offices:
Conclusion:
The Employees' State Insurance Corporation (ESIC) is a vital
institution responsible for the successful administration of the
Employees' State Insurance (ESI) scheme. By overseeing the
collection and utilization of contributions, establishing medical
facilities, and coordinating with various stakeholders, the ESIC
plays a crucial role in providing social security and healthcare
benefits to covered employees, contributing to the overall well-
being of the workforce in specific sectors.

- Regional and Local Offices:

- The ESIC operates through regional and local offices across
the country to facilitate the implementation of the ESI scheme
at the grassroots level.
- Inspection and Compliance:
- These offices are involved in the inspection of establishments,
ensuring compliance with the Act, and resolving disputes related
to coverage and benefits.
THE EMPLOYEES' STATE INSURANCE (ESI) FUNDS UNDER THE
EMPLOYEES' STATE INSURANCE ACT, 1948
The Employees' State Insurance (ESI) Funds under The
Employees' State Insurance Act, 1948, constitute a critical
financial mechanism to support the provision of social security
and healthcare benefits to covered employees. Here's an
overview of the ESI funds and their functioning:

6. Advisory Committees:

- Advisory Committees:

17
1. Contribution to ESI Funds:
- Employer and Employee Contributions:
- Employers and employees covered under the ESI scheme
make regular contributions to the ESI funds. These
contributions are calculated as a percentage of the employee's
wages, with the employer contributing a certain percentage, and
the employee contributing a smaller percentage.
- Utilization of Contributions:
- The funds collected through contributions are utilized to
finance the various benefits provided under the ESI scheme,
including medical care, sickness benefits, maternity benefits,
disablement benefits, and dependent benefits.
2. Utilization of ESI Funds:
- Medical Facilities:
- A significant portion of the ESI funds is allocated to the
establishment and maintenance of hospitals, dispensaries, and
other medical facilities. These facilities provide healthcare
services to insured persons and their dependents.
- Cash Benefits:
- The funds are utilized to disburse cash benefits, such as
sickness benefits during periods of certified illness, maternity
benefits for female employees, and disablement benefits for
work-related injuries.
- Administrative Expenses:
- Some portion of the funds is allocated to meet the
administrative expenses of the Employees' State Insurance
Corporation (ESIC), which is responsible for overseeing the ESI
scheme.
3. Investment of ESI Funds:
- Investment Powers:
- The ESIC has the authority to invest the ESI funds in various
financial instruments and avenues to generate returns. This
includes investments in government securities, fixed deposits,
and other approved instruments.
- Prudent Management:
- The management of ESI funds involves making prudent
investment decisions to ensure the long-term sustainability of
the scheme and to meet the financial requirements for providing
benefits to insured persons.
4. Audit and Accounts:
- Audit of ESI Funds:
- The accounts of the ESI funds are subjected to regular audits.
Audited reports are prepared and submitted to the appropriate
government, ensuring transparency and accountability in the
management of funds.
5. Financial Stability:
- Sustainability of the Scheme:
- The financial stability of the ESI scheme relies on the
effective management and utilization of the ESI funds. Adequate
funds are essential to ensure the uninterrupted provision of
benefits and services to covered employees.
6. Periodic Review:
18
- Review of Finances:
- The ESIC periodically reviews the financial position of the ESI
funds to assess the adequacy of contributions, investment
returns, and the overall financial health of the scheme.
Conclusion:
The ESI funds are the financial backbone of the Employees' State
Insurance scheme, providing the necessary resources to offer
social security and healthcare benefits to covered employees.
The effective collection, utilization, and management of these
funds are crucial for the sustainability and success of the ESI
scheme in fulfilling its objectives of promoting the welfare of the
workforce in specific sectors.
BENEFITS UNDER THE ESI ACT:
The Employees' State Insurance (ESI) Act, 1948, outlines a range
of benefits designed to provide social security and healthcare
coverage to employees covered under the scheme. The benefits
aim to address various contingencies such as sickness,
maternity, disablement, and death due to employment-related
injuries. Here are the key benefits provided under the ESI Act:
1. Medical Benefits (Section 46):
- Outpatient Services:
- Employees and their dependents are entitled to receive
medical treatment as outpatients at dispensaries and hospitals
run by the Employees' State Insurance Corporation (ESIC).
- Inpatient Services:
- In case of hospitalization, insured persons and their family
members can avail of inpatient services, including surgeries and
other medical treatments.
2. Sickness Benefit (Section 46):
- Financial Support During Sickness:
- Sickness benefits are payable to insured persons during
periods of certified illness. This provides financial support when
an employee is unable to work due to sickness.
3. Maternity Benefit (Section 46):
- Maternity Leave and Benefits:
- Female employees are entitled to maternity benefits,
including paid leave and medical benefits during pregnancy and
childbirth.
4. Disablement Benefit (Section 46):
- Temporary Disablement Benefit:
- Insured persons who suffer temporary disablement due to
employment-related injuries are eligible for temporary
disablement benefits.
- Permanent Disablement Benefit:
- In case of permanent disablement, insured persons are
entitled to receive a pension calculated based on the degree of
disablement.
5. Dependent Benefits (Section 46):
- Dependent's Benefit in Case of Death:
- In the unfortunate event of an employee's death due to
employment-related injuries, dependent benefits are provided to
the surviving family members.
19
6. Funeral Expenses (Section 46): - Benefits to Employees under Training (Section 48):
- Employees undergoing training are entitled to certain benefits
during the training period.
- Funeral Expenses:
- The ESI Act also covers funeral expenses, providing financial
Conclusion:
assistance to meet the expenses incurred on the funeral of an
insured person.
The benefits under the Employees' State Insurance Act, 1948,
are comprehensive and are aimed at providing financial and
7. Rehabilitation Allowance (Section 46):
healthcare support to covered employees and their dependents
during various contingencies. These benefits contribute to the
- Rehabilitation Allowance:
overall welfare and well-being of the workforce, ensuring that
- Insured persons who undergo vocational rehabilitation after
they are protected against the economic consequences of
suffering employment-related disablement may be eligible for a
sickness, maternity, disablement, and other employment-
rehabilitation allowance.
related contingencies.
8. Extended Sickness Benefit (Section 56):
ADJUDICATION PROCESS FOR DISPUTES UNDER THE ESI ACT:
- Extended Period of Sickness Benefit:
The Employees' State Insurance (ESI) Act, 1948, includes
- In certain circumstances, the Act provides for an extended
provisions for the adjudication of disputes arising under the Act.
period of sickness benefit beyond the usual duration.
Adjudication refers to the formal resolution of conflicts or
disagreements through a legal process. Here's an overview of the
9. Medical Benefits During Temporary Disablement (Section 56):
adjudication process for disputes under the ESI Act:
- Additional Medical Benefits:
Adjudication Authorities:
- Insured persons who are temporarily disabled are entitled to
additional medical benefits, including specialized treatments
1. Employees' Insurance Court (Section 74):
and artificial appliances.
- The primary authority for adjudicating disputes under the
ESI Act is the Employees' Insurance Court. These are special
10. Miscellaneous Benefits:
courts set up specifically for this purpose.
- Unemployment Allowance (Section 50):
2. Jurisdiction of Employees' Insurance Court (Section 75):
- Employees who become unemployed due to closure of the
- The Employees' Insurance Court has jurisdiction over
factory or establishment are eligible for unemployment
disputes related to the recovery of contributions, benefits, or
allowance.
other sums payable under the Act.

20
Filing of Appeals:
1. Right to Appeal (Section 82):
- Any party aggrieved by a decision or order of the Employees'
Insurance Court has the right to appeal to the High Court.
2. Limitation for Filing Appeals (Section 82A):
- There is a specified limitation period within which an appeal
must be filed. If an appeal is not filed within the prescribed time
frame, it may be barred.
Procedure for Adjudication:
1. Notice and Hearing (Section 74):
- Before adjudicating a dispute, the Employees' Insurance
Court must give notice to the parties concerned and provide
them with an opportunity to present their case.
2. Powers of Employees' Insurance Court (Section 75A):
- The Employees' Insurance Court has the powers of a civil
court, and it follows the principles of natural justice while
adjudicating disputes.
Appeals to High Court:
1. Grounds for Appeal (Section 82):
- An appeal to the High Court can be filed on specified grounds,
including a question of law.
2. Procedure for Appeals (Section 82A):
- The procedure for filing and hearing appeals before the High
Court is outlined in the Act.
Enforcement of Orders:
1. Execution of Orders (Section 73):
- Orders passed by the Employees' Insurance Court or the High
Court are executable, and the appropriate authority can take
steps to enforce compliance with the orders.
Role of Employees' State Insurance Corporation (ESIC):
1. Representation (Section 77):
- The ESIC is entitled to be represented in any proceeding
before the Employees' Insurance Court, and it has the authority
to appeal to the High Court.
Conclusion:
The adjudication process under the Employees' State Insurance
Act, 1948, is designed to provide a formal mechanism for
resolving disputes related to the Act. The establishment of
specialized courts, namely the Employees' Insurance Courts,
ensures that disputes are adjudicated efficiently and in
accordance with the principles of justice. Additionally, the right
to appeal to the High Court provides a further avenue for parties
dissatisfied with the decisions of the Employees' Insurance
Court.
THE EMPLOYEES' STATE INSURANCE (ESI) COURT
The Employees' State Insurance (ESI) Court, also known as the
Employees' Insurance Court, is a specialized legal forum
established under The Employees' State Insurance Act, 1948. It
plays a crucial role in the adjudication of disputes related to the
provisions of the ESI Act. Here are key details about the ESI
Court:
21

Establishment and Purpose:
1. Specialized Tribunal (Section 74):
- The ESI Court is a specialized tribunal set up exclusively for
the purpose of adjudicating disputes arising under the ESI Act.
2. Jurisdiction (Section 75):
- The ESI Court has jurisdiction over disputes related to the
recovery of contributions, benefits, or other sums payable under
the ESI Act.
Composition and Powers:
1. Appointment of Presiding Officers (Section 74):
- The ESI Court is presided over by a Presiding Officer who is
appointed by the appropriate government.
2. Powers of Civil Court (Section 75A):
- The ESI Court has the powers of a civil court, and it follows
the principles of natural justice while adjudicating disputes. It
can summon and enforce the attendance of witnesses, examine
them on oath, and call for the production of documents.
Jurisdictional Aspects:
1. Exclusive Jurisdiction (Section 75):
- The ESI Court has exclusive jurisdiction to decide matters
within its purview. Matters falling under its jurisdiction cannot
be adjudicated by any other civil court.
2. Limitation for Filing Appeals (Section 82A):
- There is a specified limitation period within which an appeal
against the orders of the ESI Court must be filed.
Procedure:
1. Notice and Hearing (Section 74):
- Before adjudicating a dispute, the ESI Court must give notice
to the parties concerned and provide them with an opportunity
to present their case.
2. Summary Disposal (Section 75B):
- The ESI Court is encouraged to dispose of cases as
expeditiously as possible, and it has the power to decide cases
summarily if it deems fit.
Appeals:
1. Right to Appeal (Section 82):
- Any party aggrieved by a decision or order of the ESI Court
has the right to appeal to the High Court.
Role of the Employees' State Insurance Corporation (ESIC):
1. Representation (Section 77):
- The ESIC is entitled to be represented in any proceeding
before the ESI Court, and it has the authority to appeal to the
High Court.
Conclusion:
The ESI Court is an essential institution under The Employees'
State Insurance Act, 1948, ensuring the fair and efficient
resolution of disputes related to social security and healthcare
benefits for covered employees. Its exclusive jurisdiction and
powers contribute to the specialized and effective adjudication
of matters arising under the ESI Act. Parties dissatisfied with
the decisions of the ESI Court have the recourse of appealing to
the High Court, providing a further layer of legal review.
22

PENALTIES UNDER THE ESI ACT:
The Employees' State Insurance (ESI) Act, 1948, includes
provisions for penalties to enforce compliance with the
statutory requirements. Penalties are imposed on employers
who fail to fulfill their obligations under the Act. Here are key
details regarding penalties under the ESI Act:
1. Offenses and Penalties (Section 84):
1.1. Failure to Pay Contributions:
- If an employer fails to pay the contributions payable under
the ESI Act, they may be liable for a penalty.
1.2. Obstructing Inspections:
- Obstructing or impeding an Inspector appointed under the
Act is considered an offense and may result in penalties.
1.3. Failure to Furnish Returns or Information:
- Employers are required to furnish returns and provide
information as per the Act. Failure to do so may attract
penalties.
2. Liability of Officers (Section 85):
2.1. Liability of Officers:
- If the person responsible for the conduct of the business of
an employer is a company, every director, manager, secretary,
or other officer of the company may also be held personally liable
for offenses and penalties.
3. Cognizance of Offenses (Section 86):
3.1. Cognizance by Magistrate:
- Offenses under the ESI Act are cognizable, and a Judicial
Magistrate of the First Class may take cognizance of such
offenses.
4. Compounding of Offenses (Section 85A):
4.1. Compounding of Offenses:
- The appropriate government may permit the compounding of
offenses under the Act. Compounding involves settling the
matter by the payment of a sum of money.
5. Enhanced Penalties for Subsequent Offenses (Section 86A):
5.1. Enhanced Penalties:
- For subsequent offenses, the penalties prescribed under the
Act may be enhanced.
6. Power to Exempt (Section 87):
6.1. Power to Exempt:
- The appropriate government has the power to exempt any
factory or establishment or class of factories or establishments
from the operation of any or all provisions of the Act, subject to
certain conditions.
7. Penalties for Non-Payment of Contributions (Section 68B):
7.1. Recovery of Contributions as Arrears of Land Revenue:
- Unpaid contributions and other amounts due from an
employer may be recovered as arrears of land revenue.
Conclusion:
Penalties under the Employees' State Insurance Act, 1948, are
intended to ensure compliance with the statutory obligations,
23
particularly related to the payment of contributions and the
provision of information. Employers who violate the provisions
of the Act may face penalties, and in certain cases, officers of
companies may also be held personally liable. The Act also
provides for the compounding of offenses, giving employers an
opportunity to settle matters by paying a sum of money. It is
crucial for employers to adhere to the statutory requirements to
avoid legal consequences and penalties.
MULTIPLE-CHOICE QUESTIONS (MCQS)
The Trade Union Act, 1926:
1. Question: What is the primary objective of The Trade Union
Act, 1926?
- A) Promoting employer interests
- B) Ensuring fair wages
- C) Regulating the functioning of trade unions
- D) Controlling industrial disputes
Answer: C) Regulating the functioning of trade unions
2. Question: Which of the following is a salient feature of The
Trade Union Act, 1926?
- A) Prohibition of trade unions
- B) Recognition of right to association
- C) Limiting the number of union members
- D) Exclusive focus on employer rights
Answer: B) Recognition of the right to association
3. Question: What is the purpose of the registration of trade
unions under the Act?
- A) To limit their activities
- B) To grant legal recognition and protection
- C) To impose restrictions on their membership
- D) To allow interference from employers
Answer: B) To grant legal recognition and protection
4. Question: Under what circumstance can the registration of a
trade union be canceled?
- A) Failure to submit annual returns
- B) Exceeding a certain membership limit
- C) Engaging in political activities
- D) Accepting donations from members
Answer: A) Failure to submit annual returns
5. Question: What is a crucial aspect of the amalgamation of
unions under the Act?
- A) Dissolving existing unions
- B) Obtaining government approval
- C) Limiting membership growth
- D) Exclusively for specific industries
Answer: B) Obtaining government approval
The Employees State Insurance Act, 1948:
6. Question: What is the main objective of The Employees State
Insurance Act, 1948?
- A) Regulating working hours
- B) Providing social security to employees
- C) Controlling inflation
- D) Ensuring maximum profits for employers
Answer: B) Providing social security to employees
24
7. Question: Who administers the E.S.I. Corporation under the General:
Act?
- A) Trade unions 11. Question: Which Act primarily deals with the regulation of
- B) Employers trade unions?
- C) Government - A) The Trade Union Act, 1926
- D) Employees - B) The Employees State Insurance Act, 1948
- C) The Minimum Wages Act, 1948
Answer: C) Government - D) The Payment of Bonus Act, 1965

8. Question: What does E.S.I. stand for in The Employees State
Insurance Act, 1948?
- A) Employment and Salary Insurance
- B) Employees Social Investment
- C) Employees State Insurance
- D) Essential Services for Individuals
Answer: C) Employees State Insurance
Answer: A) The Trade Union Act, 1926
12. Question: The objective of the E.S.I. Act, 1948, is primarily
related to:
- A) Trade union rights
- B) Social security for employees
- C) Maximum profits for employers
- D) Industrial disputes resolution

9. Question: The E.S.I. benefits include: Answer: B) Social security for employees
- A) Provident Fund only
- B) Medical, monetary, and other benefits 13. Question: What is the penalty for non-compliance with the
- C) Gratuity only provisions of the Trade Union Act, 1926?
- D) Bonus payments only - A) Fine
- B) Imprisonment
Answer: B) Medical, monetary, and other benefits - C) Both A and B
- D) Verbal warning
10. Question: In case of disputes under the E.S.I. Act, where can
they be adjudicated? Answer: C) Both A and B
- A) Labor Court
- B) E.S.I. Corporation 14. Question: Which of the following is a feature of the E.S.I.
- C) Civil Court Court?
- D) E.S.I. Court - A) It only handles financial disputes
- B) It has exclusive jurisdiction over E.S.I. matters
Answer: D) E.S.I. Court - C) It is optional for parties in dispute
- D) It operates only during office hours

25

Answer: B) It has exclusive jurisdiction over E.S.I. matters
15. Question: The process of amalgamation of trade unions
involves:
- A) Dissolution of existing unions
- B) Merging two or more unions into a single entity
- C) Splitting a union into smaller units
- D) Formation of a new union
Answer: B) Merging two or more unions into a single entity
The Trade Union Act, 1926:
1. Question: What is the primary objective of The Trade Union
Act, 1926?
- A) Ensuring maximum profits for employers
- B) Regulating the functioning of trade unions
- C) Controlling working hours
- D) Promoting government interests
Answer: B) Regulating the functioning of trade unions
2. Question: Which of the following is a salient feature of The
Trade Union Act, 1926?
- A) Limiting the number of union members
- B) Recognition of the right to association
- C) Prohibition of trade unions
- D) Exclusive focus on employer rights
Answer: B) Recognition of the right to association
3. Question: What is the purpose of the registration of trade
unions under the Act?
- A) To grant legal recognition and protection
- B) To impose restrictions on their membership
- C) To limit their activities
- D) To allow interference from employers
Answer: A) To grant legal recognition and protection
4. Question: Under what circumstance can the registration of a
trade union be canceled?
- A) Engaging in political activities
- B) Exceeding a certain membership limit
- C) Failure to submit annual returns
- D) Accepting donations from members
Answer: C) Failure to submit annual returns
5. Question: What is a crucial aspect of the amalgamation of
unions under the Act?
- A) Dissolving existing unions
- B) Obtaining government approval
- C) Exclusively for specific industries
- D) Limiting membership growth
Answer: B) Obtaining government approval
The Employees State Insurance Act, 1948:
6. Question: What is the main objective of The Employees State
Insurance Act, 1948?
- A) Controlling inflation
- B) Ensuring maximum profits for employers
- C) Providing social security to employees
- D) Regulating working hours
Answer: C) Providing social security to employees
26
7. Question: Who administers the E.S.I. Corporation under the General:
Act?
- A) Trade unions 11. Question: Which Act primarily deals with the regulation of
- B) Employees trade unions?
- C) Government - A) The Trade Union Act, 1926
- D) Employers - B) The Employees State Insurance Act, 1948
- C) The Payment of Bonus Act, 1965
Answer: C) Government - D) The Minimum Wages Act, 1948

8. Question: What does E.S.I. stand for in The Employees State
Insurance Act, 1948?
- A) Employment and Salary Insurance
- B) Employees Social Investment
- C) Essential Services for Individuals
- D) Employees State Insurance
Answer: D) Employees State Insurance
Answer: A) The Trade Union Act, 1926
12. Question: The objective of the E.S.I. Act, 1948, is primarily
related to:
- A) Trade union rights
- B) Social security for employees
- C) Maximum profits for employers
- D) Industrial disputes resolution

9. Question: The E.S.I. benefits include: Answer: B) Social security for employees
- A) Provident Fund only
- B) Medical, monetary, and other benefits 13. Question: What is the penalty for non-compliance with the
- C) Gratuity only provisions of the Trade Union Act, 1926?
- D) Bonus payments only - A) Imprisonment
- B) Fine
Answer: B) Medical, monetary, and other benefits - C) Both A and B
- D) Verbal warning
10. Question: In case of disputes under the E.S.I. Act, where can
they be adjudicated? Answer: C) Both A and B
- A) Labor Court
- B) E.S.I. Corporation 14. Question: Which of the following is a feature of the E.S.I.
- C) Civil Court Court?
- D) E.S.I. Court - A) It only handles financial disputes
- B) It has exclusive jurisdiction over E.S.I. matters
Answer: D) E.S.I. Court - C) It is optional for parties in dispute
- D) It operates only during office hours

27
 - B) It deals with the voluntary dissolution of a trade union
Answer: B) It has exclusive jurisdiction over E.S.I. matters - C) It is related to the removal of union office-bearers
- D) It signifies the end of government intervention
15. Question: The process of amalgamation of trade unions
involves: Answer: C) It is related to the removal of union office-bearers
- A) Dissolution of existing unions
- B) Merging two or more unions into a single entity 19. Question: What is the penalty for instigating or financing an
- C) Splitting a union into smaller units illegal strike under the Act?
- D) Formation of a new union - A) Fine
- B) Imprisonment
Answer: B) Merging two or more unions into a single entity - C) Both A and B
- D) Warning letter
The Trade Union Act, 1926:
Answer: C) Both A and B
16. Question: What is the primary function of trade unions under
The Trade Union Act, 1926? 20. Question: What is the primary objective of the Trade
- A) Promoting political agendas Disputes Act, 1929, which is closely related to The Trade Union
- B) Protecting the interests of employers Act, 1926?
- C) Safeguarding the rights and interests of workers - A) Regulating working hours
- D) Facilitating government control over industries - B) Resolving industrial disputes
- C) Controlling inflation
Answer: C) Safeguarding the rights and interests of workers - D) Promoting employer profits

17. Question: Which body is responsible for registering trade Answer: B) Resolving industrial disputes
unions under the Act?
- A) Employers The Employees State Insurance Act, 1948:
- B) Employees
- C) Registrar of Trade Unions 21. Question: Apart from medical benefits, what other types of
- D) Ministry of Finance benefits are provided under the E.S.I. Act?
- A) Educational benefits
Answer: C) Registrar of Trade Unions - B) Maternity benefits
- C) Housing benefits
18. Question: What is the significance of the 'Cessation of Office' - D) Entertainment benefits
under the Act?
- A) It refers to the termination of trade union activities Answer: B) Maternity benefits

28

22. Question: What does the term "Adjudication of disputes"
refer to under the E.S.I. Act?
- A) Settlement of legal issues through court hearings
- B) Resolution of conflicts through negotiation
- C) Mediation between employers and employees
- D) Evaluation of medical claims
Answer: A) Settlement of legal issues through court hearings
23. Question: Who appoints the E.S.I. Court under the Act?
- A) Ministry of Labor and Employment
- B) President of India
- C) State Government
- D) E.S.I. Corporation
Answer: C) State Government
24. Question: What is the penalty for failure to pay the
employer's contribution under the E.S.I. Act?
- A) Fine
- B) Imprisonment
- C) Both A and B
- D) Suspension of E.S.I. benefits
Answer: C) Both A and B
25. Question: Under the E.S.I. Act, when can an employee claim
disablement benefit?
- A) Only in case of permanent disability
- B) Only in case of partial disability
- C) In case of temporary or permanent disablement
- D) Only in case of occupational diseases
Answer: C) In case of temporary or permanent disablement
The Trade Union Act, 1926:
26. Question: What is the significance of the term "Collective
Bargaining" under The Trade Union Act, 1926?
- A) It refers to individual negotiations between workers and
employers
- B) It involves negotiations between multiple trade unions
- C) It signifies group negotiations between employers and
employees
- D) It denotes government intervention in labor disputes
Answer: C) It signifies group negotiations between employers
and employees
27. Question: What is the primary role of the 'General Fund' of a
registered trade union?
- A) Supporting political campaigns
- B) Financing recreational activities for members
- C) Meeting the general expenses of the trade union
- D) Investing in business ventures
Answer: C) Meeting the general expenses of the trade union
28. Question: Which body has the authority to cancel the
registration of a trade union under the Act?
- A) Registrar of Trade Unions
- B) Ministry of Labor
- C) High Court
- D) Prime Minister's Office
Answer: A) Registrar of Trade Unions
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The Employees State Insurance Act, 1948:
29. Question: What is the purpose of the E.S.I. Court under the
E.S.I. Act?
- A) To provide medical services to employees
- B) To adjudicate disputes related to E.S.I. matters
- C) To manage the E.S.I. funds
- D) To conduct inspections of workplaces
Answer: B) To adjudicate disputes related to E.S.I. matters
30. Question: What is the significance of the term "Principal
Employer" under the E.S.I. Act?
- A) The main employer in an industrial dispute
- B) The employer with the highest profits
- C) The main employer responsible for compliance with the
Act
- D) The employer with the largest workforce
Answer: C) The main employer responsible for compliance
with the Act
31. Question: In the context of the E.S.I. Act, what is the 'Cash
Benefit' provided to insured persons?
- A) Direct cash payments to employers
- B) Monetary benefits paid directly to employees
- C) Financial assistance for medical treatments
- D) Compensation for occupational diseases
Answer: B) Monetary benefits paid directly to employees
General:
32. Question: Which legislation primarily deals with ensuring
fair wages to certain categories of workers?
- A) The Payment of Bonus Act, 1965
- B) The Minimum Wages Act, 1948
- C) The Industrial Disputes Act, 1947
- D) The Factories Act, 1948
Answer: B) The Minimum Wages Act, 1948
33. Question: What is the primary objective of the 'Bonus' under
The Payment of Bonus Act, 1965?
- A) Additional salary for executives
- B) Additional payment to employees during festivals
- C) Reward for good performance
- D) Compensating for inflation
Answer: C) Reward for good performance
34. Question: Under The Payment of Bonus Act, 1965, when is
an employee eligible for bonus?
- A) Only during the festive season
- B) Only during the financial year with profits
- C) Every month
- D) Only during the annual performance review
Answer: B) Only during the financial year with profits
35. Question: What is the primary responsibility of the Inspector
appointed under The Tamil Nadu Shops and Establishment Act,
1947?
- A) Assessing income tax
- B) Enforcing provisions of the Act
- C) Conducting market research
- D) Monitoring environmental regulations
Answer: B) Enforcing provisions of the Act
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