Laws related to

Employee’s State
Insurance Act 1948
 Attempt of govt to provide medical facilities and unemployment insurance during illness
to industrial works

 Administered by ESI Corporation ,an autonomous body consisting of representatives

from central and state govt employees ,employers , medical professionals and member of
parliament
Object of ESI Act

 Benefit to employees in case of sickness,employment injury,maternity and for certain

other matters
 Social and economic justice to the labor class of the country
 Sickness,maternity,disablement,medical and funeral benefit included
Appropriate government

Sec 2(1)-Appropriate authority for all the establishments under the control,railway administration or
major port or a mine under central government. And in other cases State government

Benefit period

Sec 2(2) –period between 25 and 27 consecutive week or 6 consecutive months corresponding to the
contribution period

Confinement

Sec 2(3)-labor resulting in the issue of living child or labor after 26 weeks of pregnancy resulting in
the issue of child whether alive or dead

Contribution

Sum of money payable to the corporations by the principal employer in respect of an employee.
Contribution period

Period being not < 25 but not exceeding 27 consecutive weeks or 6 consecutive months as may be
specified in the rule

Corporation

Sec2(6)-consist of a Chairman, a Vice Chairman and not more than 5 persons nominated by Central
Government

Dependent

Sec2(6A)) means any of the following relatives of a deceased insured persons namely,

• A widow,minor legitimate or adopted son,unmarried legitimate or adopted daughter or a widowed

mother
• Minor brother/unmarried sister/widowed sister
• A minor child of a pre-deceased son
• A paternal grandparent if no parent of the insured person is alive
• A widowed daughter in law
Employment injury

Sec2(8)-personal injury to an employee caused by accident or an occupational disease arising out of and in the
course of employment whether the accident occurs or the occupational disease is contracted within or outside
the territorial limits of India

Employee

Sec2(9)-Any person employed for wages in or in connection with the work of a factory or establishment to
which this act applies:-?????

Factory

Sec2(12)-Any premises including precincts thereof whereon 20 or more persons are employed or were
employed for wages on any day of the preceding 12 months ,and in any part of which a manufacturing process
is being carried on with the aid of power
Insurable employment

Sec2(13 A)-employment in factory for which this act is applicable

Insured person

Sec2(13A)-A person who is/was an employee in respect of whom contribution are or were payable
under this act and who is by reason thereof entitled to any of the benefits provided under this act

Principal employer

Sec2(17)-the owner or occupier of the factory including the factory manager. Any person responsible
for supervision and control of the undertaking
 Applicability of the Act

• All factories including govt factories

Not applicable to:
-Seasonal factories
-Any member of Indian Navy, military or airforce
-Any employed person whose wages exceed such wages as may be prescribed by the
central government
-factories working with the aid of power wherin <10 people are employed
-mines subject to Mine Act 1952
-Railway running sheds
 Administration of ESI Corporation

Consist of:
1. Chairman
2. Vice Chairman
3. <5 persons nominated by Central Govt
4. One representation each from the states nominated by State govt
5. One person from Central Govt to represent UT
6. 10 persons for employeers side to be appointed by central govt in consultation with such organisations
of employers
7. 2 persons representing medical profession to be appointed by central govt
8. 3 members of parliament of whom two shall be member of LokSabha and one from Rajya Sabha
9. The director General of the corporation,ex-officio
Powers of ESI

 Employ the required number of staff for efficient business transactions

 Appoint inspectors
 Invest money which is not required immediately
 Constitute for the benefits of its staff PF or benefit funds
 With central govt permission, it can raise loand=s and take measures for discharging loans
 Acquire,hold and sell or otherwise transfer any movable and immovable property
 Duties of Corporation

 Make budget for anticipated receipt and expenditure

 Maintain correct account of its income and expenditure
 Account shall be got audited
 Submit annual report on work and activities to central govt
 With an interval of 5 years, valuation of its assets and liabilities will be done as per the direction of
central govt by a valuer
 Annual report and audit report along with budget adopted by corporation
Standing committee (Sec 8)

 Chairman appointed by central govt

 3 members of corporation appointed by central govt
 3 members from 3 state govt through central govt notification
 8 members from corporation through election
 3 among employer members of corporation
 One from members of medical profession
 One shall be elected by parliament from members of corporation
Powers and duties of standing committee

 Administers the affairs of corporation

 Exercise powers and perform functions of the corporation
 In case of discretion,it shall submit the decision of the corporation
Medical benefits council(sec 10)

 Consist of:-
 Director General,Health Services,ex-officio as Chairman
 A deputy DG,Health service to be appointed by the Central Govt
 A medical commissioner of the corporation,ex-officio
 One member each representing each of the state (other than UT),appointed by the State
govt
 3 members among employers to be appointed by Central Govt in consultation with
employer organization
 3 members of whom not < 1 shall be a women
Powers and duties of MBC

 Advises to corporation and standing committee on administration

of medical benefit and other connected matters
 Powers and duties of investigation in connection with complaints
if any against medical treatment and attendance
 Perform other duties about medical treatment as may be specified
in the regulation
Meetings (Sec 20)

 Thecorporation ,the standing committee and the Medical

benefit council shall meet at such times and place as per
corporation regulation in this regard for transaction of
business at their meetings
Principal Officers and Staffs

 Central govt may in consultation with the corporation appoint a Director

General(DG) and a Financial Commissioner(FC)
 DG is the CEO of the ESI Corporation
 DG and FC shall be whole time officers of the ESI Corporation
 Central govt may at any time remove both the officers if such removal is
recommended by a resolution of the corporation passed at a special meeting
held for the purpose
Inspectors (Sec 45)

 Appointed for enquiring or ascertaining whether any provision of ESI Act has been
complied with
 Required any principal or immediate employer to further information as he may consider
necessary under the act
 At any reasonable time enter any office, factory or premises of the principal or call for
any information as he may consider necessary
 Examine any matter related to the principal/immediate employer, or agent or servant or
any employee
 Make copies or take extract of any register, book of accounts or any documents
maintained in the factory or office
ASSIGNMENT??

Contribution???
Time for payment of contribution

 Within 21 days of last day of wages period in which the

contribution falls dues or
 Within 14 days of the termination of employment irrespective of
retirement on notice or without notice or
 Within 21 days after termination of the contribution period in
respect of every employee;which period is earlier
Benefits under ESI Scheme

 Sickness benefits
 Maternity benefits
 Disablement benefits
 Dependent benefits
 Medical benefits
 Funeral benefits
General provision governing benefits

 Right to receive benefits shall not be transferable

 No cash benefits payable shall be liable to attachments
 The beneficiary shall not take dual advantage on same matter i.e. not entitled to take benefits under
any other enactments
 No persona shall be entitled to sickness benefits for temporary disablement in respect of any day on
which he works and receive wages
 The claimant shall remain under medical treatment at a hospital ,clinic or other institution provided
under this act
 Where a person is entitled to more than one benefits,he shall have to chose one benefits
 An insure person shall not be entitled to receive both sickness and maternity benefits ,
sickness benefits and disablement benefits , maternity benefits and temporary
disablement benefits etc. for the same period
 The unlawful payment if any will be recovered from the insurer payee
 No employer shall dismiss ,discharge or reduce or punish an employee during the period
of sickness benefits , maternity benefit or disablement benefits
Adjudication of Disputes and claims
EMPLOYEES INSURANCE
COURT
 State govt shall constitute ESI court through notification in the official gazettee,to decide
all matters,questions and disputes arising from the insurance of workmen
 The court shall consist of such number of judges as the State govt may think fit.Any
person who has been judicial officer or is a legal practitioner of 5 years shall be eligible
to be a judge of the EI Council
 The state govt may appoint the same court for 2 or more local areas or 2 or more courts
for the local area as they may think fit
 No civil court shall have jurisdiction to decide any question or to adjudicate on any
liability which is to decided by a medical board or medical appeal tribunal or EI court
Matters to be decided by EI court

 Whether any person is an employee within the meaning of its act and if he has to pay the
contribution
 Rate of contribution to be paaid by principal employer
 Rate of wages of employee
 Right of any workman to any benefits and as to the amount and duration thereof
 Any dispute between the employer and ESI Corporation
Reference and Appeal

EI Court maty submit any question of law for the decision of HC. If it
does so, it shall decide the question pending before it in connection
with such decision. As a rule,no appeal shall lie from an order of EI
court. However, an appeal shall lie to the HC if it involves substantial
question of law. The appeal shall be made within 60 days
Penalties

 Punishment for false statement(sec 84)

 Punishment for failure to pay contribution
 Prosecution or trial
 Miscellaneous