The Employees State Insurance Act,1948

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Pinky Gandhi Semester V MSU – Vadodara

Message from Mallikarjun Kharge Minister of Labour & Employment- Government of India

Message by Hon‟ble Union Minister of Labour and Employment Dear Friends, It‟s a matter of immense pleasure for me to talk about the everexpanding family of ESIC. We are reaching out to more and more people with each passing day. In fact, ESIC has ushered in a sort of revolution in the field of Social Security, and ESI Scheme has been a boon for the entire workforce, spread across the length and breadth of our vast nation. ESIC is scaling new heights and spreading its wings. Today, the Corporation is covering almost 5.00 lakhs establishments having We have also made certain amendments in the ESI Act to bring in 143 lakhs Insured Persons and about 560 lakhs ESI beneficiaries. The benefits are being delivered through its strong infrastructure of 148 Hospitals, 1388 Dispensaries and 859 offices across the country. more people under its umbrella. Now factories or establishments having 10 or more employees are also covered. The wage-ceiling limit has also been increased from ` 10,000/- to ` 15,000/- per month. These two steps will increase the Social Security net to the workers in the organized sector both vertically as well as laterally. The cash benefits being provided under the Scheme are also constantly being revised in terms of quantity and quality without increasing the rates of contribution. Such improvements have been brought in Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana), vocational rehabilitation etc. In an endeavor to reach out to the beneficiaries and make the system more accessible to them, long-term benefits such as Permanent Disablement and Dependants Benefits are being directly credited to the bank account of the beneficiaries, through ECS system. This way, the beneficiary receives the benefit at his home.

Preliminary  Object of the act: To provide for certain benefits to employees in case of sickness. maternity and injury during employment and to make provision for certain other matters in relation thereto. .

   .Preliminary  Applicability of the Act: All factories Shops employing 20 or more persons. Such other Govt. specified establishments.

decoration of ground nuts. packing or repackaging tea or coffee. indigo.Act does not apply to:  Seasonal factories engaged exclusively in any of the activities like: cotton ginning. sugar. and including factories engaged for a period not exceeding seven months in a year in blending. lac. rubber. or in such other processes as may be specified by the central govt.  . or tea or any manufacturing process incidental to or connected with any of the afore said activities. manufacturing coffee. The factories exempted as seasonal from the provisions of the act. cotton or jute pressing.

notified exempted establishments  . or air force Other Govt. factories or establishments and Indian naval.Act does not apply to:  Mines Railway running sheds   Govt. military.

To determine the amount of contribution and relevant verification . Intervene for the rehabilitation and reemployment for disabled / injured 3. To appoint inspectors for purposed of the act    4.ACT AUTHORISATION  1. To Promote and measure for health and welfare of INSURED EMPLOYEES (IE) 2.

Standing committee  empowered to1. Shall administer the affair of the corporation 2. Have discretion on other issues of corporation    . Shall submit the consideration and decision of the corporations 3.

Perform other duties . purpose of grants and related matter 2. its treatment and attendance 3.Medical Benefit Council    1. Have power and duties of INVESTIGATION on Empanelled Medical practitioner. Advise to administration on Medical Benefit.

contractor. Other authorized / specified duties by the corporation. To collect require and relevant information of employer / contractor or both 2. To make copies of extracts from any registrar. Ascertaining Provision of the Act has been complied 3. 3. his agent / servant or IE in factory / office 4.Powers          Duties 1. Powers 1. To enter org / contractor premises at reasonable time and examined relevant account books and relevant documents. Inquiring into the correctness in any return of contribution 2. To examine employer. account books and other books of maintenance of org.Inspectors.Duties. . payment of wages etc.

into the E.I. Account. The employees are also required to contribute at the rate of 1.Employer/ Employee’s Contribution  It is the principle employer’s responsibility to deposit his own as well as employee’s contribution in respect of all employees including the contract labour. There is no provision to waive the contribution.75% of their wages except when the “average daily wages in a wage period” are equal to or less than Rs. damages and interest The employer is required to contribute at the rate of 4.  .S.75% of the wages paid/ payable in respect of every wage period.40. Non-availability of funds cannot be a ground for non-payment of contributions under the act.

I. which must be quoted in all documents and correspondence. The regional officer will allot a code number to the employer.S. Corporation within 15 days after the Act becoming applicable to it.Employer/ Employee’s Contribution  The employer should get his factory or establishments registered with the E. and obtain the employer’s Code Number. .

Sickness benefit Maternity benefit Disablement benefit Dependents benefit Medical benefit Funeral expenses  1. 3. The following benefits are provided under section 46. 5. to the insured persons or their dependants. 4. .Benefits available to insured employee  The purpose of the Employee State Insurance Act is to provide benefits as detailed in the Act particularly in section 46. 6. 2.

B.Sickness benefit  Every insured employee is entitled to the cash benefit for the period of sickness certified by a duly appointed medical practitioner if the contributions in respect of him were payable for not less than 78 days in the corresponding contribution period. mental. leprosy. Insured persons suffering from long term diseases like T. The benefit is not paid for the first two days of sickness which is treated as the waiting period.  .. and who have been continuous employment for two years are entitled to get sickness benefit period up to 309 days.  Cash benefit takes the form of periodical payment made to an insured person which is payable for maximum numbers of 91 days in any two consecutive benefit periods. heart etc.

whichever is higher for all days on which she does not work during the prescribed period.Maternity benefit  A periodical cash benefit is payable to an insured woman employee.   . miscarriage.20. in cash of confinement. If the contributions in respect of her were payable for at least 70days in the two immediately preceding contribution periods The benefit is payable of twice the standard benefit rate or Rs. premature birth of a child or sickness arising from pregnancy etc. medical termination of pregnancy.

The benefit of temporary disablement is. remains on lease.Disablement benefit  It is payable to an employee who is injured in the course of his employment and is permanently or temporarily disabled or contacts any occupational disease.   . A person who sustains temporary disablement for not less than 3days(excluding the day of accident) shall be entitled to periodical payment as may be prescribed by the central govt. not payable for any day on which the employee works. however. holiday or strike in respect of which he receives wages.

where there is no nomination. The amount of benefit shall be paid to the nominee or.  .Dependents benefit  If any employee dies during any period for which he is entitled to a cash benefit. to the heir or legal representative of the deceased employee. the amount of such benefit shall be payable up to & including the day of his death.

C. schemes are not available. Rs. .250 on account of confinement expenses shall be paid to an insured person or his wife if confinement occurs at a place where necessary medical facilities under E.Medical benefit  An insured person or a member of his family whose condition requires medical treatment and attendance entitled to receive medical benefit.S.section73.i.   Employer not to dismiss or punish employee during period of sickness.

December.F.2500 (W. the eldest serving member of his family is entitled to reimbursement of such expenditure subject to maximum of Rs.  .E.2000) The claim for the funeral expenses should be submitted with prescribed document and form within three months of the death of the insured employee.Funeral Expenses  If an insured employee dies.

etc.Adjudication of dispute & claims       Employees Insurance Court Institutions of proceedings. Powers of employees‟ Insurance Court Reference to High Court Appeal Stay of payment during pending of appeal .

discharges. Punishment for other contravention:.2000 or with both Punishment for failure to pay contributions:.In this case any false statement or false representation. shall be punishable with imprisonment up to one year or with fine up to Rs. he shall be punishable with imprisonment up to three years.Offences and penalties  Punishment for false statement:.4000 or with both   .if any person fails to pay any contribution which under to this act he is liable to pay. shall be punishable with imprisonment up to Rs. reduces or otherwise punishes an contraventions like dismisses.

If court makes order for employer.1000 for everyday.if employer is not able to make this order within period then employer shall be punishable with imprisonment in respect thereof U/S.If employer fails to pay the amount of contribution then corporation may recover from the employer by way of penalty.Offences and penalties  Power to recover damages:. Power of court to make orders:.  .85 and shall also be liable to pay fine up to Rs.

while granting exemption can improve any terms and conditions upon the factory/establishment. . Any exemption granted shall be notified by the notification in the Official Gazette. must be given opportunity to make representation which has to be considered by the Govt.87) Exemption may be granted to any factory or establishment for maximum period of one year. one year Before granting any exemption Corp.Miscellaneous Provisions       Exemption of a factory or establishment (sec. The appropriate Govt. If required any exemption can be renewed for max.

Govt. may think fit to impose . Such person or class of persons must be working in a factory/establishment Any exemption granted shall be accompanied with such conditions as the appropriate Govt. is authorized to exempt any person or class of person from the operation of the act Any exemption granted shall be notified by the notification in the Official Gazette.Exemption of persons or class of persons (sec.88)     App.

Exemptions shall always be in order only if the employees in any such factory/establishment are already in receipt of benefits substantially similar or superior to the benefits provided under this act. must consult the Corporation Any exemption granted shall be notified by the notification in the Official Gazette.Govt./any local authority     App.Exemption of a factory or establishment belonging to Govt. to the conditions imposed by the Govt. . Exemptions shall always be subj.

91-A) . Any exemption granted under the sec. Any exemption granted shall be notified by the notification in the Official Gazette.Exemption from one or more provisions of the act (sec.90 or 91 in respect of any person or class of person may be enforced either prospectively or retrospectively the date of its enforcement has to be specified (sec.88.91)    Exemption may be granted to any factory or establishment or any person or class of person by App.87.Govt.

for use in all ESIC Forms / documents and correspondence with the offices of the ESI Corporation. . Fill up Declaration Forms in respect of all coverable employees and submit the same to the Regional Office/ Local Office of the corporation well before the „Appointed Day‟ and obtain insurance Numbers from the concerned Local Office/ Regional Office. 2). In respect of newly appointed employees. fill up the declaration form soon after appointment of such employees and submit the same to the Local Office Concerned.Obligation of the Employers … 1). Obtain Employer‟s code No. Submit Form 01 to the Regional office for this purpose. Get your Factory / establishment registered with in 15 days after the Act becomes applicable.

Obligation of the Employers … 3). .75% of the wages) with in 21 days of the month following. Pay ESI contribution (Employee's Share @4. Pending receipt of identity cards/ identity certificates you may issue “certificate of employment” in Form 86 to the covered employee(s) enabling them to avail cash/medical Benefits 4). 5).Maintain an Accident Book as prescribed under the Factory Act / ESI Act. in which the wages fall due.75% and the Employer‟s share @ 1.

Obligation of the Employers … 6).Grant leave to insured employees on the basis of sickness certificates issued by any authorized ESI doctor.Submit an Accident Report to the Local Office / ESI Dispensary concerned immediately in respect of accidents that could result in death or disablement and within 24 hours of its occurrence otherwise. Minor accidents which do not cause absence from work need not be reported 7). .


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