Professional Documents
Culture Documents
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.
the activities like: cotton ginning, cotton or jute pressing, decoration of ground nuts, manufacturing coffee, indigo, rubber, sugar, or tea or any manufacturing process incidental to or connected with any of the afore said activities, and including factories engaged for a period not exceeding seven months in a year in blending, packing or repackaging tea or coffee, or in such other processes as may be specified by the central govt.
provisions of the act.
ACT AUTHORISATION
To Promote and measure for health and
Intervene for the rehabilitation and reemployment for disabled / injured To appoint inspectors for purposed of the act
Standing committee
Empowered to Shall administer the affair of the corporation Shall submit the consideration and decision of
the corporations
Have discretion on other issues of corporation
Duties Inquiring into the correctness in any return of contribution Ascertaining Provision of the Act has been complied Other authorized / specified duties by the corporation. Powers To collect require and relevant information of employer / contractor or both To enter org / contractor premises at reasonable time and examined relevant account books and relevant documents, payment of wages etc. To examine employer, contractor, his agent / servant or IE in factory / office To make copies of extracts from any registrar, account books and other books of maintenance of org.
own as well as employees contribution in respect of all employees including the contract labour, into the E.S.I. Account. Non-availability of funds cannot be a ground for non-payment of contributions under the act. There is no provision to waive the contribution, damages and interest
of the wages paid/ payable in respect of every wage period. The employees are also required to contribute at the rate of 1.75% of their wages except when the average daily wages in a wage period are equal to or less than Rs.40.
The purpose of the Employee State Insurance Act is to provide benefits as detailed in the Act particularly in section 46, to the insured persons or their dependants. The following benefits are provided under section 46. Sickness benefit Maternity benefit Disablement benefit Dependents benefit Medical benefit Funeral expenses
1. 2. 3. 4. 5. 6.
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.
insured person which is payable for maximum numbers of 91 days in any two consecutive benefit periods. The benefit is not paid for the first two days of sickness which is treated as the waiting period.
leprosy, mental, heart etc. and who have been continuous employment for two years are entitled to get sickness benefit period up to 309 days.
Maternity benefit
A periodical cash benefit is payable to an insured
woman employee, in cash of confinement, miscarriage, medical termination of pregnancy, premature birth of a child or sickness arising from pregnancy etc. payable for at least 70days in the two immediately preceding contribution periods benefit rate or Rs.20, whichever is higher for all days on which she does not work during the prescribed period.
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.
The benefit of temporary disablement is, however, not
payable for any day on which the employee works, remains on lease, holiday or strike in respect of which he receives wages.
Dependents benefit
If any employee dies during any period for which he is entitled to a cash benefit, the amount of such benefit shall be payable up to & including the day of his death.
The amount of benefit shall be paid to the nominee or, where there is no nomination, to the heir or legal representative of the deceased employee.
Medical benefit
An insured person or a member of his family
whose condition requires medical treatment and attendance entitled to receive medical benefit.
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.S.i.C. schemes are not available.
Employer not to dismiss or punish employee
Funeral Expenses
If an insured employee dies, the eldest serving
member of his family is entitled to reimbursement of such expenditure subject to maximum of Rs.2500 (W.E.F. December,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.
false statement or false representation, shall be punishable with imprisonment up to Rs.2000 or with both
any person fails to pay any contribution which under to this act he is liable to pay, he shall be punishable with imprisonment up to three years. contraventions like dismisses, discharges, reduces or otherwise punishes an employee, shall be punishable with imprisonment up to one year or with fine up to Rs.4000 or with both
pay the amount of contribution then corporation may recover from the employer by way of penalty.
Power of court to make orders:- If court makes
order for employer- if employer is not able to make this order within period then employer shall be punishable with imprisonment in respect thereof U/S.85 and shall also be liable to pay fine up to Rs.1000 for everyday.
Miscellaneous Provisions
Exemption of a factory or establishment (sec.87)
o Exemption may be granted to any factory or establishment o o
o o
for maximum period of one year. Any exemption granted shall be notified by the notification in the Official Gazette. The appropriate Govt. while granting exemption can improve any terms and conditions upon the factory/establishment. If required any exemption can be renewed for max. one year Before granting any exemption Corp. must be given opportunity to make representation which has to be considered by the Govt.
class of person from the operation of the act Any exemption granted shall be notified by the notification in the Official Gazette. 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. may think fit to impose
notification in the Official Gazette. Exemptions shall always be subj. to the conditions imposed by the Govt. 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.
establishment or any person or class of person by App.Govt. Any exemption granted shall be notified by the notification in the Official Gazette. Any exemption granted under the sec.87,88,90 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.91-A)