The Employees State Insurance Act,1948

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.

Act does not apply to:

Seasonal factories engaged exclusively in any of the activities like: cotton ginning, cotton or jute pressing, decoration of ground nuts, manufacturing coffee, indigo, lac, 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. The factories exempted as seasonal from the provisions of the act.

Act does not apply to:

Mines Railway running sheds Govt. factories or establishments and Indian naval, military, or air force Other Govt. notified exempted establishments

ACT AUTHORISATION 1. To Promote and measure for health and welfare of INSURED EMPLOYEES (IE) 2. Intervene for the rehabilitation and re-employment for disabled / injured 3. To appoint inspectors for purposed of the act 4. To determine the amount of contribution and relevant verification
Standing committee empowered to1. Shall administer the affair of the corporation 2. Shall submit the consideration and decision of the corporations 3. Have discretion on other issues of corporation

Medical Benefit Council

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

Inspectors- Duties- Powers

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

Employer/ Employees Contribution

It is the principle employers responsibility to deposit his own as well as employees contribution in respect of all employees including the contract labour, into the E.S.I. Account. Nonavailability 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 The employer is required to contribute at the rate of 4.75% 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 employer should get his factory or establishments registered with the E.S.I. Corporation within 15 days after the Act becoming applicable to it, and obtain the employers Code Number. The regional officer will allot a code number to the employer, which must be quoted in all documents and correspondence.

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, 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

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. 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. The benefit is not paid for the first two days of sickness which is treated as the waiting period. Insured persons suffering from long term diseases like T.B., 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. 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.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 during period of sickness- section73.

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.

Adjudication of dispute & claims

Employees Insurance Court Institutions of proceedings, etc. Powers of employees Insurance Court Reference to High Court Appeal Stay of payment during pending of appeal

Offences : Offences If any person - Fails to pay any contribution payable by him under the Act; or Deducts from the wages of an employee the employer's contributions ; or Fails to submit any return required by the regulations, or makes a false return. He would be punished with imprisonment upto 1 year or with fine upto Rs. 4000/- or with both