CHAPTER FIVE

EMPLOYEES STATE INSURANCE ACT,1948

Learning Objective

After completion of this Chapter, the student is able to understand,

administration of the of Employees’ State Insurance scheme , the p r o v i s i o n s o f Employees’ State Insurance Corporation Standing Committee and Medical Benefit Council

Further, ESI Fund and ESI Corporation through its executive committee called Standing Committee with the assistance, advice and expertise of Medical Council and Regional and Local Boards and Committees

Acclimatized with this branch of law to know its practical significance.

UNIT STRUCTURE

5.1 Introduction5.2 Aims5.3 Need:5.4 Recommendations5.5 Coverage Of The Act5.6 Date Of Enforcement5.7 Applicability Of The Act:Section 1(4)5.8 Definitions5.9 Compulsory Registration5.10 Who Is An Insurable Employee?5.11 Compulsory Insurance5.12 Contribution To Employees State Insurance Fund: Section 385.13 Disablement Benefit5.14 General Provisions Relating To Benefits5.15 Purpose Of Esi Fund Maybe Expended Under Esi Act5.16 Matters To Be Decided By Employees State Insurance Court5.17 Penalties-Section 845.18 Power To Disentitle Benefit To Insured Person 5.19 Power Of Corporation To Make Regulations [ Sec.97]SummaryReview Questions

5.1 INTRODUCTION

ESI Act has been passed to provide for certain benefits to employees incase of sickness,

maternity and employment injury and to make provisions for matters related therto.It is

basically insurance scheme i.e., employees get benefits if they are sick or disabled. An

organization called ESI corporation has been formed under the Act to supervise the

scheme.

Employment injury means personal injury to an employee caused by accident or an

occupational disease arising out of and in the course of his employment, being an

insurable employment, whether the accident occurs or the occupational disease is

contracted within or outside the territorial limits of India.

The Employees State Insurance Act is a social welfare legislation aimed at bringing about

social and economic justice to workers employed in the factories and establishment to

which this Act applies.

5.2 AIMS

Securing maximum labor welfare through various welfare schemes like providing certain

benefits to employees in case of sickness, maternity, disablement and death due to employment

injury to workers and to make provisions for certain other matters in relation thereto.

5.3 NEED:

Legislation providing some social security in the form of Insurance against some contingencies

like sickness, maternity, employment injury and death etc was pleaded at various forms.

5.4 RECOMMENDATIONS

Proceed : The Central Government should proceed with the preparation of a scheme of

health insurance applicable to all perennial factories and covering employment injuries

and maternity benefits if possible.

Circulate : The scheme should be circulated to provincial Government and association of

Employers and workers before the bill is drafted.

Benefits : Recommendation of Labor Conference and Standing Committee the Employees

State Insurance Bill providing for compulsory sickness, maternity and employment injury

benefits for workers in perennial factories was introduced in the Central Legislature on

6th November 1946 and passed in 1948.

5.5 COVERAGE OF THE ACT

It extends to the whole of India.

5.6 DATE OF ENFORCEMENT

It came into effect with effect from-19th April 1948, though Central Government may appoint

different dates for different provisions of the Act and for different States or for different part

thereof.

5.7 APPLICABILITY OF THE ACT:SECTION 1(4)

Include : All factories (including factories belonging to the government) other than

seasonal factories.

Extend : Enabling provision under which the appropriate Government is empowered to

extend the provision of the Act to other establishment-industrial, commercial, agricultural

or otherwise.

Establishment : Enabling provisions most of the State Governments have extended the

provision to new classes of establishments namely shops ,hotels, restaurants, Cinema

Halls including PVR, Road Motor Transport undertaking and Newspaper establishments

employing 20 or more coverable employees.

It is not sufficient that 20 persons are employed in the shop.They should be employee as

per section 2(9) of the Act,getting the wages prescribed therein.

Institution : The employees have been extended to Educational Institution employing

twenty or more employees in most of the States.

Exclude : Employees of factories/establishments mentioned above in the implemented

areas and drawing wages excluding overtime not exceeding ` 15,000 per month are

covered under the Act.

EMPLOYER

Owner of the factory

Head of the Department in case of Government Department

Person responsible for supervison and control in the case of any other establishment.

In case of contracted labour , primary liability of ESI contribution is that of principal

employer..However he can recover the contribution paid by him from the contractor.

EMPLOYEE

Employee means any person employed for wages in or in connection with the work of a factory

or establishment to which this Act applicable. The term employer further includes the following:

Persons employed through contractor

Apprentices other than those covered under the Apprentices Act. However, an apprentice

shall be treated as an employee whose training period is extended to any length of time.

It may be noted that only those employees who are drawing wages upto Rs.15,000 per month are

covered under this act.

It may be further be noted that the employee does not include any person working in the capacity

of a member of the Armed Forces of the Union.

IMMEDIATE EMPLOYER AND PRINCIPAL EMPLOYER

In relation to employees employed by or through him ,means a person who has

undertaken the execution on the premises of a factory or an establishment to which this

Act applies or under the supervision of principal employer or his agent, of the whole or

any part of any work which is ordinarily part of the work of the factory or establishment

of the principal employer or is preliminary to the work carried on , in or incidental to the

purpose of any such factory or establishment.

Principal Employer – in a factory , owner or occupier of the factory and includes the

managing agent of such owner or occupier , the legal representative of a deceased owner

or occupier and where a person has been named as the manager of the factory under the

factories act, 1948 the person so named.

Authority : In any establishment under the control of any department of any government

in India, the authority appointed by such government in this behalf or where no authority

is so appointed the head of the Department.

Other Establishment : In any other establishment any person responsible for the

supervision and control of the establishment.

NUMBER OF EMPLOYEES FALLING BELOW MINIMUM

It may be noted that a factory or an establishment to which the act applies shall continue to be

governed by this act even if the number of persons employed therein at any time falls below the

limit specified by or under the act or the manufacturing process therein ceases to be carried on

with the aid of power. Section 1 (6).

SAVING PROVISION

This act is not applicable to a factory or establishment belonging to or under the control of the

government whose employees are otherwise in receipt of benefits substantially similar or

superior to the benefits provided under this Act

CONSTITUTIONAL PROVISION

The Subject Employees insurance is included in list III at entry no 23 Schedule 7 of Constitution

of India. Both State Government and State Governments have power to make legislative

enactment for this purpose.

5.8 DEFINITIONS

Appropriate government means, in respect of establishments under the control of the Central

Government or a railway administration] or a major port or a mine or oilfield, the Central

Government, and in all other cases, the State Government.

Confinement means labour resulting in the issue of a living child or labour after twenty-six

weeks of pregnancy resulting in the issue of a child whether alive or dead.

Contribution means the sum of money payable to the Corporation by the principal employer in

respect of an employee and includes any amount payable by or on behalf of the employee in

accordance with the provisions of this Act;

Dependant under Section [(6A)] “dependant” means any of the following relatives of a

deceased insured person, namely,-

A widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter

[(ia) a widowed mother;]

If wholly dependent on the earnings of the insured person at the time of his death, a

legitimate or adopted son or daughter who has attained the age of twenty five years and is

infirm.

Wholly or in part dependent on the earnings of the insured person at the time of his death.

Parent other than a widowed mother.

A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate.

Adopted or illegitimate if married and a minor or if widowed and a minor.

A minor brother or an unmarried sister or a widowed sister if a minor.

A widowed daughter-in-law.

A minor child of a pre-deceased son.

A minor child of a pre-deceased daughter where no parent of the child is alive.

A paternal grand-parent if no parent of the insured person is alive.

Insurable employment means an employment in a factory or establishment to which this Act

applies;]

Permanent partial disablement Section [(15A) means such disablement of a permanent nature,

as reduces the earning capacity of an employee in every employment which he was capable of

undertaking at the time of the accident resulting in the disablement.

Permanent total disablement Section (15B) means such disablement of a permanent nature as

incapacitates an employee for all work which he was capable of performing at the time of the

accident resulting in such disablement:

Seasonal factory” Section (19A) “means a factory which is exclusively engaged in one or more

of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing,

decortications of groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar or tea or any

manufacturing process which is incidental to or connected with any of the aforesaid processes

and includes a factory which is engaged for a period not exceeding seven months in a year-

In any process of blending, packing or repacking of tea or coffee.

In such other manufacturing process as the Central Government may, by notification in

the Official Gazette.

Temporary disablement Section 21 means a condition resulting from an employment injury

which requires medical treatment and renders an employee, as a result of such injury,

temporarily incapable of 21[doing the work which he was doing prior to or at the time of the

injury].

Wages Section 22 means all remuneration paid or payable, in cash to an employee, if the terms

of the contract of employment, express or implied, were fulfilled and includes any payment to an

employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay

-off and other additional remuneration, if any, paid at intervals not exceeding two months, but

does not include-

Contribution paid by the employer to any pension fund or provident fund, or under this

Act.

Travelling allowance

Reimbursement of the expense incurred by the employee

Gratuity

Occupational Disease

An employee employed in any employment specified in Part A of Schedule III

contracts any disease specified therein, as an occupational disease.

The employee employed in any employment specified in Part B of Schedule III, for a

continuous period of not less than six months under the same employer.

If an employee whilst in service of one or more employers (not necessarily the same

employer) in any employment specified in Part C of Schedule III for such continuous

period as the Central Government.

The Central Government or the State Government after giving, by notification in the

Official Gazette, not less than three months notice of its intention so to do, may, by a like

notification, add any description of employment to the employments specified in

Schedule III, and shall specify in the case of employments.

Arising out of employment :

Causal connection between the employment and the accidental injury. The cause contemplated

is the proximate cause and not any remote cause.

Case Law: Laxmibai Atma Ram v. Bombay Port Trust, AIR 1954 Bom.180

Workman suffers from heart disease and dies on account of strain of work by keeping

continuously standing or working, held that the accident arose out of employment

Arising in the course of employment The period of employment and the place of work. In other words, the workman, at the time of

accident must have been employed in the performance of his duties and the accident took place

at or about the place where he was performing his duties.

Arising out of and in the course of employment:

The basic and undispensable ingredient is unexpectedness. The second ingredient is that the injury must be traceable within reasonable limits, to a definite time, place or occasion or cause. The Act should be broadly and liberally constructed in order to effectuate the real intention and purpose of the Act.

Theory of notional extension of employment

Employer liable it is necessary that the injury caused by an accident must have arisen in the

course of employment. It means that the accident must take place at a time and place when he

was doing his master’s job

Case Law : Naima Bibi v. Lodhne Colliery (1920) Ltd., 1977 Lab. I.C. NOC 14 : .A

workman while returning home after duty was murdered within the premises of the employer. It

was held that there was casual and proximate connection between the accident and the

employment. Since the workman was on spot only for his employment and his wife is entitled

for compensation.

Employer is not liable

Injury does not result in disablement for a period exceeding 3 days.

Injury not resulting in death or permanent total disability is due to any of the following reasons.

The employee was at the time of accident, under the influence of drink or drugs.

The employee wilfully disobeyed an order expressly given or a rule expressly framed for the purpose of securing safety of workers

The employee, wilfully disregards or removes any safety guards or safety devices which he knew to have been provided for the safety of the employee.

5.9 COMPULSORY REGISTRATION

Case Law : BOC India ltd Calcutta v Asst Regional Director, ESI Corporation,

Hyderabad, 2005 LLR 4

Section 2A of the Act ,lays down that every factory or establishment to which this act applies

shall be registered within such time and in such manner as may be specified in the regulations

made in this behalf.

5.10 WHO IS AN INSURABLE EMPLOYEE?

Every employee of a factory or establishment to which the Act applies is an insurable

person .Section 38 states that subject to provisions of the Act.

All employees in factories or establishments to which this Act applies shall be insured in

manner as provided in Act.

The following persons are not insurable and Act does not provide any benefit:

Workers in mines subject to Mines Act, 1952[Sec 2(12)]

Workers in a railway running shed [Sec 2(12)]

Any member of [the Indian] naval, military or air forces [Sec2 (9)]

Any person so employed whose wages (excluding remuneration for overtime

work)exceed [such wages as may be prescribed by the Central Government]

5.11 COMPULSORY INSURANCE

It is compulsory to get all the employees in a factory or establishment to which this Act apply

insured in the manner provided by this Act. For an employee to be insured two conditions must

be fulfilled (a) he must be employed in a factory or establishment to which this act applies (b)

contribution must be either paid or payable. In Hyderabad Asbestos v Employees Insurance

court(Air)1978SC356 the Supreme court held that the words all employees in factories do not

mean the person employed in factories only but also include persons employed in connection

with the work of the factory. The employee that are required to be insured are not restricted to

only those employed in factories defined under section 2(19) of the Act.In case of Transport

corporation of India V Employees’ State Insurance Corporation, AIR SC 328, and Supreme court

held that the Employees State Insurance Act is aimed at conferring benefits on employees in case

of sickness, maternity and employment injury. Section 38 of the Act mandates that all the

employees in the factory or establishment shall be insured. The initial and vital endeavour should

be to identify the beneficiaries or the employees for insurance.

5.12 CONTRIBUTION TO EMPLOYEES STATE INSURANCE FUND: SECTION 38

Apply : All employees in factories or establishments to which this Act applies are to be

insured by the employer.

Contribution : The contribution payable under this Act in respect of an employee

comprise contribution payable by the employer called as the employer’s contribution and

contribution payable by the employee called as the employee’s contribution and shall be

paid to the Corporation.

Rate : Rate of contribution are prescribed by the Central Government. Presently the rate

of Employer’s contribution is 4.75% and Employees’ contribution is 1.75% of the wages.

BENEFITS-SECTION 46

Sickness Benefit.

Maternity Benefit.

Disablement Benefit.

Dependants’ Benefit.

Medical Benefit.

Funeral Expenses.

All these benefits except medical benefit are monetary benefits. The rules regarding benefits are

contained in Sections 46 to 58 and Rules 55 to 58.

Medical Benefit:

Full medical care is provided to an Insured person and his family members from the day

he enters insurable employment.

There is no ceiling on expenditure on the treatment of an Insured Person or his family

member. Medical care is also provided to retired and permanently disabled insured

persons and their spouses on payment of a token annual premium of ` 120/-

Sickness Benefit : Sickness Benefit in the form of cash compensation at the rate of 70 per cent

of wages is payable to insured workers during the periods of certified sickness for a maximum of

91 days in a year. In order to qualify for sickness benefit the insured worker is required to

contribute for 78 days in a contribution period of 6 months.

Extended Sickness Benefit: Sickness Benefit extendable upto two years in the case of 34

malignant and long term diseases at an enhanced rate of 80 per cent of wages.

Enhanced Sickness Benefit: Enhanced Sickness Benefit equal to full wage is payable to insured

persons undergoing sterilization for 7 days/14 days for male and female workers respectively.

Maternity Benefit : Maternity Benefit for confinement/pregnancy is payable for three months,

which is extendable by further one month on medical advice at the rate of full wage subject to

contribution for 70 days in the preceding year

5.13 DISABLEMENT BENEFIT

Temporary disablement benefit: From day one of entering insurable employment &

irrespective of having paid any contribution in case of employment injury. Temporary

Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.

Permanent disablement benefit: The benefit is paid at the rate of 90% of wage in the form of

monthly payment depending upon the extent of loss of earning capacity as certified by a Medical

Board

Dependants’ Benefit: Dependants Benefit paid at the rate of 90% of wage in the form of

monthly payment to the dependants of a deceased Insured person in cases where death occurs

due to employment injury or occupational hazards.

Other Benefits:

Funeral Expenses: An amount of ` 10, 000/- is payable to the dependents or to the person who

performs last rites from day one of entering insurable employment.

Confinement Expenses: An Insured Women or an Insured Person in respect of his wife in case

confinement occurs at a place where necessary medical facilities under ESI Scheme are not

available.

Vocational Rehabilitation: To permanently disabled Insured Person for undergoing VR

Training at VRS.

Physical Rehabilitation: In case of physical disablement due to employment injury.

Old Age Medical Care: For Insured Person retiring on attaining the age of superannuation or

under VRS/ERS and person having to leave service due to permanent disability insured person &

spouse on payment of ` 120/- per annum.

Rajiv Gandhi Shramik Kalyan Yojana - This scheme of Unemployment allowance was

introduced w.e.f. 01-04-2005. An Insured Person who become unemployed after being insured

three or more years, due to closure of factory/establishment, retrenchment or permanent

invalidity are entitled to Unemployment Allowance equal to 50% of wage for a maximum period

of upto one year.

Medical care for self and family from ESI Hospitals/Dispensaries during the period IP

receives Unemployment allowance.

Vocational Training provided for upgrading skills : Expenditure on fee/travelling allowance

borne by ESIC.

Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay Offices

(POs), subject to certain contributory conditions. The Corporation at the request of the

appropriate government may extend the medical benefit to the family of an insured person.

5.14 GENERAL PROVISIONS RELATING TO BENEFITS

As per section 60 the right to receive any payment of any benefit under this Act is not

transferable or assignable.

When a person receives benefits under this Act ,he is not entitle to receive benefits under

any other enactment.

An insured person is not entitled to receive for the same period more than one benefit, e.g

benefit of sickness cannot be combined with benefit of maternity or disablement, etc.

EMPLOYER NOT TO REDUCE ANY PAYMENT OR BENEFITS

The employer directly or indirectly recovers the employer’s contribution from the wages

or benefits given under this Act.

Section 85 prohibits such unethical practice on the part of employer.

No employer by reason only of his liability for any contributions payable under this Act

can, directly or indirectly, reduce the wages of any employee, or except as provided by

the regulations, discontinue or reduce benefits payable to him under the conditions of his

service which are similar to the benefits conferred by this Act.

DISMISSAL OR DISCHARGE OF EMPLOYEE

Section 73 of the ESI Act, 1948 provides that no employer shall dismiss or discharge or

otherwise punish an employee during the period the employee is in receipt of sickness benefit or

maternity benefit. It further provides that no notice of dismissal or discharge or reduction given

to an employee during such period shall be valid or operative.

5.15 PURPOSE OF ESI FUND MAYBE EXPENDED UNDER ESI ACT

Payment of benefits to the insured person or their families

Payment in relation to any contract entered for implementing the provisions of the Act

Payment of salaries to the employees of ESIC

Payment of fees to members of standing committee.

Payment of contribution to any State Government , local authority or any private body or

individual.

Include all expenses of auditing the accounts of the corporation and the valuation of

assets and liabilities.

Payment of sums under any decree, order or award of any court or tribunal against the

corporation or any of its officers or servants.

EMPLOYEES INSURANCE COURT-SECTION 74

Employees Insurance Court is constituted under the Section 74 of the employees State Insurance

Act, 1948.

State Government is empowered to notify the EIC in the Official Gazette

The Judge of such court should be either:-

Judicial Officer or

Legal practitioner for atleast 5 years

EIC needs to perform the function of both adjudicating disputes as well as determining

the claims.

The State Government may appoint the same court for two or more local areas or two or

more courts for the same local area and may regulate the distribution of business between

them

5.16 MATTERS TO BE DECIDED BY EMPLOYEES STATE INSURANCE COURT

ADJUDICATION OF DISPUTES: The EIC has jurisdiction to adjudicate disputes, namely

whether any person is an employee under the Act, rate of wages/contribution, as to who is or was

the principal employer, right of a person to any benefit under the Act.

ADJUDICATION OF CLAIMS:

EI court also has jurisdiction to decide claims for recovery of contribution from principal

employer or immediate employer, action for failure or negligence to pay contribution ,

claim for recovery of any benefit admissible under the act.

Proceedings in both the above cases can be initiated by filing application in the

prescribed form by the employee or his dependent or employer or the corporation

depending who has cause of action.

No civil court has power to decide the matters falling within the purview /jurisdiction of

E.I.Court.

5.17 PENALTIES-SECTION 84

False Statement: Any person knowingly makes or cause to make a false statement or false

representation for the purpose of causing any increase in payment or benefit or causing any

payment or benefit not authorized under this Act.

Avoiding : For the purpose of avoiding any payment or benefits to be made under this Act shall

be punishable with imprisonment for a term which may extend to six months, or with fine not

exceeding two thousand rupees, or with both.

Contribution : Part of employers contribution from the salary or wages of the employee or

reducing salary or wages or any benefit of the employee on account of employer contribution

shall be punishable for a term which may extend to three years but

Shall not be less than one year, in case of failure to pay the employee’s contribution

which has been deducted by him from the employee’s wages and shall also be liable to

fine of ten thousand rupees

Shall not be less than six months, in any other case and shall also be liable to fine of five

thousand rupees for failure to deposit contribution. If the offence relates to recover of

employers contribution from salary and wages of the employee or reduction any benefit

or payment, with imprisonment for a term which may extend to one year or with fine

which may extend to four thousand rupees, or with both.

PENALTY FOR REPEATED VIOLATION-SECTION 85A

Commits the same offence shall, for every such subsequent offence, be punishable with

imprisonment for a term which may extend to two years and with fine of five thousand

rupees In case such subsequent offence is for failure by the employer to pay any

contribution which under this Act he is liable to pay, he shall, for every such subsequent

offence, be punishable with imprisonment for a term which may extend to five years but

which shall not be less than two years and shall also be liable to fine of twenty-five

thousand rupees.

Where an employer is convicted of an offence for failure to pay any contribution payable

under this Act, the Court may, in addition to awarding any punishment by order, in

writing require him within a period specified in the order to pay the amount of

contribution in respect of which the offence was committed, and to furnish the return

relating to such contributions.

In such a case the employer shall not be liable under this Act in respect of the

continuation of the offence during the period or extended period, if any, allowed by the

Court, but if, on the expiry of such period or extended period, as the case may be, the

order of the Court has not been fully complied with, the employer shall be deemed to

have committed a further offence and shall be punishable with imprisonment in respect

thereof under section 85 and shall also be liable to pay fine which may extend to one

thousand rupees for every day after such expiry on which the order has not been

complied with.

5.18 POWER TO DISENTITLE BENEFIT TO INSURED PERSON

Benefits: If the Central Government is satisfied that the benefits under this Act are being

misused by insured persons in a factory or establishment, that Government may disentitle

such persons from such of the benefits as it thinks fit.

Reasonable Opportunity : Before passing such order a reasonable opportunity of being

beard is given to the concerned factory or establishment, insured persons and the trade

unions registered under the Trade Unions Act, 1926 having members in the factory or

establishment.

5.19 POWER OF CORPORATION TO MAKE REGULATIONS [ SEC.97]

The E.S.I. Corporation, subject to certain conditions, can prescribe regulations and rules for the

administration of the affairs of the Corporation and for carrying into effect the provisions of this

Act.

CASE LAWS

Royal Talkies , Hyderabad vs ESI Corporation :

It was held that employee of the cycle stand and the canteen run in a cinema theatre by

contractors to whom the cycle stand and canteen have been leased are employees within the

meaning of ESI Act.

ESIC V.MM Suri and Associates Pvt Ltd :

It is not sufficient that 20 persons are employed in the shop. They should also be covered under

the meaning of employee as per the act.

Regional Director,ESI Vs Francis de Costa :

The Supreme Court held that mere road accident on a public road while employee was on his

way to place of employment cannot be said to have its origin in his employment in the

factory.Thus the injury cannot be said to be caused by an accident arising out of and in the

course of employment.

ESI Corpn Vs Babulal :

It was held that injury arose out of employment where a workmen attending duty in spite of

threats by persons giving call for strike and was assaulted by them while returning after his duty

was over.

Jayanthilal Dhanji Vs ESIC :

An injury caused to a worker while knocking the belt of the moving pulley was held to be

employment injury.

Hyderabad Asbestos Cement Products Vs ESIC :

The word employee would include not only persons employed in a factory but also persons

connected with the work of the factory

ESIC Vs Apex Engg Pvt Ltd

It was held that Managing Director could also be an employee of the company and hence

covered under the Act .

Regional Director , ESI Corpn Vs L.Rangarao

Employment injury means a personal injury to an employee caused by accident or an

occupational disease arising out of and in the course of his employment , being an insurable

employment ,whether the accident occurs or the occupational disease is contracted within or

outside the territorial limits of India.An Insurable Employment means an employment in a

factory or establishment to which this Act applies.

ESIC Vs Santha Kumar

The supreme court held that the limitation period of 5 years specified under section 77 of the ESI

Act to bring an action before the ESI court is not applicable in case of determination of the

contribution payable under section 45A of the ESI Act,1948.If the employer fails to challenge

the determination made by the ESI corporation under the provision of section 45A or Section 75

of the ESI Act, before the employees State Insurance Court , it becomes final against the

employer.Therefore the contention of the employer that the ESI Corporation cannot recover the

dues pertaining to the period prior to five years, is not tenable in law.

SUMMARY

The ESI Act applies to all power using factories employing 10 or more persons and to all non-power using factories employing 20 or more persons. Persons whose remuneration [including overtime] per month does not exceed Rs. 10,000/-are covered under the Act. The scheme

provides for sickness and extended sickness benefit, maternity benefit, disablement, dependents’ benefit, medical benefit , funeral benefit and so on. The scheme is administered by a corporate body called Employees State Insurance Corporation.

REVIEW QUESTIONS

Can an insured woman be entitled to sickness benefit and maternity benefit together for

the same period ?-

Difference between Principal and Immediate Employer?

Write short notes on Employment injury under the ESI Act,1948 ?

Write short notes on Purposes for Which ESI fund may be expended under the ESI

Act,1948 ?

Write short notes on Dependent under ESI Act,1948 ?

Write a short note on Benefits to which insured persons are entitled ?

Difference between Sickness Benefit and Medical Benefit under the ESI Act, 1948 ?

Write short notes on Employees Insurance Court under ESI Act, 1948 ?