1. OVERVIEW -By Jagdish Kandpal

2. To seek registration of Factories and Establishments To complete declaration Form for the safety of company and employee To submit declaration for and return in Form 3 in duplicate To assist the Corporation in case of half yearly and monthly contribution. To arrange the identity cards for the Employees and issue IP numbers. To issue certificate of Employment To issue certificate of contribution rate on leaving employment To pay interest and damages on contribution due but not paid in time .Contd.2 3. To maintain register of Employees i.e. attendance, IP nos, Form 7, Medical Register etc. To furnish particulars in respect of absenteeism of an insured person during the working period. To maintain accident book under act, as prescribed To send a report of accident within specified period i.e. 24 hour of accident took place. To arrange first aid appliances / facilities at prescribed place. To furnish further particulars of accident To report death if it is by employment injury To maintain inspection book, as prescribed Not to take punitive action during sickness period 4. Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons. Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs. 5. The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories STATES All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram. UNION TERRITORIES Delhi, Chandigarh and Pondicherry 6. Drawing wages up to Rs. 15,001/- per month called gross salary Engaged either directly or through contractor RATE OF CONTRIBUTION OF THE WAGES Employers @ Rs. 4.75 % Employees @ Rs. 1.75 % 7. No.of implemented Centers 677 No.of Employers covered . 2.38 lacs No.of Insured persons 85 lacs No.of Beneficiaries 330 lacs No.of Regional offices/SROs 26 No.of ESI Hospitals / Annexes 1453 No.of Penal Clinics 2950 8. 9. The total amount of contribution (employees share and employers share) is to be deposited with the authorised bank through a challan in the prescribed form in quadruplicate on or before 21st of month following the calendar month in which the wages fall due. 10. Medical. Sickness, extended sickness for certain diseases, enhanced sickness, dependents maternity, besides funeral expenses, rehabilitation allowance, medical benefit to insured person and his or her spouse. 11. TO BE DEEMED AS WAGES Basic pay Dearness allowance House rent allowance City compensatory allowance Overtime wages (but not to be taken into account for determining the coverage of an employee) under implimented ESIC Act 1948 in 2010. Payment for day of rest Production incentive Bonus other than statutory bonus Nightshift allowance Payment for un-substituted holidays Meal / food allowance Suspension allowance Lay off compensation Children education allowance Heat, Gas & Dust allowance NOT TO BE DEEMED AS WAGES Contribution paid by the employer to any Sum paid to defray special expenses Gratuity payable on discharge Pay in lieu of notice retrenchment Benefits paid under the ESI Scheme Encashment of leave Payment of Inam which does mean part of employment Washing allowance for livery Conveyance Amount towards reimbursement for duty related journey 12. Twice in a year. BENEFIT PERIOD If the person joined insurable employment for the first time, say on 5th January, his / her first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December 13. Maternity benefits are available under the provisions of ESI Act. Duration of maternity benefit is 12 weeks in case of normal delivery and 6 weeks in case of miscarriage. The period can be extended by 4 weeks on medical advice. Maternity benefit is available subject to the condition of payment of contribution for a minimum of 60 days in one or two consecutive contribution periods and the rate of payment is double the standard benefit rate i.e. approximate full wages. The can be claimed on the basis of medical certificate issued by the dispensary which has to be deposited in local office and local office will make payment. 14. i. Attendance Register in respect of all the employees including employees engaged by immediate employer / contractor ii. Wage Register iii. Register under Regulation 32 iv. Accounts Book v. Cash Book / Books of Account ledgers, petty cash book including bills and vouchers vi. Other relevant records to show the labour charges paid to the labour engaged in construction, repair & maintenance etc., vii. Inspection Book viii. Form 7 monthly contribution particular of relevant employees details Note : Most of the forms are supplied by the ESI Local office with free of cost 15. Different punishments have been prescribed for different types of offences in terms of Sec.85 (i) (six months imprisonment and fine Rs. 5000/-), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.