Labour Law

7/17/2019 Labour Law

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University Institute of Legal Studies

Project Report

Of

Labour Laws

On

Benets Of The Employees’ State

Insurance Act !"#$

To: By:

Mrs. Jai Mala Rohit Garg

BA.LLB.

(5th semester)

81/08

1



• Application of the Act

It is applicable to non-seasonal power using factories employing 10 or more persons and

non-power using factories employing 20 or more persons.The Scheme has been extended

to shops, hotels, restaurants, cinemas including preiew theatre, road motor transportunderta!ings and newspaper establishment employing 20 or more persons.The existing

wage-limit for coerage under the "ct, is #s.$%00&- per month 'with effect from

1.(.200().

• Objective

The ob*ect of the "ct is to secure sic!ness, maternity, disablement and medical benefits to

employees of factories and establishments and dependents+ benefits to the dependents of

such employees

• Applicability

irst of we should the applicability of the mployees+ State Insurance "ct, 1(/ "s soon

as the below conditions are fulfilled the employer should furnish the details in orm-01 to

SI office for registration under the SI "ct, 1(/ btaining of the employer+s ode

3o.

1) "ll factories excluding seasonal factories employing 10 or more persons and wor!ing

with electric power.

2) "ll factories excluding seasonal factories employing 20 or more persons and wor!ing

without electric power.

4) "ny establishment which the 5oernment may specifically notify as being coered.

() Shop employing 20 or more persons.1

• Eligibility

1 http://www.on-lyne.info/legal1.htm

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1) "ny person employed for wages 'up to #s. 6%00) in or in connection with the wor! of a

factory or establishment end.

2) "ny person who is directly employed by the employer in a factory or through his agent

on wor! which is ordinarily part of the wor! of the factory or incidental to purpose of thefactory.2

• ontribution under SI "ct,1(/

1. mployees 7 1.$%8 on total monthly wages

2. mployer 7 (.$%8 on total monthly wages

• Time 9ethod for payment of ontribution

:oth the employer+s and the mployees+ contribution are to paid in cash or by che;ue , into

the State :an! of India or any other ban! authori<ed by the SI orporation, by filling in a

prescribed hallan in ;uadruplicate within 21 days following the end of the calendar month

in which the contribution falls due.

The :an! will retain two copies of the hallan and return other two to the employer, one for

submitting to the #egional ffice of the orporation and the other for the record of the

employer.

• Procedure for Registration

The employer of a factory or an establishment desirous of registering it under the "ct has to

send to the #egional ffice within 1% days from the "ct becomes applicable to it a

=eclaration of #egistration in the prescribed form. >pon receipt of the =eclaration of

#egistration the #egional ffice shall if satisfied that the factory or the establishment is

coered by the "ct, allot to it a ode 3umber and thereupon the factory or the establishment

shall stand registered under the "ct.

• Benefits under the Act

There are Six !inds of benefits are proided under the "ct7

2 http://www.citehr.com/656-esi-act-1948-implications-benets-proce!re.html

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http://www.citehr.com/656-esi-act-1948-implications-benefits-procedure.html




Sicness benefit

!aternity benefit

"isable#ent benefit "ependents$ benefit

!edical benefit and

%uneral e&penses'

1' Sicness benefit ( It is in the form of periodical payment to any insured person proided his

sic!ness is certified by a duly appointed medical practitioner, or any person haing such

;ualifications and experience as may be specified by regulations of the orporation. ?here

proision is made for sic! leae by standing order, the employer cannot re;uire the employee

to see! sic!ness benefit proided under this sub- section.

In !anage#ent of "ioccsan Press v' abour *ourt !adras+ it was held that it was not possible

to accept the contention that since the employee has receied sic!ness benefit under the "ct, he

is not entitled to receie wages for the period during which he was on sic! leae. :ut the

employer is entitled to deduct the benefit receied by the employee from the leae salary payable

to him.(

The below table will explain the things better.%

Benefits Contributory

Conditions

Duration Rate To Whom

Payable a) Sic!ness

:enefit.

I.@. Should wor!

for wages for $/days in the

corresponding .@.

'wef 1--/).

1 days in any two

consecutie :.@.

"s per S.:.#. nly to the insured

person

b) xtended

sic!ness benefit for

long term diseasesli!e T:, leprosy,

ontinuous

employment for

the period of twoyears.

12( days which

may be extended

upto 40 days inspecified chronic

2%8 "boe S.:.#. nly to the insured

person

" #1982$ % &.&.' 451 #(a$

4 ).*. (ishra+ &abo!r an %n!strial &aws+ ,entral &aw !blications 25th ei. . 46"

5 .&. !mar+ &abo!r &aws 0eryboy )ho!l now+ nieral &aw !blishing ,o.+

2338 p.66

4



etc. cases during a

period of three yrs.

c) nhancedsic!ness benefit

'for under-going

sterili<ationoperation for

family planning)

Same as for :enefit 'a)aboe

$ days for asectomy 1(

days for tubectomy

extended in casesof post-coperatie

complications etc.

Twice the S.:.# nly to the insured person

2' !aternity Benefit( This benefit in the form of periodical payment aailable to an insured

woman. It is payable in case of-

1) *onfine#ent, or

2) !iscarriage, or +) Sicness arising out of pregnancy, or

-) Pre#ature birth of child

5

Benefits Contributory

Conditions

Duration Rate To Whom

Payable9aternity :enefits @ayment of

contribution for $0

days in one or two

consecutie periods.

12 wee!s of whichnot more than 6

wee!s can precede

the expected dateof confinement.

Twice S.:.#.Sub*ect t o min

of #s.20&- p.d.nly to the

insured person.

6 wee!s for

miscarriage or formedicaltermination of

pregnancy

"dditional payment for one

month for

omplications 'preor post) arising out

of @regnancy

9edical bonus

of #s.2%0&-where SIfacility is not

aailable.



The grounds of eligibility of an insured woman to such payments must be certified by an

Insurance 9edical fficer as proided by the regulations.6 The below table will help in

explaining the concept.$

4. "isable#ent benefit - "ny insured person shall be entitled to periodical payments if71) Ae suffers from disablement 72) The disablement results from an employment in*ury7 and

+) Ae sustained the employment in*ury as an employee under condition mentioned in the

"ct.

The disablement benefit is payable only when the in*ury is duly certified by an Insurance

9edical officer.

In Brishnan Butty 3air . @.:.C. #egional =irectorD .S.I orporation and "nother,/ the

appellant who was a coered employee under the .S.I scheme, met with an accident in the

course of his employment on Eune 1%, 10. The claimant suffered in*ury he had ceased to be

an employee.

=ismissing the appeal it was held that Section %6 F of mployees+ State Insurance "ct, 1(/

specifically proides for two cumulatie conditions for its applicability 7 '1) first the claimant

must be an insured personD and '2) second that such an in*ury must be sustained when he was

an employee. Aence, when the in*ury had been sustained by the employee when he ceased to

be an employee, he would not be entitled to the benefit of disablement though his

contribution period and his status as insured person continues.

=isablement

:enefits

'employment

3o onditons In case of

temporary

disablement7 asa) or temp. nly to disablement the

6 )!pra no. 4

)!pra no. 5 p. 66

8 2338 %% &.&.' 99 #).,.$

9 )!pra no. 4

6



in*ury) long as incapacity

lasts in case of

permenant dis-ablement7 for life

time.

in*ured (08 aboe person S.:.#

(. =ependents benefit- The benefit is aailable to such dependents, of an insured person who

dies as a result of an employment in*ury sustained as an employee, as are entitled to

compensation under this "ct.10

=ependent+s:enefit

'employment

in*ury)

3o condition To the ?I=?&Sduring life time

until remarriage.

To the legitimateor adopted S3&S

until he attains theage of 1/yrs.

4&% of the >GG #"T, if there are 2or more widows, the amt. payable to

the widows shall be diided e;ually

between the widows.2&% of the >GG #"T, if there are 2

or more sons, the amt. payable to thesons shall be diided e;ually between

the sons. Sub*ect to a min of #s. 1(&-

%. 9edical :enefit- 9edical benefit is aailable to an in*ured person or to a member of his

family, were such benefit is extended to the members of his family. This benefit is in the

following forms7

I. ut H patient treatment and attachment in the hospital or dispensaryD or II. :y isits of the home of the insuredD or III. "s an in-patient in a hospital pr other institution.11

• 9edical

:enefit to

insured

personswho

ceases

insurableemployment on

3o condition butan. I.@. has to pay

#s. 10&- pm in

lump sum for oneyear in adance

eery year.

Till the date onwhich an I.@.

would hae

attained the age ofsuperannuation

9edical :enefit I@ and spouse.

13 ibi

11 %bi p.464



account of

permanent

disablement.

• 9edical:enefit to

retired

Insured@eriod

1) Insurableemployment

for a period of %years

and

2) @ayment of

ffice of theontribution

#s. 1%&-

@9 in lump sumfor one year in

adance, eachyear.

Till the timeyearly contribution

is paid to the

oncerned

ffice of the

orporation.

----- Insured person and

his spouse

6. uneral xpenses- uneral expenses are payable to the eldest suriing member of the family

or to such person who actually incurs funeral expenses. The amount of such payment shall

not exceed such amounts as may be prescribed by the entral 5oernment. "ny claim for the

funeral expenses must be made within three months of the death of the insured person or

within such extended period as the orporation or any other competent official may allow.12

uneral

xpenses

3o condition

'i.e.merely by

irtue of being aninsured person)

ne time lump

sum payment

3ot more than

#s. 1,%00&-

To the eldest

suriing

member of thefamily of the

deceased I.@.

r to the person who

actually incurs

theexpenditure

on the funeral

of an I.@.

12 %bi

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:ibliography

• :oo!s

1. S.3. 9ishra, Gabour and Industrial Gaws, entral Gaw @ublications 2%th edi

9



2. A.G. Bumar, Gabour Gaws erybody Should Bnow, >nieral Gaw

@ublishing o., 200/

• ?ebsites

1. . http7&&www.on-lyne.info&legal1.htm

2. http7&&www.citehr.com&6%6-esi-act-1(/-implications-benefits-

procedure.html

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Labour Law

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