HR Desk note 3/ 2010 March 1, 2010

Sub: ESI Corporation resolves to enhance the salary Ceiling from Rs.10,000/- to Rs.15,000/- under ESI Act - DATE TO BE NOTIFIED ------------------------------------------------------------------------------------------------------------

The ESI Corporation has resolved to enhance the salary ceiling from Rs10,000/- per month to Rs.15,000/- per month for coverage of employees under ESI Scheme. THE DATE FROM WHICH IT WOULD BE EFFECTIVE IS YET TO BE ANNOUNCED.

Keeping in view the increase in cost of living index and recommendations of the Parliamentary Standing Committee on Labour, the Corporation has resolved to increase the wage limit for coverage of the employees under the ESI Scheme. This will help the Corporation to provide Social Security net to more and more employees of the Organized Sector,

The ESI Corporation to enhance the benefit rates for Permanent Disablement and Dependants’ Benefit for those beneficiaries who are on the rolls of ESIC for getting life long benefits under these two types of benefits. These benefits entitle the beneficiaries to get a monthly amount for whole life in case of Disablement and Death.

This has been done to compensate the beneficiaries against erosion in the real value of these monthly benefits due to inflation. The Corporation approved to give effect to these benefits from 01.08.2007.

Amnesty Scheme to be effective from 01.03.2010.

The ESI Corporations’ Amnesty Scheme for withdrawal of criminal cases filed against insured Persons and Employers under Section 84, 85 & 85-A of the ESI Act, 1948 and settlement of cases filed by the employers under 75 of the ESI Act. enforced from 1st March, 2010 till February, 2011.

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EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEIOUS PROVISIONS ACT, 1952 – SS.2(F) AND 2A – (Liability to pay E.P.F. Contributions in respect of the workers employed in a canteen attached to a hospital in that of the hospital authority.)------------------------------------------------------------------------------------------------------------

The petitioner is the Director of a hospital. There is a canteen attached to the hospital which is run on contract basis. According to the petitioner, he has no control over the workers engaged by the contractor in the canteen. Despite this fact, respondent No.1- Asst. Provident Fund Commissioner passed the impugned order holding the petitioner liable to pay the contributions in respect of the workers employed in the canteen. The petitioner filed a review petition but it was rejected by respondent No.1. Hence the petitioner filed a writ petition in the High Court and challenged the impugned order.

The High Court referred to the definition of the term ‘employee’ as given in S.2 (f) of the Act and pointed out that the term includes any person employed by or through a contractor in or in connection with the work of the establishment. It was held that the facility of providing a canteen in the petitioner’s hospital is an amenity for the persons visiting the hospital, for the patients and staff of the hospital and therefore it has definitely a connection with the work establishment. Hence the petitioner is liable to pay the provident fund contributions of the workers engaged in the canteen though through the contractor. The writ petition was therefore dismissed.

- H.C.Ker. LLN (4) 2009 P.884, Dr.A.V.Joseph v. Assistant Provident Fund Commissioner & Anr.