labour law
DESCRIPTION
Benefit Of the Employer'sTRANSCRIPT
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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
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• 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 (.$%8 on total monthly wages
• Time 9ethod for payment of ontribution
:oth the employer+s and the mployees+ contribution are to paid in cash or by che;ue , into
the State :an! of India or any other ban! authori<ed by the SI orporation, by filling in a
prescribed hallan in ;uadruplicate within 21 days following the end of the calendar month
in which the contribution falls due.
The :an! will retain two copies of the hallan and return other two to the employer, one for
submitting to the #egional ffice of the orporation and the other for the record of the
employer.
• Procedure for Registration
The employer of a factory or an establishment desirous of registering it under the "ct has to
send to the #egional ffice within 1% days from the "ct becomes applicable to it a
=eclaration of #egistration in the prescribed form. >pon receipt of the =eclaration of
#egistration the #egional ffice shall if satisfied that the factory or the establishment is
coered by the "ct, allot to it a ode 3umber and thereupon the factory or the establishment
shall stand registered under the "ct.
• Benefits under the Act
There are Six !inds of benefits are proided under the "ct7
2 http://www.citehr.com/656-esi-act-1948-implications-benets-proce!re.html
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Sicness benefit
!aternity benefit
"isable#ent benefit "ependents$ 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
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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
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Benefits Contributory
Conditions
Duration Rate To Whom
Payable9aternity :enefits @ayment of
contribution for $0
days in one or two
consecutie periods.
12 wee!s of whichnot more than 6
wee!s can precede
the expected dateof confinement.
Twice S.:.#.Sub*ect t o min
of #s.20&- p.d.nly to the
insured person.
6 wee!s for
miscarriage or formedicaltermination of
pregnancy
"dditional payment for one
month for
omplications 'preor post) arising out
of @regnancy
9edical bonus
of #s.2%0&-where SIfacility is not
aailable.
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The grounds of eligibility of an insured woman to such payments must be certified by an
Insurance 9edical fficer as proided by the regulations.6 The below table will help in
explaining the concept.$
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
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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
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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
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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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