Updated on 13th Dec, 2020 . the insurance scheme contained in the act has up till date, been applied to a few selected localities. The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. •Health insurance first discussed in 1927 by indian legislature. I am glad I have taken the time to see this.... Free MBA Notes/Free BBA Notes/ MBA Study Material/ MBA Notes, Chapter I : Preliminary ( Sections 1 – 2), Chapter II : Corporation, Standing Committee and Medical Benefit Council ( Sections 3- 25, Chapter III : Finance and Audit ( Sections 26-37), Chapter IV : Contributions ( Sections 38-45), Chapter V : Benefits and Transitory Provisions ( Section 46 – 73), Chapter VI : Adjudication of Dispute and Claims ( Sections 74 – 83), Chapter VII : Penalties ( Section 84 – 86), Chapter VIII : Miscellaneous ( Section 87 – 100). ], Section 92. The Employee State Insurance Act, 1948 The Government of India through notification in the Official Gazette has amended the Employees’ State Insurance (Central) Rules, 1950. ], 4[(6) A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power. 1. STANDARD NOTE ON EMPLOYEES’ STATE INSURANCE SCHEME (As on 1.1.2015) The Employees’ State Insurance Act, 1948 is a social security legislation that provides for medical care and cash benefit in the contingencies of sickness, maternity, disablement and death due to employment injury to workers. However, there is nothing to ensure the workers with benefits in case of sickness, maternity, disablement etc. Employees State Insurance Act 1948 or ESI Act 1948 is a social welfare act enacted with a view to providing certain benefits among the workers. (1) This Act may be called the Employees’ State Insurance Act,1948. Section 93A. The Employees’ State Insurance Act is applicable to the whole of India. The act of 1948 was amended by the amendment acts of 1966,1975,1984,1989,and1997. Buy Employee's State Insurance Act, 1948 Notes PDF Online. (iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; 14[and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment 15[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961, or under the standing orders of the establishment; but does not include ]]-, (a) any member of 16[the Indian] naval, military or air forces; or. 1) Introduction - The Employees State Insurance Act,1948 is a great landmark in the history of social security legislation in India. The Employee State Insurance Act is a landmark in the history of social security in India. The ESI Act stipulates the rules and regulations … I, II, III and VIII were brought into force in all the Provinces from 1st. Its object is to protect the interest of workers and their families, who are exposed to the risks of sickness, employment injury, occupational diseases and Maternity in case of female employees. Accordingly, as per rule 50, the wage limit for coverage of an employee under Employees State Insurance Act has been enhanced from Rs. Hi! [Act No. Exemption of factories or establishments belonging to government or any local authority. • Originally called “workmen’s state insurance bill” 1946. THE EMPLOYEES’ STATE INSURANCE ACT, 1948 ACT NO. Liability in case of transfer of establishment. The benefits which the Act intends to provide to the employees are of a nature which would be difficult for any individual factory owner to provide for his employees. the Employee’s state Insurance Act 1948 filled this gap. • Pioneering measure in social insurance in India. (20) “sickness” means a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds; (21) “temporary disablement” 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]; (22) “wages” 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 11[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, 22[paid at intervals not exceeding two months], but does not include-. There are general rules relating to benefit under the said Act. The Employees' State Insurance Act, 1948, is a social security legislation that provides for certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for certain other matters in relation thereto. Section 89. [Act No. ], Section 94. The Employees State Insurance Act, 1948 is enacted to protect the Industrial workers and their families, who are exposed to the risk of sickness, employment injury, occupational diseases and Maternity in case of female employees. An Act to provide for certain benefits to employees in case of sickness, maternity and ‘ employment injury ’ and to make provision for certain other matters in … •Originally called “workmen’s state insurance bill” 1946. Hi! The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. 11[(4) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session 142[or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid ], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]. 130[(2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence under this Act.]. Employees injured or maimed while working may claim benefits from this Act. The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity and employment injury and also to make provision for certain others matters incidental thereto. The Employees State Insurance Act,1948 is a great landmark in the history of social security legislation in India. Its main aim is to provide economic security to people who work in certain factories and establishments. Where an employer, in relation to a factory or establishment transfers that factory or establishment in whole or in part, by sale, gift, lease or license or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer: PROVIDED that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer. 2 Chaps. 1st. 34 of Year 1948, dated 19th. Applicability. Content Type: DOCX. 15,000 with effect from 1 May 2010. (4) It shall apply, in the first instance, to all factories (including factories belonging to the government) other than seasonal factories: 4[PROVIDED that nothing contained in this sub-section shall apply 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.]. This is an exciting prospect from both an employee’s and a legal perspective as the beginning of a formal social security program in India. Act ID: 194834: Act Number: 34: Enactment Date: 1948-04-19: Act Year: 1948: Short Title: The Employees State Insurance Act, 1948: Long Title: An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for … I don't ordinarily comment but I gotta state thanks for the post on this perfect... Just wanted to say this website is extremely good. The Employees* State Insurance Act (ESI Act) was enacted with the object of introducing a scheme of health insurance for industrial workers. Laws That Protect You at Your Workplace in the United States. Employees' State Insurance Act, 1948... Synopsis . The Employees State Insurance Act, ESI Act for short, was enacted by the Government of India in 1948. (b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed and a minor. ESIS was created in 1948 by an Act of Parliament and is administratively managed by the Employee State Insurance Corporation (ESIC), an autonomous agency of the government of … Employee state insurance act, 1948 1. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matter, namely,-. Subject to the conditions as may be prescribed by the Central Government, where the Corporation is of opinion that the amount of contribution, interest and damages due to the Corporation is irrecoverable, the Corporation may sanction the writing off finally of the said amount. April, 1948] An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. (5) The appropriate government may, in consultation with the Corporation and 5[where the appropriate government is a State Government, with the approval of the Central Government], after giving six months’ notice of its intention of so doing by notification in the Official Gazette, extend the provisions of this Act or any of them, to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise : 6[PROVIDED that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishment or class of establishments in another part of that State. The Act applies to all factories (including Government factories but excluding seasonal factories) employing ten or more persons and carrying on a manufacturing process with the aid of power or ; Non-seasonal factories employing 20 or more employees and using power are covered under this Act. (b) whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on. It is actually a nice and useful piece of info. (c) the records to be kept of the transaction of business by the Corporation, the Standing Committee and the Medical Benefit Council; (d) the powers and duties of the 61[Director General and the Financial Commissioner] and the conditions of their service; (e) the powers and duties of the Medical Benefit Council; 139[(ea) the types of expenses which may be termed as administrative expenses, the percentage of income of the Corporation which may be spent for such expenses; (eb) the rates of contributions and limits of wages below which employees are not liable to pay contribution; (ec) the manner of calculation of the average daily wage; (ed) the manner of certifying the certificate to recover amount by the Recovery Officer. (16) “prescribed” means prescribed by rules under this Act; (i) in a factory, the 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 20[the Factories Act, 1948]; the person so named; (ii) 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; (iii) in any other establishment, any person responsible for the supervision and control of the establishment; (18) “regulation” means a regulation by the Corporation; (19) “Schedule” means a Schedule to this Act; 4[(19A) “seasonal factory” means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) 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-, (a) in any process of blending, packing or repacking of tea or coffee; or, (b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette, specify;]. Its object is to protect the interest of workers and their families, who are exposed to the risks of sickness, employment injury, occupational diseases and Maternity in case of female employees. The Employees’ State Insurance Act incorporates a number of sections, these sections provide for medical benefits and insurance for any employees working under factories registered under the ESI Corporation. This article will explain the highlight sections of the Act, as well as elaborate land… ], 24[(24) all other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947, shall have the meanings respectively assigned to them in that Act. (1) No prosecution under this Act shall be instituted except by or with the previous sanction of the Insurance Commissioner 39[or of such other officer of the Corporation as may be authorized in this behalf by the 129[Director-General of the Corporation]]. Contributions, etc., due to Corporation to have priority over other debts. Explain the Employee's State Insurance Act of 1948: This act was established to provide insured employees with medical and dental care at a reduced or no cost. but does not include a mine subject to the operation of the Mines Act, 1952 or a railway running shed;]. ESIS was created in 1948 by an Act of Parliament and is administratively managed by the Employee State Insurance Corporation (ESIC), an autonomous agency of the government of … There's noticeably a bundle to know about this. (1) The Central Government may 11[after consultation with the Corporation and] subject to the condition of previous publication, make rules not inconsistent with this Act for the purpose of giving effect to the provisions thereof. 39[(2) The Central Government may, from time to time, give such directions to the Corporation as it may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation shall comply with such direction. This document is highly rated by B Com students and has been viewed 2259 times. The Central Government has empowered to enforce different provisions of the Act in different states or part thereof on different dates. Exemption from one or more provisions of the Act. Section 91. The Corporation, and, subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to the Corporation. (c) a minor brother or an unmarried sister or a widowed sister if a minor, (f) a minor child of a pre-deceased daughter where no parent of the child is alive, or, (g) a paternal grand-parent if no parent of the insured person is alive,]. (3) Rules made under this section shall be published in the Official Gazette and thereupon shall have effect as if enacted in this Act. The act of 1948 was amended by the amendment acts of 1966,1975,1984,1989,and1997. Introduction to ESI: The Employees’ State Insurance (ESI) Scheme, enacted in 1948 was the first major legislation for social security in India. 137[(a) the limit of wages beyond which a person shall not be deemed to be an employee; (ab) the limit of maximum monthly salary for the purpose of sub-section (1) of section 17;]. 1 The words "except the State of Jammu and Kashmir" omitted by Act No. Establishment of Employees’ State insurance Corporation. 34 of Year 1948, dated 19th. Rahul's Noteblog Notes on Labor Welfare Explain the Employee's State Insurance Act of 1948. 34 of 1948] 1. Section 86. ], In this Act, unless there is anything repugnant in the subject or context,-. Explanation : For the purposes of this section, (i) “company” means any body corporate and includes a firm and other associations of individuals; and. (p) any matter which is required or allowed by this Act to be prescribed by the Central Government. September, 1971. I don't ordinarily comment but I gotta state thanks for the post on this perfect... Just wanted to say this website is extremely good. Corporation officers and servants to be public servants. Many thanks for the great posting. (14) “insured person” means a person who is or was an employee in respect of whom contributions are or were payable under this Act and who is, by reason thereof, entitled to any of the benefits provided by this Act; 11[ (14A) “managing agent” means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’s trade or business, but does not include an individual manager subordinate to an employer;], 4[(14AA) “manufacturing process” shall have the meaning assigned to it in the Factories Act, 1948;], (14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any mis-carriage, the causing of which is punishable under the Indian Penal Code;]. (3) It shall come into force on such 2 date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 3[ for different States or for different parts thereof]. Power of Central Government to give directions. An Act to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. Employee State Insurance Act, 1948 • ESI Scheme of India, is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Employees' State Insurance Act, 1948 [Act No. •Came into force on 19th april 1948. Saurabh Ranjan-- (f) the procedure to be adopted in the execution of contracts; (g) the acquisition, holding and disposal of property by the Corporation; (i) the investment of the funds of the Corporation and of any provident or other benefit fund and their transfer or realization; (j) the basis on which the periodical valuation of the assets and liabilities of the Corporation shall be made; (k) the bank or banks in which the funds of the Corporation may be deposited, the procedure to be followed in regard to the crediting of moneys accruing or payable to the Corporation and the manner in which any sums may be paid out of the Corporation funds and the officers by whom such payment may be authorized; (l) the accounts to be maintained by the Corporation and the forms in which such accounts shall be kept and the times at which such accounts shall be audited; (m) the publication of the accounts of the Corporation and the report of auditors, the action to be taken on the audit report, the powers of auditors to disallow and surcharge items of expenditure and the recovery of sum so disallowed or surcharged; (n) the preparation of budget estimates and of supplementary estimates and the manner in which such estimates shall be sanctioned and published; (o) the establishment and maintenance of provident or other benefit fund for officers and servants of the Corporation; 140[***], 4[(oa) the period of non-entitlement for cash benefit in case of conviction of an insured person;]. Corporation to make representation. (2) The Corporation shall be a body corporate by the name of Employees’ State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued. The Employees’ State Insurance Act, 1948 is a social security legislation that provides for medical care and cash benefit in the contingencies of sickness, maternity, disablement and death due to employment injury to workers. The Employee State Insurance Act, 1948 This act is a piece of legislation of social security legislation conceived as a result of extinction of The scope of coverage of the Employee’s State Insurance Act is much more wider than the Worker’s Compensation Act. THE EMPLOYEES’ STATE INSURANCE ACT, 1948. It basically provides for payment of benefits to workers in cases of sickness, maternity, injury, etc. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. ], Section 95. Prosecutions (1) No prosecution under this Act shall be instituted except by or with the previous sanction of the Insurance Commissioner 39 [or of such other officer of the Corporation as may be authorized in this behalf by the 129 [Director-General of the Corporation]]. Foot Notes . (a) a company, other than a firm, means the managing director or a whole-time director; Section 87. (1) “appropriate government” means, in respect of establishments under the control of the Central Government or 7[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the 8[State] Government; (3) “confinement” means labor resulting in the issue of a living child or labor after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead; (4) “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; (6) “Corporation” means the Employees’ State Insurance Corporation set up under this Act; 11[(6A) “dependant” means any of the following relatives of a deceased insured person, namely,-, (i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted 12[daughter;]. Download Free Sample Of Employee's State Insurance Act, 1948 Notes PDF Online from … The employee ‘ State insurance act extends to the whole of India, including the state of Jammu and Kashmir. The Workmen’s Compensation Act provide for compensation in case of occupational disease or compensation for injury by accident. 17[(b) any person so employed whose wages (excluding remuneration for overtime work) exceed 18[such wages as may be prescribed136 by the Central Government]]: PROVIDED that an employee whose wages (excluding remuneration for overtime work) exceed 18[such wages as may be prescribed by the Central Government] at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period;]. EMPLOYEES’S STATE INSURANCE ACT AND RULES. Short title, extent, commencement and application. (iv) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the insured person, so long as the infirmity continues; (12) “factory” means any premises including the precincts thereof-, (a) whereon ten or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or. (2) It extends to the whole of India 1[***]. Many thanks for the great posting. The Central Government has empowered to enforce different provisions of the Act in different states or part thereof on different dates. Exemption of a factory or establishment or class of factories or establishments. Section 88. (7) “duly appointed” means appointed in accordance with the provisions sof this Act or with the rules or regulations made thereunder; 13[(8) “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;], (9) “employee” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and-, (i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment whether such work is done by the employee in the factory or establishment or elsewhere; or, (ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or. However, there is nothing to ensure the workers with benefits in case of sickness, maternity, […] Non-seasonal factories employing 20 or more employees and using power are covered under this Act. Employee State Insurance Act, 1948 Presented By : Namrata Jadhav 58 2. The Act contains eight chapters and three schedules : The Act contains following three Schedules: Schedule II: List of Injuries deemed to result in permanent total disablement, Schedule III: List of Occupational Diseases, Section 1. A statement indicating the broad details of various benefits provided under the Act is … Download Free Sample Of Employee's State Insurance Act, 1948 Notes PDF Online from Company Secretary and Get Upto 5% OFF on … The Employee State Insurance Act, 1948 This act is a piece of legislation of social security legislation conceived as a result of extinction of 141[(2A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them but no retrospective effect shall be given to any rule so as to prejudicially affect the interest of any person other than the Corporation to whom such rule may be applicable.]. Section 90. There shall be deemed to be included among the debts which, under section 49 of the Presidency-Towns Insolvency Act, 1909, or under section 61 of the Provincial Insolvency Act,1920, 134[or under any law relating to insolvency in force 134[in the territories which, immediately before the lst November, 1956 were comprised in a Part B State] ], 135[or under section 530 of the Companies Act, 1956], are in the distribution of the property of the insolvent or in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any other amount payable under this Act the liability where for accrued before the date of the order of adjudication of the insolvent or the date of the winding up, as the case may be. The Employees State Insurance Act,1948 is a great landmark in the history of social security legislation in India. Employees State Insurance Act, 1948. 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