Employees’ State Insurance Act 1948 - ESI Act 1948

Employees’ State Insurance Act 1948 - ESI Act 1948

1. ESI Act, 1948 Employees’ State Insurance Act 1948

2. Introduction The ESI Act provides for certain benefits to employees in case of sickness, maternity, injury during employment, and related matters. The Act applies to all factories, other than seasonal factories, that run with power and employ 20 or more persons. 2

3. Introduction The coverage of the Act has been extended to several classes of establishments, viz., electrical power-using factories employing 10 or more workers and non-power factories employing 20 or more workers, shops, theatres, cinemas, hotels, restaurants, etc. employing 20 or more persons, in several states. It covers all employees whose remuneration in aggregate does not exceed Rs 6.500 a month. (From 01.01.2017 it isRs . 21000/-) 3

4. Introduction The administration of the Employees’ State Insurance Scheme (ESIS) , framed under the Act, has been entrusted to' the Employees’ State Insurance Corporation ( ESIC) , an autonomous body set up by an Act of the Parliament. The ESIS Board consists or representatives of central and state governments, employers, employees, medical professionals, and the parliament. 4

5. Introduction The ESIS has set up regional boards in all states including a network of offices at various levels and it operates from over 520 centers throughout the country. About 75lakh persons’ family units ( i .e., insured employee households) have been covered under the scheme. 5

6. 1. Benefits of ESI Act 6

7. The scheme provides the following social security benefits admissible under ESI Act, 1948 and financed through contribution form concerned employers and employees. 7

8. Sickness cash benefits About half the wages up to 90 days’ sickness. Maternity benefits All insured women are entitled to benefits which are equal to full wages for leave up to 12 weeks, of which not more than six weeks must precede the expected date of confinement. 8

9. 3. Dependents benefits These are also provided under the Workmen’s Compensation Act. If a person dies from employment injuries, the dependents are entitled to compensation to be paid in a certain ratio to the widow and the minor children and any other dependents. 9

10. Funeral benefit When an insured person dies, during the period he or she is insured, the eldest member of the family or other dependant or friend as the case may be, is entitled to Rs.lOO to meet funeral expenses. The Act contains deterrent provisions including fine and compulsory imprisonment for any default in payment of contribution by the employer 10

11. The Act contains deterrent provisions including fine and compulsory imprisonment for any default in payment of contribution by the employer 11

12. The main provisional of the Act are : Regulate the working conditions of labor in factories. Ensure basic minimum requirements for the safety, health and welfare of workers. Enforce compulsory approval, licensing and registration of factories to regulate the establishment and growth of factories. Provide guidelines on the health measures, safety measures and welfare measures to be taken by the management. 12

13. The main provisional of the Act are: Regulate the working hours of employees to provide for adequate rest. Regulate the employment of women and young persons. Provide guidelines to the management for employee benefits like annual leave provision. Provide guide lines to prevent and deal with accident or occupational diseases and also, for handling dangerous operations 13

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