The Employees State Insurance Act, 1948

Objectives
To provide medical relief, sickness cash benefit, maternity benefits to women workers, pension to the dependents of deceased workers and compensation for fatal and other employment injuries including occupational diseases, in an integrated form through a contributory fund.
(where a workman is covered underESI Scheme, no compensation could be claimed from his employer under the Workmens compensation Act)

Scope and coverage

Extends to the whole of India Applies to all factories including govt factories but excluding seasonal factories. All other establishments like hotels, restaurants, clubs, cinemas, newspaper establishments & shops which more than 20 workers

Exemption
Factories working with the aid of power wherein <10 persons are employed Factories working without the aid of power wherein < 20 persons are employed. Mines subject to mines act, 1952 Railway running sheds Seasonal factories Indian naval, military or air forces Govt factories / establishments, whose employees are in receipt of benefits similar or superior to the benefits provided under the act.

Exemption from Maternity Benefit Act, 1961 and Workmens Compensation Act, 1923
An employee covered under ESI Act is exempt from the provisions of the above two acts

Employees Entitled
Every employee (including casual and temporary employees, excluding apprentices engaged under the apprentice act) whether employed directly or through a contractor, who is in receipt of wages upto Rs 10000 pm (excluding remuneration of OT work)

Definitions
Refer ESI Act

Administrative Authority
The provisions of the ESI Act are administered by the central and the state govts. Establishments controlled by the central govt, major ports and oil fields are looked after by the central govt whereas the other establishments are controlled by the state governments. The central govt is the main rule making authority.

ESI Corporation
The ESI scheme is administered by an autonomus body constituted by the central govt called Employee State Insurance Corporation consists of the representatives of the central govt, employers, employees, medical profession and members of Parliament. The corporation functions through Regional boards. Local committees and regional and local medical benefit councils. ESIC makes regulations for the administration of its affairs and for carrying out the provisions of the act.

Powers of ESI Corporation

To promote measures for the improvement of the health & welfare of insured employees and for the rehabilitation and reemployment of those who have been disabled or injured. To acquire, hold, sell or otherwise transfer any movable and immovable property, invest any money, take and discharge any loans. To appoint inspectors for the purpose of the at To determine the amount of contribution payable in respect of employees of a factory or establishment which has not furnished or maintained by particulars, registers and records.

Standing committee
The SC is the executive body of the ESIC constituted from among the members of the corporation Subject to the general superintendence and control of the corporation. The SC shall administer the affairs of the corporation and may exercise the powers and perform the functions of the corporation

Medical benefit council

The MC is constituted To advice the corpn and the SC on matters related to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters. To exercise such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance Tp perform such other duties in connection with medical treatment and attendance as may be specified in the regulation.

Regional Boards, Local committees, Regional and Medical Benefit Councils

The ESIC has constituted the above to execute some of its powers and functions in their areas.

Registration of establishment
The employer should get the factory or establishment registered with ESIC (at the appropriate Regional Office) within 15 days of the applicability of the ESI Act. The declaration of the registration is to be filled in Form 01, along with a separate sheet containing the details of establishment and employees After having been satisfied about the appilcation, the RO will allot a code number to the enployer which must be quoted on all documents and correspondence.

Registration of employees
All the employees entitled to the benefits are required to be insured in the prescribed manner. The employer should determine the employees who are covered under the scheme and then obtain a declaration from each of them in Form 1(which includes the Temporary Identification Certificate (TIC)) The employer shall then send a return of declaration forms in Form 3, in duplicate, within 10 days from the date on which the declaration forms are submitted along with the declaration form to the RO. The return in Form 3 is prepared separately for male and female employees

 Every such employee shall be allotted an Insurance number. the TIC with the insurance number marked thereon shall be detached and returned to the employer along with a copy of Form 3. The employer should deliver the TIC to the respective employee and enter the insurance number in the Register of employees and Return of contribution.

Identity Cards
Every employee shall be provided with ID card who have been in employment for at least 3 months If any employee leaves service, before 3 months employees ID card and Temporary Identification Certificate should be returned to the RO.

Deduction
The employer may deduct the employees contribution from his wages in respect of the period for which the contribution is payable. No deduction shall be made from the wages of any employee, for the employers contribution paid or payable in respect of him The employer shall not reduce wages or discontinue or reduce any benefits conferred under the conditions of services payable to an employee, on account of his liability for the contributions payable.

Time and mode of deposit

The contribution amount should be paid into an ESI a/c with the authorised SBI branch through an ESI challan (in quadruplet) on or before 21st of the succeeding month. Interest @ 12 % in respect of delayed payment The ESIC has introduced a new system of advance payment of ESI contribution by employers (will not entitled to get any interest)

Contribution period and Benefit period

The period during which an employee is entitled to or avails of a benefit, is called the benefit period. The amount of benefit is calculated with respect to the contributions paid during the corresponding contribution period.

Contr. Perd Benifit perd

1st Apr-30th 1st Jan Sep 30th June 1st Oct 31st Mar 1st Jul 31st Dec

The benefit available under ESIC are linked to Standard Benefit Rate (SBR) which is in turn linked to the average daily wages of the employee.

Sickness Benefit
Entitled for this benefit occurring during benefit period and certified by a duly appointed medical practioner. (atleast 78 days of contribution in the corresponding contribution period). The benefit payable would be 20 % more than the SBR The benefit is not payable for leaves, holiday or strike

 No sickness benefit shall be payable for the first 2 days of sickness following at an interval of not more than 15 days, after the sickness in respect of which sickness benefits were last paid. Further no sickness benefits shall be payable to any personfor more than 91 days in any two consecutive benefit periods