EMPLOYEE STATE INSURANCE ACT 1948

by : DR. T.K. JAIN

AFTERSCHOOL
centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india mobile : 91+9414430763
5 DECEMBER 09 www.afterschoool.tk 1

THE PURPOSE OF THIS ACT

IT IS A WELFARE LEGISLATION TO PROVIDE LABOUR WELFARE TO HELP WORKERS IN THEIR DIFFICULT TIMES

5 DECEMBER 09

www.afterschoool.tk

BENEFITS UNDER THE ACT

6 BENEFITS : 1. SICKNESS 2. MATERNITY 3. DISABLEMENT 4. DEPENDENT 5. MEDICAL 6. FUNERAL

5 DECEMBER 09

www.afterschoool.tk

ESI FUND
It is created by contributions from employee and employer. Employer contributes 4.75% andemployee contributes 1.75% of wages / salary. This fund is deposited with approved banks / RBI. The fund is used for the welfare of the workers.
5 DECEMBER 09 www.afterschoool.tk 4

Registration

Factories have to be registered under ESI Act. Factory means where at least 10 workers are working on any day during last 12 month (20 workers, if power is not used).

5 DECEMBER 09

www.afterschoool.tk

Employee?

Employee means temporary worker also and even worker appointed through agent / contractor is also included.

5 DECEMBER 09

www.afterschoool.tk

ESI HOSPITAL
ESI hospitals are maintained out of ESI funds. In order to claim sickness benefit or other benefits, the sick employee has to be checked by approved doctor, then the employee can get sickness benefit. In a year upto 91 days of sickness benefit can be provided. Payment will be as per the rates in the act. Employee will have to bear sickness loss for first 2 days.
5 DECEMBER 09 www.afterschoool.tk 7

What is funeral benefit ?

When an employee dies, funeral expenses upto Rs. 1500 are given to the employee under this act.

5 DECEMBER 09

www.afterschoool.tk

provisions...
Employee cant get benefits under other laws employer cannot make unauthorised deductions commutation of cash benefit is not permitted benefits depend on contribution of employee + rules and regulations employer cannot reduce wages / salaries of workers.
5 DECEMBER 09 www.afterschoool.tk 9

ESI court
There are ESI courts for providing justice to the workers. The employees can approach the court in case of unauthorised deductions / mistreatment by employer. Penalties upto 3 years imprisonment / Rs. 10000 can be imposed by the court as per law.
5 DECEMBER 09 www.afterschoool.tk 10

Schedules of the act..

2nd schedule : list of diseases which result in permanent total disablement 3rd schedule : list of diseases which result in permanent partial disablement

5 DECEMBER 09

www.afterschoool.tk

11

Formalities

Form 6 : employer will submit form 6 with details of contribution. Employer will have to pay contribution within 21 days of the calender month in which contribution falls due. For delay interest @ 15% has to be paid by him.
5 DECEMBER 09 www.afterschoool.tk 12

THANKS....
GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL NETWORK IN YOUR CITY AFTERSCHOOOL@IN.COM PGPSE WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP
5 DECEMBER 09 www.afterschoool.tk 13