Assignment 11
Exercise 1
1. In which situations does the Act apply? What is the minimum requirement of people to be present
in a shop or factory for the Act to apply?
Ans:
The ESI Act provides benefits for sickness, maternity, disablement, and death due to
employment injury. These benefits include medical care and cash benefits
The ESI Act applies to non-seasonal factories that employ 10 or more people.
2. Which are the most important rule-making authorities? Can state governments issue rules?
Ans:
The ESIC is the statutory body that regulates and executes the Employees' State Insurance
Scheme. The Central Government appoints the Chairman and Vice-Chairman of the ESIC, and
also appoints other members to represent the government, employers, employees, and the
medical profession.
The Central Government appoints the Director General and the Financial Commissioner, who
are the Chief Executive Officer and a whole-time officer of the ESIC, respectively. They
perform duties and exercise powers as prescribed in the regulations.
Yes, the state government has the power to make rules under the Employees' State Insurance
Act, 1948.
3. Surya was an employee of Anamika Limited. During the course of his employment, an accident
occurred which led to his death. Rupali is the nominee as per his ESI Scheme.
How can she claim the benefit and which form needs to be filed with the organization?
Ans:
To claim benefits under the Employees' State Insurance (Central) Rules, 1950, a nominee of a
deceased employee must submit a written claim to the appropriate branch office. Rupali must
provide the following to the appropriate office. Relevant medical or other certificates and any
other documentary evidence required by the regulations.
4. Amit was working as a mechanic in Movers Private Limited. In the course of his
employment, while examining a vehicle, he fell and was injured severely. He was covered
under the Employees’ State Insurance Scheme. The company issued a termination on the
grounds of a declaration of medical unfitness by the medical board. Is the termination
valid? What is the process necessary for termination? What if the organization was not
covered under the ESI Scheme?
Ans:
A person who sustains temporary disablement for not less than three days (excluding the day of
accident) shall be entitled to periodical payment for the period and subject to such conditions as
may be prescribed by the Central Government.
No, an employer cannot terminate an employee who is receiving benefits under the Employees'
State Insurance (ESI) Act, 1948
5. Identify the nearest office of the ESI Corporation (with respect to the jurisdiction of a
particular client, or your own company, or where you are studying), ESI hospital, and
dispensary. Also, create a brief process for inspection preparedness.
Ans:
For Recruise India Consulting, Bangalore ESI Hospital is located in Hale Devasandra,
Krishnarajapuram, Bengaluru, Karnataka 560036
ESI Dispensary
Address: 2m5r+4wm, Devasandra, Krishnarajapuram, Bengaluru, Karnataka 560036
Objectives ESIC
A genuine feeling of compassion towards the patients (IPs) and their beneficia
ESI Compliance
ESI Registration Certificate. Must be obtained within fifteen days of becoming applicable.
ESI Compliance
Excellence in all fields of health care, Health education and striving towards promoting holistic
health.
ESIC Form
1. Name of Insured Person (Full Name)
2. Insurance No.
3. Job Leave Period (Start Date : End Date)
4. Form Filup Date.
5. Signature of Employee.
6. Name of Designation.
7. Code no. News.
Liability for breach
All employers under the Act have to periodically pay some money to the ESI Corporation for the
benefit of employees. Non-payment of this contribution is a serious offense because it directly affects
insurable employees. Hence, the maximum imprisonment for this offense is 3 years and the minimum
is 6 months with Rs
a. Is the Employee State Insurance Act, 1948 applicable to the employees working for Mr.
Amitabh?
Ans:
Yes, the Employees' State Insurance Act, 1948 (ESI Act) applies to a contractor with 34
employees if they meet the other requirements of the Act:
The establishment is a non-seasonal factory
The establishment employs at least 10 people
The employees earn less than ₹21,000 per month, or ₹25,000 per month for employees
with disabilities
The employer registers with the ESIC within 15 days of meeting the above criteria
b. Whether Mr. Amitabh is required to make an Employees’ State Insurance contribution
in respect of employees employed through a contractor as well? If yes, at what rate?
Ans:
Currently, the employee's contribution rate is 0.75% of their wages, and the employer's
contribution rate is 3.25% of the wages paid/payable for the employees
c. How can such recovery be made by the principal employer from the immediate employer
(contractor) ?
Ans:
Yes, a principal employer can recover contributions from the immediate employer under the
Employees' State Insurance Act, 1948:
The principal employer can recover the contribution by deducting it from any amount owed to
the immediate employer by the principal employer, or as a debt owed by the immediate
employer.
The immediate employer must maintain a register of employees and submit it to the principal
employer before any amount is settled.
d. Assuming the contractor’s engagement has already expired and no further payments
are due to him, how will the organization recover the paid amount?
Ans:
If a contractor's engagement has expired and an organization has paid them under the
Employees' State Insurance Act, 1948, the organization can recover the amount through the
following methods:
Section 45G: This section of the act covers other modes of recovery, including requiring
a person to deduct arrears from what they owe the employer. The Director General or
an authorized officer can also tell a person to pay the unpaid amount to the Corporation
instead of the employer
e. What are the modes of recovery which can be undertaken by the Officer authorized by the ESI
Corporation for the amount due by any factory, establishment, or as the case maybe?
Ans:
An officer authorized by the Employees' State Insurance Corporation (ESIC) can recover amounts due
from a factory or establishment under the Employees' State Insurance Act, 1948 in the following
ways:
Deduction: Require a person to deduct arrears from the amount they owe to the factory,
establishment, or employer
Notice: Issue a notice
Court application: Apply to the court to have money belonging to the employer paid to the
ESIC
Distraint and sale: Seize and sell the movable property of the employer
