APPLICABILITY (WHICH ARE THE ESTABLISHMENTS THAT NEED TO BE COVERED)

AS PER SECTION 1(4) THE ACT APPLIES :

1)

PRIMARILY TO ALL FACTORIES (FALLING IN NOTIFIED AREAS) USING POWER AND EMPLOYING 10 OR MORE PERSONS TO ALL NON-POWER USING FACTORIES EMPLOYING 20 OR MORE PERSONS

2)

SECTION 1(5) ENABLES GOVERNMENT TO EXTEND THE SCHEME TO OTHER CATEGORY OF ESTABLISHMENTS AND ACCORDINGLY GOVERNMENT HAS EXTENDED COVERAGE TO THE FOLLOWING TYPES OF NON-FACTORY ESTABLISHMENTS :

IF THEY ARE EMPLOYING 20 OR MORE PERSONS

HOTELS & RESTAURANTS ROAD MOTOR TRANSPORT UNDERTAKINGS CINEMAS AND PREVIEW THEATRES NEWS PAPER ESTABLISHMENTS SHOPS
GOVERNMENT HAS ALSO EXTENDED COVERAGE TO THE FOLLOWING CATEGORIES OF ESTABLISHMENTS EMPLOYING 10 OR MORE PERSONS :

3)

BEEDI MANUFACTURING SLATE PENCIL MANUFACTURING NOTE

A)

APPLICABLE TO ALL THE ABOVE CATEGORIES OF ESTABLISHMENTS ONLY IF THEY ARE SITUATED IN NOTIFIED/ COVERED AREAS [DIFFERENT DATES FOR DIFFERENT AREAS] SEE GAZETTE NOTIFICATIONS [Sn 1(3)] CONSTRUCTION WORKERS ENGAGED FOR PUTTING UP EXTENSION TO A COVERED FACTORY NEED NOT BE COVERED TILL TRIAL RUN OR PRODUCTION RUN STARTS IF SUCH EXTENSION WORK IS SITUATED AWAY FROM THE EXISTING COVERED FACTORY. [AS PER ESI CLARIFICATORY NOTIFICATION P-12(11)-11/27/99 INS-IV DATED 31.03.2000]

B)

IN TAKING HEAD COUNT OF 10/20 FOR DETERMINING COVERAGE OF ESTABLISHMENTS THE ESI AUTHORITIES INSIST ON THE FOLLOWING CATEGORIES OF PERSONS TO BE INCLUDED:

DIRECTORS DRAWING WAGES FROM ESTABLISHMENT ALL EMPLOYEES ON ROLLS EVEN IF THEY ARE ON LEAVE ALL SUBSTITUTE/BADLI/CASUAL EMPLOYEES DRAWING WAGES ALL CONTRACT EMPLOYEES DRAWING WAGES BELOW Rs.7,500/- PM (EXCLUDE THE CONTRACTOR)

II
a)

EXEMPTIONS & EXCLUSIONS FROM COVERAGE

ALL SEASONAL FACTORIES FUNCTIONING FOR LESS THAN 7 MONTHS IN A YEAR ARE ALSO EXCLUDED FROM THE SCOPE OF THE SCHEME. [SEE SECTION 2(19-A)]

b) c)

d)

III A)

STATUTORY AND STANDING ORDER APPRENTICES [Sn 2(9)] UNDER SECTION 87 TO 91 GOVERNMENT CAN GRANT EXEMPTION TO ANY ESTABLISHMENT OR CLASS OF ESTABLISHMENTS SUBJECT TO SATISFYING CERTAIN CONDITIONS [SHOULD BE ENJOYING BENEFITS EQUAL OR BETTER THAN UNDER ESI ACT]. EMPLOYEES DEPLOYED IN NON-IMPLEMENTED AREA FOR PERIODS EXCEEDING 7 MONTHS CAN APPLY FOR INDIVIDUAL EXEMPTION [Sn 88] APPLICABILITY (WHO ARE THE COVERED EMPLOYEES UNDER THE ACT) EVEN IN COVERED ESTABLISHMENTS IN NOTIFIED AREAS IT IS APPLICABLE ONLY TO EMPLOYEES DRAWING WAGES NOT EXCEEDING Rs. 7500/- PM [Rule 50] AS PER SECTION 2(9)(1) THE TERM EMPLOYEE WOULD INCLUDE MANUAL/CLERICAL/CASUAL/TEMPORARY/PERMANENT,PIECERATED/TIME-RATED/TECHNICAL/NON-TECHNICAL/SUPER-VISORY/ MANAGERIAL PERSONS DIRECTLY EMPLOYED BY THE PRINCIPAL EMPLOYER AND ALSO CASUAL WORKMEN ENGAGED ON WORK IN OR IN CONNECTION WITH THE WORK OF THE ESTABLISHMENT OR FOR WORKS INCIDENTAL THERETO WHETHER IT BE INSIDE OR OUTSIDE THE ESTABLISHMENT

B)

C)

AS PER SECTION 2(9)(ii) THE TERM 'EMPLOYEE' WOULD INCLUDE ALSO CONTRACTOR'S WORKMEN WORKING OUTSIDE THE PREMISES OF THE PRINCIPAL EMPLOYER IF THE EMPLOYER OR HIS AGENT IS SUPER-VISING SUCH CONTRACT WORKMEN [SEE 1992 (I) LLN 353 [SC] & 1998 (79) FLR 452 [HC-MAD] AS PER SECTION 2(9)(iii) IT WOULD ALSO INCLUDE EMPLOYEES WORKING IN THE ESTABLISHSMENT ON DEPUTATION BASIS IF THEIR WAGES IS BELOW Rs. 7500/PM.

D)

E)

AS PER SECTION 2(9) COVERAGE IS ALSO REQUIRED OF EMPLOYEES CONNECTED WITH THE ADMINISTRATION OF FACTORY/PURCHASE OF RAW MATERIALS AND DISTRIBUTION OF PRODUCTS OF THE FACTORY/ ESTABLISHMENT EVEN IF SUCH EMPLOYEES ARE SITUATED AWAY FROM THE FACTORY (IN SAME STATE OR SOME OTHER STATE).
COVERAGE IS ALSO REQUIRED OF PART TIME EMPLOYEES ON CONTRACT OF SERVICE (IF WAGES BELOW Rs. 7500/PM)

F)

G)

THROUGH VARIOUS JUDGEMENTS THE FOLLOWING CATEGORIES OF EMPLOYEES HAVE ALSO BEEN HELD TO BE COVERABLE UNDER THE ESI SCHEME.

i) ii)

PERSONS EMPLOYED IN GUEST HOUSES EMPLOYEES DEPLOYED ON BUILDING EXTENSION WORK, REPAIR OF MACHINERY, WHITEWASHING, MOVEMENT OF RAW MATERIAL/FINISHED PRODUCTS, CANTEENS, GARDENS, CYCLE STANDS ETC.,

IV a)

SCOPE OF THE TERM 'WAGES AS PER SECTION 2(9) ALL EMPLOYEES DRAWING MONTHLY 'WAGES' NOT EXCEEDING Rs. 7500/- ARE TO BE ENROLLED OR COVERED AS PER RULE 50, THE CORPORATION CAN RAISE THIS COVERAGE LIMIT FROM TIME TO TIME WITHOUTPARLIAMENT APPROVAL

b)

FOR DETERMINING COVERAGE OVERTIME EARNINGS SHOULD BE EXCLUDED BUT WHILE PAYING CONTRIBUTIONS IT IS TO BE

INCLUDED [Sn.2(9)(b)]
c)

THE TERM 'WAGES' DEFINED UNDER SECTION 2(22) OF THE ESI ACT HAS THREE PARTS:

i)

AS PER PART ONE, ALL REMUNERATION PAYABLE UNDER THE CONTRACT OF EMPLOYMENT (EXPRESS OR IMPLIED) WOULD BE WAGES EVEN IF PAID AT INTERVALS ABOVE 2 MONTHS AS PER PART TWO ANY PAYMENT IN RESPECT OF AUTHORISED LEAVE, LOCK OUT OR STRIKE WHICH IS NOT ILLEGAL AND LAY OFF COMPEN-SATION WOULD BE WAGES [THOUGH THEY ARE PAYMENTS OBTAINED WITHOUT WORKING] AS PER PART THREE ANY OTHER ADDITIONAL REMUNERATION THOUGH NOT STRICTLY PAYABLE BUT PAID AT INTERVALS NOT EXCEEDING TWO MONTHS (EX-GRATIA AMOUNTS SPECIAL INAMS, INCENTIVES WHICH ARE NOT LEGALLY ENFORCEABLE FALL IN THIS CATEGORY) WOULD ALSO QUALIFY AS WAGES. [SEE THE FINAL PART OF 2(22) ABOUT THE ITEMS TO BE EXCLUDED]

ii)

iii)

Note: THE FOLLOWING TABLE SHOULD FURTHER CLARIFY THE ITEMS TO BE INCLUDED/EXCLUDED FOR DETERMINING THE TOTAL MONTHLY WAGE ON WHICH CONTRIBUTIONS ARE PAYABLE.

S. No

Component

Whether ESI Contribution is payable

NO

Remarks/under what conditions

WASHING ALLOWANCE

IT IS PAYMENT BY WAY OF DEFRAYING SPECIAL EXPENSES THOUGH THERE IS NO PERFORMANCE OF WORK IT IS PAYMENT FOR KEEPING CONTRACT OF SERVICE ALIVE. [R.D. ESI Vs POPULAR AUTOMOBILES 1997 (3) LLN 736 [SC] IT IS FOR PERFORMING AN IMPLIED CONDITION OF CONTRACT TAKE FOR PAYING CONTRIBUTION, BUT EXCLUDE FOR DETERMINING COVERAGE [IPCL Vs ESI 1997 (75) FLR 584SC]

SUBSISTENCE ALLOWANCE

YES

1 3 OVER TIME ALLOWANCE YES 2

S. No

Component

Whether ESI Contribution is payable

NO

Remarks/under what conditions

ANNUAL BONUS

PROVIDED THE PAYMENT IS MADE AT INTERVALS OF MORE THAN 2 MONTHS THIS ADDITIONAL AMOUNT IF 1 PAID AT INTERVALS EXCEEDING TWO MONTHS WILL NOT BE WAGES

INCENTIVE BONUS

YES

IF PAID AT INTERVALS OF LESS 2 THAN 2 MONTHS WILL BE WAGES [M/s WHIRLPOOL INDIA LTD Vs ESI ] 2000(85)FLR 171[SC]

PRODUCTION BONUS

YES

SAME CONDITIONS AS APPLICABLE TO INCENTIVE BONUS GIVEN ABOVE

S. No

Component

Whether ESI Contribution is payable

Remarks/ under what conditions

IF EMPLOYER HAS RIGHT TO DISCON-TINUE THIS PAYMENT AND ITS PAYMENT IS NOT OBLIGATORY IT IS NOT WAGES UNDER 2(22) HOWEVER EVEN IF IT IS NOT OBLIGA-TORY TO PAY BUT PAYMENTS ARE MADE AT INTERVALS OF LESS THAN 2 MONTHS IT WILL BECOME WAGES UNDER 2(22)

1 7 INAM/GIFT/ EX-GRATIA YES -

LAY OFF COMPENSATION ANNUAL SALES COMMISSION

YES

THOUGH THERE IS NO JOB PERFORMANCE IT IS A PAYMENT FOR KEEPING THE CONTRACT OF SERVICE ALIVE IF PAID AT INTERVALS EXCEEDING TWO MONTHS [HANDLOOM HOUSE Vs ESI 1999 (82) FLR 618 SC]

NO

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

10

HOUSE RENT ALLOWANCE

YES

SINCE IT IS PAYABLE UNDER THE CONTRACT OF EMPLOYMENT [HARIHAR POLY FIBRES Vs ESI 1984 (49) FLR 371 SC] IT IS ADDITIONAL REMU-NERATION PAID TO EMPLOYEE FOR PERFORMING THE JOB AND ALSO IS AMOUNTS PAYABLE UNDER SETTLEMENTS OR AGREEMENTS [HARIHAR POLYFIBRES Vs ESI 1984(49)FLR 371 [SC] SINCE IT IS AN ALLOWANCE PAID TO DEFRAY EXPENSES

11

NIGHT SHIFT/ HEAT/GAS/ DUST ALLOWANCE

YES

12

CONVEYANCE ALLOWANCE

NO [SEE HARIHAR CASE QUOTED ABOVE]

S. No

Component

Whether ESI Contribution is payable

Remarks/ under what conditions

13

SERVICE CHARGES (TIPS) COLLECTED FROM CUSTOMERS & GIVEN TO EMPLOYEES IN HOTELS ETC MEDICAL ALLOWANCE

NO

THIS IS AMOUNT PAID BY CUSTOMERS AND NOT BY EMPLOYER

14

YES

SINCE IT IS GIVEN AWAY AS A CASH BENEFIT WITHOUT ANY BILLS 1 WHERE IT IS GIVEN AS REIMBURSE-MENT ON BILLS NOT TO BE TREATED AS WAGE WHERE IT IS GIVEN WITHOUT ANY BILLS TO BE TREATED AS WAGE

15

NEWS PAPER ALLOWANCE

YES

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

16

EDUCATION ALLOWANCE

YES

IF PAID AS AN ITEM OF MONTHLY WAGE AS PER TERMS OF EMPLOYMENT. IF ALLOWANCE PAID TO AN OFFICER FOR KEEPING A DRIVER IS CLAIMED WITHOUT ACTUALLY ENGAGING A DRIVER IF ALLOWANCE IS USED FOR ENGAGING A DRIVER, ALLOWANCE NEED NOT BE TAKEN AS WAGES OF THE OFFICER

1 17 DRIVERS ALLOWANCE YES 2

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

IF SUCH ALLOWANCE IS PAID FOR ABSENT/LEAVE DAYS ALSO IT WOULD BE WAGES IF ONLY FOR DAYS WORKED IT WOULD NOT BE WAGES IF FOOD IS GIVEN IN KIND ITS VALUE WILL NOT BE TREATED AS WAGES

18

FOOD/MILK/ TIFFIN/LUNCH ALLOWANCE

YES

3 HOLIDAY ALLOWANCE (FOR WORKING ON HOLIDAYS)

19

YES

SINCE IT IS PAYMENT FOR WORKING ON SUCH DAYS

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

20

WAGES/ENCASHMENT OF SURRENDERED WEEKLY REST/ OFF DAYS

YES

IS PAYMENT DUE BY RIGHT FOR HAVING WORKED

21

EX-GRATIA PAID FOR REPORTING FOR WORK ON STRIKE DAYS (FOR THE INCONVENIENCE FACED DURING SUCH DAYS)
INTERIM RELIEF PAID PENDING WAGE REVISION

NO

NOT FORMING PART OF WAGES PAYABLE [ESIC Vs WILLMAN(I) LTD CASE No.210 OF 1976]

22

YES

IT FORMS PART OF FUTURE WAGES TO BE FINALISED

S. No

Component

Whether ESI Contribution Remarks/under what conditions is payable

23

CONTRIBUTIONS TO WORKER WELFARE SCHEMES

NO

WILL NOT FORM PART OF WAGES

24

ATTENDANCE BONUS CHARGES MADE TO CASUAL HAMALS/COOLIES/ CARPENTERS/ PLUMBERS/ MECHANICS

YES

IF PAID AT INTERVALS OF MORE THAN 2 MONTHS WILL NOT BE TREATED AS WAGES 1 IF FOR WORK INSIDE THE ESTABLISHMENT TO BE TREATED AS WAGES FOR WORK OUTSIDE NEED NOT BE TREATED AS WAGE

25

YES

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

26

ANNUAL SER-VICING CHARGES TO MACHINERY SUPPLIERS PAYMENT TO CONSULTANTS MAINT ALL/ LOCATION ALL/ SHIFT ALL/COMP ENSATORY ALL/ CASH HANDLING/SUPERVISORY/FACULTY ALLOW/ ACTING/ TYPING/ COMPUTER/MACHINE/ FIRST AID/ PERSONAL/ AREA ALL ETC.

NO

NOT DOING JOB AS AN EMPLOYEE OF PRINCIPAL EMPLOYER NOT EMPLOYEES OF PRINCIPAL EMPLOYER

27

NO

28

YES

ALL ARE PAID FOR PERFORMING THE JOB

S. No

Component

Whether ESI Contribution is payable

NO NO NO

Remarks/under what conditions

IF GIVEN AFTER QUITTING SERVICE
IS BY WAY OF CONVEYANCE EXPENSE REIMBURSEMENT IT IS TO DEFRAY SPECIAL EXPENSES

29 30 31

ENCASHMENT OF LEAVE AT TIME OF DISCHARGE

FUEL/PETROL ALLOWANCE ENTERTAINMENT ALLOWANCE

32 33

SHOW ALLOWANCE PAYMENTS MADE AS RETIREMENT PACKAGE

NO NO

GIVEN AS WELFARE ITEM NOT FOR PERFORMING JOB

IT IS NOT REMUNERATION FOR PERFORMING THE JOB ESIC Vs MALABAR CASHEW PRODUCTS 1993 I LLJ 596 [KER-FB]

34

WAGES FOR NATIONAL & FESTIVAL HOLIDAYS

NO

S. No

Component

Whether ESI Contribution is payable

Remarks/under what conditions

ANY KIND OF BONUSES & ALLOWANCES PAID UNDER A SETTLEMENT [i] EVEN IF PARTIES STATE THAT IT NEED NOT BE TAKEN AS WAGES [ii] EVEN IF PAID AT INTERVALS OUTSIDE 2 MONTHS

IT COMES UNDER PART ONE OF 2(22) HENCE IS WAGE EVEN IF PAID AT INTERVALS EXCEEDING 2 MONTHS [1] WELMAN LTD VS ESIC, 1994(I) SCC 219 [SC] YES -

35

[2] ESIC VS INDIAN DYE STUFF 1986 (92) LLN 515 [BOM]
[3] ESIC Vs BOMBAY METAL 1979 LAB-IC 193 [BOM] [4] CHRONICLE VS ESIC 1980 (2)LLJ 474

FUNDING OF THE SCHEME

a)

THE SCHEME IS FUNDED BY COLLECTION OF EMPLOYEES CONTRIBUTION AT 1.75% OF THE WAGES AND EMPLOYER'S CONTRIBUTION AT THE RATE OF 4.75% OF THE TOTAL MONTHLY WAGE OF COVERED EMPLOYEES. [RULE 51 & 52] CONTRIBUTIONS ARE TO BE ROUNDED OFF TO THE NEAREST 5 PAISE [RULE 51(b)]
ALL CONTRIBUTIONS COLLECTED IN A WAGE PERIOD SHOULD BE REMITTED TO THE ESI CORPORATION THROUGH APPROVED BANKS BEFORE THE 21ST OF THE FOLLOWING MONTHS [REG.29 & 31] NO EMPLOYEES CONTRIBUTION IS PAYABLE BY AN EMPLOYEE IF HIS AVERAGE DAILY WAGES (TOTAL EARNINGS DIVIDED BY TOTAL NO. OF DAYS WORKED) IS LESS THAN Rs.40/- PER DAY [Sn 42 &

b)

c)

d)

RULE 52]
e)

CONTRIBUTIONS ARE COLLECTED FOR A BLOCK 6 MONTHS. HENCE AN EMPLOYEE WHO COMMENCES PAYMENT SHOULD CONTINUE PAYMENT FOR TOTAL BLOCK, EVEN IF HIS SALARY HAS CROSSED THE COVERAGE LIMIT OF Rs. 7500/- DURING THAT PERIOD [RULE

50]

f)

PRINCIPAL EMPLOYER IS RESPONSIBLE FOR THE COLLECTION AND REMITTANCES OF CONTRIBUTIONS OF CONTRACT WORKERS ALSO (COULD RECOVER FROM THE BILLS OF CONTRACTOR) [Sn 40 & 41,

42, 43, 44]

g)

h)

i)

VI

SIMILARLY PART-TIME WORKERS WORKING FOR MORE THAN ONE EMPLOYER ARE ALSO TO BE COVERED [REG 36, 38,39] EMPLOYEE'S CONTRIBUTIONS MUST BE COLLECTED ON A CURRENT MONTH BASIS OR ELSE EMPLOYER WILL HAVE TO BEAR BOTH CONTRIBUTIONS IF CONTRIBUTIONS ARE NOT COLLECTED AND PAID, AUTHORITIES CAN INVOKE REVENUE RECOVERY PROCEEDINGS UNDER SECTIONS 45 A TO 45 E OF THE ACT. CONTRIBUTION CYCLES & CORRESPONDING BENEFIT CYCLES OR PERIODS

CONTRIBUTION PERIOD [SEE REG.4 & RULES 2(1-C) & RULE 2(2-A)
FIRST CYCLE 1 APRIL - 30 SEPT SECOND CYCLE 1 OCT - 31 MARCH

CORRESPONDINGBENEFITPER IOD FOR RECEIVING CASH BENEFITS.

1 JAN - 30 JUNE 1 JULY - 31 DEC

NOTE :
1) DURING THE PERIOD HIS WAGE IS BELOW Rs. 7500/- HE WILL BE A COVERED EMPLOYEE AS WELL AS AN INSURED PERSON AFTER THE LAST CONTRIBUTION PAYMENT CYCLE (BECAUSE OF HIS CROSSING THE COVERAGE LIMIT OF Rs. 7500/-) THOUGH HE WILL STOP MAKING PAYMENT AND WILL CEASE TO BE A "COVERED EMPLOYEE", HE WILL CONTINUE TO BE AN INSURED PERSON FOR SIX MORE MONTHS (IN THE CORRESPONDING BENEFIT PERIOD). DURING THIS LAST BENEFIT PERIOD HE WILL BE ELIGIBLE FOR ALL CASH BENEFITS EXCEPT ACCIDENT RELATED BENEFITS [SEE RECENT MADRAS HC JUDGEMENT IN GANESAN'S CASE [2001 (I) LLJ -1662] , KARNATAKA HIGH COURT IN RANGANAYAKALU CASE [2001(II)LLJ 67] AND KERALA HIGH COURT DIVN BENCH DECISION IN OUSEPHS CASE [2001 (3) LLN 113] WHERE THE HIGH COURTS HAVE NOT ACCEPTED THE ABOVE STAND OF THE ESI AUTHORITIES.

2)

VII ESI BENEFITS & ELIGIBILITY CONDITIONS

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY

TYPE OF BENEFIT

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

I SICKNESS BENEFIT

SICKNESS BENEFIT [Sn 46 (a) 49 RULE 54,55] REG 45(a) 52 (a) 98, 99,99A

MUST HAVE MADE CONTRIBUTIONS FOR ATLEAST 78 DAYS IN THE RELEVANT CONTRIBUTION PERIOD

UPTO 91 DAYS SICK LEAVE WITH PAYMENT IN TWO CONSECUTIVE BENEFIT PERIODS[Reg 55(1)]

THE STANDARD BENEFIT RATE [ABOUT 50% OF WAGES] Rule 54

NOT ELIGIBLE IF SPELL OF SICKNESS IS LESS THAN 3 DAYS Rule 55(1)(p)

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY SHOULD HAVE BEEN AN INSURED EMPLOYEE ATLEAST FOR A PERIOD OF 2 YEARS

EXTENT OF BENEFIT

RATE OF BENE FIT

REMARKS

B EXTENDED SICKNESS BENEFIT [ONLY FOR 29 SERIOUS AILMENTS LISTED UNDER REG 98(iii)

NORMALLY UPTO 91DAYS. IF RECOMMENDED BY ESI MEDICAL BOARD CAN CLAIM THIS BENEFIT UPTO 309 DAYS DURING A PERIOD OF T WO YEARS

140% OF SBR [ABOUT 70% OF WAGES]

THIS ESB IS AVAILABLE ONLY IF SUFFERING FROM ONE OF 29 SPECIFIED DISEASES LIKE TB, LEPROSY ETC.

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY

MUST HAVE PAID CONTRIBUTIONS FOR ATLEAST 78 DAYS DURING RELEVANT CONTRIBUTION PERIOD

EXTENT OF BENEFIT
7 DAYS FOR VASECTOMY, 14 DAYS FOR TUBECTOMY

RATE OF BENEFIT

REMARKS

C ENHANCED SICKNESS BENEFIT FOR UNDERGOING TUBECTOMY/ VASECTOMY OPERATIONS

200% OF SBR RATE [ATMOST FULL WAGES]

THE LIMITS OF 7/14 DAYS IS EXTENDABLE IF THERE ARE POST OPERATION COMPLICATIONS

NOTE

THE STANDARD BENEIFIT RATE (SBR) FOR VARIOUS WAGE SLABS ARE LISTED UNDER RULE 54 AND VARIES FROM Rs.14 TO Rs.145 PER DAY.

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY NO CONDITIONS ON MINIMUM DAYS

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

II TEMPORARY DISABLEMENT BENEFIT [TDB](DUE TO EMPLOYMENT INJURY ONLY) Sn 46(C), Sn 51, 54, 55, 55A, RULE 57 & REG 45 (a), 52(d), 52(2) 99 & 99 A

IF TEMPORARY FOR THE PERIOD OF TEMPORARY DISABLEMENT

140% OF SBR ABOUT 70% OF THE WAGES Rule 57(3), 57(4)

NOT ELIGIBLE IF DISABLE MENTS LESS THAN 3 DAYS Rule 57 (1)

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

III PERMANENT DISABLEMENT BENEFIT (PDB) RULE 57 REG. 45 (C) 52(e), 52(2) 76 A, 76 B 107

NO CONDI- SEE RULE 57 FOR : TION ON MINIMUM 1) PERMANENT DAYS

PARTIAL DISABLEMENT AND

140% OF SBR OR PRORATA DURATION SUBJECT TO RULE 57(4)

COMMUTATION IS PERMISSIBLE AS PER REG.76 B

2) PERMANENT TOTAL DISABLEMENT

TYPE OF BENEFIT

CONDITION S TO BE SATIS-FIED FOR CLAIMING ELIGIBILITY

NO CONDITION OF MINIMUM DAYS BUT ACCIDENT MUST HAVE OCCURRED DURING A TIME WHEN EMPLOYEE WAS CONTRIBUTING TO THE SCHEME

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

IV

DEPENDENTS BENEFIT (IN CASES OF DEATH DUE TO EMPLOYMENT INJURY) Sn[2(6-A), 46(d), 51 A to D] Rule-58 Reg[45(d), 45(e),52(f), 52(2), 80 to 86 & 107-A]

TO WIDOW/FOR LIFE OR UNTIL REMARRIAGE AND TO EACH LEGITIMATE OR ADOPTED SON UNTIL 18 YEARS TO EACH LEGITIMATE OR ADOPTED UNMARRIED DAGUHTER UNTIL 18 OR UNTIL MARRIAGE WHICH EVER IS EARLIER

140% OF SBR [ABOUT 70% OF THE WAGES] [THIS TOTAL AMOUNT IS TO BE SHARED BY ALL DEPENDENTS [Sn 2(6-A)] IN THE RATIO PRESCRIBED IN RULE 58]

TO QUALIFY, DECEASED SHOULD HAVE BEEN A COVERED EMPLOYEE AT TIME OF ACCIDENT AND NOT MERELY AN INSURED PERSON

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY PAYMENT OF CONTRIBUTION FOR ATLEAST 70 DAYS IN ONE OR TWO IMMEDIATE COSECUTIVE CONTRIBUTION PERIODS

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

V MATERNITY BENEFIS 46(b)& 50 RULE 56, 56 A] REG 45(b) 52(c ) 52(2) 87 TO 93

12 WEEKS LEAVE WITH PAYMENT FOR NORMAL DELIVERY, 6 WEEKS FOR MISCARRIAGE. ADDITIONAL 30 DAYS FOR PREGNANCY BASED COMPLICATIONS

200% OF SBR BENEFIT [ALMOST FULL WAGES]

IF ESI MED BENEFIT IS NOT AVAILABLE CAN CLAIM Rs.250/AS MEDICAL BONUS [R-56A]

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

VI

MEDICAL BENEFIT (FOR IP AND FAMILY) WHILE IN SERVICE AND AFTER RETIRE MENT OR PERMANENT DISABLEMENT Sn 46 (e) 56, 57 RULE 60, 61 REG 95 A, 103 A, 103 B

NO QUALIMEDICAL NO FYING TREATCASH CONDITION MENT BENETILL FIT DISEASE [ONLY ELIGIBLE LASTS IN MEDIFROM DAY ESI CAL ONE DISPEN- AID] SARIES/ HOSPITALS

-IPS WHO HAVE PUT IN MINIMUM 5 YEARS SERVICE CAN ON PAYMENT OF RS.10/PER MONTH CLAIM BENEFIT FOR SELF AND SPOUSE AFTER RETIREMENT ALSO.
-IF PERMANENT LY DISABLED CAN CLAIM FOR SELF & SPOUSE TILL DATE OF SUPERANNUATION ON PAYMENT OF Rs.10/PER MONTH.[RULE 60,61]

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY ONLY NEED BE AN IP NO MINIMUM PAYMENT REQUIRED

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

VII

FUNERAL BENEFIT RULE 59

REG 45(f) 52(b) 95 B TO E

(PERSONS CAN CLAIM INCURRING UPTO FUNERAL/ Rs.2500/CREMATION EXPENDITURE}

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY NO MINIMUM CONDITION OTHER THAN BEING AN IP

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

VIII

REHABILITATION ALLOWANCE FOR STAY AT ARTIFICAL LIMB CENTRES)

FOR THE PERIOD THE IP IS ADMITTED IN ARTIFICAL LIMB CENTRE

APPLICABLE SBR [ABOUT 50% OF THE WAGES]

TYPE OF BENEFIT

CONDITIONS TO BE SATISFIED FOR CLAIMING ELIGIBILITY 5 YEARS OF ESI MEMBERSH IP(FOR LAY OFF RETRENCH MENT DISABILITY )

EXTENT OF BENEFIT

RATE OF BENEFIT

REMARKS

IX

UNEMPLOYM ENT ALLOWANCE (SEC.19)

MAX. SIX MONTHS WAGES IN WHOLE SERVICE

AT APPLICABLE SBR

MUST AVAIL MINI MUM ONE MONT H AT A TIME

VIII

EMPLOYERS OBLIGATIONS FOR SUBMISSION OF RETURNS AND MAINTENANCE OF REGISTERS

SUBJECT

FORM TO BE USED & REG No.

DEADLINE FOR SUBMISSION

TO WHOM TO SEND

1 APPLY FOR REGISTRATION OF ESTABLISHMENT

F-01 REG 10 B

WITHIN 15 DAYS OF ACT BECOMING APPLICABLE TO THE ESTABLISHMENT

TO THE CONCERNED REGIONAL DIRECTORS' OFFICE

SUBJECT

FORM TO DEADLINE BE USED FOR & REG SUBMISSION. No. F-1 REG 11 & 12 WITHIN 10 DAYS OF EMPLOYEE JOINING [REG 14]

TO WHOM TO SEND

OBTAIN DECLARATION FROM NEW EMPLOYEES AND FORWARDING THE SAME APPLY FOR TEMP. IDENTITY CARDS FOR NEW EMPLOYEES

TO THE CONCERNED ESI LOCAL OFFICE [REG 14]

F-1 REG 11 & 12

WITHIN 10 DAYS

TO THE LOCAL OFFICE

SUBJECT 4 OBTAIN DECLARATION FROM NEW EMPLOYEES REGARDING THEIR FAMILY MEMBERS TO BE INCLUDED & LATER WHEN THERE ARE ADDITION/ DELETIONS TO HIS/HER FAMILY

FORM TO BE USED & REG No. F-1A & 1B REG 15 A & 15 B

DEADLINE FOR SUBMISSION WITHIN 10 DAYS

TO WHOM TO SEND TO LOCAL OFFICE

SUBJECT 5 SEND COVERING LETTER FOR FORWARDING THE DECLARATION FORMS SUBMISSION OF CONTRIBUTION PARTICULARS

FORM TO BE USED & REG No. F-3 REG 14 IN DUPLICATE ALONG WITH FORM-I F-6 REG 26 (IN QUADRUPLICATE)

DEADLINE FOR SUBMISSION

WITHIN 10 DAYS [REG-14]

TO WHOM TO SEND TO ESI LOCAL OFFICE

WITHIN 42 DAYS OF CLOSING DATE OF CONTRIBUTION PERIOD. SEND ALONG WITH 6 MONTHS PAYMENT CHALLANS RECEIVED FROM SBI [REG 26]

TO THE REGIONAL DIRECTORS OFFICE BY REGD POST OR MESSENGER

SUBJECT 7 REMITTANCE OF MONTHLY CONTRIBUTION COLLECTIONS WITH INTEREST IF DELAY IN PAYMENT MAINTAIN A REGISTER OF COVERED EMPLOYEES. MAINTAIN FOR CONTRACT EMPLOYEES ALSO

FORM TO BE USED & REG No. REG-(31) & 31 A, 31 B (QUADRU PLICATE)

DEADLINE FOR SUBMISSION. WITHIN 21 DAYS OF THE CLOSE OF A CALENDAR MONTH (ONE COPY) [REG 26,29]

TO WHOM TO SEND
TO AUTHORISED BANKS [REG 29]

F-7 REG 32 (1) 32(1-A)

NO TIME LIMIT

NOT TO BE DESPATCHED (BUT TO BE MAINTAINED AND PRESERVED FOR 5 YEARS) [REG 32(2)]

SUBJECT 9 MAINTAIN AN ACCIDENT BOOK OR REGISTER

FORM TO BE USED & REG No. F-15 REG 66 & 67

DEADLINE FOR SUBMISSION NO TIME LIMIT

TO WHOM TO SEND
NOT TO BE DESPATCHED TO LOCAL OFFICE

10 SEND ACCIDENT REPORT AND FOLLOW UP REPORTS

F-16 IMMEDIATELY REG 68 & FOR DEATH/ SERIOUS INJURY 70 OTHERS WITHIN 24 HOURS

11 IN CASE OF DEATH F-16 IMMEDIATELY DUE TO EMPLOYREG.77 & ON DEATH MENT INJURY SEND 78 OCCURRING DEATH REPORT AND GET POST MORTEM DONE

TO LOCAL OFFICE

SUBJECT

FORM TO BE USED & REG No.

DEADLINE FOR SUBMISSION

TO WHOM TO SEND

12

IN CASE OF NATURAL DEATH (OTHER THAN INDUSTRIAL INJURY DEATH) SEND REPORT ISSUE CERTIFICATE OF EMPLOYMENT/ RE-EMPLOYMENT

NO PRE- IMMEDIATELY ON SCRIBED DEATH FORMAT OCCURRING REG 95 B ESIC-37 WHEN REQUESTED BY EMPLOYEE

TO LOCAL OFFICE

13

TO BE GIVEN TO EMPLOYEE FOR SUBMISSION TO LOCAL OFFICE

TO LOCAL OFFICE

14

ISSUE CERTIFICATE OF WAGE/ CONTRIBUTION RECORD FOR CLAIMING DISABLEMENT BENEFIT

ESIC-32

WHEN EMPLOYEE CLAIMS DISABLEMENT BENEFIT

SUBJECT

FORM TO BE DEADLINE FOR USED & SUBMISSION REG No.

TO WHOM TO SEND

15 FORWARDING EMPLOYEES APPLICATION FOR CHANGE OF ESI LOCAL OFFICE/ DISPENSARY

16 FOR EMPLOYEE APPLYING FOR DUPLICATE IDENTITY CARD 17 INFORMATION REGARDING ABSENTING EMPLOYEES [REG 52 A & 52 B]

ESIC-53

WHEN REQUESTED BY EMPLOYEE

GIVEN TO EMPLOYEE

ESIC-72

WHEN REQUESTED BY EMPLOYEE

GIVEN TO EMPLOYEE

F-28 & F-28 A

WHEN CALLED TO LOCAL FOR BY LOCAL OFFICE OFFICE

IX

SOME OTHER LEGAL ASPECTS ON ESI

ESI ACCIDENT BENEFIT IS CLAIMABLE ONLY IF ACCIDENT OCCURS TO A PERSON WHEN HE IS A CONTRIBUTING EMPLOYEE. IF ACCIDENT OCCURS IN HIS LAST BENEFIT PERIOD, HE WOULD NOT BE ENTITLED TO, THOUGH HE IS THEN AN 'INSURED PERSON' [SEE THE LATEST JUDGEMENT OF THE MADRAS HIGH COURT IN GANESAN'S CASE 2001(I) LLJ 1662 [MAD HC], (KERALA HC IN OUSEPHS CASE [2001 (3) LLN 1113] AND KARNATAKA HC IN RANGANAYAKALU CASE [2001 (II) LLJ 67 HAVE NOT ACCEPTED THE ABOVE STAND OF THE ESI AUTHORITIES.
IN CASE OF EMPLOYMENT INJURY RESULTING IN DEATH, BEFORE DISPOSAL OF THE BODY INFORM ESI MEDICAL OFFICER AND REQUEST HIM TO BE PRESENT AT POSTMORTEM [REG 77 & 78] AS PER SECTION 53 AND 61 EMPLOYEES COVERED UNDER ESI CANNOT CLAIM ACCIDENT BENEFIT UNDER WORKMENS COMPENSATION ACT1923 OR MOTOR VEHICLE ACT IF ACCIDENT IS DUE TO EMPLOYMENT OR CLAIM MATERNITY BENEFIT UNDER MATERNITY BENEFIT ACT 1961.

THE OLD PRINCIPLE OF NOTIONAL EXTENSION OF PREMISES HAS BEEN CONSIDERABLY CURTAILED BY THE SUPREME COURT AND EMPLOYEE CANNOT CLAIM COMPENSATION FOR ACCIDENTS OUTSIDE THE ESTABLISHMENT, UNLESS HE WAS OUTSIDE THE ESTABLISHMENT ON DUTY OR WAS TRAVELLING IN A COMPANY APPROVED TRANSPORT [REGL DIRECTOR ESI Vs FRANCIS DECOSTA 1997 I LLJ 34 SC -DB] AS PER SECTION 73(1) ANY TERMINATION OF AN EMPLOYEE'S SERVICE WHILE HE IS IN RECEIPT OF ESI SICKNESS BENEFIT IS NULL AND VOID. HOWEVER IF AN EMPLOYEES SERVICES COME TO AN END OTHERWISE THAN THROUGH AN EMPLOYERS ACTION THIS SECTION WILL NOT APPLY [REG 98 ] SEE 1963 II LLJ 638 CARE SHOULD ALSO BE TAKEN TO SEE THAT AN EMPLOYEE RECEIVING EXTENDED SICKNESS BENEFIT FOR 29 CHRONIC DISEASES LISTED UNDER REG-98 IS DISCHARGED OR DEMOTED ONLY AFTER DUE COMPLIANCE OF PROCEDURE OUTLINED IN REGULATION - 98

IN CASE OF ANY DISPUTE BETWEEN EMPLOYER AND ESI AUTHORITIES ON ANY MATTER SPECIFIED IN SECTION 75, THEY CAN BE ADJUDICATED UPON IN THE ESI COURT UNDER SECTION 74 TO 78 ESI AUTHORITIES CAN TAKE ACTION AGAINST PRINCIPAL EMPLOYER FOR IMPROPER/DELAYED REMITTANCE OF CONTRIBUTIONS OR SUBMISSION OF RETURNS WHILE ESI AUTHORITIES CAN DEMAND PAYMENT OF INTEREST FOR DELAYED PAYMENT WITHOUT STRICT COMPLICANCE OF PRINCIPLES OF NATURAL JUSTICE, ANY DEMAND FOR PAYMENT OF PENAL DAMAGES MUST BE AFTER COMPLYING WITH PRINCIPLES OF NATURAL JUSTICE, AS SUCH PROCEEDINGS ARE QUASI-JUDICIAL PROCEEDINGS

10 THE LAW OF LIMITATION WILL NOT COME TO THE RESCUE OF AN EMPLOYER FOR ESCAPING FROM RESPONSIBILITY FOR PAYMENT OF CONTRIBUTIONS FOR EARLIER PERIODS AND THE AMOUNT CAN BE RECOVERED UNDER REVENUE RECOVERY PROCEDURE UNDER SECTION 45A 11 HOWEVER IF EMPLOYER HAS FURNISHED THE REQUIRED DETAILS, THE LAW OF LIMITATION PRESCRIBED IN SECTION 77(1A) WILL PREVAIL 12 A CONVICTED EMPLOYEE OR EMPLOYEES ON STRIKE COULD BE DEPRIVED OF CASH BENEFITS [REG-99 A & RULE 62 & Sn 84]

CONTRIBUTION RATES, WAGE GROUPINGS, AND CORRESPONDING BENEFIT RATES

EMPLOYERS 4.75% OF THE WAGE BILL OF COVERED EMPLOYEES EMPLOYEE - 1.75% OF THE TOTAL WAGE PAYABLE INCLUDING OT PAYMENTS IF ANY

1 CONTRIBUTION RATES [SEE RULE 51 &52]

WAGE SLABS AND CORRESPONDING STANDARD BENEFIT RATES (RULE 54) S. No STANDARD BENEFIT RATE (IN Rs) Rs.14/- OR FULL AVERAGE DAILY WAGE WHICHEVER IS LESS

AVERAGE DAILY WAGES ARE

BELOW Rs.28/-

S. No 2 3 4 5 6 7 8 9

AVERAGE DAILY WAGES ARE Rs.28/- AND ABOVE BUT BELOW Rs.32 Rs.32 AND ABOVE BUT BELOW RS.36 Rs.36 AND ABOVE BUT BELOW Rs.40 RS.40 AND ABOVE BUT BELOW Rs.48 Rs.48 AND ABOVE BUT BELOW Rs.56 Rs.56 AND ABOVE BUT BELOW Rs.60 Rs.60 AND ABOVE BUT BELOW Rs.64 Rs.64 AND ABOVE BUT BELOW Rs.72

STANDARD BENEFIT RATE (IN Rs) 16 18 20 24 28 30 32 36 38 40 44 48 53 58 63 68

10 Rs.72 AND ABOVE BUT BELOW RS.76 11 RS.76 AND ABOVE BUT BELOW Rs.8 12 Rs.80 AND ABOVE BUT BELOW Rs.88 13 Rs.88 AND ABOVE BUT BELOW Rs.96 14 Rs.96 AND ABOVE BUT BELOW Rs.106 15 RS.106 AND ABOVE BUT BELOW Rs.116 16 Rs.116 AND ABOVE BUT BELOW Rs.126 17 Rs.126 AND ABOVE BUT BELOW Rs.136

No 18 19 20 21 22 23 24 Rs.136 AND ABOVE BUT BELOW Rs.146 Rs.146 AND ABOVE BUT BELOW Rs.156 Rs.156 AND ABOVE BUT BELOW Rs.166 Rs.166 AND ABOVE BUT BELOW Rs.176 Rs.176 AND ABOVE BUT BELOW Rs.186 Rs.186 AND ABOVE BUT BELOW Rs.196 Rs.196 AND ABOVE BUT BELOW Rs.206

RATE (IN Rs) 73 78 83 88 93 98 103

25
26 27 28 29 30 31 32

Rs.206 AND ABOVE BUT BELOW Rs.216

Rs.216 AND ABOVE BUT BELOW Rs.226 Rs.226 AND ABOVE BUT BELOW Rs.236 Rs.236 AND ABOVE BUT BELOW Rs.250 Rs.250 AND ABOVE BUT BELOW Rs.260 Rs.260 AND ABOVE BUT BELOW Rs.270 Rs.270 AND ABOVE BUT BELOW Rs.280 Rs.280 AND ABOVE

108
113 118 125 130 135 140 145

NOTE : AVERAGE DAILY WAGE 1) FOR COMPUTING AVERAGE DAILY WAGE FOR CONTRIBUTION PAYMENT PURPOSES APPLY FORMULA IN RULE 2(1-B) 2) FOR COMPUTING AVERAGE DAILY WAGE ) FOR RECEIPT OF BENEFITS BY

XI

CONSEQUENCES OF DELAYED REMITTANCE

MUST PAY 12% PA PER DAY OF DEFAULT

INTEREST PAYMENT FOR DELAYED REMITTANCE [REGU 31A & 31 B] PAYMENT OF DAMAGES [REGU 31-C] & [Sn 85-B]

IN ADDITION TO INTEREST MUST PAY DAMAGES RANGING FROM 5% TO 25% AS PER TABLE GIVEN UNDER REG 31-C]

XII

FORMS TO BE SUBMITTED BY EMPLOYEE TO EMPLOYER OR LOCAL OFFICE

PURPOSE

FORM No

TO WHOM TO SUBMIT

APPLICABLE SECTION/ RULE REG No.

FOR A NEW EMPLOYEE TO GET REGISTERED TO EMPLOYER FOR AND GET A TEMPORARY TRANSMISSION TO IDENTIFICATION LOCAL OFFICE CERTIFICATE

REG 11& 12

FORM No

PURPOSE

TO WHOM TO SUBMIT TO EMPLOYER FOR TRANSMISSION TO LOCAL OFFICE

APPLICABLE SECTION/ RULE REG No. REG 15 A & 95 A

FOR GETTING HIS FAMILY 1-A & MEMBERS ENROLLED AND 4-A FOR OBTAINING FAMILY IDENTITY CARDS 1-B

FOR EMPLOYEE TO NOTIFY TO EMPLOYER FOR CHANGES IN FAMILY TRANSMISSION STATUS TO LOCAL OFFICE MEDICAL CERTIFICATES FOR CLAIMING SICK LEAVE PRODUCTION OF SPECIAL MEDICAL CERTIFICATE FOR PROLONGED ILLNESS EMPLOYEE TO COLLECT FROM DOCTOR AND GIVE TO EMPLOYER -DO-

REG 15-B

8, 9 , 10

REG 57, 58, 60, 64 , 89 B

11

REG 61, 64 & 89 B

REG 63, 64 & SECTION 63

12

FOR EMPLOYEE TO CLAIM TO SUBMIT TO SICKNESS OR TEMPORARY LOCAL OFFICE DISABLEMENT BENEFIT

FORM No 12 A, 13, 13A, 14, 14A

PURPOSE FOR CLAIMING SICKNESS/TEMPORARY DISABLEMENT OR MATERNITY BENEFIT FOR SICKNESS

TO WHOM TO SUBMIT

APPLICABLE SECTION/ RULE REG No.

TO SUBMIT TO LOCAL OFFICE

REG 63, 64, 65 & 89 B

18, FOR CLAIMING 18A & DEPENDANT BENEFIT 27 i NOTICE OF PREGNANCY CERTIFICATE OF PREGNANCY CERTIFICATE OF EXPECTED CONFINEMENT

-DO-

REG 80 & 83 A & REG 107 A

19, 20, 21 & 22

ii

BY EMPLOYEE TO EMPLOYER

REG 87 & REG 88 & 89

iii

FORM No 23

PURPOSE CERTIFICATE OF ACTUAL CONFINEMENT OR MISCARRIAGE NOTICE IF ANY OTHER EMPLOYMENT TAKEN UP DURING MATERNITY BENEFIT PERIOD CLAIM FOR MATERNITY BENEFIT AFTER DEATH OF MOTHER WITH CHILD SURVIVING FOR CLAIMING PERMANENT DISABLEMENT BENEFIT FOR CLAIMING FUNERAL EXPENSES

TO WHOM TO SUBMIT TO BE GIVEN TO EMPLOYER TO EMPLOYER & LOCAL OFFICE

APPLICABLE SECTION/ RULE REG No. REG 88, 89

24

REG 91

24 A, 24B
25 & 26

TO LOCAL OFFICE

REG 89 A

-DO-

REG 76 A, 76 B & REG 107

25 A

-DO-

REG 95 E

XIII IMPORTANT CASE LAWS ON ESI A ON CATEGORIES 'ESTABLISHMENTS' TO BE COVERED UNDER THE ACT
ISSUE RAISED a
MAIN FACTORY IN NONIMPLEMENTED AREA, BUT BRANCHES IN OTHER STATES SITUATED IN IMPLIMENTED AREAS EMPLOYING MORE THAN 20 CAN ESI INSIST ON COVERAGE OF THE BRANCHES ? AN ESTABLISHMENT EMPLOYS MORE THAN 20 PERSONS, BUT NUMBER OF 'EMPLOYEES' DRAWING SALARY BELOW COVERAGE LIMIT LESS THAN 20. CAN ESI AUTHORITIES INSIST ON COVERAGE ?

HELD

REFERENCE
1 MODI RUBBER LITD Vs ESI DIRECTOR 1985 (2) LLN 313

YES

2 HYDERABAD ASBESTOS Vs ESIC 1978 (I) SCC 194 [SC]

NO. [THERE WERE SOME EARLIER RULINGS HOLDING OTHERWISE] MM SURI & ASSOCIATES Vs ESI CORPN 1997(I) LLN 903 OR 1997 (76) FLR 937 HC AND 1999 (I) LLJ 13 (SCDB)

ISSUE RAISED c WILL AN ESTABLISHMENT SELLING SERVICES BE COMING UNDER 'SHOP' AND BE REQUIRED TO BE COVERED ?

HELD

REFERENCE ESI CORPN Vs PEERLESS INSURANCE 1997 (I) LLJ 82 [MAD] OR KIRLOSKAR CONSULTANTS Vs ESIC 2000(II) LLJ 1657 [SC] ASSAM STATE FERTILIZERS & CHEMICALS LTD Vs ESIC 2001 (II) LLJ 234 [HC-GAU]

YES

d CAN STATUTORY CORPORATIONS EXTENDING MEDICAL BENEFITS BETTER OR ON PAR WITH ESI SCHEME BE BROUGHT UNDER ESI COVERAGE e WILL COMMERCIAL ESTABLISHMENTS EMPLOYING CLERKS, TYPISTS, STENOS, WATCHMEN, PEONS FOR ATTENDING WORK CONNECTED WITH FACTORY, HAVE TO BE COVERED ?

NO

OR

MUNICIPAL COMMITTEE ABHOR Vs ESIC 1996 (II) LLJ 98 [SC]

M GOPALAKRISHNAN Vs ESIC 1997 (2) LLN 924 OR 1997(77) FLR 236 [MAD]

YES

ISSUE RAISED

HELD

REFERENCE

MEANING OF 'MANUFACTURING PROCESS USING POWER'

i ii TAILORS USING ELECTRIC IRON DRY CLEANERS USING ELECTRIC WASHING MACHINES BAKERIES USING ELECTRIC SLICING MACHINES HOTELS USING MOTORS TO GRIND FOOD PRINTING PRESSES ARE THE ABOVE CATEGORIES OF ESTABLISHMENTS TO BE COVERED UNDER ESI ACT ?

YES

ESIC Vs RAM CHANDER 1998 SCC (L&S) 470

OR
ESPECIALLY AFTER ESI Vs NEW EMPIRE INSERTION TAILORS OF 1995 (2) LLN 101 SECTION 2(14-AA

iii iv v vi

OR

ESIC Vs GOPI PRINTS 1989(I) LLJ 569 ESI Vs BHAGARAM SONS [2001 (II) LLJ 973 (HC-KAR)]

vii USE OF LPG FOR SWEET MANUFACTURING

ON CATEGORIES OF 'EMPLOYEES' THAT NEED TO BE COVERED

ISSUE RAISED HELD REFERENCE

a ARE 'HAMALS' [LOADING & UNLOADING WORKERS] ENGAGED THROUGH CONTRACTORS TO BE COVERED ?

1 TRANSPORT CORP Vs ESIC 1999 (4) LLN/27 [AP]

SOUTHERN ROADWAYS Vs 2 ESIC 1992(2) LLN 567 [P&H] 3 RAJKAMAL TRANSPORT Vs ESIC 1996(9) SCC 644

YES

b WILL SPORADIC COOLIES HIRED BY SALESMAN FOR UNLOADING CRATES BE COVERED OR CASUAL COOLIES WORKING ON SAME DAY FOR MORE THAN ONE PERSON BE COVERED ?

1 PARLE BOTTLING CO Vs ESIC 1989 (2) LLN 394 [BOM - DB]

NO 2 ESIC Vs PREMIER CLAY PRODUCTS 1995 SCC(L&S) 162

ISSUE RAISED

HELD

REFERENCE

c WILL GARDENERS, BUILDING WORKERS WATCHMEN NOT CONNECTED WITH MANUFACTURING PROCESS COME UNDER THE TERM 'EMPLOYEE' ?
d ARE EMPLOYEES ENGAGED OUTSIDE FOR WORK ON SITE CONTRACT JOBS NOT SUPERVISED BY PRINCIPAL EMPLOYER OR HIS AGENTS TO BE COVERED ?

YES [THEY ARE INCIDENTAL TO MANUFACTURING PROCESS]

1 ESIC Vs SRIRAMULU NAIDU 1960(2) LLJ 699 MODI INDUSTRIES Vs 2 ESI 1986 (I) LLN 714 [ALL] 1990 (2) LLJ 699
ESIC Vs SHALIMAR TAR PRODUCTS 1976 (I) LLJ 330 OR ESIC Vs DITTY KNITTERS 1998 (79) FLR 452 (MAD)

NO

e ARE CASUAL WORKERS & PART TIME WORKERS [ON

PRINCIPAL EMPLOYER ?

YES

BUILDING CONSTRUCTION JOBS] TO BE COVERED BY

NO

ESIC Vs SOUTH INDIA FLOUR MILLS 1986 (3) SCC 238 [SC]
ESI Vs STANDARD POTTERY
[2001 (II) LLJ 1208(HC-MAD)]

ISSUE RAISED

HELD

REFERENCE

ARE EMPLOYEES ON CONTRACT OF SERVICE (SUPERVISED BY EMPLOYER) AND CONTRACT FOR SERVICES [THAT IS CONTRACT JOBS NOT SUPERVISED BY PRINCIPAL EMPLOYER] TO BE COVERED
WHAT IS THE MEANING OF THE TERM SUPERVISION APPEARING IN 2(9)(ii) OF THE ACT ?

EMPLOYEES ON CONTRACT FOR SERVICES ARE NOT REQUIRED TO BE COVERED HOWEVER EMPLOYEES ON CONTRACT OF SERVICE SHOULD BE COVERED

1 ESIC Vs MC PUNNOSE 1980 (41) FLR 187 [KER-DB] 2 ESIC Vs TECHNICO 2001(89) FLR 501 [GAU] 3 ESIC Vs SSRS BROTHERS 2000(85) FLR 735[MAD]
1 CALCUTTA ELECTRICITY CORPN Vs CHANDRA BOSE 1992(I) SCC 441 2 ESIC Vs DITTY KNITTERS 1998 (79) FLR 452 [MAD]

IT MUST BE SUPERVISION IN THE EXECUTION OF WORK AND NOT MERE SCRUTINY FOR BILL PAYMENTS OR PERIDIC INSPECTION TO CHECK PRO-GRESS OF JOB

ISSUE RAISED

HELD

REFERENCE

h WHAT IS THE MEANING OF 'INCIDENTAL' TO THE OPERATION OF THE ESTABLISHMENT. ARE CYCLE STAND WORKERS AT CINEMA THEATRES TO BE COVERED AS EMPLOYEES ?
i ARE PARTNERS WHO DRAW WAGES TO BE COVERED AS EMPLOYEES (FOR PAYING CONTRIBUTION) ? WHETHER A MEMBER OF A PRODUCER COOPERATIVE WOULD COME UNDER DEFINITION OF EMPLOYEE AND HAVE TO CONTRIBUTE ?

YES

ROYAL TALKIES Vs ESIC 1978 SCC(l&s) 497

NO

ESIC Vs RAMANUJA & MATCH INDUSTRIES 1985(I) SCC 218

NO [HE IS NOT EMPLOYED FOR WAGES]

ESIC Vs CAPITAL COOP.INDIA SOCIETY 2001 (89) FLR 925

ISSUE RAISED k ARE DIRECTORS OF COMPANIES

HELD YES [THEY ARE SALARY DRAWING EMPLOYEES] AFTER THE 1989 AMENDMENT TO SECTION 2(9) ONLY STATUTORY AND STANDING ORDER DEFINED APPRENTICES ARE EXCLUDED OTHERS MUST BE COVERED AS EMPLOYEES NO REQUIRED FOR ESI [HOWEVER CASE LAW ON EPF SAYS THEY SHOULD BE COVERED]

REFERENCE ESIC Vs APEX ENGG. LTD 1998 [1] LLJ 274 [SC] ANDHRA PRABHA LTD Vs ESIC 1996(2) LLJ 195

EMPLOYEES

UNDER ESI ACT l ARE ALL CATEGORIES OF APPRENTICES OUTSIDE THE SCOPE OF THE TERM 'EMPLOYEE' ?

m ARE OUT OR HOME WORKERS TO BE COVERED AS EMPLOYEES ?

BOMBAY WIRE CO. Vs ESIC 1986 (1) LLN 975 [BOM]

ISSUE RAISED

HELD

REFERENCE AMERICAN EXPRESS BAKERY Vs ESIC 1972 LAB IC 1069 [BOM] ESIC Vs HINDUSTAN COCA PRODUCTS 1995 (70) FLR 233 SECRETARY M/S JOHN FOWLER UNION Vs M.D. JOHN FOWLER LTD 2001(II) LLJ 24 [HC-KAR]

n ARE 'HAWKERS' EMPLOYED ON FIXED WAGES TO SELL FACTORY PRODUCTS TO BE COVERED ?

o ARE WORKERS ON HOUSING COLONY CONSTRUCTION TO BE COVERED ? p AN EMPLOYEE WHOSE SALARY WAS ABOVE THE COVERAGE LIMIT ON THE FIRST DAY OF THE CONTRIBUTION, SUBSEQUENTLY HAD A DROP IN SALARY (DUE TO D.A. DROP DURING THE SAME CONTRIBUTION PERIOD) IS HE REQUIRED TO BE COVERED ?

YES

YES [NOT REQUIRED UNDER EPF ACT] YES [MUST COVER FROM PERIOD HIS SALARY FELL BELOW THE COVERAGE LIMIT]

[THIS IS NOT A CASE COMING UNDER RULE 50. RULE 50 IS ABOUT SALARY GOING UP DURING CONTRIBUTION PERIOD]

CASE LAW ON THE SCOPE OF THE TERM 'EMPLOYMENT INJURY

ISSUE RAISED HELD
ONLY IF THERE IS A CAUSAL RELATIONSHIP BETWEEN INJURY AND EMPLOYMENT NO. [UNLESS ACCIDENT OCCURS IN COMPANY TRANSPORT OR COMPANY WORK OUTSIDE THE NORMAL WORK AREA]

REFERENCE
1 MACKINNON MACHENZIE Vs IBRAHIM M ISSAC 1969 (2) SCC 607 2 ESIC Vs LAKSHMI 1979 LAB IC 167[KER] ESIC Vs FRANCIS DE COSTA 1992 (65) FLR 316 [SC] & 1996 (74) FLR 2327 [SC]

a MEANING OF THE TERM ACCIDENT ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT

b IS THE CONCEPT OF NOTIONAL EXTENSION OF PREMISES STILL LEGALLY MAINTAINABLE ?

c CAN AN EMPLOYEE DEPUTED TO PLAY FOOTBALL FOR COMPANY TEAM, MEETING WITH DEATH COME UNDER EMPLOYMENT INJURY ?

YES

ESIC Vs PARAMESWARAN PILLAI 1976 (49) FJR 440 [KER]

ISSUE RAISED
d DOES 'PERMANENT

HELD NO. [IT MEANS ONLY UNFITNESS TO DO THE JOBS HE WAS CAPABLE OF DOING AT TIME OF ACCIDENT] ESI AUTHORITIES HAVE CONSISTENTLY HELD THAT EMPLOYEES WILL NOT BE ELIGIBLE THIS STAND OF THE ESI HAS BEEN WATERED DOWN HELD ELIGIBLE IF EMPLOYEE IS STILL SERVING HELD NOT ELIGIBLE IF LEFT EMPLOYMENT

REFERENCE
ESIC Vs GOPI 1995 (I) LLN 642 [KER-DB] ESIC Vs M GANESAN [2001 (I) LLJ 1662 [MAD] ESIVs RANGANAYAKALU [2001 (II) LLJ 67 HC KAR] ESI Vs OUSEPH [2001 (3) LLN 1113 (HC-KERDB)]

TOTAL DISABLEMENT' MEAN TOTAL UNFITNESS ?

ARE EMPLOYEES WHO CROSSED THE ESI COVERAGE LIMIT AND STOPPED CONTRIBUTING, BUT MEETING WITH ACCIDENTS IN THEIR LAST BENEFIT PERIOD ELIGIBLE FOR ACCIDENT BENEFIT ?

ISSUE RAISED
f i AN EMPLOYER DELAYED IN REMITTING THE CONTRIBUTION EMPLOYEE DIED EMPLOYER REMITTED CONTRIBUTION AFTER DEATH ESI REFUSED DEATH BENEFIT IS THIS JUSTIFIED ?

HELD
ESI NOT LIABLE EMPLOYER MUST PAY UNDER W.C.ACT

REFERENCE
MANAGEMENT OF BHAVANI MILLS Vs DY LAB COMMISSIONER 2000 (86) FLR 516 [MAD]

ii iii

iv

BOARD CERTIFIED 6% MEIDICAL DISABILITY DUE TO ACCIDENT

EMPLOYER DID NOT REDUCE HIS SALARY

ii

iii

CAN ESI REFUSE DISABLEMENT COMPENSATION ?

YES. [WHILE ELIGIBLE UNDER W.C. ACT HELD NOT ELIGIBLE UNDER ESI IN VIEW OF SECTION 63]

RAMKRISHNAN Vs ESIC 2000 (86) FLR 614 [KER]

[NOTE : HOWEVER IN CASE LAW UNDER W.C.ACT, HELD EMPLOYER IS LIABLE TO PAY COMPENSATION. EXE.ENGINEER Vs HAJRATALI 1999 (82) FLR 318 [KAR]

ISSUE RAISED
h CAN AN ESI COVERED EMPLOYEE CLAIM ACCIDENT COMPENSATION FROM ESI AND ADDITIONALLY CLAIM COMPENSATION UNDER W.C. ACT FROM EMPLOYER ?

HELD
NO. [SEE PROHIBITION SECTIONS 53, UNDER 61]
1

REFERENCE
WESTERN INDIA PLYWOODS

Vs
P ASHOKAN 1997 (7) SCC 638 2 ALSO BARRED FROM CLAIMING UNDER MOTOR VEHICLES ACT. ANNAPURANA

Vs
GEN.MANAGER KSRTC 1984 LAB IC 1355 [KAR]

CASE LAW ON DELAYED/NON REMITTANCE OF CONTRIBUTION AND REVENUE RECOVERY PROCEDURES

HELD 1 YES/NO IF CONTRIBUTIONS SUBMITTED BELATEDLY BUT ESI AUTHORITIES DID NOT ACT WITHIN 5 YEARS LIMITATION UNDER 77(IA) WILL APPLY 2 IF EMPLOYER FAILED TO CONTRIBUTE AND ESI DETECTS NON COMPLIANCE AND PROCEED UNDER SECTION 45A NO LIMITATION WILL APPLY FOR RECOVERY REFERENCE 1 LIMITATION WILL APPLY ESIC Vs SAMSON RUBBER INDUSTRIES 2000 (II) LLJ 1490 OR 2000(4) LLN 927 [MAD] 2 VIJAYAN PILLAI Vs ESIC 1998 (I) LLJ 1190 [KER] LIMITATION WILL NOT APPLY A ESIC Vs HARRISON MALAYALAM LTD 1998 (80) FLR 835 [SC]

ISSUE RAISED a IS THERE ANY TIME LIMITATION IN ESI FOR RECOVERING CONTRIBUTION FOR NONREMITTANCE OR DELAYED REMITTANCE ?

B ESIC Vs HOTEL KALPAKA 1993 (2) SCC 9 [SC] C ALLAHABAD CANNING CO Vs ESIC 1998 (79) FLR 947

ISSUE RAISED b CAN THE CORPORATION RECOVER INTEREST DAMAGES FOR DELAY/DEFAULT AND THEN ALSO TAKE ACTION FOR PROSECUTION ? c WHAT IS THE DISTINCTION BETWEEN PROCEEDINGS UNDER SECTION 68 & 85 B ?

HELD YES

REFERENCE ESIC Vs DHANDA ENGINEERS 1981 (2) LLN 106

68 IS REGARDING NON-PAYMENT ON ONE EMPLOYEE & 85-B IS ABOUT NON PAYMENT FOR WHOLE ORGANISATION

HIND ART PRESS

Vs

ESIC 1989 (2) LLN 394

d CAN REVENUE RECOVERY UNDER 45 A BE INVOKED WHEN EMPLOYER HAS MADE AVAILABLE ALL DOCUMENTS REQUIRED AND WHEN THERE IS NO COMPLAINT OF EMPLOYER OBSTRUCTING THE INSPECTION STAFF ?
e CAN DAMAGES BE RECOVERED BY ESI WHEN NO FAILURE BUT ONLY DELAY IN REMITTANCE ?

LML LTD Vs ESIC 1999 (83) FLR 1021 [ALL]

NO

NO

SARAT TEXTILES Vs ESI [2001 (90) FLR 566 HC-CAL]

CASE LAW ON EXTENT OF CONTRIBUTION PAYABLE.

ISSUE RAISED HELD REFERENCE

AN EMPLOYER HAD SPENT 11 LAKHS ON A PROJECT. THIS AMOUNT INCLUDED MATERIAL AS WELL AS LABOUR COST EMPLOYER COULD NOT PRODUCE BREAK UP FOR LABOUR COST CAN ESI AUTHORITIES DEMAND CONTRIBUTIONS ON THE ENTIRE CONTRACT AMOUNT ?

No. [ IF NO BERAK UP IS AVAILABLE ONLY 25% OF TOTAL AMOUNT IS TO BE TAKEN AS LABOUR ELEMENT] [CONTRIBUTION PAYABLE ONLY ON LABOUR ELEMENT]

SREE SIVALAKSHMI MILLS

Vs
2001 (I) LLN 466 [MAD]