Should have Agreement (negotiation)/settlement (conciliation)/court award (adjudication) which is

making it mandatory for employer to pay bonus linked to productivity.

Beneficiary under Payment of bonus Act & not Beneficiary under IDA & not under PBA
under IDA

Supervisor with wages b/w (greater than) 10k-21k Worker with wage more than 21k/ month
/month
All managers and administrators within 21k/month
Due to (A/S/CA) under IDA, every worker gets the bonus regardless of their wage. Similarly for MAS with
salary less than 21k/month, they will get the bonus.
Sec- 45, 46, 48  dispute

If interested, read Sec 17 (b) and Sec 33(c) from ID Act.

Session- 10 February- 11
Code on Social Security 2020
It is an amalgamation of (subsumes) those legislations currently in place to regulate insurance and social
security.

Social security net takes care of the present and future needs  safe place, insured place. They must
have income security post termination particularly for retirement and superannuation.

We have a misconception that social security is pension, or PF, or unemployment insurance, health
insurance (Obama Care) etc. That is broadly what social security comprises. In India, we cannot have
anything for the unemployment as the unemployment rate is very high.

Social Security per say is not what we have understood so far.

We must understand the meaning of social security as given in the Social Security Law.

Definition of Social Security  Sec 2(78):

1. Easy + ready access to health care

2. Income Security  This is not for everyone. These are for those who have been termination due
to retirement, superannuation, retrenchment, termination.

For Access to Health Care, we currently have

1. Employee State Insurance At, 1948. This is a central Act and will not differ between states, or
any other thing. This is an insurance scheme given from Government. We pay the instalment for
this insurance. (Chapter-4)
2. Employee Compensation Act, 1943. The entire liability will be with the establishment. (Chapter-
7)

For Income Security, we currently have

 1. Employee Provident Funds (Miscellaneous Provisions) Act, 1952. Miscellaneous provision is
there because of these 3 things  PF scheme, Pension scheme, and an insurance to which we
are not contributing to (unlike ESI) Employee Depository Linked Insurance, EDLI. This insurance
coverage is only for those who have died on duty and inside the establishment. Maximum
amount is 6 Lac (16k x 30 = 4.5 Lac +1.5 Lac Bonus). (Chapter- 3)
2. Payment of Gratuity Act, 1972. This payment is to be made by the employer. It is more of a
liability reward to the employee. It can be even said as a retention strategy as the employee will
get a ‘fat’ gratuity if they stay in the establishment. Eligibility Criteria is 5 years for all employees
and for FTE, it is 1 years. (Chapter- 5)
3. Maternity Benefits Act. (Chapter- 6)

Constitutional validity of Social Security Code:

Article 21: Fundamental Right. Right to Protection of Life. (Occupational decease, Inhaling of poisonous
gas, Occupational Hazard etc)

Article 39 (e): Is meant for Factories Act. Basic Right to an insured workplace. It is the responsibility of
the government. Government can enact legislation and implement it. Every Employer and Establishment
should conform to it.

Article 42: Humane condition is the right of all individuals. + Maternity

ESI and Employee Compensation are mutually exclusive. They both cannot be applied at one place.

ESI Act, 1948 Employee Compensation Act, 1923

Factory & Shops and Establishment For Mines and Plantations (not meant for
factory, or offices) + Factories and S&E not
presently in non-notified Area
Notified Area (It is the duty of ESI Corporation to No notified Area
notify the area)
Indemnifying the employer (It is basically a No Provision of indemnity (Even for contract
product of ESI Corporation) labour, it is duty of principal employer)
Premium / Contribution (3.25% of wage from No Premium
Employer + 0.75% from employee) (The entire
money is not paid by the insured person. It is paid
by the insured person + employer)
It is not going to give coverage to all employees. Everyone and anyone working in the
There is a threshold/wage ceiling. establishment is supposed to get insurance.
Beneficiaries- Employee wage should not exceed (Including contract labour)
21k/ month (currently) (including contract
labour)
Only Labour Law in the country which takes care Permanent Employee + Contract Labour
of Outworker.
Benefits- Cash, care, leave (Discharge Certificate/ Only Monetary Compensation
Fitness certificate given by ESI doctor) (Leave ke
paise will be paid by ESI and not the employer)
Entire responsibility is of ESI Entire responsibility is of Company
ESI is a scheme offered to employees by ESI corporation. ESI corporation has its own network. Regional
ESI Commissioner. The hospital and dispensary near an industry is the duty of ESI. ESI Corporation is an
autonomous body.

Indemnifying- Free a person of all liability.

Employee compensation Act is only monetary compensation. But ESI Act has monetary compensation
along with leaves and all.

Outworker is someone who has taken your job out of your premise but gets the job done at his home or
any other such place.

ESI- Chapter 4
Applicability  Sec 1(4):

First Schedule talks about applicability of all the chapters.

1. Establishment with 10 or more persons. This is 10 or more employees with wages not exceeding
21k/ month (currently).
2. Regardless of wage of the person if they are in Hazardous Occupation.
3. Plantation can also apply for ESI coverage.
4. Places can even apply for exemption from ESI (Ex: Tata, ABG)
5. Season Factory will not be covered.
Definition of seasonal factory Sec 2(74).
1) Not more than 7 months.
2) Based on Products (groundnuts etc.)

Establishment Sec 2(29):

1. Place where trade, business, occupation, profession, calling, industry, office is being carried on
 Shops & Establishment
2. Factory is different from point 1. (Except for Sec 2 (32) Explanation 2  Data Processing Unit or
a Computer Unit. Hence, ESI will not be applicable.)
3. Mine is also covered but only for chapter on ECA.

Notional Extension of Manufacturing Process- In Reliance, Refinery is premise, pipeline is precinct. Bus
depot of BST, and the entire city of Bombay will be the precinct.

Functional Integrality- If finished product of A is the raw material of B. Then A and B are functionally
integral.

Session- 11 February- 14
These are the only 2 laws where the law will not be automatically applicable to your establishment. We
must go and register the establishment under ESI and ECA.

Establishment might not have a common definition for all the chapters.
EPF Act, 1952 & ESI Act, 1948 are 2 legislations that are meant for schemes and products that the
government has to offer.

For EDLI, maximum 6 lakhs. For any job incumbent who dies on duty. Does not see that there Is an
accident, then there is this fatality. Just that the person should die on duty.

Products of EPF Act, 1952  PF/ Pension/ Employee Depository Linked Insurance. The body which
implements/ offers these products is Employee provident fund organisation (EPFO)
Product of ESI Act, 1952  ESI Scheme. The body which implements/ offers these products is Employee
provident fund organisation (ESIC)

Products Body Register Time Limit Coverage Compliance

Chapter PF/Pension/ EPFO Threshold Register Every Employer
3 (EPF EDLI (Autonomous) – 20 or within 15 establishment Code is
Act, more days after (EVERY) provided
1952) persons you have (This code is
crossed the used as the
threshold basis of your
compliance)
Chapter ESI Scheme ESIC Threshold- Register Only to ICN
4 (ESI (Autonomous) 10 within 15 factories & (Independent
Act, persons1 days after Shops and Code
1948) (Appendix you have Establishments Number) is
1) crossed the (+plantations issued
threshold can be added,
provided the
employer of
the plantation
believes that
what he is
providing is
not
comparable to
what ESI is
providing)
1
Persons is not synonymous to employee. It is regardless of the wage. Wage less than 21k/month sis not
applicable when we are counting these persons. (2nd proviso to Sec 2(26)).

If you want exemption from EPF (as in case of Tata), then you should first get yourselves registered.
Then only you can ask for exemption. In case of EPFO, apply to Regional Provident Fund Commissioner.

As an HR, our responsibility is to convert Establishment to ‘Covered Establishment’.

For ESI, we use ESI Central Rules of 1950.

Rule 50 defines wage ceiling. It is currently ‘not greater than 21k/month’.

Beneficiary under chapter -4:

- Any person
 - Any work – manual, unskilled, skilled, clerical, operational, technical, professional, managerial,
administrative, supervisory
- Except apprentice under Apprentice Act of 1961.
- Wage ceiling  not greater than 21k/month
Sec2 (89)  mentions that the wage ceiling to be considered only for EPF and ESI.

This beneficiary is an employee, not a worker. Defined under Sec 2 (26).

Section 2 (31)

Exempted Employee under PF is very very different from exempted employee under ESI.

Exempted employee wage= Rs. 176/day. It is possible maybe because this person is not working for 8
hours per day.

Covered Employee Exempted Employee

Company’s Contribution 3.25% 4%
Employee’s Contribution 0.75% -

Section 2 (35)  Gig worker

This is for the first time that the judiciary has defined them.
Gig worker is outside the purview of employee-employer relationship. Then who will pay for his
contribution. If he himself must pay, then he would choose a private insurance, why ESI.

Gig Worker-

a) Performing work (solo performer)/ particate in ongoing work (team performer)

b) For earning
c) Outside traditional employee-employer relationship (control without contract)

Section 2 (61)  Platform worker

Anyone who does platform work is a platform worker.

Section 2 (60)  Platform work

a) Outside traditional employer-employee relationship (control without contract)

b) Need not always be individual. Might be organisation as well.
c) Access to another individual/ organisation
d) By using online platform
e) Specialized/ specific services and solutions
f) Is done for exchange for payment (disbursement of money)

Gig is the set and Platform is the sub-set.

Wage worker (Sec 2(90)) is the only worker who is given provision of cash.

Section 2 (75)  Self-employed Worker

a) Not employed by any employer

b) Unorganised sector
 c) Monthly earning (not wage)
d) The amount that he will earn will be decided/notified by the central government.
e) Can hold cultivable land (there will be a ceiling to this land)

Has no master and no wage. Does not have wage but has a defined monthly income. Has a designated
place of work.

Section 2 (85)  Unorganised Sector

If it is premised based (bidis), then it should have less than 10 employees. They are being called workers.

Section 2 (86)  Unorganised Worker

a) Home based workers (Sec 2(36))  Has a master. No designated place of work. Defined income
(working for remunerations). Outside master’s premise.
b) Self-employed workers
c) Wageworkers

Section 2(90)  Wage worker

a) No designated place of work (Hawking)- Place is immaterial

b) No need for working for 1 employer
c) Cash/kind
d) Monthly wage notified by Central government

Gig is being planned to be taken under ESI (no PF). Platform too under ESI.
Self-employed worker, Home-based worker, and Wage worker under Chapter-9 of Social Security code.

Section 2 (20)  Job Contractor/ Labour Supplier/ Service Contractor/ Immediate Employer

1. Works inside the premise/ precinct of principal employer (Notified Area)

a. Has ICN
i. Contribution will be paid by the Job contractor
ii. Compliance will be done by Job contractor
iii. Supervision is implied (regardless of whether you supervise or not, things will
not be different)
iv. Keep record of such job contractor compliance (refer to section 31)
b. Doesn’t have ICN
i. Contribution and Compliance will be paid by PE.
ii. Supervision is implied
iii. Under Section- 31 recover entire contribution from contractor (within 6 months
currently)
2. Outside premise/ precinct of principal employer
a. Take the work to factory/ S&E of Contractor (IE) (Greater than, equal to 10 persons)
i. Under ICN
1. Contribution and compliance by Job contractor
2. Don’t Supervise (Refer to case Calcutta Electricity Supply Corporation
(SESC) vs SC Bose & ORS, 1988, SCI. This case should not be used for
 control, only for supervision. For supervision and control, it is the Air
India case)
ii. In non-notified area without ICN
b. Small Establishment (less than 10) (unorganised sector)
i. Exclusively working for PE
ii. Catering to multiple PE (# we will put lot of people here)
c. Home-based worker

ESI (1948) or Chapter 4 is the only chapter of any code, which covers not only the premise but also
outside the premise of the principal employer. (Outworker/ outsourced).

If you are an owner of a land/ or a ‘patta’. As per the law, the one who holds the land if he is cultivating
and if he is working in his own land, he cannot claim the status of a worker.

Session- 12 February- 16
Only for PF, one establishment having multiple branches/undertaking, so for counting the number of
people employees, we add all these together and that should be greater than 20.

For chapter 4, if you have 3 branches, and each one has 6 employees then ESI will not cover the 3
branches and establishment. We must count each unit individually.

We need to have a special definition of factory under social security code. (Sec 2(32)). The difference is
given under ‘Explanation 2’.

Chapter- 4 is applicable to establishments (Sec 2 (29)).

Establishment (Sec 2(29)) = 2 (32) + 2(59) + 2(4) + 2(6)

Building and Other Construction Workers Act (BOCWA)  Essentially a working conditions law like a
mines Act, Factories Act, S&E etc. it is for regulating the working conditions of workers working in
construction sites. MAS will not get benefit from this Act.

Chapter-4 is applicable to Sec 2(26) + Sec 2(31) + Sec 2(35) + Sec 2(61) + 2(36) + 2(86) + 2(75) + 2(90) +
Section 2 (19)
(Currently they are in chapter-9 but there is a proposal to include them into chapter-4. There is no
traditional employee-employer relationship.
They are supposed to be beneficiary of chapter- 9.
Employee (considering the 2nd proviso). This provision gives the wage threshold for including a
employee under chapter-4 and employee not under chapter-4.
Contract labour: hired | in/ in connection with + by a contractor /through a contractor (sub-contractor’s
men) + with/without the knowledge of the principal employer + Inter-state migrate workers + part-time
employee of contract can also take role of contract labour.
Will not be treated as contract labour  who is not regularly employed by the contractor (Permanent)
that to for the activities of the contractor and not the PE + Receives Statutory benefits from the
contractor (including PF/Gratuity/ Bonus etc) + Mutual Agreement (T&C) with the employer. This has
been added.
Example of cement mixing machine- All those who are paving a path from the mixing machine to the
crane is in connection with the construction of the building.

Section- 31

Scenario 1 (in notes Sec 2 (20) 1 (a))
PE- 4% of wage for every contract labour whose
wage is less than 21k/ month on behalf of the
contractor.
PE recovers the entire 4% from the contractor.
1) as debt
2) adjust it against any kind of advances
Contractor will now recover 0.75% of wage from
every contract labour
Contractor gets sub-code/ sub- ICN. This code is valid for 6 months. It is kind of a make-ship thing,
Scenario 2 (in notes Sec 2 (20) 1 (b))
PE paying 4% of wage for every covered
employee of PE.
PE will have the right to recover 0.75% of wage
from every covered employee. (Permanent
Employee)
Contractor will also do the same thing as above.
(Contract labour)

Calcutta Electricity Supply Corporation (CESC) vs SC Bose & ORS, 1988, SCI

Tests:

1) Employee is put to work under eye or gaze of PE or his agent, so that he can be watched
occasionally, accidently, or secretly while the work is in progress, so as to scrutinize quality,
thereof, and to detect faults and also put timely remedial measures by the direction given
leading to satisfactory completion and acceptance of the work,
2) PE’s right to reject the finished product itself is not alone to establish supervision. Supervision is
to be established while the work is being done, and
3) It is not an exclusive test (it is not a stand-alone test), who provides you the equipment, tools,
and designs. (If they wear your accessories, it will not result in Sham.)

Session- 13 February- 18
Section- 28

- Employees who are employees under chapter-4 are to be insured. Not everyone is employee
under chapter-4 (2nd proviso sec2(26)  decided by wage ceiling, currently is 21k/month).
- Every employee under ESI is called Covered Employee (CE), but now they are calling it Insured
Employee. There is a difference between insurance and coverage.
Covered Employee Insured Employee
Comprehensive Scheme- It will only give you Non- Comprehensive Scheme (Ex- fire
one set of benefits for which you are paying insurance, which you have carried or
premium, but it will also give you benefits someone else has carried. Also, in
which hare linked to it. The benefit is not Hollywood movies, the try to find the
controlled due to any reason. No one will ask reason for fire. )
for a reason for insurance coverage.
You pay premium for 12 years and get coverage You pay premium for 12 years and get
for 15 years. The ‘bonus’ is there (Matured Sum coverage for 12 years. The extended
+ Dividend + Bonus) ‘bonus’ is not there anymore. (Matured
Sum + Dividend)
 Government is now shifting to Insured approach.

Section- 29  Contribution

Only one person can pay Premium but here 2 people are paying, therefore, we call it as ‘Contribution’
and not ‘Premium’.

1) 2 parts  1 part is paid by company and second part is paid by employee

2) Currently it is 4% (3.25- company + 0.75- Employee), earlier it was 6.5% (4.75% - company + 1.75
– Employee).
The Appropriate Government under chapter 4 is Central Government. The reason being that ESI
is a central product.
3) Unit of Premium can be annual, half-yearly, quarterly or monthly. Unit for Contribution is wage
period, which means 1 calendar month.
4) When contribution is falling due- end of the wage period – 28/2/2022
When contribution is due payable- On/before expiry of 15 days from the date from which it is
falling due- 15/3/2022. If you pay on 17/3/22 then interest of 16 days will be applied.
Relevance is that when you are found as defaulter. That is, when you are paying contribution for
February on 30 April, they will ask you to pay principal + interest (12% SI per annum). This
interest will be calculated from 1/3/2022 till 30/4/2022.

Exception- This will not be applicable where date of joining is in the middle of the month. Ex: DoJ is
15/2/2022. Then for 13 days, contribution is falling due on 28/2/2022. You can pay it within a month,
and there will be no interest. From March onwards, regular rules will apply.

If for the same wage period, 2 employers are paying contribution. As of now, within 1 month the
payment of contribution should be made by the company. After the first month, regular rules will apply.

Section- 31(2)

1) Non-obstante.
2) The employer is entitled to recover employee’s contribution only by reduction of his wage.
Ex- XLRI as an employer:
1st step is to pay 4% for ESI account.
2nd step will be to recover 0.75% from the employee’s wage.
In this deduction, you do not have to authorise the employer, the employer has the authority to
deduct this amount.
1st step is the ‘Condition Precedent’ to 2nd step.

There are 2 types of faults:

1. Employer has not paid 4%.
2. Employer has not paid 4% and is deducting 0.75%. (Ispe interest + penalty dono lgega. C-18
Notice mila mtlb aapki job gyi.)

Compliance and benefits are mutually exclusive under ESI because contribution has nothing to
do with benefit, and benefit has nothing to do with contribution. (Section- 42).
Proviso- 0.75% reduction from 02/2022. This should be paid only as contribution for 02/22.
Section- 31 (3)

- Non-obstante

Taxes of all kinds + Social Securities (PF + Pension) + Loan Instalment (Any loan) + Insurance (LIC, ESI any
other insurance) + Fine. For these 5 thigs, the employer does not require any authority from employee
to deduct amount from his wage.

Section- 31 (4)

Any deduction under chapter-4 for all reasons is only for paying contribution and not for anything else.

Section- 31 (5)

Remittance expenses should not be borne by employees. OR Remittance expenses is the headache of
the company.

Section- 31 (6)

PE will pay on behalf of the contractor. Then PE will get the 4% from contractor. Then contractor
deducts 0.75% from the employee.

Section- 31 (7)

Now they have introduced a register, to be managed by the contractor and this register will be available
all the time with the PE. This register is where they will give us the transaction code.

ESI Act, 1948  Sec 41A and Sec 45A. These 2 can be used when the contractor is absconding.

Section- 32  Benefits

It is not just one type of benefits but there is a basket of benefits. Benefits will be generally meant for
the insured person. One person who is for the family is also there (apart from the one that is for
employee).
Family (dependent parents + spouse + children + unmarried sister) medical benefits + Dependents (in
case of deceased employee) can also receive some amount on death. For the dependents, there are 2
forms.
Form-1 Declaration Form
Form- 2 Nominal Form (should be submitted 10 days after submitting Declaration Form)
Both forms are due KYC once every year.

There are 2 benefits which are 2 be earned and 5 benefits which are not earned. These 5 are there from
the day of joining, even before giving the first contribution. The 2 for which benefits are to be earned
are:

1) Sickness benefit
2) Maternity Benefits- 26 weeks. Pre-natal is maximum 8 weeks. Post-natal is min 18 weeks. (100%
of wage for 26 weeks will be available from ESI office. If the wage is more than 21k then the
wage will be paid by the company).
These 2 are the benefits which require a minimum number of days of work to have been worked by the
employee.

For sickness, you should have put half no of day in 1 or 2 contribution period. Limit is not more than 91
days in a calendar year.

Contribution period (CP)- 1/4/x to 30/9/x and 1/10/x to 31/3/(x+1). It is all about money, hence we are
taking fiscal year.

For a new joinee, the corresponding Benefit Period (BP) is not tied up with any fiscal year. It can be
calendar period. So, BP is 1/1/x+1 to 30/6/(x+1) and 1/7/x+1 to 31/12/(x+1).
Date of Confinement/ date of delivery is for natural mother. For commissioning mother/adopting
mother, it starts from the date when she mother gets the baby (not more than 3 months old).

For maternity benefit, under MBA and ESI Act, she must put 80 days of work in 1 or 2 CPs. (From
deeming provision). These 80 days of work includes the actual working and deeming provisions (lay-off,
leave for temporary disablement, earned leave) (Explanation (Sec- 60(2)). (Sec- 60)

The backward counting of 80 days will be counted from the date of delivery or the date of expected
delivery. (For 12 months = 2 CPs)

Standard Benefit Rate- Sick leave par poora paisa nhi milta hai. It will be 70%, or 80%, or 90%. It depends
on standard benefit wage. (Currently it is 80%, it is called Full Pay).

In case of Total Partial Disability, suppose you are getting 60% for years left until retirement/
superannuation (whichever is earlier). This 60% is the 60% of (80% of the wage).

The 5 benefits which do not require to be earned:

1) Medical
2) Dependant
3) Disablement
4) Rehab allowance
5) Fatality  Funeral Expense= 7500/- (must be claimed within 6 months from the date of death)

Session- 14 February- 21
Section- 45: Gig and Platform workers can be given benefits of ESI Corporation/ ESI Scheme (if the
Central Government wants to include them).

Section- 2(86): Unorganised workers are not workman as they are included in the ID Act.

Section- 3: Registration of Establishment with ESI Corporation. If the company fulfils the requirements of
First schedule and the other requirements, then they are notified to get themselves registered. If
registration is not done within 15 days, then a C-8 notice will be served to the company.

ESI contribution is 4% of which 3.25% is of the company and 0.75% is of the employer. (Sec 31(6) and
31(7)).

Care, in the table below, means medicine + hospitalization

Benefits Cash Care Leave Claimant Pre-requisites

Fitness certificate
Periodical (wage
from ESI Doctor.
Sickness period) (monthly No Yes Insured person
Discharge certificate
is the largest)
in case hospitalized.
Periodical (wage
Days of continuous
Maternity period) (monthly No Yes Insured person
service
is the largest)
Periodical
Disablement No No Insured person Sec- 34, 36 and 42
payment of
 disablement
compensation. It
can be a one-
time payment
also.
Yes
(Referral) Condition must be
Insured Person and
Medical No (Apollo, Yes certified by the ESI
Family (Sec 32 (2)
Fortis, Doctor.
and Max)
Dependents
(Nominee/ Any
person carrying
succession
Dependents Cash No No certificate issued by Death
Tehesildar, or Zila
Parishad, or
Councillor,
Municipality)
A disabled IP for
vocational training
(In case of re-
A partial or complete
employment with
Rehabilitation disablement (He is
Cash No No reduced wage,
Allowance incapacitated to
rehab allowance
work)
will be paid until
superannuation/
retirement)
Funeral
Cash No No Dependent Within 3 months
Expenses
Medical- Arising out of or in the course of employment.

ESI Wage is the largest wage. PF wage is the smallest wage

Read on your own:

1. Section- 34- Accident (arising out of and in the course of …) (Commutation) (These 2 will be
covered under ECA)
2. Section- 35- Breach of regulation (apportionment of compensation) (This also will be discussed
under ECA) (influence of Alcohol or drug- Sec- 3(2)(iii), ECA 1923) (Wilful disobedience of a
lawful command (insubordination) if established in court)
3. Along with Sec 34 read Section- 36- Section III (List of Occupational Disease (OD))
Part A- peculiar to employment (limestone/soapstone mine, cement manufacturing etc)
Part B- if a person has worked for not less than 6 months continuously and contracted disease
which is peculiar of that employment then employer must , now, take the share of the blame
and employer/ESI will be liable to pay compensation.
Part C- same as part B, but the period is decided by the appropriate government. As of now, it is
8 months.
 4. Section- 42
5. Section- 124

It is not about changing the T&C of services. But you cannot reduce the wages of anyone while
the IP is availing the benefits.

6. Section-68

You have no right to dismiss anyone who is availing maternity benefits. It is only for women. It is
only for Maternity benefits. Only for chapter-6 and not for Chapter-4.

o Employer cannot dismiss & discharge (discharge is newly added). In between the
maternity leave, if the contract ends, you still must pay till the end of the leave. Even if
found guilty and she is to be dismissed, she still will be dismissed after the end of
maternity leave.
o Cannot punish

Club Section- 68 and Section- 124 and read them together.

7. Section- 41 (2), (4), (7) (a) and (b), (8)- Clubbing benefits which are not done (Maternity +
sickness) (Sickness + disablement) (Maternity + Disablement)
Bar on double remedy
EC < ESI
Motor Vehicle (MV) < EC
Maternity Benefit < ESI
MV < ESI
< means that the greater one over rules the lesser one
Section- 125

Section- 42 pre-requisites

1. Employer is a defaulter.
2. While he is contesting the case under ESI court, employer will be reimbursing the sum spent by
ESI on IP.

Session- 15 February- 24