Employee’s State

Insurance Act, 1948

K R SARADA
20BLA1110
 INTRODUCTION
 The Employees State Insurance Act of 1948 was instituted with the
target of getting monetary help.
 Its main aim is to provide for compensation to certain employees and their
dependents for employment injuries.
 It is responsible for regulating employer’s contribution, paying
compensation, ensuring compliances, etc.
 It is a self-financed initiative, which serves as a type of social security
scheme, to prevent the working class from any financial problems
arising out of the above medical issues.
Functions of Employees State Insurance Act 1948

Employees, a state insurance act 1948, plays a major role in the welfare of many
employees. The functions of this act are as follows:
● Under Section 17 of the constitution, the employee’s state insurance act 1948 can
recruit staff members. Along with this, it can also provide gratuity and some other
fund related benefits to the eligible staff members.
● According to the powers of this act, it can invest or take money from the central
government sanction for providing better facilities to employees.
● The Employees state insurance act 1948, can recruit or hire the social security
officers to implement practices of the act among the other bodies of India. These
officers have the power to enforce the implementation of practices of this act.
Functions of Employees State Insurance Act 1948

 The Employee’s state insurance act 1948 also collects some amount of money
from the compensation of employees to regulate all its functioning and to facilitate
other employees.
 The Director-General of employee’s states insurance act has the authority to make
decisions for facilitating the act’s implementation. He can also modify the
implementation strategies according to the need.
 It is the responsibility of the employee’s state insurance act 1948 to maintain the
budget of all expenditures, which are done to provide compensation and other
facilities to the employees.
Benefits of Employees State Insurance Act 1948

01 02 03
Medical Benefit Maternity Benefit Disablement
Benefit

04 05
Unemployment Other benefits
Benefits
ESI Corporation
According to Section 2(6), the term “Corporation” under the Act
refers to the Employees’ State Insurance Corporation.

Section 3 of the Act further states that the Central Government has
to establish the Corporation as per given provisions.

The Corporation is basically a body corporate that has features like

perpetual succession.

The main function of this Corporation is to implement provisions

of the ESI Act and carry out its duties.
 Constitution of ESI Corporation
The ESI Corporation is an apex body under the Employees’ State Insurance
Act.
• The Corporation is headed by a Chairman and a Vice-Chairman that the
Central Government appoints. Apart from these, the Central Government
gets to appoint five other persons of its choice.

• In order to represent the views of employers and employees, the Central

Government appoints ten persons.

• Finally, the Corporation also has a Director General whose post is ex-
officio. Three Members of Parliament (2 from Lok Sabha and 1 from
Rajya Sabha) also become members.
The Term of Office Members
Members who represent employers, employees and the medical profession, as well as
the MPs, have a fixed duration.

Their appointment lasts for four years from the date of notification of their
appointment. All other members of the Corporation may not have such a fixed tenure.
Powers of the Corporation
The ESI Corporation has extensive powers to carry out its functions and duties under the
Act.

Section 17 allows the Corporation to appoint staff members and officers for carrying out its
business effectively.

The Corporation has powers to purchase and sell movable as well as immovable
properties.

In order to ensure compliance with provisions of the Act, the Corporation can appoint
Social Security Officers.

The Director-General of the Corporation has to sign on every decision it takes.

Duties of the Corporation

The Corporation performs many important duties under this Act. Most of these duties are in the
nature of compliances relating to its functioning and decisions.

It has to maintain accounts of its incomes and expenses in the format that the Central Government
prescribes.

Other compliances of the Corporation include submission of annual reports of its activities to the
Central Government.
Conclusion
Employees state insurance act 1948 is the legislative body of India which provides
enormous benefits to the employees. The headquarters are located in New Delhi, from
where the whole functioning of the act is regulated. The central government and the ministry
of labour and employment together regulate the functioning of employee’s state insurance
act 1948. According to the reports, the act runs with a budget of ₹80,000 crores. Within the
70 years after launching, this act had already provided numerous benefits to several
employees of India and will continue to provide such benefits in future with more facilities.