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It is a comphrensive Social Security Scheme designed to accomplish the task of socially protecting the ‘employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his health and working capacity. It provides financial assistance to compensate the loss of his! her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical careto his/her family members also.
It is a 17 digit identification number allotted to factory/ establishment by the Regional Officer on receipt of Form-Ol or Survey report from the Social Security Officer.
This is also an identification number allotted by the Regional Office to a sub-unit, branch office, sales office or Registered Office of a covered factory or establishment located in the same State or different State, on receipt of the details in prescribed proforma from the employer.
In the case of a factory, any of the following:
- Managing Agent of the owner or occupier;
- Legal representative of a deceased owner or occupier;
- Manage r of the factory under the Facto ries Act, 1948.
In the case of Establishments belonging to or under the control of Government of India:
- The Specified Authority
- The Head of the Department (In the absence of specified Authority).
In the case of other establishments: Any person responsible for the supervision and control of the establishment.
In the case of other establishments:
Any person responsible for the supervision and control of the establishment.
An employer who fails to pay the contribution within the limit prescribed under Regulation 31, shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of default or delay in payment of contribution (Regulation 31-A).
The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/her wages during the period of his abstention from work due to sickness, maternity, and employment injury. The scheme provides medical care to his/her family members also.
The ESI Scheme is administered by a corporate body called the ‘Employees’ State Insurance Corporation’(ESIC) which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation
At the National level, the Standing Committee (a representative body of the Corporation) for administering the affairs of the Corporation, and the Medical Benefit Council, a specialized body which advises the Corporation on administration of Medical Benefit, are functioning. At the Regional Level, the Regional Boards and Local Committees to review the functioning of the scheme and make suggestions for improvement of the scheme have been constituted.
Yes. It is the statutory responsibility of the employer under Section 2-A of the Act read with Regulation 10-B, to register the Factory/Establishment under the ESI Scheme within 15 days from the date of its applicability to them.
The Factory or Establishment to which the Act is applicable is to be registered within 15 days by submitting an Employer’s Registration Form (Form-01) to the concerned Regional Office and obtain an identification number called the Code number which is to be used in all the Correspondence relating to the Scheme. (Section 2(A) read with Regn. 10-B)
It is a 17 digit identification number allotted by the Regional Office on receipt of Form-01 or Survey report from the Social Security Officer, which is to be used by the employer in all the correspondence with the ESI.
The following persons are not to be counted
Yes. If the employees in a factory or establishment are other-wise in receipt of benefits substantially similar or superior to those provided under the ESI Act, on an application made, the State Government
may grant exemption to such factory or establishment for a period of one year at a time prospectively. Application for renewal is to be made three months before the date of expiry of exemption period. (Section 87)
It is Rs. 15,000 per month from 1st May, 2010. It was Rs. 10,000/- per month from 1-10-2006 to 30-4-2010. It was Rs. 7,500/- per month from 1-4-2004 to 30-9-2006. The wage ceiling for coverage of an employee with ‘disability’ is Rs. 25,000/- per month from 1-4-2008.
Factory is defined under section 2(12) as “any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which, a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of Mines Act 1952, or a railway running shed.”
Whether all the persons employed who are not coverable under the Act are also counted for 10? Yes. All the persons employed in the premises including the precincts thereof irrespective of their wages including casual, trainees, contract employees are counted for the purpose of coverage of the Factory. Even the Directors employed are to be counted.
According to the notification issued by the State Governments concerned under Section 1(5) of the Act, the following establishments employing 20 or more persons for wages attracts ESI coverage.
Once a factory or an Establishment is covered under the Act, it continues to be covered notwithstanding the fact that the number of persons/coverable employees employed therein at any time falls below the required limit or the manufacturing process there in ceases to be carried on. Thus, there is no need to examine the continuity of coverage of a factory or establishment every time. (Section 1(6) of the Act)
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