NAME: Employee ‘state insurance Act 1948
Total section: 100(divided into 8 chapters)
It shall apply: To all factories (including factories belonging to the government) other than seasonal factories

The government can also make this act applicable to any other industrial, commercial, agricultural, another establishment by giving 1 month (Earlier 6 M) notice.
It may be noted that government can be provided under this Act for example TISCO

EXEMPTION FROM OTHER ACTS 

An employer / establishment covered under the ESI Act is exempt from the provisions of
Maternity benefit Act ,1961 and
Employees ‘compensation Act 1923.

OBJECTTIVE OF THE ACT

It provides a certain benefit to the employee, in case of

  • Sickness
  • Maternity, and 
  • Employment injury and 
  • To make provisions for matters related thereto  
Insurance scheme 
It is an insurance scheme I.e.; employees benefit if they are sick or disable

BENEFITS UNDER THE EMPLOYESS’ STATE INSURANCE ACT 1948

Section46 provides for 6 types of benefits to which the insured persons, their dependents, these benefits are as follows:

Sickness benefit: periodical payments in case of sickness certified by medical practitioner
Matemity benefit: periodical payment to an insured workman in case of confinement or miscarriage or sickness arising out of pregnancy confinement
Disablement benefit: periodical payment to an insured person suffering from disablement as a result of employment injury
Dependents’ benefit:  periodical payment to dependents of insured person
Medical benefit: medical treatment of insured person
Funeral expenses: payment expenses on the death of insured person at the prescribed of RS.10.000/-

APPLICABILITY OF THE ACT 

 ESI is applicable to all factories
2(12)” factory “means

  • Any premises including the precincts thereof whereon 
  • And in any part of which manufacturing is being carried on or is ordinarily so carried on but does not include

SOFTWARE DEVELOPMENT UNIT

Bombay high court in Asst. Director E.S, I, C Vs western outdoor interactive Ptv. L.t.d, pronounced in July 2012 software development unit is treated as a factory for employee’s state   insurance Act 1984

EMPLOYER

  • Means the following 
  • Owner of the factory 
  • HOD in case of government departments
  • Person responsible for supervision and control in the case another establishment 

In Case of Contracted Labor 

 Primary liability of ESI contribution in that of the principal employer, however, he can recover the contribution paid by him from the contract

PRINCIPAL EMPLOYER

 Principal employer means the following

  • In a factory owner or occupier of the factory and includes
  • The legal represented of a deceased owner of occupier and
  • Where a person has been as the manager of the factory under the factories act 1948 the person so named 
  • In any establishment under the control of any department of any government in India 
  • The authority appointed by such government on behalf of 
  • Where on authority is so appointed the head of the department

In any other establishment any person responsible for the supervision and control of the establishment

EMPLOYEE

Employee means
Any person employed for wages
In or in connection with work of factory or establishment to which the ESI act is applicable

AND INCLUDES

Persons employed through the contraction
Apprentices appointed understanding (but excludes apprentice covered by apprentice’s act, however, on apprentice shall be treated as an employee whose training period is extended to any length or time)