PAPER-I: LABOUR AND INDUSTRIAL LAW-II Unit-III

IV SEMESTER

PAPER-I: LABOUR AND INDUSTRIAL LAW-II

Unit-III

🔶1. Define the concept of Social Security. Explain the need and importance of social security measures for industrial employees.

Definition of Social Security:

Social Security is a protective mechanism provided by the state or employers to safeguard individuals—especially workers and employees—against certain risks and contingencies that interrupt or reduce their income and affect their ability to earn a livelihood. These risks include illness, injury, maternity, unemployment, disability, old age, and death.

As defined by the International Labour Organization (ILO):

“Social security is the protection which society provides for its members through a series of public measures, against economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old age, and death.”

Need for Social Security:

Industrial employees, particularly those engaged in hazardous, physically demanding, or low-paid jobs, are often vulnerable to a range of risks. The need for social security arises due to the following reasons:

  1. Economic Vulnerability:
    • Most industrial workers live on low and fixed incomes.
    • They lack sufficient savings to withstand sudden loss of income due to illness, injury, or unemployment.
  2. Occupational Hazards:
    • Industrial environments often expose workers to accidents, diseases, and physical stress, which can impair their working ability.
  3. Lack of Alternative Support:
    • Workers in unorganized or informal sectors usually do not have any personal or family-based safety nets.
  4. Life Cycle Risks:
    • As employees age, their earning capacity reduces. In the absence of pensions or retirement benefits, they face insecurity.
  5. Unpredictable Events:
    • Events such as sudden illness, maternity, or death of the breadwinner can push the family into poverty.

Importance of Social Security Measures for Industrial Employees:

  1. Promotes Economic Stability:
    • Social security provides income protection during periods of unemployment, sickness, or disability, thus preventing sudden poverty.
  2. Improves Productivity and Morale:
    • A secured employee works with greater dedication and commitment, knowing that his/her future is protected.
  3. Reduces Industrial Disputes:
    • Adequate social security measures reduce dissatisfaction and promote industrial peace and harmony.
  4. Encourages Workforce Participation:
    • Knowing they are covered against risks, more individuals are willing to join the workforce, especially in risky sectors.
  5. Social Justice and Human Dignity:
    • Social security is based on the principle of equity and social justice, ensuring that workers live with dignity and respect.
  6. Strengthens Employer-Employee Relations:
    • Employer-sponsored benefits create trust, loyalty, and long-term associations between employers and employees.
  7. Supports Economic Development:
    • With a secured workforce, national productivity increases, and dependency on informal means of support (like child labor or debt) reduces.

Examples of Social Security Measures in India:

  • Employees’ State Insurance Act, 1948
  • Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • Workmen’s Compensation Act, 1923 (now Employees Compensation Act)
  • Maternity Benefit Act, 1961
  • National Social Assistance Programme (NSAP)
  • Atal Pension Yojana, PM Shram Yogi Maan-dhan

Conclusion:

Social security is not merely a legal or economic policy; it is a moral obligation of a civilized society to protect its workforce. For industrial employees, it offers a safety net that ensures continuity of life with dignity despite unexpected adversities. In the broader sense, it lays the foundation for a fair, humane, and productive industrial system.

Certainly! Here’s a detailed long answer for:

🔶 2. Differentiate between Social Insurance and Social Assistance. Discuss their role in ensuring employees’ welfare.

Introduction:

Social Security is a broad concept that includes various schemes aimed at protecting workers against life contingencies like sickness, old age, injury, disability, unemployment, and death. Two principal forms of providing social security are Social Insurance and Social Assistance.

Though both aim to ensure the welfare of employees and vulnerable populations, they differ in their nature, structure, and funding mechanisms.

Meaning and Concept:

🔹 Social Insurance:

Social insurance is a contributory scheme where employees, employers, and sometimes the government contribute to a common fund. The benefits are available to insured persons as a matter of right, based on their contributions and conditions specified under law.

Example: Employees’ State Insurance Scheme (ESI), Employees’ Provident Fund (EPF), etc.

🔹 Social Assistance:

Social assistance is a non-contributory scheme funded entirely by the government, meant for the poor and vulnerable sections of society. The recipient does not need to contribute to qualify for the benefits. These are typically need-based and subject to a means test.

Example: Indira Gandhi National Old Age Pension Scheme (IGNOAPS), National Family Benefit Scheme, etc.

Key Differences Between Social Insurance and Social Assistance:

Basis Social Insurance Social Assistance
Nature Contributory scheme Non-contributory scheme
Funding Funded by employees, employers, and sometimes the government Entirely funded by the government
Eligibility Based on contribution and coverage under a scheme Based on economic need, usually assessed via a means test
Legal Right Benefits are a legal right if the conditions are met Benefits are granted as social welfare, not a legal right
Examples ESI, EPF, Pension Schemes Old Age Pension, Widow Pension, MGNREGA Social Security Programs
Target Group Organized sector workers Poor, unemployed, disabled, elderly people from weaker sections
Objective Income replacement and risk-sharing among contributors Poverty alleviation and basic livelihood support

Role in Ensuring Employees’ Welfare:

🔹 Social Insurance:

  1. Income Protection:
    • Provides compensation during sickness, maternity, disability, or retirement.
  2. Legal Entitlement:
    • Empowers employees by giving them a rightful claim over benefits.
  3. Risk Mitigation:
    • Spreads the financial risk of unexpected contingencies across a large pool of workers.
  4. Encourages Long-term Employment:
    • Workers remain associated with employers who provide such benefits.
  5. Improves Morale and Productivity:
    • Knowing that they are secured boosts the morale and performance of employees.

🔹 Social Assistance:

  1. Protects Vulnerable Sections:
    • Helps those not covered by formal employment, such as informal sector workers.
  2. Supports Non-working Individuals:
    • Benefits to widows, old age persons, disabled who may not be able to work.
  3. Bridges Social Inequality:
    • Plays a crucial role in poverty alleviation and promoting social justice.
  4. Promotes Inclusive Development:
    • Ensures that the weaker sections are not left out of the growth process.
  5. Crisis Response:
    • During emergencies (e.g., COVID-19), social assistance becomes vital for survival.

Conclusion:

Both Social Insurance and Social Assistance are indispensable pillars of a strong social security framework. While social insurance provides stability to the organized workforce through contributory benefits, social assistance ensures that the marginalized and unorganized sections of society are not neglected.

Together, they help in building a just, equitable, and welfare-oriented society where no one is left behind due to economic vulnerability or lack of resources.

Certainly! Here’s a detailed long answer for:

🔶 3. Explain the salient features and objectives of the Workmen’s Compensation Act, 1923.

Introduction:

The Workmen’s Compensation Act, 1923 (now renamed as the Employees’ Compensation Act) is one of the earliest labour welfare legislations in India. It was enacted to provide financial protection to workmen and their dependents in case of accidental injuries, occupational diseases, or death arising out of and in the course of employment.

The Act reflects the principle of social justice by imposing a statutory obligation on the employer to compensate the worker or his family for injuries or death resulting from employment.

Objectives of the Workmen’s Compensation Act, 1923:

  1. To provide compensation to workmen who suffer personal injury by accident arising out of and in the course of employment.
  2. To support dependents of deceased workmen by awarding monetary compensation in case of death due to employment-related injury.
  3. To ensure quick and easy compensation without the need for lengthy and costly civil litigation.
  4. To shift the burden of risk from the employee to the employer, making the employer responsible for workplace safety.
  5. To promote welfare and security of industrial labour and their families.

Salient Features of the Workmen’s Compensation Act, 1923:

🔹 1. Scope and Applicability:

  • Applies to the whole of India.
  • Covers specified categories of employees employed in hazardous or manual labour.
  • Applicable to persons employed in railways, mines, factories, construction, plantations, etc.
  • Does not apply to members of the Armed Forces.

🔹 2. Employer’s Liability:

  • The employer is liable to pay compensation if a personal injury or death is caused to a workman due to accident or occupational disease arising during the course of employment.
  • The liability arises irrespective of the employer’s fault, except in specific excluded cases.

🔹 3. Compensation in Case of:

  • Death: Compensation is payable to dependents.
  • Permanent Total Disablement: Employee gets a lump sum based on wages and age.
  • Permanent Partial Disablement: Compensation varies depending on the extent of loss of earning capacity.
  • Temporary Disablement: Compensation is paid during the period of disablement.

🔹 4. Calculation of Compensation:

  • Based on a formula using:
    • Monthly wages of the workman,
    • Age of the workman (factors provided in Schedule IV),
    • Nature of injury (Schedule I and II specify disability percentages).

🔹 5. No Compensation in Certain Cases:

  • No compensation is payable if:
    • The injury does not result in disablement for more than three days,
    • The injury is caused due to intoxication or willful disobedience,
    • The injury was not connected to employment.

🔹 6. Medical Examination:

  • The employer may require the injured workman to undergo medical examination by an authorized practitioner.

🔹 7. Notice and Claim:

  • The employee must give notice of the accident as soon as practicable.
  • Claim must be filed within two years from the date of the accident or death.

🔹 8. Commissioner for Workmen’s Compensation:

  • The Act provides for the appointment of Commissioners to decide claims.
  • The Commissioner has powers of a Civil Court to conduct inquiries, record evidence, and pass orders.

🔹 9. Penalty for Default:

  • If an employer fails to pay compensation, he may be directed to pay:
    • Penalty up to 50% of the compensation, and
    • Interest at the prescribed rate.

🔹 10. No Contracting Out:

  • Any agreement that reduces or waives the right to compensation is null and void.

Amendments and Renaming:

  • The Act was renamed as the Employees’ Compensation Act by Amendment Act, 2009.
  • Several amendments have improved compensation amounts and procedural aspects over the years.

Conclusion:

The Workmen’s Compensation Act, 1923 is a landmark legislation that has played a vital role in ensuring economic justice and social security for the working class in India. It is based on the principle of liability without fault, ensuring that an employee or their family is not left helpless due to employment-related accidents or deaths. By imposing liability on employers, it also encourages safer working conditions and better employer responsibility.

Certainly! Here’s a detailed long answer for:

🔶 4. Discuss in detail the concept of “employer’s liability” under the Workmen’s Compensation Act, 1923.

Introduction:

The Workmen’s Compensation Act, 1923 (now the Employees’ Compensation Act) was enacted to provide monetary relief to employees or their dependents in the event of injury, disablement, or death caused by accidents or occupational diseases arising out of and in the course of employment.

A central feature of the Act is the principle of employer’s liability, which means the employer is legally bound to compensate the worker (or their dependents) in case of employment-related harm, even if there is no fault or negligence on the part of the employer.

Meaning of Employer’s Liability:

Employer’s liability refers to the legal obligation of an employer to pay compensation to a workman or his dependents if the workman suffers an injury, disability, or death due to an accident or disease that occurs during and because of his employment.

This liability is a form of statutory liability that arises by virtue of the provisions of the Act and is independent of any negligence or wrongdoing by the employer.

Conditions for Employer’s Liability:

For an employer to be held liable under the Act, the following essential conditions must be fulfilled:

1. Existence of Employer-Employee Relationship:

  • There must be a valid contract of employment between the employer and the injured/deceased person.
  • The person must qualify as a “workman” or “employee” under the Act.

2. Personal Injury or Death:

  • There must be bodily injury, disability, or death caused to the employee.

3. Accident Must Arise Out of and in the Course of Employment:

  • The injury must be directly connected to the nature of work and must have occurred during the performance of duty.
  • There must be a nexus (link) between the accident and the employment.

4. Types of Injuries Covered:

  • Accidents leading to:
    • Death
    • Permanent Total Disablement
    • Permanent Partial Disablement
    • Temporary Disablement
  • Occupational diseases listed in Schedules III of the Act are also covered.

When Employer is Not Liable:

The employer is not liable to pay compensation under the following circumstances:

  1. Injury Not Resulting in Disablement Beyond 3 Days:
    • No compensation is payable if the injury does not result in disablement for more than three days.
  2. Employee Was Under the Influence of Intoxicants:
    • If the injury is caused due to the influence of drugs or alcohol.
  3. Willful Disobedience or Negligence:
    • If the injury results from the employee’s willful disobedience to safety rules or intentional self-injury.
  4. Accidents Outside Employment:
    • If the accident has no relation to the employment, the employer is not liable.

Extent of Liability:

The amount of compensation depends on:

  • The nature of injury (death, total or partial disablement),
  • The monthly wages of the employee,
  • The age of the employee (factors listed in Schedule IV).

Example:
In case of death, the compensation = 50% of monthly wages × relevant factor (based on age), or ₹1,20,000 (whichever is more).
In case of permanent total disablement = 60% of monthly wages × relevant factor, or ₹1,40,000 (whichever is more).

Penalty for Default in Payment:

If the employer fails to pay the compensation:

  • The Commissioner may direct the employer to pay:
    • Interest at a prescribed rate, and
    • A penalty up to 50% of the amount due.

This is to ensure timely payment and discourage default.

Legal Proceedings:

  • Disputes related to compensation are decided by the Commissioner for Workmen’s Compensation.
  • The employer cannot be sued in civil court once the claim is filed under this Act.
  • The Act ensures a simple, speedy, and cost-effective mechanism for employees to get justice.

Conclusion:

The concept of employer’s liability under the Workmen’s Compensation Act, 1923, is based on the principle of social justice. It ensures that workers are not left financially helpless due to employment-related injuries or death. This liability encourages employers to maintain safer workplaces and provides workers with legal assurance of protection, making the industrial system more humane and balanced.

Certainly! Here’s a comprehensive long answer for:

🔶 5. What is the nexus between injury and employment under the Workmen’s Compensation Act, 1923? How is compensation determined?

Introduction:

The Workmen’s Compensation Act, 1923 (renamed as the Employees’ Compensation Act) provides for payment of compensation to employees who suffer injury or death arising out of and in the course of employment. A crucial legal requirement under the Act is the “nexus” (or connection) between the injury and the employment.

Additionally, the Act lays down a formula-based mechanism for determining compensation, depending on the nature of injury, wages, and age of the employee.

🟩 Part I: Nexus Between Injury and Employment

🔹 Meaning of Nexus:

The term “nexus” refers to the causal link or connection between the accident/injury and the employment. For an employee to claim compensation, it must be established that:

  • The accident arose out of employment, and
  • The accident occurred in the course of employment.

Both conditions must be simultaneously fulfilled.

🔹 1. Arising Out of Employment:

This means that the injury must be caused due to the nature, condition, or incidents of employment. There must be a direct connection between the work the employee was doing and the accident or injury sustained.

✅ Examples:

  • A factory worker injured while operating a machine = injury arising out of employment.
  • A delivery boy bitten by a dog while delivering goods = covered, if delivery was part of his employment.

❌ Not Covered:

  • A worker injured during a personal fight with another employee for personal reasons unrelated to work.

🔹 2. In the Course of Employment:

This refers to the time, place, and circumstances under which the injury occurred. The accident must happen while the worker was performing his duty or engaged in an activity incidental to it.

✅ Examples:

  • Injury during working hours or within office/factory premises.
  • Accidents while commuting in employer-provided transport.

❌ Not Covered:

  • Injury while employee is on personal leave or during unauthorized absence from work.

🔹 Presumption in Favor of Employee:

Section 3 of the Act allows a presumption in favor of the employee if the accident occurred at the workplace during working hours. The employer must prove otherwise if denying liability.

🔹 Judicial Interpretation:

In Mackinnon Mackenzie & Co. Pvt. Ltd. v. Ibrahim Mahmmod Issak (1969), the Supreme Court held:

“There must be a causal connection between the injury and the employment. The accident must be a result of risk incidental to employment.”

🟩 Part II: Determination of Compensation

Once the injury is shown to have the required nexus with employment, compensation is determined based on:

🔹 1. Nature of Injury:

The compensation varies depending on whether the injury leads to:

  • Death
  • Permanent Total Disablement
  • Permanent Partial Disablement
  • Temporary Disablement

🔹 2. Wages and Age:

The amount is calculated using:

  • Monthly wages of the employee
  • Age of the employee (using factors in Schedule IV)
  • Type and percentage of disablement (using Schedule I)

🔹 Compensation Formulas:

✅ In Case of Death:

Compensation = 50% of monthly wages × Relevant factor (age-based)
Minimum: ₹1,20,000 (or notified amount)

✅ In Case of Permanent Total Disablement:

Compensation = 60% of monthly wages × Relevant factor
Minimum: ₹1,40,000 (or notified amount)

✅ In Case of Permanent Partial Disablement:

  • If specified in Schedule I, use the corresponding percentage of total disablement.
  • If not specified, assess the loss of earning capacity and apply that percentage to full disablement compensation.

✅ In Case of Temporary Disablement:

  • Half-monthly payment = 25% of monthly wages
  • Paid every fortnight during the period of disablement
  • Maximum: For 5 years

🔹 Medical Expenses:

  • Employer must also pay for reasonable medical treatment expenses incurred by the injured worker.

🔹 Interest and Penalty:

  • Interest is payable from the date of default.
  • Penalty up to 50% of the compensation amount may be imposed for delayed or non-payment.

🟩 Conclusion:

The nexus between injury and employment is the foundation for claiming compensation under the Workmen’s Compensation Act. Once this link is established, the statutory formula ensures a fair, quick, and predictable determination of compensation. This promotes worker welfare, employer accountability, and overall industrial harmony.

Certainly! Here’s a detailed long answer for:

🔶 6. Discuss the procedure for payment of compensation and the penalty for default under the Workmen’s Compensation Act, 1923.

Introduction:

The Workmen’s Compensation Act, 1923 (now called the Employees’ Compensation Act) was enacted to provide financial support to employees or their dependents in case of injury, disability, or death arising out of and in the course of employment.

One of the essential features of the Act is to ensure a timely and structured process for the payment of compensation, and to penalize employers for failure or delay in meeting this obligation.

🟩 Part I: Procedure for Payment of Compensation

🔹 1. Employer’s Duty to Pay Compensation:

Under Section 3 of the Act, an employer is under a statutory obligation to pay compensation in the event of:

  • Personal injury or death of an employee caused by an accident arising out of and in the course of employment, or
  • Contracting occupational disease as specified in the Act.

🔹 2. Notice of Accident (Section 10):

  • The injured employee or his dependents must give a notice of accident to the employer as soon as practicable.
  • The notice must contain:
    • Name and address of the injured person,
    • Date and cause of accident,
    • Signature or thumb impression.
  • Notice may be given in writing or orally to the employer or a person in authority.

However, compensation is not invalidated merely due to delayed notice if the employer had knowledge of the accident.

🔹 3. Medical Examination (Section 11):

  • After the accident, the employer may require the injured employee to undergo a medical examination by an approved doctor.
  • Refusal to attend the examination can affect compensation eligibility.

🔹 4. Method and Time of Payment (Section 4A):

  • Compensation must be paid as soon as it becomes due, ideally within one month from the date it is determined.
  • If the injury results in death, the compensation must be deposited with the Commissioner, who disburses the amount to the dependents.
  • In cases of disability, the amount may be paid directly to the workman or deposited with the Commissioner.

🔹 5. Role of the Commissioner for Workmen’s Compensation:

  • The Commissioner has the power to:
    • Determine the amount of compensation,
    • Record evidence and conduct inquiries,
    • Disburse compensation, especially in cases of death,
    • Resolve disputes between employer and employee.
  • An employee can directly file an application before the Commissioner if compensation is denied or delayed.

🟥 Part II: Penalty for Default in Payment of Compensation

🔹 1. Interest on Delayed Payment (Section 4A(3)(a)):

  • If an employer fails to pay compensation within one month from the date it becomes due, they are liable to pay interest at the rate of 12% per annum or such rate as notified by the government.

🔹 2. Penalty for Default (Section 4A(3)(b)):

  • In addition to interest, the Commissioner may impose a penalty up to 50% of the compensation amount for unjustified delay or default in payment.
  • The imposition of penalty is discretionary and based on:
    • The reasons for delay,
    • Whether the delay was intentional or negligent,
    • Whether the employer had reasonable cause to believe he was not liable.

🔹 3. Deposit with the Commissioner (Section 8):

  • In case of death, the employer must deposit the amount of compensation with the Commissioner, and not pay it directly to dependents.
  • Failure to deposit may attract penalty and further legal action.

🔹 4. Legal Consequences of Default:

  • If the employer refuses to comply with the Commissioner’s order, the compensation amount can be recovered as arrears of land revenue.
  • Appeal can be made to the High Court only if a substantial question of law is involved and the disputed amount exceeds a statutory threshold (presently ₹10,000 or as amended).

Case Reference:

In Bharat Heavy Electricals Ltd. v. M. Chandrasekhar Reddy (2005), the Supreme Court upheld the award of interest and penalty under Section 4A for delayed compensation, emphasizing the employer’s duty to act promptly and responsibly.

Conclusion:

The Workmen’s Compensation Act, 1923 ensures that workers injured or disabled in the course of employment receive fair and timely compensation. The procedure laid down under the Act is simple, effective, and employee-friendly. Additionally, the provisions relating to interest and penalty for default act as a deterrent and enforce accountability on the part of employers. Thus, the Act reflects the spirit of social justice and aims to protect the dignity and livelihood of industrial workers.

🔶 7. Examine the scope and application of the Employees’ State Insurance Act, 1948.

Introduction:

The Employees’ State Insurance Act, 1948 (commonly referred to as the ESI Act) is a landmark piece of social welfare legislation in India. Enacted with the aim of providing social security and health insurance to industrial workers and their dependents, the Act ensures medical, sickness, maternity, disablement, and dependent benefits in case of contingencies.

The Act establishes a self-financing social security scheme, where contributions are made by both employers and employees, and the government plays a supervisory and regulatory role.

🟩 Scope of the ESI Act, 1948:

🔹 1. Objective and Purpose:

The primary aim of the Act is to provide the following benefits to employees:

  • Medical care to insured persons and their families,
  • Cash compensation in case of sickness or temporary/permanent disablement,
  • Maternity benefits to insured women,
  • Dependents’ benefits in case of death due to employment injury,
  • Rehabilitation and funeral expenses.

It seeks to promote economic security and social justice for workers in the organized sector.

🔹 2. Coverage of Establishments:

The Act applies to:

  • Factories using power and employing 10 or more persons, and
  • Non-power using factories employing 20 or more persons.

Additionally, it is now extended to shops, hotels, restaurants, cinemas, transport undertakings, educational and medical institutions, etc., depending on the State Government’s notification and the number of employees.

📝 The Act has been made applicable in a phased manner to different sectors and states.

🔹 3. Coverage of Employees:

  • Applies to employees drawing wages not exceeding ₹21,000 per month (₹25,000 in case of persons with disabilities).
  • Covers all categories of workers – skilled, unskilled, manual, clerical, supervisory.
  • Includes contract and casual workers, if employed directly or through a contractor in a covered establishment.

🔹 4. Exclusions:

The Act does not apply to:

  • Members of Armed Forces,
  • Workers earning above the wage limit (for certain benefits),
  • Seasonal factories, unless notified,
  • Certain self-employed or informal sector workers (unless voluntarily included).

🟩 Application of the ESI Act, 1948:

🔹 1. Administrative Body – ESI Corporation (ESIC):

The Act is administered by the Employees’ State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment.

  • ESIC is responsible for:
    • Framing policy and regulations,
    • Managing ESI funds,
    • Overseeing medical facilities and payments,
    • Resolving disputes and claims.

🔹 2. Contribution Mechanism (Section 39):

  • The scheme is financed by:
    • Employer’s contribution: 3.25% of wages
    • Employee’s contribution: 0.75% of wages
      (As per latest notifications; subject to change)

Note: Employees earning less than ₹176 per day are exempted from employee’s contribution, but employer’s contribution continues.

🔹 3. Registration Requirements:

  • All eligible factories and establishments must be registered under the Act.
  • Employers must maintain records, registers, and submit returns as prescribed.

🔹 4. Applicability Across India:

  • The Act is a Central legislation, but its implementation varies by State, depending on the availability of medical infrastructure and ESIC hospitals/clinics.
  • The scheme is being gradually extended to new geographical areas and sectors.

🔹 5. Judicial Interpretation:

Courts have held that the Act must be interpreted in a liberal and worker-friendly manner to achieve its welfare objectives.

For example:

In ESIC v. Harrison Malayalam Ltd. (1993), the Supreme Court held that tea estate workers engaged in non-agricultural tasks were covered under the Act.

🟩 Conclusion:

The Employees’ State Insurance Act, 1948 has a wide scope and is a crucial piece of legislation aimed at protecting the health and income security of India’s working population. By covering a broad range of establishments and employees, and offering a comprehensive package of medical and monetary benefits, the Act plays a vital role in social welfare and economic stability.

As India’s economy evolves and the informal sector formalizes, the expansion of ESI coverage is a step toward realizing the constitutional goal of social justice and dignity of labor.

Certainly! Here’s a detailed long answer for:

🔶 8. Explain the various benefits provided to insured persons under the ESI Act, 1948.

Introduction:

The Employees’ State Insurance Act, 1948 is a pioneering social security legislation aimed at providing comprehensive protection to employees against various contingencies such as sickness, maternity, disablement, death, and occupational diseases. The Act introduces a self-financing, contributory system where both employer and employee contribute to the Employees’ State Insurance Fund, from which multiple benefits are provided.

The benefits under the ESI Act are designed to ensure medical care, income protection, and social security to insured persons and their dependents.

🟩 Types of Benefits under the ESI Act, 1948

🔹 1. Medical Benefit (Section 46(1)(a))

  • Coverage: Insured person and their family members.
  • Scope:
    • Full medical care in ESI hospitals and dispensaries,
    • Includes outpatient, inpatient, and specialist services,
    • No cap on expenditure for treatment.
  • Eligibility: From the date of entry into insurance; family members after the first contribution.
  • Extended Medical Benefit: Available to insured persons who retire or take premature retirement after completing 5 years of insurable employment.

🔹 2. Sickness Benefit (Section 46(1)(b))

  • Nature: Cash compensation during certified medical leave due to sickness.
  • Amount: 70% of average daily wages.
  • Maximum Duration: Up to 91 days in two consecutive benefit periods.
  • Eligibility: Insured person must have contributed for at least 78 days in the corresponding contribution period.

✅ Extended Sickness Benefit:

  • For long-term diseases like TB, cancer, etc.
  • Up to 2 years at an enhanced rate (80% of wages).

🔹 3. Maternity Benefit (Section 46(1)(c))

  • Who can claim: Insured women.
  • Period Covered:
    • 26 weeks for normal delivery,
    • 6 weeks in case of miscarriage,
    • May be extended up to 1 month in case of complications.
  • Amount: Full wages (100%) based on average daily earnings.
  • Eligibility: Minimum 70 days of contribution in the preceding two contribution periods.

🔹 4. Disablement Benefit (Section 46(1)(d))

🔸 a. Temporary Disablement Benefit (TDB):

  • For injury resulting in temporary loss of earning capacity.
  • Amount: 90% of average daily wages.
  • Duration: Payable for the entire period of certified temporary disablement.

🔸 b. Permanent Disablement Benefit (PDB):

  • For permanent loss of earning capacity.
  • Amount: 90% of wages, based on percentage of loss as assessed by a medical board.
  • Payable for life.

🔹 5. Dependent’s Benefit (Section 46(1)(e))

  • Provided to: Dependents of a deceased insured person who dies due to an employment injury or occupational disease.
  • Amount: 90% of wages is distributed among eligible dependents as per defined ratios.
  • Eligible Dependents:
    • Widow, children, and sometimes parents or other close family members.

🔹 6. Funeral Expenses (Section 46(1)(f))

  • A lump sum amount is paid to the eldest surviving family member or person who performs the last rites.
  • Amount: Fixed amount (₹15,000 as per latest notification; subject to change).
  • Eligibility: Even one day of employment under the scheme qualifies.

🔹 7. Confinement Expenses

  • Paid to an insured woman or the wife of an insured man in case of confinement (childbirth) if medical facilities are not available under the ESI system.
  • Amount: Fixed sum (revised periodically).
  • Eligibility: Contribution for at least 70 days in two consecutive periods.

🔹 8. Vocational Rehabilitation

  • Provided to permanently disabled persons below the age of 45 years.
  • Includes training in vocational rehabilitation centers run by ESIC to help re-employ the individual.

🔹 9. Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana)

  • Provides financial assistance to workers who lose their jobs involuntarily due to closure of factory/establishment or retrenchment.
  • Amount: 50% of average daily wages for up to 2 years.
  • Also includes medical care during unemployment.

🟩 Conditions and Periods of Benefits:

  • Benefits are regulated based on:
    • Contribution period: 6 months during which contributions are paid.
    • Benefit period: 6 months immediately following the contribution period.
Contribution Period Corresponding Benefit Period
April to September January to June (next year)
October to March July to December (same year)

🟩 Conclusion:

The ESI Act, 1948 provides a comprehensive package of benefits that covers both medical needs and income protection for insured workers and their families. These benefits enhance economic security, reduce hardship during illness, and promote human dignity in times of distress.

By providing such welfare measures, the Act not only safeguards the workforce but also contributes to industrial peace, productivity, and social justice—fulfilling a vital constitutional mandate under Articles 41 and 43 of the Indian Constitution.

Certainly! Here’s a detailed long answer for:

🔶 9. Describe the adjudication process of disputes and claims under the Employees’ State Insurance Act, 1948.

Introduction:

The Employees’ State Insurance Act, 1948 (ESI Act) is a beneficial legislation that ensures medical, monetary, and other social security benefits to employees. Like any welfare statute, disputes can arise between insured persons, employers, and the Employees’ State Insurance Corporation (ESIC) regarding contributions, benefits, coverage, or liabilities.

To ensure fair and efficient resolution, the Act provides a well-defined adjudication mechanism for handling such disputes and claims under Chapter VI (Sections 74 to 83) of the Act.

🟩 1. Nature of Disputes under the ESI Act

Disputes may relate to:

  • Eligibility of a person to receive ESI benefits.
  • Amount or rate of contribution payable by the employer.
  • Recovery of contributions from employers.
  • Right to disablement or dependent’s benefit.
  • Medical board’s decision on injury, disability, or loss of earning capacity.
  • Employer’s liability to pay contribution or comply with registration.

🟩 2. Adjudication Authorities under the ESI Act

🔹 A. Employees’ Insurance Court (EIC) [Section 74]:

  • The Employees’ Insurance Court (EIC) is the special judicial forum constituted under Section 74 of the Act to decide disputes.
  • Established by the State Government through notification.
  • Can be a District Judge or a specially appointed officer.

✅ Powers:

  • Equivalent to that of a Civil Court under the Code of Civil Procedure.
  • Power to summon witnesses, take evidence, pass interim orders, and give final judgment.
  • Has exclusive jurisdiction over matters assigned under the Act.

🟩 3. Matters Decided by the Employees’ Insurance Court

As per Section 75, the EIC can decide disputes related to:

  • Whether a person is an employee under the Act.
  • Rate or amount of wages for contribution.
  • Whether any accident arose out of and in the course of employment.
  • Extent of disablement and duration of benefit.
  • Entitlement to benefits (sickness, maternity, disablement, dependents).
  • Recovery of contributions and damages by the Corporation.
  • Validity of orders passed by ESIC authorities.

🟩 4. Process of Adjudication

🔹 (i) Filing of Application:

  • Any employee, employer, or ESIC can file an application before the EIC.
  • Application must be in prescribed format and accompanied by supporting documents.

🔹 (ii) Time Limit for Filing (Section 77):

  • Generally, application must be filed within 3 years from the date on which the cause of action arose.

Example: If benefits were denied in January 2022, the claim must be filed by January 2025.

🔹 (iii) Service of Notice:

  • After receiving the application, the Court issues notice to the opposite party and gives opportunity to respond.

🔹 (iv) Hearing and Evidence:

  • Both parties are heard.
  • Court may record oral and documentary evidence.
  • Medical reports, contribution records, identity of insured person, etc. are verified.

🔹 (v) Decision and Decree:

  • After evaluating all facts, the Court passes a reasoned order.
  • The decision is binding and can be enforced like a civil court decree.

🟩 5. Medical Boards and Appeals [Section 54A, 54B, 54C]

For disputes relating to disablement, the Act provides for:

🔹 A. Medical Board:

  • Determines the nature, extent, and duration of disablement.
  • Certifies the loss of earning capacity.

🔹 B. Medical Appeal Tribunal:

  • If a person is dissatisfied with the Medical Board’s opinion, he can appeal to the Medical Appeal Tribunal.

🔹 C. ESI Court Appeal:

  • The Tribunal’s decision can be further challenged before the EIC, whose decision is final on facts.

🟩 6. Appeal to High Court (Section 82):

  • An appeal lies to the High Court from the decision of the Employees’ Insurance Court only on substantial questions of law.
  • Must be filed within 60 days from the date of the order.

🟩 7. Finality of Decisions (Section 83):

  • Any decision of the ESI Court is binding and final unless reversed by the High Court on appeal.
  • No civil court has jurisdiction over matters covered by the ESI Court.

Conclusion:

The adjudication process under the Employees’ State Insurance Act, 1948 is specially tailored to resolve disputes in a timely, accessible, and employee-friendly manner. The establishment of special ESI Courts, along with the role of Medical Boards and Tribunals, ensures that disputes are settled efficiently without the need for prolonged litigation.

This system protects the rights of insured persons and helps in the effective implementation of social security in India, contributing to industrial harmony and justice.

Certainly! Here’s a comprehensive long answer for:

🔶 10. What is the role and structure of the Employees’ State Insurance Corporation (ESIC)? How does it ensure the implementation of the Act?

Introduction:

The Employees’ State Insurance Corporation (ESIC) is the statutory body constituted under the Employees’ State Insurance Act, 1948 for the administration and implementation of the ESI Scheme in India. As the central agency, ESIC is responsible for managing the funds, benefits, infrastructure, and delivery mechanisms to ensure that the objectives of the Act—medical care and social security to insured persons—are achieved efficiently.

🟩 Structure of the ESIC

The structure of the ESIC is multi-tiered, allowing for central coordination along with state-level implementation.

🔹 1. Statutory Status:

  • ESIC is an autonomous corporation under the Ministry of Labour and Employment, Government of India.
  • Established under Section 3 of the ESI Act, 1948.

🔹 2. Composition of the Corporation (Section 4):

The Corporation comprises representatives from key stakeholder groups, ensuring participatory governance.

Member Type Appointed By / Representing
Chairman Central Government
Vice Chairman Central Government
Director General (ex-officio) Chief Executive Officer of ESIC
Central Govt. Representatives Up to 5 members
State Govt. Representatives One from each participating state
Employer Representatives Up to 10 members
Employee Representatives Up to 10 members
Medical Profession Representatives Up to 2 members
Parliamentarians 2 (one from Lok Sabha and one from Rajya Sabha)

➤ The Corporation meets regularly to frame policies, approve budgets, and oversee operations.

🔹 3. Standing Committee (Section 8):

  • A permanent executive body responsible for routine administration.
  • Handles policy implementation, budget preparation, and oversight of schemes.

🔹 4. Medical Benefit Council (Section 10):

  • An advisory body on medical issues related to ESI.
  • Includes medical experts, representatives of employers and employees, and ESIC officials.

🟩 Role and Functions of ESIC

🔹 1. Implementation of the ESI Scheme:

  • Ensures that the contributory social insurance scheme is applied to all eligible employees.
  • Extends coverage to new industries, establishments, and geographic areas.

🔹 2. Collection and Management of Funds:

  • Collects contributions from employers and employees.
  • Maintains the ESI Fund, which is used to disburse:
    • Medical care
    • Cash benefits
    • Funeral expenses
    • Rehabilitation and vocational training

🔹 3. Provision of Medical Care:

  • Operates through a network of hospitals, dispensaries, and clinics.
  • Provides comprehensive medical services to insured persons and their families.
  • Maintains state-run ESI hospitals or collaborates with private facilities through tie-up arrangements.

🔹 4. Granting and Monitoring Benefits:

  • Manages and supervises disbursal of:
    • Sickness, maternity, and disablement benefits
    • Dependents’ and unemployment benefits
  • Verifies eligibility and contribution records before granting benefits.

🔹 5. Inspections and Compliance:

  • Conducts inspections to enforce compliance by employers.
  • Ensures correct registration of employees, timely payment of contributions, and maintenance of records.

🔹 6. Dispute Resolution:

  • Participates in adjudication of disputes before ESI Courts.
  • Ensures legal enforcement of its orders and claim recovery.

🔹 7. Awareness and Extension:

  • Conducts public awareness programs about ESI benefits.
  • Works towards expanding ESI coverage in the unorganized and gig economy sectors.
  • Partners with State Governments to improve infrastructure and services.

🔹 8. Digital and Administrative Reforms:

  • Implementation of IT-enabled services for:
    • Online registration,
    • E-challan generation,
    • Benefit tracking and claim filing.
  • Launch of ABHA-linked health cards and UAN-based integration for portability.

🟩 How ESIC Ensures Implementation of the Act

✅ Legal Enforcement:

  • ESIC has authority to enforce compliance through:
    • Inspections,
    • Prosecution of defaulters,
    • Recovery of dues as arrears of land revenue.

✅ Monitoring Mechanisms:

  • ESIC operates through regional and sub-regional offices to ensure localized control.
  • Regular audits, reports, and performance evaluations are conducted.

✅ Coordination with State Governments:

  • Medical infrastructure is largely the responsibility of state governments, with ESIC funding and supervision.
  • Joint collaboration ensures uniform standards of healthcare.

✅ Use of Technology:

  • Online systems for:
    • Registration of employers and employees,
    • Contribution remittance,
    • Benefit application and tracking,
    • Grievance redressal.

🟩 Conclusion:

The Employees’ State Insurance Corporation (ESIC) plays a crucial role in realizing the objectives of the ESI Act, 1948—to provide comprehensive social security to the working class. With a well-structured, multi-tier system of governance and administration, the ESIC effectively implements, monitors, and delivers benefits to millions of insured persons and their dependents across the country.

Through legal authority, financial management, medical administration, and technological adoption, ESIC ensures that the Act is not only implemented but also adapted to modern challenges, contributing significantly to India’s labour welfare and social justice system.