EMPLOYEES STATE INSURANCE ACT, 1948
(1) This Act may be called the Employees’ State Insurance Act, 1948.
(2) It extends to the whole of India 1[***].
(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 2[for different States or for different parts thereof].
(4) It shall apply, in the first instance, to all factories (including factories belonging to the Government) other than seasonal factories:
3[Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar or superior t
In this Act, unless there is anything repugnant in the subject or context,—
(1) “appropriate Government” means, in respect of establishments under the control of the Central Government or 1[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the State Government;
2[***]
(3) “confinement” means labour resulting in the issue of a living child or labour after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead;
(4) “contribution” means the sum of money payable to the Corporation by the principal employer in respect of an employee and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Act;
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Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.]
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1. Ins. by Act 44 of 1966, sec. 3 (w.e.f. 28-1-1968).
(1) With effect from such date* as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of Employees’ State Insurance in accordance with the provisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation.
(2) The Corporation shall be a body corporate by the name of Employees’ State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued.
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* 1st October, 1948, vide Gazette of India, 1948, Extra., p. 1441.
The Corporation shall consist of the following members, namely:—
1[(a) a Chairman to be 2[appointed] by the Central Government;
(b) a Vice-Chairman to be 2[appointed] by the Central Government;]
(c) not more than five persons to be 2[appointed] by the Central Government 3[***],
(d) one person each, representing each of the 4[States] in which this Act is in force] to be 2[appointed] by the State Government concerned;
(e) one person to be 2[appointed] by the Central Government to represent the 5[Union territories];
(f) 6[ten] persons representing employers to be 2[appointed] by the Central Government in
(1) Save as otherwise expressly provided in this Act, the term of office of members of the Corporation, other than 1[the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex officio member,] shall be four years commencing from the date on which their 2[appointment] or election is notified:
Provided that a member of the Corporation shall, notwithstanding the expiry of the said period of four years, continue to hold office until the 2[appointment] or election of his successor is notified.
(2) The members of the Corporation referred to in clauses 3[(a), (b), (c), (d) and (e)] of section 4 shall hold office during the pleasure of the Government 3[appointing] them.
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1. Subs. by Act 44 of 1966, sec. 5, for certain wo
An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for 1[re-appointment] or re-election as the case may be.
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1. Subs. by Act 29 of 1989, sec. 4, for “nominating”, “re-nomination” and “nominated” (w.e.f. 20-10-1989).
All orders and decisions of the Corporation shall be authenticated by the signature of the Director General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director General or such other officer of the Corporation as may be authorised by him.]
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1. Subs. by Act 44 of 1966, sec. 6, for section 7 (w.e.f. 17-6-1967).
A Standing Committee of the Corporation shall be constituted from among its members, consisting of—
(a) a Chairman, 1[appointed] by the Central Government;
(b) three members of the Corporation, 1[appointed] by the Central Government];
2[(bb) three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification in the Official Gazette, specify from time to time;]
(c) 3[eight] members elected by the Corporation as follows:—
4[***]
(ii) 5[three] members from among the members of the corporation representing employers;
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(1) Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or 1[clause (b) or clause (bb)] of section 8, shall be two years from the date on which his election is notified:
Provided that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified:
Provided further that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation.
(2) A member of the Standing Committee referred to in clause (a) or 1[clause (b) or clause (bb)] of section 8 shall hold office during the pleasure of the Central Government.
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(1) The Central Government shall constitute a Medical Benefit Council consisting of—
(a) the Director General, Health Services ex officio, as Chairman;
(b) a Deputy Director General, Health Services, to be 1[appointed] by the Central Government;
(c) the Medical Commissioner of the Corporation, ex officio;
(d) one member each representing each of the 2[3[States (other than Union territories)] in which this Act is in force] to be 1[appointed] by the State Government concerned;
(e) three members representing employers to be 1[appointed] by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the
Section 10 of the Employees' State Insurance (ESI) Act, 1948, primarily deals with the procedural aspects related to claims, contributions, and the powers of authorities to determine contributions and benefits. It plays a vital role in ensuring the enforcement of the Act’s provisions, including the process for recovery of contributions and benefits, and the adjudication of disputes related to contributions and claims.
Section 10 of the ESI Act provides the legal framework for the determination of contributions, the recovery process, and the procedures for dispute resolution. It empowers authorized officers and authorities to assess and recover contributions, and to decide on claims for benefits, including the presumption of employment-related accidents and injuries in certain circumstances.
While Section 10 itself primarily addresses procedural and administrative aspects, violations such as non-payment of contributions can lead to penalties under other provisions of the Act, including fines and imprisonment (Section 85). The Act prescribes penalties for employers who default on contributions, which may include imprisonment for a term extending up to six months or fine, or both.
This concise legal commentary underscores the importance of Section 10 as a procedural and enforcement tool for the effective implementation of the Employees' State Insurance Act, 1948, balancing administrative authority with safeguards for employers and workers alike.
Note: References are based on the provided sources, with judicial principles and interpretations derived from case law and statutory analysis.
A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that Government.
1[(1)] A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof:
Provided that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.
2[(2) Where in the opinion of the Central Government any person 3[appointed] or elected to represent employers, employees or the medical profession or the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the medical profession, the Central Government may, by notification in the Official Gazette declare that with effect from such date as may be specified therein suc
A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council—
(a) if he is declared to be of unsound mind by a competent court; or
(b) if he is an undischarged insolvent; or
(c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder (not being a Director) of a company; or
(d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude.
Section 13 of the Employees’ State Insurance Act, 1948, lays down grounds for disqualification of members of the Employees’ State Insurance Corporation, the Standing Committee, and the Medical Benefit Council. It ensures that persons who are deemed unsuitable due to certain conditions do not hold these vital positions, maintaining integrity and proper functioning of the ESI scheme.
Section 13 enumerates specific disqualifications for members of the ESIC and its committees, including:- Being declared of unsound mind by a competent court.- Being an undischarged insolvent.- Having been convicted of an offence involving moral turpitude.- Being disqualified under any law relating to corruption or disloyalty.- Being disqualified for other reasons specified in the Act or rules.
While Section 13 primarily deals with disqualification, violations may attract penalties under other provisions of the Act, such as:- Penalties for furnishing false information or misrepresentation.- Penalties for non-compliance with disqualification orders.- Disqualification itself acts as a punitive restriction on holding office.
In summary, Section 13 acts as a vital safeguard ensuring that only suitable, law-abiding, and capable persons hold key positions in the Employees’ State Insurance Corporation and its committees. Its proper implementation maintains the integrity, transparency, and accountability of the ESI scheme.
(1) Vacancies in the office of 1[appointed] or elected members of the Corporation, the Standing Committee and the Medical Benefit Council shall be filled by 1[appointment] or election, as the case may be.
(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council 2[appointed] or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is 2[appointed] or elected would have been entitled to hold office if the vacancy had not occurred.
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1. Subs. by Act 29 of 1989, sec. 4, for “nominated”, “nomination” and “nominating” (w.e.f. 20-10-1989).
2. Subs. by Act 29 of 1989, sec. 4, for “nominated” and “nomination” (w.e.f. 20-10-1989).
Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government.
1[(1) The Central Government may, in consultation with the Corporation, appoint a Director General and a Financial Commissioner.]
(2) The Director General shall be the Chief Executive Officer of the Corporation.
(3) 2[The Director General and The Financial Commissioner] shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government 3[and of the Corporation].
(4) 2[The Director General or the Financial Commissioner] shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing 2[Director General or Financial Commissioner] shall be eligible for reappointment if he is otherwise qualified.
(5) 2[The
(1) The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such salary as may be prescribed by the Central Government].
3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:
Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in
Section 17 of the Employees' State Insurance (ESI) Act, 1948 is a pivotal provision that deals with the staffing framework of the Employees' State Insurance Corporation (ESIC). This section empowers the Corporation to employ necessary officers and servants for the efficient transaction of its business and establishes the regulatory framework governing their conditions of service. The provision ensures that the Corporation can function effectively in implementing the social security scheme envisaged under the Act.
Section 17 of the ESI Act, 1948 is titled "Staff" and contains the following key components:
Section 17 extends to:- Recruitment policies and methods for ESIC staff- Salary structures and allowances- Disciplinary proceedings and service conditions- Promotion pathways and career progression- Study leave and other benefits- Regularization of contractual employees- Pension matters and disciplinary actions affecting pension
The section establishes that ESIC employees are treated as State Government employees for service benefits and that the Corporation's regulations have statutory effect.
Section 17 itself does not prescribe specific punishments. However, breaches of regulations made under this section may attract:- Disciplinary action as per service regulations- Penalties under Sections 85 and 86 of the ESI Act for non-compliance- Criminal liability for default in contributions under Section 85(a) read with Section 40
The Act ensures strict compliance by imposing criminal liability and financial penalties on defaulters.
Staff Framework - Section 17 empowers the Corporation to employ necessary staff for efficient transaction of business, with service conditions specified in regulations. - [Section 17(1), ESI Act, 1948]
Parity with Central Government - Service conditions of ESIC staff must align with rules applicable to Central Government employees drawing corresponding pay scales, ensuring uniformity. - [Section 17(2)(a), ESI Act, 1948]
Prior Approval for Departure - Any departure from Central Government rules regarding service conditions requires prior approval of the Central Government, maintaining Central oversight. - [Section 17(2)(a) proviso, ESI Act, 1948]
Pay Determination Criteria - In determining pay scales, the Corporation must consider educational qualifications, method of recruitment, duties, and responsibilities of corresponding Central Government employees. - [Section 17(2)(b), ESI Act, 1948]
Central Government as Final Authority - In case of doubt regarding corresponding pay scales, the matter must be referred to the Central Government whose decision is final. - [Section 17(2)(b), ESI Act, 1948]
State Government Employee Status - Employees of ESI dispensaries are State Government employees entitled to service benefits at par with other State Government employees; any memorandum depriving them of such benefits is grossly arbitrary. - [Lokesh Debnath, son of Arun Debnath VS State of Tripura, (to be represented by the Secretary, Department of Finance - 2018 0 Supreme(Tri) 291]
Study Leave Discretion - Study leave cannot be claimed as a matter of right; its grant is subject to functional requirements and must provide definite advantage to the organization. - [Asha Rani vs Union of India - Delhi (2021)]
No Discrimination in Study Leave - ESIC hospitals are not required to adopt the same study leave policies as RML or Safdarjung Hospitals; Section 17 does not mandate identical policies across institutions. - [Asha Rani vs Union of India - Delhi (2021)]
Regulatory Compliance - Compliance with statutory provisions and regulations for selection and appointment is necessary before any regular appointment can be made; regularization is not a mode of recruitment. - [RAMAN KUMAR ATTREY VS EMPLOYEES STATE INSURANCE CORPORATION - 2002 0 Supreme(Del) 718]
Back Door Appointments Invalid - Back door appointments are not permissible under Section 17; all appointments must follow prescribed statutory procedures. - [RAMAN KUMAR ATTREY VS EMPLOYEES STATE INSURANCE CORPORATION - 2002 0 Supreme(Del) 718]
Statutory Effect of Regulations - ESIC Recruitment Regulations made under Section 17 have statutory effect and override any schemes or office memoranda; there can be no estoppel against a statute. - [Employees' State Insurance Corporation VS Union of India - 2022 0 Supreme(SC) 104]
Promotion Regulations - Promotions within ESIC must be governed by the Recruitment Regulations made under Section 17, not by external schemes like DACP, when the regulations have statutory force. - [Employees' State Insurance Corporation VS Union of India - 2022 0 Supreme(SC) 104]
Disciplinary Proceedings and Pension - Under Section 17 read with pension rules, the President has power to withhold or withdraw pension, but consultation with UPSC is necessary before passing final orders. - [DIRECTOR GENERAL, E. S. I. CORPORATION, CHAIRMAN, STANDING COMMITTEE, E. S. I. CORPORATION AND REGIONAL DIRECTOR, E. S. I. CORPORATION VS MOHAMMED ASMATHULLAH AND THE REGISTRAR, CENTRAL ADMINISTRATIVE TRIBUNAL - Madras (2004)]
Standing Committee Role - The Standing Committee plays a significant role in exercising powers under Rule 9 of the Pension Rules for disciplinary matters affecting ESIC employees. - [DIRECTOR GENERAL, E. S. I. CORPORATION, CHAIRMAN, STANDING COMMITTEE, E. S. I. CORPORATION AND REGIONAL DIRECTOR, E. S. I. CORPORATION VS MOHAMMED ASMATHULLAH AND THE REGISTRAR, CENTRAL ADMINISTRATIVE TRIBUNAL - Madras (2004)]
Recruitment Methods - The method of recruitment to various posts (e.g., Head Clerk/Assistant, Lab Assistant) must be specified in regulations under Section 17, and disputes regarding feeder categories fall within the Tribunal's jurisdiction. - [Regional Director, Employees State insurance Corporation, Hyd. VS Mohd. Yousuf - 2001 0 Supreme(AP) 729], [Esic Medical Laboratory Technologists Association vs Director General Employees State Insurance Corporation - Delhi (2021)]
Principal Employer Definition Context - While Section 17 deals with staff of the Corporation, Section 2(17) defines "principal employer" separately for contribution liability; partners of a firm can be held jointly and severally liable. - [R. K. AGARWAL VS STATE OF WEST BENGAL - 2005 0 Supreme(Cal) 210]
Personal Liability Exclusion - Directors or Managing Directors of a company cannot be held personally liable for contributions unless specifically notified as occupier under the Factories Act. - [E. S. I. Corpn. VS Kailashchandra - 1998 0 Supreme(MP) 608]
Manager's Liability - If a manager is appointed under the Factories Act for carrying out ESI provisions, no director can be implicated for violations of the Act. - [C. K. Gupta and another VS Employees State Insurance Corporation and others - 1998 0 Supreme(Bom) 715]
(1) Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation.
(2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf.
(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation.
The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur in respect of such measure expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.
Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules or procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf.
(1) If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede in consultation with the Corporation, the Standing Committee:
Provided that before issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be.
(2) Upon the publication of a notification under sub-section (1) superseding t
The Medical Benefit Council shall—
(a) advise 1[the Corporation and the Standing Committee] on matters relating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters;
(b) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance; and
(c) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations.
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1. Subs. by Act 53 of 1951, sec. 9, for “the Corporation, the Standing Committee and the Medical Commissioner” (w.e.f. 6-10-1951
The 1[Director General and the Financial Commissioner] shall exercise such powers and discharge such duties as may be prescribed. They shall also perform such other functions as may be specified in the regulations.
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1. Subs. by Act 29 of 1989, sec. 8, for “Principal Officers” (w.e.f. 20-10-1989).
No act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect in the constitution of the Corporation, the Standing Committee or the Medical Benefit Council, or on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his 1[appointment] or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council.
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1. Subs. by Act 29 of 1989, sec. 4, for “nomination” (w.e.f. 20-10-1989).
The Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefit Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations.
(1) All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees’ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.
(2) The Corporation may accept grants, donations and gifts from the Central or any State Government, 1[***] local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.
2[(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may be approved by the Central Government to the credit of an account styled the account of the Employees’ State Insurance Fund.]
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[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 12 (w.e.f. 17-6-1967)].
Subject to the provisions of this Act and of any rules made by the Central Government in that behalf, the Employees’ State Insurance Fund shall be expended only for the following purposes, namely:—
(i) payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith;
(ii) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the Regional Boards, Local Committees and Regional and Local Medical Benefit Councils;
(iii) payment of salaries, leave and joining
The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall be such as may be prescribed by the Central Government and the Corporation shall keep its administrative expenses within the limit so prescribed by the Central Government.]
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1. Ins. by Act 29 of 1989, sec. 9 (w.e.f. 1-5-1997).
(1) The Corporation may, subject to such conditions as may be prescribed by the Central Government, acquire and hold property both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established.
(2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may from time to time invest any moneys which are not immediately required for expenses properly defrayable under this Act and may, subject as aforesaid, from time to time re-invest or realise such investments.
(3) The Corporation may, with the previous sanction of the Central Government and on such terms as may be prescribed by it, raise loans and take measures for discharging such loa
All property acquired before the establishment of the Corporation shall vest in the Corporation and all income derived and expenditure incurred in this behalf shall be brought into the books of the Corporation.
[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 12 (w.e.f. 17-6-1967)].
The Corporation shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf. The budget shall contain provisions adequate in the opinion of the Central Government for the discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance.
The Corporation shall maintain correct accounts of its income and expenditure in such form and in such manner as may be prescribed by the Central Government.
1[(1) The accounts of the Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.
(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts connected vouchers and other documents and papers and to inspect any of the offices of the Corporation.
(3) The accounts of the Corporation as certified by the Comptroller an
The Corporation shall submit to the Central Government an annual report of its work and activities.
The annual report, the audited accounts of the Corporation, 1[together with 2[the report of the Comptroller and Auditor-General of India thereon and the comments of the Corporation on such report] under section 34] and the budget as finally adopted by the Corporation shall be placed before 3[Parliament] 4[***].
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1. Ins. by Act 44 of 1986, sec. 13 (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, sec. 11, for "auditor's report thereon" (w.e.f. 20-10-1989).
3. Subs. by the A.O. 1950, for "the Central Legislature".
4. The words "and published in the Gazette of India" omitted by Act 29 of 1989, sec. 11 (w.e.f. 20-10-1989).
The Corporation shall, at intervals of 1[three years], have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government:
Provided that it shall be open to the Central Government to direct a valuation to be made at such other times as it may consider necessary.
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1. Substituted by the Employees' State Insurance (Amendment) Act, 2010 w.e.f. 01.06.2010 for the following :- "five years"
Subject to the provisions of this Act, all employees in factories, or establishments to which this Act applies shall be insured in the manner provided by this Act.
(1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer’s contribution) and contribution payable by the employee (hereinafter referred to as the employee’s contribution) and shall be paid to the Corporation.
1[(2) The contribution shall be paid at such rates as may be prescribed by the Central Government:
Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees’ State Insurance (Amendment) Act, 1989.]
2[(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.]
(4) The contribution
(1) The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer’s contribution and the employee’s contribution.
(2) Notwithstanding anything contained in any other enactment but subject to the provision of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee’s contribution by deduction from his wages and not otherwise:
Provided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee’s contribution for the period.
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(1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer’s contribution, as well as the employee’s contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer.
1[(1A) The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub-section (1).]
(2) In the case referred to in sub-section (1), the immediate employer shall be entitled to recover the employee’s contribution from the employee
(1) No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages are below 1[during a wage period are below 2[such wages as may be prescribed by the Central Government]].
Explanation.—The average daily wages of an employee shall be calculated 3[in such manner as may be prescribed by the Central Government].
(2) Contribution (both the employer’s contribution and the employee’s contribution) shall be payable by the principal employer for each 4[wage period], 5[in respect of the whole or part of which wages are payable to the employee and not otherwise].
6[***]
7[***]
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1. Subs. by Act 45 of 1984, sec. 5, for “are be
Subject to the provisions of this Act, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for—
(a) the manner and time of payment of contributions;
(b) the payment of contributions by means of adhesive or other stamps affixed to or impressed upon books, cards or otherwise and regulating the manner, times and conditions, in, at and under which, such stamps are to be affixed or impressed;
1[(bb) the date of which evidence of contributions have been paid is to be received by the Corporation;]
(c) the entry in or upon books or car
1[(1) Every principal and immediate employer shall submit to the Corporation or to such officer of the Corporation as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any factory or establishment in respect of which he is the principal or immediate employer as may be specified in regulations made in this behalf.
(2) Where in respect of any factory or establishment the Corporation has reason to believe that a return should have been submitted under sub-section (1) but has not been so submitted, the Corporation may require any person in charge of the factory or establishment to furnish such particulars as it may consider necessary for the purpose of enabling the Corporation to decide whether the factory or establishment is a factory or establishment to which this Act applies.
(1) The Corporation may appoint such persons as Inspectors, as it thinks fit, for the purposes of this Act, within such local limits as it may assign to them.
(2) Any Inspector appointed by the Corporation under sub-section (1) (hereinafter referred to as Inspector), or other official of the Corporation authorised in this behalf by it, may, for the purposes of enquiring into the correctness of any of the particulars stated in any return referred to in section 44 or for the purpose of ascertaining whether any of the provisions of this Act has been complied with—
(a) require any principal or immediate employer to furnish to him such information as he may consider necessary for the purposes of this Act; or
(b) at any reasonable time enter any office, establishment, factory
(1) Where in respect of a factory or establishment no returns, particulars, registers or records are submitted, furnished or maintained in accordance with the provisions of section 44 or any Inspector or other official of the Corporation referred to in sub-section (2) of section 45 is 2[prevented in any manner] by the principal or immediate employer or any other person, in exercising his functions or discharging his duties under section 45, the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory or establishment:
3[Provided that no such order shall be passed by the Corporation unless the principal or immediate employer or the person in charge of the factory or establishment has been given a reasonable opportunity of being heard.]
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Any contribution payable under this Act may be recovered as an arrear of land revenue.]
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
(1) Where any amount is in arrears under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below:
(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal, or immediate employer;
(b) arrest of the employer and his detention in prison;
(c) appointing a receiver for the management of the movable or immovable properties of the factory or establishment or, as the case ma
(1) The authorised officer may forward the certificate referred to in section 45C to the Recovery Officer within whose jurisdiction the employer—
(a) carries on his business or profession or within whose jurisdiction the principal place of his factory or establishment is situate; or
(b) resides or any movable or immovable property of the factory or establishment or the principal or immediate employer is situate.
(2) Where a factory or an establishment or the principal or immediate employer has property within the jurisdiction of more than one Recovery Officers and the Recovery Officer to whom a certificate is sent by the authorised officer—
(a) is not able to recover the entire amount by the sale of the property movab
(1) When the authorised officer issues a certificate to a Recovery Officer under section 45C, it shall not be open to the factory or establishment or the principal or immediate employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.
(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.
(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or cancelling a certificate or any correction made by him under sub-section (2) or any amendment made under sub-section (4) of section 45F
(1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.
(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate.
(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of a further proceeding under this Act, the authorised officer shall stay the r
(1) Notwithstanding the issue of a certificate to the Recovery Officer under section 45C, the Director General or any other officer authorised by the Corporation may recover the amount by any one or more of the modes provided in this section.
(2) If any amount is due from any person to any factory or establishment or, as the case may be, the principal or immediate employer who is in arrears, the Director General or any other officer authorised by the Corporation in this behalf may require such person to deduct from the said amount the arrears due from such factory or establishment or, as the case may be, the principal or immediate employer under this Act and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Corporation:
Provided that nothing in this sub-section shall apply to an
The provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount of contributions, interests or damages under this Act instead of to the income-tax:
Provided that any reference in the said provisions and the rules to the “assessee” shall be construed as a reference to a factory or an establishment or the principal or immediate employer under this Act.]
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
For the purposes of sections 45C to 45H,—
(a) “authorised officer” means the Director General, Insurance Commissioner, Joint Insurance Commissioner, Regional Director or such other officer as may be authorised by the Central Government, by notification in the Official Gazette;
(b) “Recovery Officer” means any officer of the Central Government, State Government or the Corporation, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act.]
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
(1) Subject to the provisions of this Act, the insured persons, 1[their dependants or the persons hereinafter mentioned, as the case may be,] shall be entitled to the following benefits, namely:
(a) periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner 2[or by any other person possessing such qualifications and experience as the Corporation may, by regulations, specify in this behalf] (hereinafter referred to as sickness benefit);
3[(b) periodical payments to an insured woman in case of confinement or mis-carriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as ma
[Rep. by the Employee’s State Insurance [Amendment] Act, 1989 (29 of 1989), sec. 18 (1-2-1991)].
[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 20 (28-1-1968).]
The qualification of a person to claim sickness benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.]
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1. Subs. by Act 29 of 1989, sec. 19, for section 49 (w.e.f. 1-2-1991).
The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.]
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1. Subs. by Act 29 of 1989, sec. 19, for section 50 (w.e.f. 1-2-1991).
Subject to the provisions of this Act 2[***],—
(a) a person who sustains temporary disablement for not less than three days (excluding the day of accident) shall be entitled to periodical payment 3[at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government];
(b) a person who sustains permanent disablement, whether total or partial, shall be entitled to periodical payment 3[at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government]:
4[***]]
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
For the purposes of this Act, an accident arising in the course of an insured person’s employment shall be presumed, in the absence of evidence to the contrary, also to have arisen out of that employment.]
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
An accident shall be deemed to arise out of and in the course of an insured person’s employment notwithstanding that he is at the time of the accident acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that he is acting without instructions from his employer, if—
(a) the accident would have been deemed so to have arisen had the act not been done in contravention as aforesaid on or without instructions from his employer, as the case may be; and
(b) the act is done for the purpose of and in connection with the employer’s trade or business.]
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
(1) An accident happening while an insured person is, with the express or implied permission of his employer, travelling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if—
(a) the accident would have been deemed so to have arisen had he been under such obligation; and
(b) at the time of the accident, the vehicle—
(i) is being operated by or on behalf of his employer or some other person by whom it is provided in pursuance of arrangements made with his employer, and
(ii) is not being operated in the ordinary course of public transp
An accident happening to an insured person in or about any premises at which he is for the time being employed for the purpose of his employer’s trade or business shall be deemed to arise out of and in the course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at those premises, to rescue, succour or protect persons who are, or are thought to be or possibly to be, injured or imperilled, or to avert or minimise serious damage to property.]
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
(1) If an insured person dies as a result of an employment injury sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for temporary disablement in respect of the injury) dependant’s benefit shall be payable 2[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government] to his dependants specified in 3[sub-clause (i), sub-clause (ia) and] sub-clause (ii) of clause (6A) of section 2.
(2) In case the insured person dies without leaving behind him the dependants as aforesaid, the dependants’ benefit shall be paid to the other dependants of the deceased 2[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government].]
—————
1. Subs. by Act 44 o
Section 52 of the Employees' State Insurance (ESI) Act, 1948, provides for dependents' benefits payable to the family members of an insured person who dies as a result of an employment injury. It aims to offer social security and financial support to the dependents of deceased employees, aligning with the broader objective of the ESI scheme to protect workers and their families in times of distress.
Section 52 stipulates that if an insured person dies due to an employment injury, dependents' benefits shall be payable to specified dependents, including the widow, children, and certain other relatives, as per the provisions of the First Schedule. The section also clarifies that benefits are payable regardless of whether the deceased was in receipt of any periodical payments for temporary disablement at the time of death.
Section 52 itself does not prescribe punishment; however, contravention of its provisions, such as failure to pay dependents' benefits, can attract penalties under Sections 84, 85, and 86 of the ESI Act, including fines and imprisonment for employers or responsible officers.
Note: The above commentary synthesizes judicial interpretations, legislative provisions, and case law to provide a comprehensive understanding of Section 52 of the Employees' State Insurance Act, 1948.
(1) If an employee employed in any employment specified in Part A of the Third Schedule contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in the employment specified in Part B of that Schedule for a continuous period of not less than six months contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in any employment specified in Part C of that Schedule for such continuous period as the Corporation may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall, unless the contrary is proved, be deemed to be an “employment injury” arising out of and in the course of employment.
(2) (i) Where the Central Government or a Stat
An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen’s Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.]
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1. Subs. by Act 44 of 1966, sec. 25, for the original section 53 (w.e.f. 28-1-1968).
1[Any question--
(a) whether the relevant accident has resulted in permanent disablement; or
(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or
(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or
(d) in the case of provisional assessment, as to the period for which such assessment shall hold good,
shall be determined by a medical board constituted in accordance with the provisions of the regulations and any such question shall hereafter be referred to as the "disablement questions".
____________
1. Subs. by Act 44 of 1966, sec. 26, for the original section 54 (w
(1) The case of any insured person for permanent disablement benefit shall be referred by the Corporation to a medical board for determination of the disablement question and if, on that or any subsequent reference, the extent of loss of earning capacity of the insured person is provisionally assessed, it shall again be so referred to the medical board not later than the end of the period taken into account by the provisional assessment.
(2) If the insured person or the Corporation is not satisfied with the decision of the medical board, the insured person or the Corporation may appeal in the prescribed manner and within the prescribed time to—
(i) the medical appeal tribunal constituted in accordance with the provisions of the regulations with a further right of appeal in the prescribed manner and within the prescribed time
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