Laws for Labour Welfare and Social Security
UNIT 25 THE EMPLOYEES' STATE INSURANCE ACT, 1948
Objectives The Objectives of this unit are to: • • discuss the salient features of the Act present selected case law on the subject
Structure 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 Genesis of the Act Applicability of the Act Definitions Contributions Registration Administration Benefits Restrictions Protection Penalties and Damages Miscellaneous Case Law Self-Assessment Questions Answers to Check Your Progress Further Readings
GENESIS OF THE ACT
The Employees' State Insurance Act, 1948, is a pioneering measure in the field of social insurance in our country. The subject of health insurance for industrial workers was first discussed in 1927 by the Indian Legislature, when the applicability of the Conventions adopted by the International Labour Conference was considered by the Government of India. The Royal Commission on Labour, in its report (1931), stressed the need for health insurance for workers in India. One of the earlier decisions of the Labour Ministers' Conferences between 1940 and 1942 was to invite an expert to frame a scheme of health insurance for workers. In pursuance thereof, the responsibility for preparing a detailed scheme of health insurance for industrial workers was entrusted in March 1943 to Prof. B.P. Adarkar who submitted his report in December 1944. This was considered by the Government of India and State governments as well as other interested parties. The Adarkar Plan and various other suggestions emerged finally in the form of Workmen's State Insurance Bill 1946, which was then referred to a Select Committee in November 12, 1947: The Select Committee.extended the cover-age to all the employees in factories, and changed its name from Workmen's State Insurance Bill to Employees' State Insurance Bill The Employees' State Insurance Act came into force from 19th April 1948. The scheme framed under the Act aims at providing for certain cash benefits to employees in the event of sickness, maternity, employment injury, and medical facilities in kind, and contains provisions for certain other matters having bearing thereon.
APPLICABILITY OF THE ACT
The Employee’s State Insurance, Act, 1948
Under Section 1(4) of the Act, the implementation of the scheme.is territorial. The Act applies in the first instance to all factories using power and employing 20 or more persons on wages. The provisions of the Act have also been extended, or are being gradually extended, under Section 1(5) of the Act to cover a) b) c) d) e) f) g) Smaller power-using factories employing 10 to 19 persons; Non-power using factories employing 20 or more persons; Shops; Hotels and restaurants; Cinemas, including preview theatres; Newspaper establishments; and Road motor transport undertakings employing 20 or more persons.
The Act, however, does not apply to a mine or railway running shed,. and specified seasonal factories. The State Government may extend the provisions of the Act to cover other establishments or class of establishments, industrial, commercial, agricultural or otherwise, in consultation with the Corporation and with the approval of the Central Government, after giving six months notice of its intention to do so in the Official Gazette.
Employee The term "employee" as defined under Section 2(9) of the Act, refers to any person employed on wages in, or in connection with, the work of a factory or establishment to which this Act applies. It has a wide connotation and includes within its scope clerical, manual, technical and supervisory functions. Persons whose remuneration (excluding the remuneration for over-time work) does not exceed Rs. 6,500 a month are covered under the Act. The Act does not make any distinction between casual and temporary employees or between technical and non-technical employees. There is also no...
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