Implementation of the Scheme

• By Central Govt. Notification, to

New Areas.
• Then Factories will be covered.
• By State Govt. Notification, to
SHOPS, HOSPITALS,
EDUCATIONAL INSTITUTIONS
etc.
• FACTORIES EMPLOYED 10 OR
MORE PERSONS ON ANY DAY.
APPLICABILITY TO ESTABLISHMENTS

SHOPS, MOTOR TRANSPSORT

CONCERNS, CINEMAS, HOSPITALS,
EDUCATIONAL INSTITUTIONS.

WHICH HAS EMPLOYED 10 OR

MORE PERSONS ON ANY DAY.
 Not Applicable to CA Offices
• Office of a Chartered Accountant
• ESI coverage not attracted
• M/s SINGHVI DEV and UNNI Chartered
Accountants Vs ESIC 2010 LLR 275 KAR
• PITHAVADIAN and Partners Vs ESIC 2010 LLR
809 MAD
• RAMADHYAM and Co. C.A. Vs ESIC 2014 LLR
663 KAR
• ESI Act has come into force
• In the entire State of Kerala
• w.e.f. 01-02-2017
 FACTORY MEANS

• PREMISES IN WHICH
• 10 OR MORE PERSONS
• EMPLOYED ON ANY DAY &
• A MANUFACTURING PROCESS IS
BEING CARRIED OUT
• EMPLOYEES, WHOSE WAGES DOES NOT EXCEED
Rs. 21,000/- (w.e.f. 1-1-2017)
• EMPLOYEE INCLUDES
PERMENANT------TEMPORARY --- CASUAL
MANAGERIAL PERSONS -----TRAINEES etc
• ENGAGED THROUGH CONTRACTORS
• EMPLOYEES DEPLOYED ON
• REPAIR AND MAINTENANCE, BUILDING EXTENSION
WORK etc
 EMPLOYEES NOT COVERED
• WHOSE WAGES EXCEEDS Rs. 21,000/-
• WHO WORKS IN NON IMPLEMENTED AREA
• WHO IS ON TOUR FOR MORE THAN 7 MONTHS
(Exempted by State Govt.)
• APPRENTICES ENGAGED AS PER APPRENTICES ACT
• EMPLOYEES ENGAGED AS PER AMC
• PARTNERS EVEN IF WORKING FOR WAGES
• ESIC Vs APEX Engineering 1998 – 1 LLJ SC
• Ex Service Men (Exempted by State Govt.)
RS. 21,000/- PER MONTH.
(w.e.f.01-01-2017)
FOR DISABLED PEPRSONS
RS.25,000/-
• If no supervision by Principal
Employer, Employees engaged outside
by Contractor not covered.

• CESC Ltd Vs SUBHASH

CHANDRABOSE 1992 LLR 81 (SC)
 REGISTRATION OF ESTABLISHMENT
• TO BE DONE ONLINE
• WITHIN 15 DAYS OF THE APPLICABILITY.
REG. 10B
CODE NUMBER TO BE QUOTED IN ALL
CORRESPONDENCE.
 REGISTRATION OF EMPLOYEES

• BEFORE TAKING ANY PERSON INTO

EMPLOYMENT REQUIRE HIM
• TO FURNISH THE PARTICULARS
REQUIRED FOR THE DECLARATION FORM
• ENSURE REGISTRATION THROUGH
ONLINE WITHIN TEN DAYS.
FAMILY INCLUDES
• Husband/Wife
• Minor Children - If receiving education up to the
age of 21.
• If infirm - so long as the infirmity continues
• Unmarried Daughter
• Dependant parents
• An unmarried employee’s brothers and sisters if
parents are not alive
 e- pehchaan Card

• T.I.Cs GENERATED THROUGH ONLINE TO

BE ISSUED TO THE EMPLOYEES.
• T.I.C. RENAMED AS e- pehchaan Card
• If Aadhar Number linked it will be
Permanent Identity Card.
• EMPLOYEE’S - 1.75% OF
WAGES
• EMPLOYER’S - 4.75% OF
WAGES
To be rounded to the next rupee
 CONTRIBUTION IN NEWLY
IMPLEMENTED AREAS
• For the initial 24 months from such date of
implementation,
• Employer's contribution- 3 % of the wages
• Employee's contribution- 1 % of the wages
• On completion of 24 months general rates
• W.e.f.6th October, 2016.
 EMPLOYEE’S
CONTRIBUTION NOT
PAYABLE

IF THE AVERAGE DAILY WAGES OF AN

EMPLOYEE DOES NOT EXCEED
Rs.137/-

Proposed to enhance to Rs, 177/-

• ALL REMUNERATION PAYABLE.

• ANY PAYMENT FOR THE PERIOD OF

LEAVE, LOCK OUT, STRIKE & LAY OFF

• ANY ADDITIONAL REMUNERATION

PAID AT INTERVALS NOT
EXCEEDING TWO MONTHS Sec 2(22)
  PAYABLE  NOT PAYABLE

• HOUSE RENT ALLOWANCE • CONVEYANCE

• MEDICAL ALLOWANCE ALLOWANCE
• WASHING ALLOWANCE
• EDUCATION ALLOWANCE
• ANNUAL BONUS
• HOLIDAY ALLOWANCE • WORKERS’ WELFARE
SCHEME
• SUBSISTENCE ALLOWANCE
• ENCASHMENT OF LEAVE
• ESIC Vs POPULAR AUTOMOBILES • PAYMENT TO
1997 LLR 1146 SC CONSULTANTS
• OVERTIME ALLOWANCE • ANNUAL SALES
COMMISSION
• NIGHT SHIFT/HEAT/GAS/ DUST • PAYMENTS AS PER AMC
ALLOWANCE
• INCENTIVE BONUS OR
• INTERIM RELIEF PENDING WAGE COMMISION (IF PAID AT
REVISION
INTERVALS OF MORE THAN
TWO MONTHS.
 Conveyance Allowance not Wages

• ASIAN PAINTS Vs ESIC 2011 LLR 776 AP

• ROYAL PLASTICS Vs ESIC Kerala High Court

Washing Allowance not Wages

• ESIC Vs MERCURY TRAVELS 2007 LLR 953 MAD
 Outside work not covered

• Labour for construction of compound

wall
• Not attracting coverage
• ESIC Vs STANDARD POTTERY 2001 (3)
KLT 55 KERALA HIGH COURT
COMMISION BASED EMPLOYEES NOT
COVERED

• Persons Engaged On Commission basis

• For delivering Gas Cylinders not covered
• ESIC Vs TECHNICO 2001 – 1 –LLJ 365
 O .T. WAGES FOR THE PURPOSE OF
COVERAGE/CONTRIBUTION

• TO DETERMINE THE COVERAGE OF AN

EMPLOYEE OT IS TO BE EXCLUDED
• BUT FOR THE PURPOSE OF
CONTRIBUTION
• O.T. IS TO BE INCLUDED
» Sec 2(22)
 COVERAGE TO CONTINUE EVEN IF WAGES
EXCEEDED THE CEILING

• IF THE WAGES OF AN EMPLOYEE

EXCEEDS THE LIMIT OF RS. 15,000/- IN
BETWEEN A CONTRIBUTION PERIOD
HE WILL CONTINUE TO BE COVERED TILL
THE EXPIRY OF THAT CONTRIBUTION
PERIOD
Sec 2 (9)
 CONTRIBUTION ON
ARREAR SALARY

• IF THE INCREASE IN THE SALARY IS DECLARED WITH

RETROSPECTIVE EFFECT
• THE CONTRIBUTION TO BE PAID ONLY FROM THE
DATE OF DECISION
• NO CONTRIBUTION FOR THE ARREARS OF SALARY
• RELATING TO THE PERIOD PRIOR TO THE DECISION
 RECORDS TO BE MAINTAINED

• EMPLOYEES REGISTER - Reg 32

• ACCIDENT BOOK – Form 12 REG 66

• INSPECTION BOOK – Reg 102 A

 SUBMISSION OF RETURNS

• TO SUBMIT ANNUAL INFORMATION

• IN FORM 1A

• DUE DATE 31ST January

REG. 10C
 SUBMISSION OF ACCIDENT REPORTS

• IN FORM 12 TO BE SUBMITTED
• THROUGH ONLINE
WITHIN 24 HOURS IN ORDINARY CASES.
IMMEDIATELY IN SERIOUS CASES
REG. 68.
 Employer to Arrange First Aid
• Employer shall arrange First Aid and Medical
Care and
• Transportation for obtaining such First Aid
• Till the Insured Person is seen by the ESI
Doctor
• Employer entitled to the Reimbursement of
Expenses made by him – Reg 69
 NO PUNITIVE ACTIONS DURING THE PERIOD OF
SICKNESS/MATERNITY ETC

• NO DISMISSAL/DISCHARGE OR PUNISHMENT

WHILE THE EMPLOYEE IS IN RECEIPT OF

SICKNESS/MATERNITY /DISABLEMENT BENEFIT OR
UNDER MEDICAL TREATMENT
SEC. 73(1)
 Discharge of Employees
• Is the conditions of services allow
• Employer may discharge or reduce an employee who has
been
• In receipt of disablement benefit
• For a period of six months or more
• Under medical treatment for sickness or absent from
work due to illness arose out of pregnancy / delivery for
more than six months
• Under treatment for any notified diseases
• For 18 months or more – Reg 98
 OBLIGATION TO ALLOW AN EMPLOYEE TO ABSTAIN FROM
WORK.
 EMPLOYER BOUND TO ALLOW AN
EMPLOYEE TO ABSTAIN FROM WORK
 IF HE PRODUCES A MEDICAL CERTIFICATE
ISSUED BY
 AN ESI DOCTOR
 JOINT LIABILITY OF EMPLOYERS

• ON TRANSFER OF AN ESTABLISHMENT
• TRANSFERER AND TRANSFEREE SHALL
JOINTLY LIABLE
• FOR THE DUES UPTO TO THE DATE OF
TRANSFER.
SEC 93(A)
 If Leased out no Liability
• If leased out an establishment
• Transferor not liable
• To pay a contribution
• For the periods after transfer
• K C THOMAS Vs ESIC 1997 – 3 LLN 640
KERALA H. C.
 ONCE COVERED – COVERD
FOR EVER
• AN ESTABLISHMENT ONCE COVERED
• SHALL CONTINUE TO BE COVERED
• EVEN IF THE NUMBER OF PERSONS
FALLS BELOW 10 LATER
 CLUBBED COVERAGE
• Two or more units can be clubbed for coverage
• If conditions satisfied
• General Conditions
• Integrality in Ownership
• Geographical Unity
• Financial Integrality
• Interchangeability of Employees
• Financial Dependability
• Dependability for Existence
 REFUND OF CONTRIBUTION
• CONTRIBUTION PAID ERRONEOUSLY WILL BE
REFUNDED IF

• APPLIED BEFORE THE COMMENCEMENT OF

RELEVENT BENEFIT PERIOD

Reg 40
 ENFORCEMENT
• SURVEY
• REGULAR INSPECTION
• TEST INSPECTION
• VIGILENCE INSPECTION
• JOINED INSPECTION
 PUNITIVE ACTIONS
• FOR DEFAULT IN PAYMENT OF CONTRIBUTION
• INTEREST @ 12% PER ANNUM
• DAMAGES UPTO 25%
• CRIMINAL PROSECUTION
• 3 YEARS IMPRISONMENT ALONG WITH Rs.5000/-
AS FINE
• NON PAYMENT OF CONTRIBUTION DEDUCTED
FROM THE WAGES OF EMPLOYEES
• WILL ATTRACT SEC. 405 OF IPC AND WILL BE
PUNISHABLE UPTO 3 YEARS
 JUDICIAL REMEDIES
• IF ANY DISPUTE ARISES, THE EMPLOYEES AND
EMPLOYERS CAN APPROACH THE EMPLOYEES’
INSURANCE COURTS

• IN KERALA THERE ARE Seven E.I. COURTS

• APPROPRIATE GOVERNMENT CAN EXEMPT
ANY ESTABLISHMENT
• FOR PERIODS NOT EXCEEDING ONE YEAR
AND MAY RENEW EXEMPTION
• IF THE EMPLOYEES ARE IN RECEIPT OF
BENEFITS
• SIMILAR OR SUPERIOR TO THE BENEFITS
UNDER THE ESI SCHEME
• NO EXEMPTION FOR BACK PERIOD
• Contribution period • Benefit period

• 1ST APRIL TO 30TH • 1ST JANUARY TO 30TH

SEPTEMBER JUNE
• 1ST OCTOBER TO 31ST • 1ST JULY TO 31ST
MARCH DECEMBER
CONTRIBUTION PERIODS BENEFIT PERIODS

01-04-17 To 30-09-17 01-01-18 To 30-06-18

01-10-17 To 31-03-18 1-07-18 To 31-12-18

01-04-18 To 30-09-18 01-01-19 To 30-06-19

01-10-18 To 31-03-19 01-07-2019 to 31.12.2019

 MEDICAL BENEFIT
• NO CONTRIBUTORY CONDITION
• ELIGIBLE EVEN FROM THE FIRST DAY
• ELIGIBLE TO THE FAMILY ALSO
• ALL KIND OF MEDICAL TREATMENT, INCLUDING
SUPER SPECIALITY TREATMENT
• RS. 10 LAKHS PER PATIENT PER YEAR
 IMPROVEMENTS IN MEDICAL BENEFITS

• 58 Private hospitals recognized as referal hospitals.

• Reference procedure liberalised.
• Super speciality treatments from any hospital out side Kerala.
• Conditions relaxable.
MEDICAL BENEFIT TO I.P.S WHO LEAVES THE
EMPLOYMENT

• ON SUPERANNUATION OR PRE-MATURE
RETIREMENT OR DUE TO PERMANENT DISABILITY.
• MINIMUM FIVE YEARS IN INSURABLE EMPLOYMENT.
• SHOULD LEAVE AS AN INSURED PERSON.
• NO SUPERSPECIALITY BENEFIT.
• ADMISSIBLE TO INSURED PERSON & TO HIS /HER
SPOUSE.
• MONTHLY CONTRIBUTION @RS. 10 PER MONTH.
 SICKNESS BENEFIT
• 91 DAYS IN AN YEAR

• IF WAGES PAYABLE FOR 78 DAYS IN THE

CORESSPONDING CONTRIBUTION PERIOD
• 7O% OF WAGES
 EXTENDED SICKNESS BENEFIT

• Eligible for 34 notified long-term

diseases.
• Up to 730 days during a period of 3
years.
• Should be in continuous employment at
least for 2 years.
• Rate of benefit: 80% of wages per
day.
• Conditions relaxable.
 ENHANCED SICKNESS BENEFIT

Related to Family Planning operations

For Lupectomy 14 days full wages
For vasectomy 7 days full wages
Extendable if post operative
complications
 MATERNITY BENEFIT
• 26 WEEKS FULL SALARY

• FOR MISCARRIAGE, 42 DAYS FULL SALARY

• EXTENDABLE BY ONE MORE MONTH, FOR SICKNESS ARISING

OUT OF,PREGNANCY CONFINEMENT/ MISCARRIAGE

• IF WAGES PAYABLE ATLEAST FOR 70 DAYS IN THE PRECEEDING

2 CONTRIBUTION PERIODS

• Enhancement of Maternity Benefit from present 12 weeks to 26

weeks .
• 12 weeks of maternity benefit to the commissioning mother or
adopting mother.
• W.e.f. 20.01.2017
CONFINEMENT v/s MISCARRIAGE
• Confinement = labour resulting in the issue of
a living child or labour after 26 weeks of
pregnancy resulting in the issue of a child
alive or dead
• Miscarriage = expulsion of the contents of a
pregnant uterus prior to or during 26th week
of pregnancy.
 CONFINEMENT EXPENSES
• UPTO RS. 5000/-.
• FOR THE CONFINEMENT EXPENSES OF THE
INSURED WOMAN OR OF THE WIFE OF THE
INSURED MAN.
• THE CONFINEMENT TO BE TAKEN PLACE WHERE
NECESSARY ESI MEDICAL FACILITIES ARE NOT
AVAILABLE.
• NO CONTRIBUTORY CONDITIONS.
 TEMPORARY DISABLEMENT
BENEFIT

• 90% OF WAGES
• NO LIMIT FOR BENEFIT DAYS
• BENEFIT SO LONG AS THE TEMPORARY DISABILITY EXISTED
• NO CONTRIBUTARY CONDITION
• ELIGILBLE EVEN FROM THE FIRST DAY OF EMPLOYMENT
 DEPENDANT’S BENEFIT

• 90% of the wages among the dependants.

• To widow, till re-marriage.
• To children, up to the age of 25.
• To widowed mother, till death.
• No contributory conditions.
• Benefits will be given as monthly pension.
 RAJIV GANDHI KALYAN SRAMIK YOGANA
(UNEMPLOYMENT ALLOWANCE)

• MINIMUM TWO YEARS AS AN INSURED PERSON.

• CLOSURE OF FACTORY/ RETRENCHMENT/
PERMANENT DISABILITY/ UN EMPLOYMENT
INJURY
• DURATION OF UNEMPLOYMENT ALLOWANCE HAS BEEN
INCREASED TO 24 MONTHS
• (W.E.F. 06-09-2016).
 FUNERAL EXPENSES

• NO CONTRIBUTORY CONDITIONS.
• ELIGIBLE FROM THE FIRST DAY
ONWARDS.
• ELIGIBLE EVEN AFTER LEAVING THE
EMPLOYMENT I.E. SO LONG AS
CONTINUING AS AN INSURED PERSON.
• UPTO RS. 10,000/-.
VOCATIONAL REHABILITATION
PROGRAMME

FOR THE PERIOD OF STAY DAILY

STYPEND @ 123/- .
40% OR MORE L.E.C DUE TO
EMPLOYMENT INJURY.
SHOULD NOT BE IN GAINFUL
EMPLOYMENT.
NOT MORE THAN 45 YEARS AGE
 STATEWIDE CORPORATIONS
• FOR ADMINISTRATIVE CONVENIENCE
• INDEPENDENT CORPORATIONS IN EACH STATE
 EXPANSION OF ESI SCHEME
• NO MORE CENTREWISE COVERAGE
• ONLY DISTRICTWISE COVERAGE
 Judicial Remedies
• E.I.Courts,
• Consumer Redressal Forums
 ALLOWANCE FOR STAY AT
ARTIFICIAL LIMB CENTRE
• SHOULD BE AN INSURED PERSON
• CASH BENEFIT EQUALENT TO STANDARD
BENEFIT RATE.
• FOR THE FULL PERIOD OF STAY.