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Gopika Juneja, LPU Unit 4: The Employees’ State Insurance Act, 1948: Definitions, Scope and Objective

Unit 4: The Employees’ State Insurance Act, 1948: Notes
Definitions, Scope and Objective

CONTENTS
Objectives
Introduction
4.1 Definitions

4.2 Scope and Objective of the Act
4.3 Applicability and Coverage of this Act
4.3.1 Wage Ceiling for Coverage
4.3.2 Coverage
4.4 The Role of ESI Corporation
4.5 Summary
4.6 Keywords

4.7 Review Questions
4.8 Further Readings
Objectives

After studying this unit, you will be able to:
 Explain various definitions under this Act
 Discuss the scope and objective of the Act
 Get an overview of the applicability and coverage of this Act

Introduction

The Employees’ State Insurance Act was promulgated by the Parliament of India in the year
1948. It was the first major legislation on Social Security in independent India to provide certain
benefits to the employees in the organized sector in case of sickness, maternity and employment
injury. It is important for the students to be thoroughly acclimatized with this branch of law to
know its practical significance. The Employees’ State Insurance Act, 1948 has been enacted with
the objective of welfare of the employees and benefits in case of sickness, maternity and
employment injury and certain other related matters. Articles 41, 42 and 43 of the Indian
Constitution enjoin the state to make effective provision for securing the right to work, to
education and public assistance in cases of unemployment, old age, sickness and disablement.
The Act attempts to achieve such goal of socio-economic justice enshrined in the Directive
principles of state policy under part 4 of the Constitution. The benefits extended under this Act
are applicable to all employees whether working inside the factory or establishment or else
where they are directly employed by the principal employee or through an intermediate agency,
if the employment is incidental or in connection with the factory or establishment. The Act
applies to non-seasonal, power using factories or manufacturing units employing ten or more
persons and non-power using establishments employing twenty or more persons. The purpose
of this unit is to enable the students to comprehend basic expressions. At the end of this unit you
should be able to understand various concepts regarding ESIC.

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