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Unit 5: The Employees’ State Insurance Act, 1948: Adjudication, Benefits, and Penalties under the Act

Notes

Task As a Manager, what benefits will you provide to your female employees?



Caselet Royal Talkies Hyderabad v. ESIC, AIR 1978
SC 1476

n the case of Royal Talkies Hyderabad v. ESIC, AIR 1978 SC 1476, there was a
canteen and cycle stand run by private contractors in a theatre premises. On the question
Iof whether the theatre owner will be liable as principal employer for the payment of
ESI contributions, the Supreme Court held that the two operations namely keeping a cycle
stand and running a canteen are incidental or adjuncts to the primary purpose of the
theatre and the workers engaged therein are covered by the definition of employee as
given in ESI Act. The Supreme Court observed that the reach and range of Section 2(9) is
apparently wide and deliberately transcends pure contractual relationship.

Source: ELL_NoRestriction

Self Assessment

Fill in the blanks:
1. The rate of this benefit is ........................... per cent more than the standard benefit rates for
7 days for vasectomy and 14 days for tubectomy.

2. ........................... at the rate of 40 per cent more than the standard benefit rate (70 per cent of
wages) will be paid periodically to the widow and children.

3. Medical bonus ........................... is paid to an insured woman or in respect of the wife of an
insured person in case she does not avail hospital facilities of the scheme for child delivery.

State whether the following statements are true or false:
4. The Act does not provide for penalties and damages for various offences.
5. The employer can raise any dispute for adjudication in the Employees’ Insurance Court of
the area, set up under Section 76 of the Act.
6. Under Regulation 31-A, the employer is liable to pay interest at the rate of 6 per cent per
annum for each day of default or delay in the payment of his contribution.

5.2 Administration of Employees’ State Insurance Scheme

For the administration of the scheme of Employees’ State Insurance in accordance with the
provisions of this Act, the Employees’ State Insurance Corporation Standing Committee and
Medical Benefit Council have been constituted. Further, ESI Fund has been created which is held
and administered by ESI Corporation through its executive committee called Standing
Committee with the assistance, advice and expertise of Medical Council, etc. and Regional and
Local Boards and Committees.

LOVELY PROFESSIONAL UNIVERSITY 85