Page 238 - DMGT516_LABOUR_LEGISLATIONS

Unit 9: Social Security Legislations

Notes

Notes The benefits provided by the Act to insured persons or their dependents are:
1. periodical payment in case of sickness of the insured person, (sickness benefit);
2. periodical payment to an insured woman in case of confinement or miscarriage
or sickness arising out of pregnancy, confinement, premature birth of child or
miscarriage (maternity benefit);
3. periodical payment to an insured person suffering from disablement as a result
of an employment injury (disablement benefit);
4. periodical payment to dependents of an insured person who dies as a result of an
employment injury (dependant's benefit);
5. medical treatment for and attendance on insured person (medical benefit); and
6. Payment for expenditure on the funeral of the insured person (funeral expenses).

Applicability of the Act

This Act is applicable to all factories using power and employing 20 or more persons on wages.
The provisions of the Act have been extended to cover:
1. Smaller power-using factories employing 10 to 19 persons;
2. Non-power using factories employing 20 or more persons;
3. Shops;

4. Hotels and restaurants;
5. Cinemas, including preview theatres;
6. Newspaper establishments; and
7. Road motor transport undertakings, employing 20 or more persons.

The Act 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.

Did u know? Workmen covered under the ESI Act cannot claim compensation under the
Workmen's Compensation Act, as there is a bar under section 53 of the ESI Act. (A. Trehan
vs. Associated Electrical Agencies & Anr. 199H611 CLR 348).

Registration

The registration of a factory/establishment with the Employees' State Insurance Corporation is
a statutory responsibility of the employer. The owner of a factory/establishment to which the
Act applies for the first time is liable to furnish to the appropriate regional office, within 15 days
after the Act becomes applicable, a declaration of registration in Form 01. On receipt of the 01
Form, the regional office will examine the coverage; and after it is satisfied that the Act applies
to the factory/establishment, will allot a code number to the employer.

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