Page 241 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 3. He/she is under medical treatment for T.B. or a malignant disease and has remained
absent continuously for 18 months or more (Section 73 and Regulation 98).

9.9 Penalties and Damages

The Act provides for penalties and damages for various offences. It also provides that if any
person commits any offence after having been convicted by the court, he will be punishable, for
every such subsequent offence, with imprisonment for a term, which may extend up to 2000 or
both. If the subsequent offence is for failure to pay any contribution, then for every such
subsequent offence a person is liable to punishment for a term of imprisonment which may
extend up to one year and which shall not be less than 3 months; and he will also be liable to pay
a fine up to ` 4000.

Any contribution due under the Act and not paid can be recovered through the District Collector
under Section 45-B of the Act as arrears of land revenue. The employer can raise any dispute for
adjudication in the Employees' Insurance Court of the area, set up under Section 74 of the Act.
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. In addition, under Section 85-
B of the Act, the Corporation is empowered to recover damages from the employer who fails to
pay the contribution or delays payment. The amount of damages, however, cannot exceed the
amount of contribution. The damages can also be recovered as arrears of land revenue.

9.10 Role of ESI Corporations and Hospitals

As provided under the ESI Act, the scheme is administered by a duly constituted corporate body
called the Employees' State Insurance Corporation (ESIC). It comprises members representing
Central and State Governments, Employers, Employees, Parliament and the medical profession.
Union Minister of Labour functions as Chairman of the Corporation whereas the Director
General, as chief executive, discharges the duty of running the day-to-day administration. A
Standing Committee representing all stakeholders is elected from the body corporate for
managing the affairs of the scheme and monitoring the progress of implementation of various
decisions and policies etc. from time to time.
The Medical Benefit Council, a statutory body advises the Corporation on matters related to
administration of medical benefit under the ESI scheme. The central headquarters of the
Corporation is located at New Delhi. For purpose of coverage, revenue collection, extension of
the scheme to new classes of establishments, implementation of the scheme in new areas, co-
ordination with the State Governments and general administration the Corporation has
established Regional and Sub-regional Offices across the country mostly located in State capitals.

Given the huge number of beneficiaries – about 329 lakhs now – the Corporation has set up a
wide spread network of service outlets for prompt delivery of benefits in cash and kind that
includes full medical care. Medical facilities are provided through a network of 1427 ESI
Dispensaries, over 2100 Panel Clinics, 307 diagnostic centres besides 143 ESI hospitals and 43
hospital annexes with over 27000 beds. For providing super-specialty medical care the
Corporation has tie up arrangements with advanced medical institutions in the country, both in
public and private sector. The medical benefit is administered with the active co-operation of
State Governments. The payment of cash benefits is made at the gross roots level through as
many as 800 Branch Offices and Cash Offices that function under the direct control of the
Corporation.

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