Beruflich Dokumente
Kultur Dokumente
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
Labour Law Project
opasdfghjklzxcvbnmqwertyuiop
Authorities under Employees State
Insurance Act, 1948
asdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmrtyuiopasdfgh
Roll Number 762
IX Semester
TABLE OF CONTENTS
INTRODUCTION...............................................................................................................................3
AUTHORITIES UNDER THE ACT..................................................................................................3
I.
COUNCILS........................................................................................................................................11
V.
PRINCIPAL OFFICERS...........................................................................................................12
SOCIAL SECURITY OFFICERS..............................................................................................................12
VI.
VII.
QUALIFICATION OF JUDGES................................................................................................................14
POWERS OF THE EMPLOYEES INSURANCE COURT.............................................................................15
Introduction
The Employees State Insurance Act, 1948 (ESI Act) was enacted in 1948 with an objective
to introduce a scheme of health insurance for industrial workers and to provide for
Compulsory State Insurance benefits to the employees in case of sickness, maternity and
injury to workmen who employed in factories other than seasonal factories.
I.
Composition
The corporation is tripartite in nature having representation from employers, employees and
the government. It consists of the following members:
a. A Chairman who is to be appointed by the Central Government.
b. Vice-Chairman who is to be appointed by the Central Government.
c. Persons appointed by the Central Government should not be more than five
d. One person, each representing each of the States (to be appointed by the State
Government concerned)
e. One person to represent the Union territories (appointed by the Central Government)
f. Ten persons representing employers to be appointed by the Central Government
g. Ten persons representing employees to be appointed by the Central Government
h. Two persons representing the medical profession to be appointed by the Central
Government
i. Three members of Parliament of whom two shall be members of the House of the
People (Lok Sabha) and one shall be a member of the Council of States (Rajya
Sabha) elected respectively by the members of the House of the People and the
members of the Council of States.
j. The Director-General of the Corporation, ex-officio.
Tenure of the members
All members referred to under clause (f) to (i) mentioned above are to serve for a tenure of
four years and those referred under clauses (a) to (e) are to hold their office during the
pleasure of the Government appointing them and they are to continue to do so even after the
period of four years until the appointment or election of their successor is notified.1
which should not exceed the amount of arrears as may be specified in the regulations. It may
even reduce or waive the damages recoverable in case of a sick industrial company.
5. Power to make Regulations
Section 97 of the ESI Act empowers the Corporation to make such regulations for the
administration of the affairs of the Corporation which should not be inconsistent with the Act
and rules made thereunder.
The aforesaid section raises the question whether the Director General can exercise powers
under this section. In E.S.I. Corporation v. Balaji Wvg. Mills2, the Madras High Court held
that whatever regulations are to be made under Section 97 can only be made by the E.S.I.
Corporation and not by the Director General. If the Director General wishes to exercise any
of the powers of the Corporation under the Act he can only do so on being delegated the
express authority from the Corporation.
Duties of the Corporation
Aside from having varied powers, the Corporation also has duties such as framing budget
every year showing the probable receipts and expenditure and submit a copy of the same for
approval by the central government.3 The Corporation should also maintain correct accounts
of income and expenditure4 and get those audited by the auditors who are appointed by the
Central Government.5 The Corporation should also promptly submit an annual report of its
work and activities to the Central Government. 6 At an interval of every five years, the assets
and liabilities of the Corporation should be valued by with the approval of the Central
Government.7
2 1975 Lab IC 134 (Mad).
3 Section 32, ESI Act.
4 Section 33, ESI Act.
5 Section 34, ESI Act.
6 Section 35, ESI Act.
7 Section 37, ESI Act.
II.
Standing Committee
To administer day to day functioning, the Act provides for the constitution of the Standing
Committee which is the executive body of the ESI Corporation. The committee subject to the
control and superintendence by the corporation is entrusted with the administration of the
affairs of the corporation.8 The members of the committee shall be chosen from amongst the
members of the corporation consisting of the following members:
a. a Chairman appointed by the Central Government;
b. three members of the Corporation;
c. three members of the Corporation representing such three State Governments thereon
as the Central Government may specify from time to time;
d. eight members elected by the Corporation as follows :
i.
ii.
iii.
one member from among the members of the Corporation representing the
medical profession ; and
iv.
Powers
According to section 18 the Standing committee is empowered to administer the affairs of the
Corporation and exercise any of the powers and perform any of the functions of the
Corporation. It can also submit for the consideration and decision of the Corporation all such
matters as specified in the regulations and may submit any other case or matter for the
decision of the Corporation in its discretion.
III.
To advise the Corporation on medical questions and on other matters pertaining to the
administration of the medical benefits the Act provides for the setting up of a Medical
Benefit Council10 consisting of the following members:
(a) the Director General, the Employees State Insurance Corporation, ex-officio as
Chairman;
(b) the Director General, Health Services, ex-officio as Co-Chairman;
(c) the Medical Commissioner of the Corporation, ex-officio;
(d) one member each representing each of the States (other than Union territories) to be
appointed by the State Government concerned;
(e) three members representing employers to be appointed by the Central Government in
consultation with such organisations of employers as may be recognised for the purpose by
the Central Government;
(f) three members representing employees to be appointed by the Central Government in
consultation with such organisations of employees as may be recognised for the purpose by
the Central Government; and
(g) three members, of whom not less than one shall be a woman, representing the medical
profession, to be appointed by the Central Government in consultation with such
organisations of medical practitioners as may be recognised for the purpose by the Central
Government.
Powers and Duties of the Council
Section 22 empowers the Medical Benefit Council to advise the Corporation and the
Standing Committee on matters relating to the administration of medical benefit, the
10 Section 10, ESI Act.
certification for purposes of the grant of benefits and other connected matters. They also have
such powers and duties of investigation as may be prescribed in relation to complaints
against medical practitioners in connection with medical treatment and attendance. The
Medical Benefit Council is also bound to perform such other duties in connection with
medical treatment and attendance as may be specified in the regulations.
Rule 14 of the Employees State Insurance (Central) Rules, 1950 provides the following
powers and duties of the Medical Benefit Council
a) to advise the Corporation in regard to the constitution, setting up, duties and powers of
the Regional and Local Medical Benefit Councils
b) make recommendations to the Corporation in regard to
i.
the scale and nature of medical benefit provided at hospitals, dispensaries, clinics and
other institutions and the nature and the extent of the medicines, staff and equipment
which shall be maintained at such institutions and the extent to which these fall short of
the desired standard
ii.
the medical formulary for use in connection with the medical benefit provided under the
Act
iii.
medical certification, including the procedure and the forms for such certification,
statistical returns, registers and other medical records
iv.
measures undertaken for the improvement of the health and welfare of insured persons,
and the rehabilitation and re-employment of insured persons, disabled or injured
c) to advise the Corporation on any matter relating to the professional conduct of any
medical practitioner employed for the purpose of providing medical benefit under the
Act.
Tenure of Office
The Director General and the Deputy Director General, Health Services shall hold office
during the pleasure of the Central Government. The representatives from the states shall hold
office during the pleasure of the respective State Governments. The other members are to
hold office for a period of four years from the date on which their nomination is notified. But
the members shall continue to hold office even after the expiry of their tenure till the
nomination of their successors is notified.11
Provisions common to the Corporation, Standing Committee and Medical Benefit
Council
Resignation
Resignation of membership is dealt with under Section 11 of the Act according to which a
member may resign his office by notice in writing to the Central Government. A member
shall cease to be a member of that body if he fails to attend three consecutive meetings
thereof; or if he has ceased to represent such employers, employees or the medical
profession; or if he ceases to be a Member of Parliament.12
Disqualification
Disqualification is dealt with under Section 13 of the Act according to which a person shall
be disqualified for being chosen as or for being a member in the following cases:
i.
ii.
iii.
iv.
Vacancy in office
The vacancies in the office of members shall be filled by appointment or election, as the case
may be and a member appointed or elected to fill a casual vacancy shall hold office only so
long as the member in whose place he is appointed or elected would have been entitled to
hold office if the vacancy had not occurred.
Validation of acts
The ESI Act provides for the validation of acts of these bodies by providing that no act of the
Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be
invalid on the following grounds:13
i.
ii.
iii.
Salary
Members according to section 15 are to receive such fees and allowances as may from time
to time be prescribed by the Central Government
IV.
13 Section 24
14 Regulation 10
advises the corporation or the regional board concerned on matters that are referred to it for
advice.
V.
Principal Officers
The ESI Act provides for appointment of principal officers 15 of the Corporation who are
entrusted with the day to day administration of the scheme. The exercise of all powers by the
Principal Officers are subject to the control of the Director General.
A Director-General and a Financial Commissioner may be appointed by the Central
Government who should not hold office exceeding five years and may receive such salary
and allowances as may be prescribed by the Central Government. These officers may at any
time be removed by the Central Government if such removal is recommended by a resolution
passed at a special meeting and supported by the votes of not less than two-third is of the
total strength of the Corporation.
The Director General is the CEO of the Corporation and entrusted with the work of
coordinating, supervising and controlling the work of the other Principal Officers. He may,
with the approval of the standing committee, delegate any of his powers or duties to his
subordinates.
The Medical Commissioner supervises, directs and coordinates the administration of the
medical organisation of the Corporation. He also conducts such medical research on the
advice of the Medical Benefit Council.
The Chief Accounts Officer maintains Corporations accounts, prepares its budget, arranges
for investment of the corporations fund.
Social Security Officers
Functions and duties of a Social Security Officer are mentioned under Section 45 of the ESI
Act. The term inspectors used earlier has been replaced with the term Social Security
Officers after an amendment. These officers are to be appointed by the Corporation within
such local limits as it may assign to them.
15 Section 16, ESI Act.
i.
Social Security Officers are entrusted with the following powers for the purposes of
enquiring into the correctness of any of the particulars stated in any return referred to
in Section 44 or for the purpose of ascertaining whether any of the provisions of this
ii.
Act
They may require any principal or immediate employer to furnish to him such
iii.
iv.
v.
employee
make copies of, or take extracts from, any register, account book or other document
maintained in such factory, establishment, office, etc.
Employer v. Alibhai16 it was held that the employer is required under the Act to produce
documents where he is called upon by any inspecting authority of the corporation. Failing to
produce a register or other document on demand is breach and punishable under the Act.
Wherein an employer got the license of his factory top produce the registers and other
records prior to 1957. The employer stated that he had not maintained all the papers and
other documents prior to the year 1957. On these facts the court ruled that there was no
ground to hold the employer liable when he failed to produce or show the books of accounts
and registers as required by the Inspector under Section 45 of the Act.17
The Bombay High Court in State of Saurashtra v. Pitambar18 held that inspectors have no
power to call for production of registers and other documents at his own office. The failure of
the employer or manager of the factory or other establishment to comply with such order of
the Inspector does not expose the employer to penalty.
16 AIR 1963 Nag 79
17 ESI Corporation v. Malhotra, (1962) 1 LLJ
18 (1954) 1 LLJ 138 (Bom).
VI.
a person who is or has been a judicial officer of a State Govt. or a legal practitioner of 3
years standing or is a Commissioner for Workmens Compensation as Chairman
(ii)
(iii)