EMPLOYEES’ STATE INSURANCE ACT, 1948
1. Short title, extent, commencement and application 1 2. Definitions 3
2A. Registration of factories and establishments 16 CHAPTER II CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL
3. Establishment of Employees’ State Insurance Corporation 16
4. Constitution of Corporation 17
5. Term of office of members of the Corporation 18
6. Eligibility for re-nomination or re-election 18
7. Authentication of orders, decisions, etc. 18
8. Constitution of Standing Committee 18
9. Term of office of members of Standing Committee 19
10. Medical Benefit Council 19
11. Resignation of membership 20
12. Cessation of membership 21
13. Disqualification 21
44.
CHAPTER IV CONTRIBUTIONS
V
47. [Omitted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989]
48. [Omitted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968]
51E.
54.
55.
67. [Omitted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 17-6-1967
68.
73. Employer not to dismiss or punish employee during period of sickness, etc.
CHAPTER VA
73A. Definitions
73B.
73C.
73D.
73E.
73F. Laying of Scheme framed under this Chapter
CHAPTER VI
ADJUDICATION OF DISPUTE AND CLAIMS
74.
75.
76.
77. Commencement of proceedings
78. Powers of Employees’ Insurance Court
79. Appearance by legal practitioners, etc.
80. [Omitted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968]
81. Reference to High Court
82.
83.
CHAPTER VII
PENALTIES
85C. Power of court to make orders
86A. Offences by companies
CHAPTER VIII MISCELLANEOUS
87. Exemption of a factory or establishment or class of factories or establishments
88. Exemption of persons or class of persons
89. Corporation to make representation
90. Exemption of factories or establishments belonging to Government or any local authority
91. Exemption from one or more provisions of the Act
91A. Exemptions to be either prospective or retrospective
91C. Writing off of losses
92. Power of Central Government to give directions
93. Corporation officers and servants to be public servants
Liability in case of transfer of establishment
94. Contributions, etc., due to Corporation to have priority over other debts
94A. Delegation of powers
95. Power of Central Government to make rules
96. Power of State Government to make rules
97. Power of Corporation to make regulations
98. [Omitted by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951]
99.
VALIDATION PROVISIONS
2A.
3.
4.
5.
6.
7.
8.
9.
EMPLOYEES’ STATE INSURANCE (CENTRAL) RULES, 1950
17. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 1991, w.e.f. 1-2-1991]
18. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 1991, w.e.f. 1-2-1991]
19.
CHAPTER IV
21. Bank or banks for depositing the fund
22. Procedure for crediting moneys to the banks
23. Purpose and manner of payment out of the fund
23A. Promotion of measures for the improvement of health and welfare of insured persons
24. Circumstances in which cheques may be drawn
25. Acquisition of property
26. Disposal of property
27. Investment, transfer or realisation of the fund
28. Raising and repayment of loans
29. Procedure for execution of contracts
30. Seal
CHAPTER V
31. Preparation and submission of
31A. Administrative
32. Supplementary
33. Re-appropriation
34. Maintenance
35. Revenue
36. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 1991, w.e.f. 1-2-1991]
37. Production of accounts before the Comptroller and Auditor General of India
38. Powers of Comptroller and Auditor General of India
39. Report of the auditors
40. Consideration of
41. Authentication of
42. Cost of
43. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 1991, w.e.f. 1-2-1991]
44. Impropriety or irregularity in accounts
45. Disallowance of expenditure incurred and surcharge for loss or deficiency
46. Recovery of amounts certified to be due
CHAPTER VI
47. Establishment of Provident Fund
48. Administration of the Provident Fund
49. Framing of Provident Fund Regulations
50. Wage limit for coverage of employees under the Act
51. Rate of contribution
51A. Employer’s contributions in respect of certain employees
51B. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 2020, w.e.f. 27-10-2020]
52. Exemption from payment of employee’s contribution
53. Writing off of losses
54. [Omitted by the Employees’ State Insurance (Central) Amendment Rules, 2011, w.e.f. 1-7-2011]
55. Sickness benefit
56.
58.
1.
Bar on grant of
3. Constitution of the Fund
4. Operation of Fund by the Accounts
5. Investments
6. Conditions of eligibility
7. Nominations
8. Subscriber’s Account
9. Conditions and rates of subscriptions
10. Rates of subscription
11. Transfer on deputation to a post under the Government or any other organisation or deputation out of India
12. Realisation of subscriptions
13.
14.
15.
16.
17. Withdrawal
18. Conditions
19. Conversion of an advance into a
23. Deposit-Linked
24. Deposit-Linked
25. Manner of payment of amount in the
26. Procedure on transfer of a Government servant from one Department to another
27. Procedure on transfer
28. Transfer of amount to the Contributory Provident Fund (India)
29. Relaxation of the provisions of the rules in individual cases
30. Number of account to be quoted at the time of the payment of subscription
31. Annual Statement of account to be supplied to the subscriber
32. Interpretation
SCHEDULE I: Form of nomination
SCHEDULE II: Application for advance/withdrawal from General Provident fund
EMPLOYEES’ STATE INSURANCE (GENERAL) REGULATIONS, 1950
CHAPTER I
1. Short title and extent 158
2. Definitions 158
3. The manner in which the Corporation may exercise its powers 160
3A. Exercise of powers by an office 160
4. Contribution and benefit periods 160
5. [ Omitted by Notification No. 12/13/1/84-P&D-Coll. II, dated 5-1-1985, w.e.f. 27-1-1985] 161
6. Meetings of the Corporation, the Standing Committee and the Medical Benefit Council 161
7. Decision by majority 161
8. Mode of exercising vote 161
9. Matters to be brought before the Corporation 161
10. Regional Boards 161 10A. Local Committees 166
CHAPTER II
COLLECTION OF CONTRIBUTIONS, ETC.
10B. Registration of factories or establishments 168
10C. Intimation regarding change in particulars submitted at the time of registration of factory/establishment 169
11. Declaration by persons in employment on appointed day 169
12. Declaration by persons engaged after the appointed day 170
13. [ Omitted by Notification No. 12/13/1/84-P&D-Coll. II, dated 5-1-1985, w.e.f. 27-1-1985] 170
14. Declaration form to be sent to appropriate office 170
15. Allotment of insurance number 170
15A. Registration of families 171
15B. Changes in family 171
16. The Corporation to receive assistance from employers 171
17. Identity cards 171
17A. Issue of a certificate of employment 172
17B. Issue of permanent acceptance card
18. Loss of identity card 172 19-23. [Omitted by Notification No. 12/13/19/79-P&D, dated 9-3-1983, w.e.f. 26-3-1983] 172
24. [Omitted by Notification No. 12/13/1/84-P&D. Col. II, dated 5-1-1985, w.e.f. 27-1-1985] 172
25. [Omitted by Notification No. 12/13/19/79-P&D, dated 9-3-1983, w.e.f. 26-3-1983] 172
26. Return of contributions to be sent to appropriate office 172
27. Issue of certificate of contributions 173
28. [Omitted by Notification 12/13/1/84-P&D-Coll. II, dated 5-1-1985, w.e.f. 27-1-1985] 173
29. Payment of contribution 173
30. [Omitted by Notification No. N-12/13/19/79-P & D, dated 9-3-1983, w.e.f. 26-3-1983] 173
31. Time for payment of contribution 173
31A. Interest on contribution due, but not paid in time 174
31B. Recovery of interest
31C. Damages on contributions or any other amount due, but not paid in time
31D. Appellate Authority
31E. Interest on amounts refunded to the employer
32. Register of employees
33. Other modes of payment of contribution
34. [Omitted by Notification No. N-12/13/19/79-P&D, dated 9-3-1983, w.e.f. 26-3-1983] 176
35. [Omitted by Notification No. 12/13/1/84-P&D-Coll. II, dated 5-1-1985, w.e.f. 27-1-1985] 176
36. Employment for part of a wage period 176
37. [Omitted by Notification No. 12/13/1/84-P&D-Coll. II, dated 5-1-1985, w.e.f. 27-1-1985] 176
38. Scheme by joint employers 176
39. Reckoning of wages of employee employed by two or more employers in the same wage period 176
40. Refund of contribution erroneously paid 176 41-43. [Omitted by Notification No. 12/13/19/79-P&D, dated 9-3-1983, w.e.f. 26-3-1983] 177
CHAPTER III BENEFITS
44. Claims for benefits
45. When claim becomes due
46. Availability of claim forms
47. Claim on wrong form
48. Evidence in support of claim
49. Defective claim
50. Claim for inappropriate benefit
51. Authority for certifying eligibility of claimants
52. Benefits when payable
52A. Abstention verification
53. Evidence of sickness and temporary disablement
54. Persons competent to issue medical certificate
55. Medical certificate
56. Time of granting medical certificate
57. Medical certificate on first
58. Final medical certificate
59. Intermediate certificate
60. Final medical certificate before commencing work for wages
61. Intermediate certificate for a longer period
62. [Omitted by Notification No. General/Amendment/20, dated 20-1-1968]
63. Form of claim for sickness or temporary disablement
64. Failure to submit medical certificate
65. Notice of accident
66. Maintenance of accident book
67. Notice otherwise than by an entry in accident book
68. Report of accident by an employer
69. Employer to arrange first aid
70. Employer to furnish further particulars of accident
71. Directions by the Corporation
72. Reference to a Medical Board
73. Report of Medical Board
74. Occupational disease 188
75. Constitution of Medical Board/Special Medical Boards 188
76. Appeal Tribunals 188
76A. Submission of claims for permanent disablement benefit 188
76B. Commutation of permanent disablement benefit 189
77. Report of death of employee by employment injury 190
78. Disposal of body of an employee dying by employment injury 190
79. Issue of death certificate 191
80. Submission of claim for dependants’ benefit 191
81. Notice for dependants’ benefit 192
82. Intimation of decision regarding dependants’ benefit 192
83. Date of accrual of dependants’ benefit 192
83A. Submission of claim for dependants’ benefit 192
84. Review of dependants’ benefit 192
85. [Omitted by Notification No. General/Amendment/4, dated 11-12-1977] 193
86. Appointment of another guardian 193
87. Notice of pregnancy 193
87A. Notice of Commissioning Mother 193
88. Claim for maternity benefit commencing before confinement 194
88A. Declaration by Insured Women of her surviving child or children 194
89. Claim for maternity benefit only after confinement or for miscarriage 194
89A. Claim for maternity benefit after the death of an insured woman leaving behind the child 194
89B. Claim for maternity benefit in case of sickness arising out of pregnancy, confinement, premature birth of child or miscarriage 195
89C. Claim for Maternity Benefit by Commissioning Mother 195
89D. Claim for Maternity Benefit by Adoptive Mother 195
90. Other evidence in lieu of a certificate 196
91. Notice of work for remuneration 196
92. Date of payment of maternity benefit 196
93. Disqualification for maternity benefit 196
94. Authority which may issue certificate 196
95. Obligations of insurance medical officer 197
95A. Medical benefit to families of insured persons 197
CONTENTS
FUNERAL EXPENSES
95B. Report of death of insured person
95C. Issue of death certificate
95D. Other evidence in lieu of a certificate
95E. Submission of claim for funeral expenses
CHAPTER IV
MISCELLANEOUS
96. Authority for determining benefits
96A. Reimbursement of expenses incurred in respect of medical treatment 199
96B. Scale of Medical Benefit for Rembursement
96C. Referral for super speciality treatement to tie-up hospitals and expenditure to be incurred by employees’ state insurance corporation directly
97. Discontinuation or reduction of benefits
98. Discharge, etc. of employee under certain conditions
99. Suspension of sickness or temporary disablement benefit
99A. Sickness or temporary disablement benefit during strike
100. Relaxation
101. [Omitted by Notification No. General/Amendment/20, dated 20-1-1968]
102. Certain officers to have powers of inspection
Medical benefit to insured person who ceases to be in insurable employment on account of
Production of document for medical
Further certificates
106. Change of circumstances to be notified
Certificate in respect of a person claiming permanent disablement benefit
107A. Declaration by and certificate in respect of a person claiming dependants’ benefit
107B. Personal attendance of a person claiming permanent disablement benefit or dependants’ benefit
108. [Omitted by Notification No. N-12/13/1/90-P&D, dated 17-5-1991, w.e.f. 15-6-1991]
FORM
FORM
FORM
FORM
FORM
FORM
CONTENTS
FORM 23: Life Certificate for Permanent Disablement Benefit
FORM 24: Declaration & Certificate for Dependant’s Benefit
SCHEDULE I & II: [Omitted by Notification No. N-12/13/1/90-P&D, dated 17-5-1991, w.e.f. 15-6-1991]
SCHEDULE III: Commutation Values for Permanent Disablement Benefit 239
OTHER BENEFICIARIES AND MEMBERS OF THEIR FAMILIES MEDICAL FACILITIES SCHEME, 2010
1. Short title and commencement
2. Application
3. Definitions
4. Registration
5. Benefit
6. User Charges
7. Time and Manner of the Medical Facility
8. Maintenance of Register and Records
Employees’ State Insurance Act, 1948*
[34 OF 1948]1
An Act to provide for certain benefits to employees in case of sickness, maternity and “employment injury” and to make provision for certain other matters in relation thereto.
WHEREAS it is expedient to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto: It is hereby enacted as follows :—
CHAPTER I PRELIMINARY
Short title, extent, commencement and application.
1. (1) This Act may be called the Employees’ State Insurance Act, 1948.
(2)It extends to 2[the whole of India] 3[***].
(3)It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 4[for different States or for different parts thereof].
(4)It shall apply, in the first instance, to all factories (including factories belonging to the 5[Government] other than seasonal factories :
6[Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose
*Shall be repealed by the Code on Social Security 2020, with effect from a date yet to be notified.
1. Dated 19-4-1948.
2.Substituted for “all the provinces of India” by the Adaptation of Laws Order, 1950.
3.Words “except the State of Jammu and Kashmir” omitted by the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970, w.e.f. 1-9-1971. Earlier the quoted words were substituted by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
4.Substituted for “for different States” by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
5.Substituted for “crown” by the Adaptation of Laws Order, 1950.
6.Inserted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989.
employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.]
(5) The appropriate Government may, in consultation with the Corporation and 7[where the appropriate Government is a State Government, with the approval of the Central Government], after giving8[one month’s] notice of its intention of so doing by notification in the Official Gazette, extend the provision of this Act or any of them, to any other establishment or class of establishments, industrial, commercial, agriculture or otherwise:
9[Provided that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishment or class of establishments in another part of that State.]
10[(6) A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.]
COMMENTS
CASE LAWS
Applicability to Pathological Laboratories - The Supreme Court held that pathological laboratories were not covered under the ESI Act until the notification issued by the Government of Kerala on September 6, 2007. This notification, made under section 1(5), explicitly included medical institutions such as diagnostic and pathological laboratories employing 20 or more persons. The Court rejected the Corporation’s claim that such establishments were already covered as “shops” under a 1976 notification, emphasizing that a subsequent specific notification confirmed their exclusion prior to 2007. - E.S.I. Corporation v. Endocrinology and Immunology Lab AIR 2023 SC (CIVIL) 2296.
Extension of Act to Medical Institutions - The Supreme Court ruled that pathological laboratories and similar establishments were brought under the ESI Act’s provisions only through a notification issued by the Kerala Government on September 6, 2007, under section 1(5). It rejected the Employees’ State Insurance Corporation’s claim that such establishments were covered earlier as “shops,” clarifying that the lack of definition for “shop” in the Act precluded such interpretation. This decision confirmed the Act’s applicability from 2007 onward for these establishments. - E.S.I. Corporation v. Endocrinology and Immunology Lab AIR 2023 SC 3686.
Applicability to Turf Clubs as Shops - The Supreme Court questioned whether turf clubs fall within the meaning of “shops” under section 1(5) of the ESI Act. It held that the term “shop,” undefined in the Act, should be interpreted as understood in common parlance, which does not align with the activities of a racing club. The Court observed that the earlier ruling in Hyderabad Race Club improperly presumed all establishments were covered by the Act. Concluding that turf clubs do not constitute shops, it referred
7. Substituted for “with the approval of the Central Government” by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
8. Substituted for “six months” by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010.
9. Inserted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 16-5-1990.
10. Inserted, ibid, w.e.f. 20-10-1989.
the issue to a larger bench for reconsideration. - Bangalore Turf Club Limited v. Regional Director, ESI Corporation AIR 2009 SC 2965.
Pathological Laboratories Covered Post-2007 Notification - The Supreme Court ruled that pathological laboratories were brought under the ESI Act’s purview by the Kerala Government’s notification dated September 6, 2007, issued under section 1(5). It rejected claims that these establishments were previously included as “shops,” noting that the notification explicitly extended the Act’s applicability to medical institutions, including laboratories employing 20 or more persons. This clarified the scope of the Act’s application to such entities only from the date of the notification. E.S.I. Corporation v. Endocrinology and Immunology Lab AIRONLINE 2023 SC 594.
Definition of Shop and Applicability to Administrative Offices - The Supreme Court held that premises used for supervising and controlling branch sales activities qualify as a “shop” under section 1(5) of the ESI Act. In this case, the administrative office of a firm engaged in retail sales was deemed a shop despite no direct transactions occurring there, as it facilitated economic activity leading to sales. The Court emphasized that the term “shop” includes any premises where commercial or economic activity with a nexus to the sale or purchase of goods takes place, broadening its scope under the Act. - Southern Agencies, Rajamundry v. A.P. Employees State Insurance Corporation AIR 2000 SC 3718.
Applicability of ESI Act to Clubs as Establishments - The Supreme Court upheld that the Hyderabad Race Club qualifies as an “establishment” under the ESI Act. It rejected the club’s contention that it does not fall within the definition of an establishment or shop as per the Andhra Pradesh Shops and Establishments Act, 1988. However, recognizing the ambiguity of the law before the 1987 Supreme Court decision in Hindu Jea Band, it limited the club’s liability for ESI contributions to the period post-1986. The Court emphasized that statutory liability applies only after clarity in legal interpretation emerges. - Employees’ State Insurance Corporation v. Hyderabad Race Club AIR 2004 SC 3972.
Consultancy Firms as Shops - The Supreme Court held that consultancy firms providing industrial, technical, marketing, and management advice to clients for a price are “shops” under section 1(5) of the ESI Act. It ruled that the term “shop” encompasses premises engaged in commercial or economic activities that involve offering services at a price. The Court emphasized that activities akin to trading or commerce fall within the Act’s scope, even if the services offered involve intellectual expertise rather than tangible goods. - Kirloskar Consultants Ltd. v. Employees’ State Insurance Corporation AIR 2000 SC 3720.
Definitions.
2. In this Act, unless there is anything repugnant in the subject or context,— (1) “appropriate Government” means, in respect of establishment under the control of the Central Government or 11[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the 12[State] Government; (2) 13[***]
11. Substituted for “a federal railway” by the Adaptation of Laws Order 1950.
12. Substituted for “Provincial”, ibid
13. Omitted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 1-2-1991. Earlier, clause (2) was substituted by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951 and later on amended by the Employees’ State Insurance (Amendment) Act, 1984, w.e.f. 27-1-1985.
(3) “confinement” means labour resulting in the issue of a living child, or labour after twenty six weeks of pregnancy resulting in the issue of a child whether alive or dead;
(4) “contribution” means the sum of money payable to the Corporation by the principal employer in respect of an employee and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Act;
(5) 14[***]
(6) “Corporation” means the Employees State Insurance Corporation set up under this Act;
15[(6A) “dependant” means any of the following relatives of a deceased insured person, namely :—
16[(i) a widow, a legitimate or adopted son who has not attained the age of twenty-five years, an unmarried legitimate or adopted daughter;]
17[(ia) a widowed mother;]
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of 18[twenty-five] years and is infirm;
(iii) if wholly or in part dependent on the earnings of the insured person at the time of his death,—
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed and a minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or
14. Omitted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 1-2-1991. Earlier, clause (5) was substituted by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951 and later on amended by the Employees’ State Insurance (Amendment) Act, 1984, w.e.f. 27-1-1985.
15. Inserted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
16. Substituted by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010. Prior to its substitution, sub-clause (i), as amended by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989, read as under:
“(i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted daughter;”
17. Inserted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989.
18. Substituted for “eighteen” by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010.
(g) a paternal grand-parent if no parent of the insured person is alive;]
(7) “duly appointed” means appointed in accordance with the provisions of this Act or with the rules or regulations made thereunder;
19[(8) “employment injury” means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment, being an insurable employment, whether the accident occurs or the occupational disease is contracted within or outside the territorial limits of India;]
(9) “employee” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and—
(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere; or
(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or
(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service,
20[and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment]
21[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), 22[and includes such person engaged as apprentice whose training period is extended to any length of time] but does not include]—
(a) any member of 23[the Indian] naval, military or air force; or
19. Substituted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
20. Substituted for “but does not include—” by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
21. Substituted for “; but does not include” by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989.
22. Substituted for “or under the standing orders of the establishment;” by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010.
23. Substituted for “His Majesty’s” by the Adaptation of Laws Order, 1950.
24[(b) any person so employed whose wages (excluding remuneration for overtime work) exceed 25[such wages as may be prescribed* by the Central Government]:
Provided that an employee whose wages (excluding remuneration for overtime work) exceed 25[such wages as may be prescribed by the Central Government] at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period;]
(10) “exempted employee” means an employee who is not liable under this Act to pay the employees’ contribution.
26[(11) “family” means all or any of the following relatives of an insured person, namely:—
(i) a spouse;
(ii) a minor legitimate or adopted child dependent upon the insured person;
(iii) a child who is wholly dependent on the earnings of the insured person and who is—
(a) receiving education, till he or she attains the age of twentyone years,
(b) an unmarried daughter;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the insured person, so long as the infirmity continues;
27[(v) dependant parents, whose income from all sources does not exceed such income as may be prescribed by the Central Government;
(vi) in case the insured person is unmarried and his or her parents are not alive, a minor brother or sister wholly dependant upon the earnings of the insured person;]]
24. Substituted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
25. Substituted for “one thousand and six hundred rupees a month” by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 1-2-1991. Earlier these words were substituted by the Employees’ State Insurance (Amendment) Act, 1984, w.e.f. 27-1-1985 and amended by the Employees’ State Insurance (Amendment) Act, 1975, w.e.f. 30-11-1975.
*Notified Wage Ceiling : Wages (excluding remuneration for overtime) do not exceed Rs. 3000 p.m.
26. Substituted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989. Earlier existing clause (11) was amended by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 17-6-1967.
27. Clauses (v) and (vi) substituted for clause (v) by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010. Prior to its substitution, sub-clause (v) read as under : “(v) Dependant parents;”
28[(12) “factory” means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;]
(13) “immediate employer” in relation to employees employed by or through him, means a person who has undertaken the execution, on the premises of factory or an establishment to which this Act applies or under the supervision of the principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the factory or establishment of the principal employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory or establishment, and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarily lent or let on hire to the principal employer 29[and includes a contractor];
30[(13A) “insurable employment” means an employment in a factory or establishment to which this Act applies;]
(14) “insured person” means a person who is or was an employee in respect of whom contributions are or were payable under this Act and who is, by reason thereof, entitled to any of the benefits provided by this Act;
30[(14A) “managing agent” means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’s trade or business, but does not include an individual manager subordinate to an employer;]
29[(14AA) “manufacturing process” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948);]
30[(14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any mis-carriage, the causing of which is punishable under the Indian Penal Code (45 of 1860);]
28. Substituted by the Employees’ State Insurance (Amendment) Act, 2010, w.e.f. 1-6-2010. Prior to its substitution, clause (12), as amended by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951, Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968 and Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989, read as under:
‘ (12) “factory” means any premises including the precincts thereof—
(a) whereon ten or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or (b) whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;’
29. Inserted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989.
30. Inserted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
(15) “occupier” of the factory shall have the meaning assigned to it in the Factories Act, 31[1948] (63 of 1948);
31a[(15A) “permanent partial disablement” means such disablement of a permanent nature, as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement:
Provided that every injury specified in Part II of the Second Schedule shall be deemed to result in permanent partial disablement;]
31a[(15B) “permanent total disablement” means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement:
Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent or more;]
32[(15C) “power” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948);]
(16) “prescribed” means prescribed by rules made under this Act;
(17) “principal employer” means—
(i) in a factory, the owner or occupier of the factory and includes the managing agent of such owner or occupier, the legal representative of a deceased owner or occupier, and where a person has been named as the manager of the factory under 33[the Factories Act, 1948 (63 of 1948)], the person so named;
(ii) in any establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf or where no authority is so appointed, the head of the department;
(iii) in any other establishment, any person responsible for the supervision and control of the establishment;
(18) “regulation” means a regulation made by the Corporation;
(19) “Schedule” means a Schedule to this Act;
32[(19A) “seasonal factory” means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning,
31. Substituted for “1934” by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
31a. Inserted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
32. Inserted by the Employees’ State Insurance (Amendment) Act, 1989, w.e.f. 20-10-1989.
33. Substituted for “clause (e) of sub-section (1) of section 9 of the Factories Act, 1934” by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
cotton or jute pressing, decortication of groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any manufacturing process which is incidental to or connected with any of the aforesaid processes and includes a factory which is engaged for a period not exceeding seven months in a year—
(a) in any process of blending, packing or repacking of tea or coffee; or
(
b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette, specify;]
(20) “sickness” means a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds;
(21) “temporary disablement” means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of 34[doing the work which he was doing prior to or at the time of the injury];
(22) “wages” means all remuneration paid or payable, in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes 35[any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and] other additional remuneration, if any, 36[paid at intervals not exceeding two months], but does not include—
(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act;
(b) any travelling allowance or the value of any travelling concession;
(c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(d) any gratuity payable on discharge.
37[(23) “wage period” in relation to an employee means the period in respect of which wages are ordinarily payable to him whether in terms of the contract of employment, express or implied or otherwise;]
38[(24) all other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.]
34. Substituted for “work” by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
35. Inserted, ibid.
36. Substituted for “paid at regular intervals after the last day of the wage period” by the Employees’ State Insurance (Amendment) Act, 1951, w.e.f. 6-10-1951.
37. Substituted by the Employees’ State Insurance (Amendment) Act, 1984, w.e.f. 27-1-1985.
38. Substituted by the Employees’ State Insurance (Amendment) Act, 1966, w.e.f. 28-1-1968.
