ESI (EMPLOYEE STATE INSURANCE) ACT 1948 & SCOPE FOR COVID RELIEF UNDER ACT

1. HISTORY: –

Industrial Labours and Employees were deprived of their basic health-care, sanitation and other essentials, keeping this in mind, ILO (Indian Labour Organisation) requested the Government of India to take necessary steps, The Workmen’s State Insurance Bill, drafted by Dr. Bhim Rao Ambedkar which is a by-product of the Report on “Health Insurance for Industrial Workers” submitted by Prof. B.P Adarkar in mid1940’s.[1] Post-Independence this as a result of this report Employee State Independence Act came into existence in 1948.

• ESI & IT’S SCOPE: –
• The ESI Act 1948 applies to:
• Non-Seasonal Factories using power and employing 10 or more persons
• Non-Seasonal and non-power using factories and establishments employing 20 or more persons.

• The appropriate Government can extend the scope of this Act in consideration to:
• Establishments
• Industrial
• Commercial
• Agricultural
• Others Deemed fit by Central/State Government

• GOVERNING BODIES: –

In India there are approximately 48 Statutes that regulate and governs the Labour and Industrial Law in India, that are governed and regulated by:

1. ILO (Indian Labour Organisation)
2. Ministry of Labour and Employment
3. Central & State Labour Departments

Wherein, The Employees’ State Insurance is also administered by a Corporate Body called The Employees’ State Insurance Corporation (ESIC)[2], A standing Committee which acts as an Executive body for the administration of the Scheme.

• BENEFITS, RELIEFS & ALLOWANCES RENDERED

There are numerous benefits[3] that are rendered within the gambit of this Act like:

1. Sickness Benefits: Payable up-to 91 days @ 70% of Salary. In case of extended sickness, the leave can extend up-to 309 days.
2. Maternity Benefits: Payable up-to 26 weeks during pregnancy
3. Disablement Benefits: Up-to 90% of monthly salary[4]
4. Dependents Benefits: If the demise occurred during work (up-to 90% of monthly salary)
5. Funeral Allowance: Entitled up-to Rs. 10,000/- to the beneficiary of deceased.
6. Medical Benefits: Complete Medical Care and Insurance in ESIC Hospitals
7. Vocational Allowance: Rs. 120 per day for retired labours undergoing VRS

• LIMITATIONS of ESI Act

Nevertheless, ESI ACT has provided for numerous benefits, but these benefits are provided to certain limitations such as:

1. It only covers labours who earns up-to 20,000 not more than that.
2. In order to avail the benefits a person must have served for a minimum of 2 years under the same employer.
3. Employee must be insured under this Act in-order to avail benefits.
4. If the benefits are availed PRIMA-FACIE under this act, then the employee cannot avail or seek relief under other Statutes.
5. Provisions for benefits under section 47 and 48 have been repealed.
6. Semi-benefits with regards to Sickness or death due to Sickness.
7. ESI Act 1948 is based completely over the guidelines issues under the Rules and is Procedural in nature.
8. ESI Rules are to be issued for various aspects covered under ESI Act 1948.

• COVID-19 & ESIC

Government amidst Co-vid 19, have released certain notifications in order to cope-up with the Employees losing their job due to economic downfall followed by Lockdown, providing for ESI Hospitals treating for Co-Vid 19, and the Ministry of Labour and Employment have initiated online description in their Dashboard section for number of beds and vacancies thereto. In addition to this, each ESIC hospital is addressed to book 20% of the beds for the insured and if the treatment of Insured is on-going in any Private Institute, such costs shall be reimbursed.

In case, the insured in unable to cope up with the work he/she can claim sickness benefits upto-91 days, provided that he/she is infected by the virus.

In case, any beneficiary is unemployed, the beneficiary may avail relief under the Scheme[5] and shall avail 50% of their average income for not more than 91 days. Nevertheless, if any insured is unemployed with regard to closure/retrenchment of an organisation or establishment, he/she can claim unemployment allowance for a span of 2 years if qualifies under RGSKY[6] Scheme. That if, the insured is dead due to virus, in such scenario the eldest living member of the family shall be paid a compensation of not less than Rs. 15,000.

https://www.ndtv.com/business/covid-19-pandemic-esic-offers-free-treatment-to-beneficiaries-announces-relief-measures-2424631

• CONCLUSION

ESI Act 1948, being drafted on the basis of a report is not substantive but is Procedural in nature and hence, lacks the basic essentials that shall be stated in the Act, Henceforth, it relies on ESIC to aid the needful by issuing Guidelines and Rules. Wherein, The Schemes under ESI, have helped workers who were facing difficulties in the midst of Co-vid 19. The Guidelines and aid provided by the Employee State Insurance Corporation have aided PRO-BONO, the most vulnerable aspects and situation faced by employees during this pandemic. Thus, is viewed as a ray of hope, by many families, for their rescue.

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[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7734948/

[2] https://www.esic.in/web/esic/administration

[3] CHAPTER-V of ESI Act 1948

[4] RULE-57 OF ESI (CENTRAL) RULES 1991

[5] ATAL BEEMIT VYAKTI KALYAN YOJANA

[6] RAJIV GANDHI SHRAMIK KALYAN YOJANA

WRITTEN BY: AKSHIT RASTOGI, ASSOCIATE, DUCTUS LEGAL