Objects and Applicability of the Schemes - Employees State Insurance Act(1948), Industrial Laws | Industrial Laws - B Com PDF Download

Objective of the Act:

The purpose of ESI Act is clear from the following statement contained in the Act:

“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.”

Thus the objective of the Act is to benefit the employees by providing them benefits in case of injury suffered on work, in case of sickness or maternity.

This social security legislation aims to counterbalance the physical or financial distress during crisis and provide protection from deprivation and social degradation as well as enabling the society to retain the productive manpower.

Applicability:

• ESI Act is applicable to whole of India including Jammu & Kashmir.
• It is applicable to all the factories excluding seasonal factories which employ 10 or more persons using electric power or which employ 20 or more persons and do not use electric power.
• The Act does not apply to a factory or establishment which is under the control of the Government and whose employees are entitled to benefits under similar or superior benefits provided under ESI Act.
• The provisions of this Act can be extended to any other establishment- industrial, commercial or agricultural or otherwise. This can be done by the appropriate Government in consultation with the Corporation by giving one month’s notice of its intention of doing so in the Official Gazette. In case the appropriate Government is State Government, it requires approval of the Central Government.
• Any factory or establishment will continue to be governed by the provisions of this Act even if the number of person fall below the specified limit or the manufacturing process ceases to be carried on with the aid of power.