4. A very progressive concept
Indicates social responsibility
Passed in parliament and was enforced from 19th april 1948
To provide certain cash benefits
During sickness, maternity, employment injury and medical
facilities
Contains provisions for certain other matters

6. Small power house factories employing 10 to 19 persons
Non-power using factories employing 20 or more
persons;
Shops
Hotels and restaurants;
Cinemas including preview theatres
Newspaper establishments;
Road motor transport undertakings employing 20 or more
persons
The act does not apply to mines, railway running sheds and
specified seasonal factories

7. The sate government may extend the provisions of the act to
cover other establishments like industrial, commercial,
agricultural or others in consultation with the employees State
Insurance Corporation (ESIC) and with the approval of the
Central government after giving six months notice of its
intention to do so in the Official Gazette

8. Its is well to remember that the act deploys the expression
“employment” and not “w0rk”.
Employee is in the employment even when he is not
working but proceeds towards it or returns to the place
other than his workplace.
Thus a man’s employment is neither confined to his
workplace nor does it end with the ‘tool down’ signal.

10. Any person employed for wages in or in connection
with the work of a factory or establishment and
Who is directly employed by the principal employer
Who is employed by or through an immediate employer
Whose services are temporarily lent or let on hire to the
principal employer under a contract of service;
And includes any person employed for wages or any
person engaged as an apprentice, not being an apprentice
under the apprentices act,1961.
But does not include
a. Any member of the indian naval, military or air forces;
or
b. Any person so employed whose wages exceed
prescribed limit

12. Requires medical treatment and attendance and necessitates
abstention from work on medical grounds
The wages means all remuneration paid or payable whether the
‘contract of employment’ was expressed or implied and
Including wages for authorized leave, lockout, strike(which is not
illegal),
BUT DOES NOT INCLUDE
Contribution paid in the pension fund or PF,
Travelling allowances/concession or its value. Payments to defray
special expenses on employment and gratuity.

13. THE WORK MEN’S COMPENSATION ACT OR
ANY OTHER LAW FOR THE TIME BEING IN FORCE OR
OTHERWISE FROM THE
(a) THE EMPLOYER
(b) FROM ANY OTHER PERSON
THE BAR IS IRRESPECTIVE OF BENEFITS RECE4IVED UNDER
THE ACT.

15. Whether the accident has resulted in permanent
disablement;
Whether the extent loss of earning capacity can be
assessed provisionally or finally ;
Whether the assessment of the proportion of the
loss of earning capacity is provisional or final; or
In the case of provisional assessment, the period for
which such assessment is caused shall be determined
by the medical board constituted under the act.

17. The act invests a right of appeal
Right of appeal is curtailed and circumstanced in as much
as the act allows appeal only if any question of law is
involved and the findings of the insurance court cannot be
questioned before high court in appeal.
Period of limitation for filing appeal as 60 days
Appeal filed by the ESI corporation, high court is vested
with powers to grant stay and thereby withold the payment
directed to be paid under the impugned order.

19. THE Act treats certain acts of omissions and
commissions as offences and prescribed penalties as
under :-
Causing any increase in payment or benefit,
Causing any payment or benefit where no payment or
benefit is authorised by or under this act,
Avoiding any payment to be made under this act,
Enabling any other person to avoid any such payment,
Knowingly making or causing to be made false statement or
false representation.
Punishment may exceed for a term of 6 months or fine
not exceeding Rs.2000/-or both