THE ESIC ACT, 1948: CONTRIBUTION FOR PAST PERIOD

CONTRIBUTION FOR PAST PERIOD

Is it justified for authorities to recover E.S.I, contribution when the employees have not availed the benefit for that particular period?

It is immaterial whether the employees have availed the benefits or not so far as the payment or deposit of E.S.I. contribution is concerned since the liability to pay contribution is not made to depend on the benefit to be received by the members in respect of whom the contribution is sought for.

1. South India Viscose Co-operative Stores Ltd. vs. Regional Director, Employees State Insurance Corporation, 1986 (68) ;FJR 329 (Mad .HC)

2. ESl Corporation vs. Hotel Kalpaka International 1993(1) KLT 281 1993 LLR 177 (Supreme Court).

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UPDATES

ID ACT AMENDMENT 2010:

* Enhancement of wage ceiling of a workman from Rs. 1600/- pm to Rs. 10000/- pm under section 2(s) of the Act

* Direct access for the workman to the Labour Court or Tribunal in case of disputes arising out of section 2A of the Act

* Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under sections 7 and 7A of the Act

* Establishment of Grievance Redressal Machinery in every Industrial establishment employing twenty or more workmen for the resolution of disputes arising out of individual grievances

* Empowering the Labour Court or Tribunal to execute the awards, orders or settlements arrived at by Labour Court or Tribunal

AP SECURITY SERVICES MINIMUM WAGE

Zone I:All Municipal Corporations
Zone II : All Municipalities
Zone III : Rest of the area

Highly Skilled : (Security Supervisor/ Officer/ Field Officer)

Z-I: 7500, Z-II: 6500,Z-III: 5000

Skilled : (Security Inspector/ ASO/ Intelligance and Fire Fighting Personal, Head Gaurd)

Z-I: 7000, Z-II: 6000, Z-III: 4500

Semi-Skilled : (Asst. Security Inspector /Security Gaurds with Arms)

Z-I: 6500, Z-II: 5500, Z-III: 4250

Un-Skilled : (Security Gaurds without Arms)

Z-I: 5000, Z-II: 4250, Z-III: 4000

EPFO GRIEVANCE MANAGEMENT PORTAL:

EPFO LAUNCHED NEW GRIEVANCE MANAGEMENT PORTAL

ESI WAGE CEILING:

ESI WAGE CEILING ENHANCED FROM Rs. 10000 TO Rs. 15000 w.e.f 01-05-2010

ENHANCEMENT OF THE CASH BENEFIT ON PENSION:

ENHANCED THE CASH BENEFIT PAYABLE TO THE FAMILY OF EPF SUBSCRIBERS ON THEIR DEATH IN SERVICE FROM PRESENT MAXIMUM OF RS.60,000 TO RS.1.00 LAKH. PUBLISHED IN THE GAZETTE OF INDIA, PART II, SECTION 3, SUBSECTION (I), VIDE NUMBER G.S.R. 523(E), DATED THE 18TH JUNE, 2010

GRATUITY MAXIMUM LIMIT:

GRATUITY MAXIMUM LIMIT INCREASED FROM RS. 350000 TO RS. 1000000 (FOR PRIVATE COMPANIES EMPLOYEE)

AP CONTRACT LABOUR MINIMUM WAGES:

ANDHRA PRADESH CONTRACT LABOUR MINIMUM WAGES ARE REVISED w.e.f 18 Aug'09 AS:

UN-SKILLED: Rs. 155 PER DAY, Rs. 4030 PER MONTH

SEMI-SKILLED: Rs. 195 PER DAY, Rs. 5070 PER MONTH

SKILLED: Rs. 235 PER DAY, Rs. 6110 PER MONTH

P F ACT

EPFO Launched new Grievance Management Portal

Enhancement of the cash benefit on Pension:

Enhanced the cash benefit payable to the family of EPF subscribers on their death in service from present maximum of rs.60,000 to rs.1.00 lakh. Published in the gazette of india, part ii, section 3, subsection (i), vide number g.s.r. 523(e), dated the 18th june, 2010

Download Notification

EPF(Amendment) Scheme, 2011

MINISTRY’ OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 15th January, 2011

G.S.R. 25(E).—In exercise of the powers conferred by Section 5, read with sub-section (1) of Section 7 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme, further to amend the Employees’ Provident Funds Scheme, 1952. namely 1. (1) This Scheme may be called the Employees’ Provident Funds (Amendment) Scheme, 2011. (2) It shall come into force from the 1st day of April, 2011 2. In the Employees’ Provident Funds Scheme, 1952, (hereinafter referred to as the said Scheme), in paragraph 60, after sub-paragraph (5), the following sub-paragraph shall be substituted, namely:— “(6) Interest shall not be credited to the account of a member from the date on which it has become Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72” 3. In the said Scheme, in paragraph 72, in sub-paragraph (6):— (a) for the words “but no claim has been preferred” the words “but no application for withdrawal under paragraphs 69 or 70 or transfer, as the case may be has been preferred ” shall he substituted: (b) for the words “three years”, at both the places where they occur, the words “thirty six months” shall be substituted. [F. No. S-35012/01/2010-SS-1I] S. K.. DEV VERMAN, Jt. Secy. For more details : The PF old balance will stop earning interest. After three years of inactivity.

Download Notification

ESIC

Employees’ State Insurance (Amendment) Act, 2010.

Following are the some salient feature of the ESI (Amendment) Act, 2010.

Extension Of The ESI Scheme To The Construction Site WorkerS :

The Construction site workers who were kept out of coverage of ESI act till date, Now covered with the implementation of it roll out "any time, anywhere". esic services will be available to these mobile and migratory workers with no geographical barrier.

APPRENTICES COVERED:

Benefits under the scheme have also been extended to apprentices and trainees employed under Apprentice Act and Standing Order Act.

POWER TO APPROPRIATE GOVERNMENT;

The appropriate Government is empowered to extend the provisions of ESIC Act 1948 to any other establishment or class of establishments, industrial, commercial, agricultural or otherwise after giving one month’s notice of its intention of doing so by notification in Official Gazette instead of notice period of six months.

DEFINITION OF DEPENDENT EXPANDED:

Definition of “dependents” as contained in clause 6A of section 2 of the Act has been extended to enlarge the number of beneficiaries under the act such as:

A widow, a legitimate or adopted son below the age of 25 years and an unmarried legitimate or adopted daughter. The age limit of the dependants has been enhanced from 18 to 25.

Dependent parents as per definition of “family” has been substituted so as to include;

“A minor brother or sister wholly dependent upon the earnings of the insured person in case the insured person is unmarried and his or her parents are not alive”. It has been also clarified that dependent parents to include “Dependent parents, whose income from all sources does not exceed such income as prescribed by the Central Government”.

SMALL FACTORIES ALSO ARE COVERED:

The definition of Factory under Section 2(12) has been amended to expand coverage of smaller factories. The amended Act covers all factories, which employ 10 or more persons irrespective of the fact whether the manufacturing process is being carried out with the aid of the power or without the aid of the power.

INSPECTORS RE-DESIGNATED AS SOCIAL SECURITY OFFICERS:

The designation of Inspector has been re-designated as “Social Security Officer” to enroll them as facilitator of the Scheme rather than to act as mere inspectors.

VRS EMPLOYEES ALSO COVERED:

Medical benefits to the insured person and his spouse have been extended under circumstances where insured person retires under Voluntary Retirement Scheme or takes premature retirement. In the earlier Act the benefit was applicable only on attaining the age of superannuation. Proviso to sub section 3 of section 56 has been substituted to provide the same.

NOTIONAL EXTENSION OF PREMISES:

Accident occurring to an insured person while commuting from his residence to the place of employment and vice-a-versa shall be deemed to have arisen out of and in the course of employment for the purpose of benefit under the Act. A new section 51-E has been added for this purpose.

UNORGANIZED SECTOR EMPLOYEES COVERED:

A new Chapter V-A has been added to enable provision for extending medical care to non insured persons against payment of user-charges to facilitate providing medical care to the below poverty line (BPL) families and other un-organized sector workers covered under the Rashtriya Swasthya Bima Yojana (RSBY).

Exemption of a factory or establishment or class of factories or establishments from the operation of this Act will be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.

Section 91 A of the Act is amended to removing. retrospective grant of exemption from the provision of the Act

Download ESI (Amendment) Act 2010

ESIC ONLINE PORTAL:

ESIC Launched New Online Portal for Submitting Application and Returns

ESI WAGE CEILING:

ESI WAGE CEILING ENHANCED FROM Rs. 10000 TO Rs. 15000 w.e.f 01-05-2010

Download ESI Wage Ceiling Notification

I D Act 2010

Enhancement of wage ceiling of a workman from Rs. 1600/- pm to Rs. 10000/- pm under section 2(s) of the Act

Direct access for the workman to the Labour Court or Tribunal in case of disputes arising out of section 2A of the Act

Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under sections 7 and 7A of the Act

Establishment of Grievance Redressal Machinery in every Industrial establishment employing twenty or more workmen for the resolution of disputes arising out of individual grievances

Empowering the Labour Court or Tribunal to execute the awards, orders or settlements arrived at by Labour Court or Tribunal

Link to ID Act (Amnd) Act, 2010

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Gratuity Act

GRATUITY MAXIMUM LIMIT INCREASED FROM RS. 350000 TO RS. 1000000 (FOR PRIVATE COMPANIES EMPLOYEES)

Employee's Compensation Act

Given below are the synopsis of the changes.

THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman" or "workmen" is mentioned in the entire Act the same needs to be read as "Employee" to make it gender sensitive.

The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased to Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.

The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor.

actual reimbursement of medical expenses incurred on account of injury caused during course of employment.

Empower the Central Government to specify monthly wages for the purpose of compensation. It is 50% of Rs.8000/-. This amendment is notified vide Central Government Notification No. S.O. 1258(E) vide Ministry of Labour & Employment dated 31st May 2010.

Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL employees.

The Commissioner shall dispose compensation cases within a time period of 3 months.

Download Emploee's Compensation (Amnd) Act, 2010

Download Emploee's Compensation Wage Limit Notification

AP MINIMUM WAGE

SECURITY SERVICES :

Zone I:All Municipal Corporations

Zone II : All Municipalities

Zone III : Rest of the area

Highly Skilled :

(Security Supervisor/ Officer/ Field Officer) Z-I: 7500, Z-II: 6500,Z-III: 5000

Skilled :

(Security Inspector/ ASO/ Intelligance and Fire Fighting Personal, Head Gaurd) Z-I: 7000, Z-II: 6000, Z-III: 4500

Semi-Skilled :

(Asst. Security Inspector /Security Gaurds with Arms) Z-I: 6500, Z-II: 5500, Z-III: 4250

Un-Skilled :

(Security Gaurds without Arms)

Z-I: 5000, Z-II: 4250, Z-III: 4000

CONTRACT LABOUR :

Andhra Pradesh contract labour minimum wages are revised w.e.f 18 aug'09 as:

Un-Skilled: Rs. 155 per day, Rs. 4030 per month

Semi-Skilled: Rs. 195 per day, Rs. 5070 per month

Skilled: Rs. 235 per day, Rs. 6110 per month

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APPLICABILITY OF THE ACT & SCHEME:

 Is extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.15,000/- per month w.e.f. 01.04.10. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals.

COVERAGE OF EMPLOYEES:

 Drawing wages Upto Rs.15,000/- per month Engaged either directly or thru’ contractor

RATE OF CONTRIBUTION OF THE WAGES:

 Employers’ 4.75%

 Employees’ 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION:

 The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due.

BENEFITS TO THE EMPLOYEES UNDER THE ACT:

 Medical Benefit
 Sickness Benefit(SB)
 Maternity Benefit(MB)
 Disablement Benefit
 Dependants’ Benefit(DB)
 Funeral Expenses

 In addition, the scheme also provides some other need based benefits to insured workers.

WAGES FOR ESI CONTRIBUTIONS:

 Registers/files to be maintained by the employers

CONTRIBUTION PERIOD:

 If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

TO BE DEEMED AS WAGES:

• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)

NOT TO BE DEEMED AS WAGES:

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation
• Benefits paid under the ESI Scheme.
• Encashment of leave
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance for livery
• Conveyance Amount towards reimbursement for duty related journey

PENALTIES :

 Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

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