Labour Welfare Laws Most Important And Old Question Paper

 Labour Welfare Laws

B.Com. – Semester V

Unit I & Unit II

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Employees State Insurance Act, 1948

 Definition, Scope of the Act

The Employees State Insurance Act, 1948 is a social welfare legislation aimed at providing medical care and cash benefits to employees and their dependents in case of sickness, maternity, disablement, and death due to employment injury. Here are some important notes on the definition and scope of the Act:

 

Definition: The Employees' State Insurance Act defines an employee as any person employed for wages or salary in any factory or establishment to which the Act applies.

 

Scope of the Act: The Act applies to non-seasonal factories and establishments with 10 or more employees, including contract employees. It also applies to cinema theaters, newspaper establishments, and private medical and educational institutions with 20 or more employees.

 

Benefits under the Act: The Act provides various benefits to the insured person and their dependents, including medical care, maternity benefits, disability benefits, and dependent benefits. The benefits are financed by contributions from both the employer and the employee.

 

Contribution Rates: The contribution rate under the Act is shared by both the employer and the employee. The employer contributes 3.25% of the employee's wages, while the employee contributes 0.75% of their wages.

 

Registration under the Act: Employers covered under the Act are required to register with the Employees' State Insurance Corporation (ESIC) within 15 days of the Act becoming applicable to them.

 

Insured Person: Once an employee is covered under the Act, they are referred to as an "insured person." An insured person and their dependents are entitled to the benefits provided by the Act.

 

Implementation: The Act is implemented by the Employees' State Insurance Corporation, which is a statutory body created under the Act. The Corporation is responsible for managing the funds, implementing the Act, and administering the benefits to the insured persons.

 

Penalty for Non-Compliance: Employers who fail to comply with the provisions of the Act can face penalties, including fines and imprisonment.

 

 

Standing Committe

The Employees' State Insurance Act, 1948 provides for the constitution of a Standing Committee to advise the Employees' State Insurance Corporation (ESIC) on matters related to the administration of the Act. The Standing Committee is an important body that plays a crucial role in the functioning of the ESIC.

 

key points to note about the Standing Committe.

 

Constitution: The Standing Committee is constituted by the Central Government, in consultation with the ESIC. It is composed of representatives of employers, employees, medical professionals, and the government.

 

Functions: The main function of the Standing Committee is to advise the ESIC on matters related to the administration of the Act. It may also provide advice on other issues as may be referred to it by the ESIC.

 

Meetings: The Standing Committee meets at least once every three months, and the quorum for the meeting is one-third of the total members. The Chairman of the ESIC presides over the meeting of the Standing Committee.

 

Reports: The Standing Committee is required to prepare an annual report on the working of the ESIC and submit it to the Central Government. The report should include information on the progress of the scheme, financial performance, and any other matters of importance.

 

Role in decision making: The advice of the Standing Committee is not binding on the ESIC, but it is expected to be given due consideration by the Corporation. The Standing Committee can make recommendations and suggest policy changes, which can influence the decision-making of the ESIC.

 

Overall, the Standing Committee is an important body that provides expert advice to the ESIC on matters related to the administration of the Employees' State Insurance Act, 1948. Its recommendations and reports help to improve the functioning of the ESIC and ensure that the benefits under the Act reach the intended beneficiaries.

 

Medical Benefit Council

The Medical Benefit Council is a statutory body established under the Employees' State Insurance Act, 1948. It is responsible for advising the Employees' State Insurance Corporation (ESIC) on matters related to the provision of medical benefits to the insured persons under the Act. Here are some key points to note about the Medical Benefit Council:

 

Constitution: The Medical Benefit Council is constituted by the Central Government in consultation with the ESIC. It is composed of representatives of employers, employees, medical professionals, and the government.

 

Functions: The main function of the Medical Benefit Council is to advise the ESIC on matters related to the provision of medical benefits to the insured persons under the Act. It may also provide advice on other issues related to the medical benefits scheme.

 

Meetings: The Medical Benefit Council meets at least once every three months, and the quorum for the meeting is one-third of the total members. The Chairman of the ESIC presides over the meeting of the Medical Benefit Council.

 

Reports: The Medical Benefit Council is required to prepare an annual report on the working of the medical benefits scheme and submit it to the Central Government. The report should include information on the progress of the scheme, financial performance, and any other matters of importance.

 

Role in decision making: The advice of the Medical Benefit Council is not binding on the ESIC, but it is expected to be given due consideration by the Corporation. The Medical Benefit Council can make recommendations and suggest policy changes, which can influence the decision-making of the ESIC.

 

Powers: The Medical Benefit Council has the power to make regulations for the administration of the medical benefits scheme. It may also appoint sub-committees for specific tasks related to the scheme.

 

The Medical Benefit Council plays an important role in advising the ESIC on matters related to the provision of medical benefits to the insured persons under the Employees' State Insurance Act, 1948. Its recommendations and reports help to improve the functioning of the medical benefits scheme and ensure that the insured persons receive timely and adequate medical care.

 

 Employees' State Insurance (ESI) fund

The Employees' State Insurance (ESI) fund is a social security fund established under the Employees' State Insurance Act, 1948 to provide various benefits to the employees covered under the Act. The fund is managed by the Employees' State Insurance Corporation (ESIC), which is a statutory body set up under the Act. Here are some key points to note about the ESI fund and its benefits:

 

Contributions: The ESI fund is financed by contributions from both the employer and the employee. The current rate of contribution is 3.25% of the employee's wages, with the employer contributing 4.75% of the wages. The contributions are paid into the ESI fund on a monthly basis.

 

Benefits: The ESI fund provides a range of benefits to employees and their dependents, including medical benefits, sickness benefits, maternity benefits, disablement benefits, and dependent benefits.

 

Medical benefits: Medical benefits include the provision of medical care, treatment, and medicines to employees and their dependents. This includes outpatient treatment, inpatient treatment, and specialist consultation.

 

Sickness benefits: Sickness benefits are provided to employees in case of sickness, injury or disablement. The benefit is paid as a cash allowance for a maximum period of 91 days in a year.

 

Maternity benefits: Maternity benefits are provided to women employees in case of pregnancy, miscarriage, or premature birth. The benefit is paid as a cash allowance for a maximum period of 26 weeks.

 

Disablement benefits: Disablement benefits are provided to employees who suffer from a permanent or temporary disability as a result of an employment injury. The benefit is paid as a cash allowance for a maximum period of 5 years.

 

Dependent benefits: Dependent benefits are provided to the dependents of employees who die as a result of an employment injury. The benefit is paid as a cash allowance to the dependents for a maximum period of 10 years.

 

The ESI fund provides an important social security net to employees and their dependents in case of sickness, injury, disability, or death. The fund is managed by the ESIC, which ensures that the benefits reach the intended beneficiaries in a timely and efficient manner.

 

 

Adjudication of disputes

The Employees' State Insurance Act, 1948 provides for the adjudication of disputes related to the Act through a process of quasi-judicial proceedings. Here are some key points to note about the adjudication of disputes under the Act:

 

Authorities: The Act provides for the constitution of various authorities to adjudicate disputes, including the Employees' Insurance Court, the Employees' Insurance Appellate Tribunal, and the High Court.

 

Jurisdiction: The Employees' Insurance Court has jurisdiction to hear and decide disputes related to the non-payment or short payment of contributions, non-implementation of the provisions of the Act, and any other matter that may be referred to it by the Central Government.

 

Proceedings: The proceedings before the Employees' Insurance Court are quasi-judicial in nature and follow the principles of natural justice. The Court is empowered to summon and examine witnesses, take evidence, and make orders for the production of documents.

 

Appeals: Any party aggrieved by the decision of the Employees' Insurance Court may appeal to the Employees' Insurance Appellate Tribunal within 3 months from the date of the decision. The Tribunal may either confirm, modify or set aside the decision of the Court.

 

Revision: Any person aggrieved by the decision of the Employees' Insurance Appellate Tribunal may file a revision petition before the High Court within 60 days from the date of the decision.

 

Enforcement: The orders of the Employees' Insurance Court, Employees' Insurance Appellate Tribunal, and the High Court are enforceable as if they were decrees of a civil court.

 

The adjudication of disputes under the Employees' State Insurance Act, 1948 provides an important mechanism for resolving disputes related to the Act in a fair and just manner. The process follows the principles of natural justice and ensures that the parties are heard and given an opportunity to present their case. The orders of the authorities are enforceable, which provides a strong deterrent against non-compliance with the Act.

Payment of Gratuity Act, 1952 Scope and application, definition!

 

The Payment of Gratuity Act, 1952 is a social security legislation that provides for the payment of gratuity to employees working in establishments that have 10 or more employees. Here are some key points to note about the scope and application, as well as the definitions, of the Payment of Gratuity Act, 1952

 

Scope and application: The Act applies to all establishments that employ 10 or more employees, whether they are in the private sector, public sector, or government. The Act does not apply to apprentices or to employees covered by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.

 

Definitions: The Act defines several key terms, including "continuous service," "employee," "employer," "establishment," and "gratuity." "Continuous service" is defined as the period of employment with an employer, which is not interrupted by any breaks or gaps. An "employee" means any person (including a manager or an administrative staff) who is employed for wages in an establishment. An "employer" means the person who employs the employees in the establishment. "An "employer" means the person who employs the employees in the establishment. "Establishment" means a factory, mine, oilfield, plantation, port, railway company, shop, or other establishment to which the Act applies. "Gratuity" means the payment made by the employer to an employee in recognition of their long and meritorious service.

 

Payment of gratuity: The Act provides for the payment of gratuity to employees who have completed at least 5 years of continuous service with the employer. The gratuity is calculated as 15 days' wages for every completed year of service, subject to a maximum limit of 20 lakhs.

 

Nomination: The Act also provides for the nomination of a person by the employee to receive the gratuity in case of their death before the payment is made.

 

Administration: The Act is administered by the controlling authority appointed by the government for each state or union territory. The controlling authority is responsible for settling disputes and enforcing the provisions of the Act.

 

Overall, the Payment of Gratuity Act, 1952 provides an important social security net to employees who have completed at least 5 years of continuous service with their employer. The Act ensures that employees are recognized and rewarded for their long and meritorious service, and that their dependents are taken care of in case of their death. The Act also provides a mechanism for resolving disputes and enforcing the provisions of the Act.

 

Determination of the amount of gratuity

The Payment of Gratuity Act, 1952 provides for the payment of gratuity to employees who have completed at least five years of continuous service with the employer. The amount of gratuity payable is determined based on certain factors. Here are some key points to note about the determination of the amount of gratuity under the Act: The amount of gratuity payable is determined based on certain factors. Here are some key points to note about the determination of the amount of gratuity under the Act:

 

Calculation of gratuity: The amount of gratuity payable is calculated as 15 days' wages for every completed year of service, subject to a maximum limit of 20 lakhs. The rate of wages for the purpose of calculating gratuity is the last drawn salary of the employee.

 

Formula for calculation: The formula for calculating the amount of gratuity is as follows:

(A x B x C) / 26

where,

A = Number of completed years of service

B = Last drawn salary of the employee

C = 15 (the number of days' wages payable for each completed year of service)

 

Example: For example, if an employee has worked with an employer for 12 years and their last drawn salary was Rs. 30,000, the amount of gratuity payable would be calculated as follows:

(12 x 30,000 x 15) / 26 = Rs. 2,07,692.31

 

Continuous service: To be eligible for gratuity, an employee must have completed at least five years of continuous service with the employer. However, if the employee dies or becomes disabled due to an accident or illness, the requirement of continuous service is waived.

 

Notice of payment: The employer is required to give notice to the employee within 30 days of the gratuity becoming payable, specifying the amount of gratuity payable and the date on which the payment will be made.

 

Taxation: The amount of gratuity received by the employee is exempt from income tax up to a certain limit, which is determined based on the provisions of the Income Tax Act.

 

 

The Payment of Gratuity Act, 1952 provides an important mechanism for the payment of gratuity to employees who have completed at least five years of continuous service with their employer. The amount of gratuity payable is determined based on the last drawn salary of the employee and the number of years of service completed. The Act ensures that employees are recognized and rewarded for their long and meritorious service.

 

Inspector

Under the Payment of Gratuity Act, 1952, an inspector refers to an individual appointed by the appropriate government to carry out inspections and ensure compliance with the provisions of the Act. The Act provides for the payment of gratuity to employees who have completed five years of continuous service with an employer.

 

The role of the inspector includes the following:

 

Inspecting the records and accounts maintained by the employer to ensure compliance with the Act.

 

Conducting inquiries and investigations into any complaints received from employees regarding the non-payment or short payment of gratuity.

 

Ensuring that the employer complies with the provisions of the Act related to the payment of gratuity, such as the requirement to pay the gratuity within 30 days of the employee's last working day.

 

Taking appropriate action against employers who violate the provisions of the Act, such as initiating legal proceedings against them.

 

Advising and guiding employers and employees regarding the provisions of the Act and their rights and obligations under the Act.

 

Maintaining records and submitting reports to the appropriate government regarding the implementation of the Act.

 

In summary, the role of the inspector under the Payment of Gratuity Act, 1952 is to ensure that employers comply with the provisions of the Act and to protect the rights of employees to receive gratuity payments.

 

Penalties

Under the Payment of Gratuity Act, 1952, penalties are imposed for non-compliance with the provisions of the Act. The penalties that may be imposed are as follows:

 

If an employer fails to pay the gratuity amount within the prescribed time limit of 30 days, they will be liable to pay simple interest at a rate fixed by the government from time to time. This interest is calculated from the due date of payment until the date of actual payment.

 

If an employer contravenes any other provisions of the Act, they will be punishable with imprisonment for a term that may extend to six months, or with a fine that may extend to ten thousand rupees, or both.

 

If an employer makes a false statement or gives false information in any application or return under the Act, they will be punishable with imprisonment for a term that may extend to six months, or with a fine that may extend to ten thousand rupees, or both.

 

If an employer makes a false statement or gives false information in any application or return under the Act, they will be punishable with imprisonment for a term that may extend to six months, or with a fine that may extend to ten thousand rupees, or both.

 

If an employer contravenes any rules made under the Act, they will be punishable with imprisonment for a term that may extend to six months, or with a fine that may extend to ten thousand rupees, or both.

 

It is important for employers to ensure compliance with the provisions of the Act to avoid penalties and legal action. Employees can also approach the designated authority to seek redressal of grievances related to non-payment or short payment of gratuity.

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