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THE ESI ACT,1948& MATERNITY BENEFITS ACT,1961FLOW OF THE PRESENTATIONEMPLOYEES STATE INSURANCE ACT,1948

OBJECTIVE & APPLICABILITYOBJECTIVE OF THE ACT

To provide for certain cash benefits to the employees in case of sickness, maternity, employment injury and medical facilities in kind and contains provisions for certain other matters having bearing thereon

APPLICABILITY OF THE ACT

The act applies to all factories employing 10 or more employeesDoes not apply to a mine, railway running shed and specified seasonal factoriesThe term employee as defined in Sec.2(9) of the ESI Act has a wide connotation and would include within its scope every type of clerical, manual, technical and supervisory functions.Persons whose remuneration does not exceed Rs 15,000 a month are coveredThe Act does not make any distinction between technical or non-technical employees. There is also no distinction between those employed on time-rate or piece rate basis.

APPLICABILITY (Contd.)The following persons have been held to be employees within the meaning of Section 2(9) of the ESI Act:Employees employed directly by the principal employer and those employed by or through a contractor on factory premises and those employed outside factory premises under supervision of principal employer.Also includes:Persons engaged in purchase of raw materialsAdministrative staffPersons engaged for distribution and sales of products and similar functionsDoesnt include member of Indian Naval, Army or Air force

The following can be deemed as wages:All remuneration paid in cash if terms of contract fulfilledIncludes any payment in any period of authorized leave, lockout or strike which is not illegal Layoff compensationOther remuneration paid at intervals not exceeding two monthsDoes not include:Contribution paid to PF or pension fundTravelling allowance or value of travelling concessionGratuity payable on discharge. Pay in lieu of notice of retrenchment compensationBENEFITSEXEMPTION of persons or class of persons (sec.88)App. Govt. is authorized to exempt any person or class of person from the operation of the act

Any exemption granted shall be notified by the notification in the Official Gazette.

Such person or class of persons must be working in a factory/establishment

Any exemption granted shall be accompanied with such conditions as the appropriate Govt. may think fit to impose7EXEMPTION of a factory or establishment belonging to Govt./any local authorityApp.Govt. must consult the Corporation

Any exemption granted shall be notified by the notification in the Official Gazette.

Exemptions shall always be subj. to the conditions imposed by the Govt.

Exemptions shall always be in order only if the employees in any such factory/establishment are already in receipt of benefits substantially similar or superior to the benefits provided under this act.8EXEMPTION from one or more provisions of the act (sec.91)Exemption may be granted to any factory or establishment or any person or class of person by App.Govt.

Any exemption granted shall be notified by the notification in the Official Gazette.

Any exemption granted under the sec.87,88,90 or 91 in respect of any person or class of person may be enforced either prospectively or retrospectively the date of its enforcement has to be specified (sec.91-A)

9CALCULATION OF ESIEmployee's State Insurance Definition:Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. Any labour who earns below Rs 15000 as his or her monthly salary will be covered under the ESI. Both the employer and employee donate for ESI. Employer's contribution is around 4.75% and employee's contribution is 1.75%.Example 1:Find out the ESI for the gross salary of Rs 9,000?Step 1:Enter the salary, For e.g. 9,000Step 2:Employee contributes 1.75% for ESI. Now compute as shown here, ESI = 9,000*(1.75/100) = 158Step 3:Employer contributes 4.75% for ESI. Compute as shown here, ESI = 9,000*(4.75/100) = 428

In case the salary goes above Rs. 15,000, say to Rs 17,000, during the contribution period, should we calculate ESI on the actual salary (Rs 17,000) or should the salary be restricted to Rs 15,000 for ESI calculation?ESI should be calculated on total ESI salary and the salary should not be restricted to Rs 15,000 in case the salary goes above Rs 15,000.

If the total ESI salary is Rs 17,000, ESI deduction and contribution should be calculated on Rs 17,000 and not on Rs 15,000.

Payroll managers should note that employees get additional benefits on the ESI amount calculated on salary above Rs 15,000.

POINTS TO KEEP IN MIND-Once the ESI contribution begins, the contribution should continue until the end of the contribution period (Apr to Sep or Oct to Mar) even if the salary (for the purpose of ESI calculation) increases beyond Rs 15,000 per month during the contribution period.

During the contribution period ESI should be calculated on total ESI salary and the salary should not be restricted to Rs 15,000 in case the salary goes above Rs 15,000.

MATERNITY BENEFITS ACT,1961

PURPOSE & OBJECTIVEPURPOSE OF THE ACT The Maternity Benefits Act, 1961 provides benefits aimed to protect the dignity of motherhood by providing for the full and healthy maintenance of women and her child when she is not working.

OBJECTIVE OF THE ACT An act to regulate the employment of women in certain establishment for certain period before and after child birth and to provide for maternity benefit and certain other benefits

SCOPE OF THE ACTIt is applicable to mines, factories, circus industry, plantations, shops and establishments employing ten or more persons

- It can be extended to other establishments by the State Governments with the approval of the Central Government, after giving not less than two month's notice of its intention of so doing, by notification in the Official GazetteBENEFITS UNDER THE ACT(A) Monetary Benefits 84 Days Leave with pay before/after delivery. A medical bonus of Rs. 1,000/-Take the pay for 6 weeks after/before child birth within 48 hrs of requestAn additional leave with pay up to one month [Proof of illness] In case of miscarriage -Six weeks leave with average pay. Tubectomy operation -Leave with wages @ of maternity benefit for a period of 2 weeks.

(B) Non Monetary Benefits Light work for 10 weeks (6 weeks plus 1 month) before delivery. 2 Nursing breaks of 15 Minutes until the child is 15 months old. No discharge or dismissal while on maternity leave. No charge to her disadvantage in any conditions of her employment while on maternity leave. Pregnant women discharged or dismissed may still claim maternity benefit from employer.

FORFEITURE A Female can be deprived of maternity benefit:

If she works in other establishment after going on maternity leaveDuring her period of pregnancy, she is dismissed for gross misconduct. Willful destruction of employers assetsAssaulting any superior or co worker Criminal offence involving moral turpitudeTheft, fraud or dishonesty3. Within 60 days from date of deprivation of maternity benefit, any Women can appeal to the authority prescribed by law. The decesion of such authority will be final.

DUTIES & PENALTIES OF EMPLOYERPay Maternity benefit and/ or medical bonusGive nursing breaksDo not dismiss and discharge a pregnant woman.Prepare and maintain the prescribed registers and records and submit prescribed returnsViolations of the provisions of the Maternity Benefit Act, 1961 can be punishable with imprisonment of 3 months -1 Year or with fine to Rs. 500 or both. Beside, if the violation is related to non-payment of the maternity benefit or any other amount, the court can recover this amount as if it is a fine and pay it to the aggrieved party/person

AMENDMENTSShort title and commencement.This Act may be called the Maternity Benefit (Amendment) Act, 2008. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint2. Substitution of new section for section 8. Payment of medical bonus. Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer a medical bonus of one thousand rupees, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.The Central Government may before every three years, by notification in the Official Gazette, increase the amount of medical bonus subject to the maximum of twenty thousand rupees.20ARTICLE GIST: Penalised for PregnancySource: http://www.telegraphindia.com/1120807/jsp/nation/story_15824271.jsp#.VDQNIvmSyME Indrani Chakraverty had been working for a Delhidesign firmfor four years. Suddenly in August 2009, when she was carrying her first child, she was told over phone that she was sacked.She filed a criminal case against the firm-for violating the Maternity Benefit Act, 1961, which forbids an employer from terminating the services of a pregnant woman unless there are complaints of gross misconduct against her.The only thing that changed was I was pregnant and unable to give them the 24x7 time I gave them earlier. Also, its not that I didnt work while I was pregnant. I delivered the CWG designs just before I was terminated.On July 26, Indrani won Rs 7.5 lakh as settlement moneyfrom the company on orders from Delhi High Court.

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