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Consider the following statements about Employees’ State Insurance (ESI) Act, 1948 : 1. The Act is applicable to non-seasonal factories using power and employing 20 or more persons. 2. The ESI Scheme has already been implemented in different areas in all the States/Union Territories of India. 3. ESI Scheme being contributory in nature* all the employees in the factories or establishments to which the Act applies shall be insured. Which of the statements given above are correct ?
Explanation
Statement 1 is incorrect because the ESI Act, 1948, applies to non-seasonal factories using power that employ 10 or more persons, not 20 [t1][t2][t5]. The threshold of 20 or more persons applies to non-power using factories and certain other establishments [t1][t4]. Statement 2 is correct; the ESI Scheme has been progressively implemented and now covers all States and Union Territories in India [t3][t9]. Statement 3 is correct as the ESI Scheme is a self-financing, contributory social security program where all employees in covered factories or establishments must be insured [t1][t7]. Under Section 2(12), once an establishment is covered, it remains covered even if the employee count falls below the threshold [t1]. The scheme provides medical and cash benefits for sickness, maternity, and employment injury [t4][t7].
Sources
- [1] https://py.gov.in/sites/default/files/labour-employeestateinsurance.pdf
- [2] https://labour.odisha.gov.in/en/directorate/esi-scheme
- [3] https://wb.gov.in/acts/act_labour_employees_stateInsurance.pdf
- [4] https://esiwb.gov.in/main/esiact
- [5] https://labour.gov.in/sites/default/files/theemployeesact1948_0.pdf