Key amendments of the Employees State Insurance Act 1948

S.No

Section/Rule/Reg
.

Position before amendment

Position after amendment

Sec.1(5)

The Appropriate Government (central or

state government) can extend the
application of the Act to any establishment
by givingsix months notice by notifying it
in Official Gazette

Now, the Appropriate (central or state

government) Government can extend
the application of the Act to any
establishment by givingone
month notice by notifying it in Official
Gazette.

Sec.2(6-A)

The definition of dependant included only

aminor legitimate or adopted son.

However, the scope of the definition has

been widened to include legitimate or
adopted son who has not attained the
age of twenty five years.

Sec.2(9)

The definition of
employeeexcluded apprenticesappointed
understanding orders also besides the
apprentices appointed under
theApprentices Act 1961

The definition of employee now includes

apprentices appointed under standing
ordersbut excludes only
theapprentices appointed under
the Apprentices Act 1961.

Sec.2(11)

The definition of family included only those

parents who aredependant of the insured
person. itexcluded a minor brother or
sister even though they were wholly
dependent up on the earnings of the
insured person.

The definition of family now

includes also those parents who
have some source of income subject
to a limitprescribed by the Central
government as well as a minor brother
or sister if their parents are not
alive and the insured person is not
married and they are wholly dependent
up on the earnings of the insured
person.

Sec.2(12)

The definition of factory has segregated

factories in two categories for coverage.
Those running with power and those
without power. Thosewith power were
included even though they employed ten or
more persons but those
running without powerwere included only
when they employ twenty or more
persons.

This distinction has been removed and

all those factories are covered if they
employ ten or more
persons irrespective whether run with
power or without power.

Sec. 45

It provides for appointment

ofInspectors for implementing the
provisions of the Act

Now these Inspectors are called Social

Security Officers.

Sec.45-AA

Non-existent

A new section has been added to enable

employersto appeal to an
AppellateAuthority against an order
passed by the Corporation in respect of
payment of contribution within sixty
days of the date of such order. Thus this
provides a remedy to the employers
against an order passed under Sec.45-A.

Sec.51-E

Non-existent

A new section has been added to

cover accidentsoccurring to an
employeewhile commuting to and
from office to residence and vice
versa for duty,provided there is nexus

between the circumstances and

employment. Thus it sets at rest doubts
to a large extent about such accidents
arising out of and in the course of
employment.
9

Sec.31-E

Non-existent

New sections 31-D and 31-E have been

added after 31-C . As per Sec.31-E, if an
employer succeeds in the appeal
u/Sec.45-AA, the amount deposited
byhim with ESI Corporation in full or in
part as decided by the Appellate
Authorityshall be refunded to the
employer with simple interest specified
in Regulation 31-A.Thus this affords a
relief to the employer from financial
hardship.

10

Rule 59

Existing limit of funeral expenses is

Rs. 5000/-

Revised to Rs.10000/-

11

Reg.10(C)

Under the un-amended Regulation, the

employer has to furnish information
in Form 01-A by 31st of January every
year.

The existing Reg.10(C) has

been substituted by new 10(C)as per
whichany change in the
particulars furnished at the time of
registration shall be intimated in Form
01 to the Regional or Sub-regional
Office of the Corporation within two
weeks of such change.

Note :- Since it is well known to every one by now that the wage limit of an employee has been revised from Rs.10000/p.m to Rs.15000/p.m , this amendment has not been included it in the table of amendments above.