THE EMPLOYEES' STATE INSURANCE ACT, 1948 IN ARIF CREATION

THE EMPLOYEES' STATE INSURANCE ACT, 1948

ACT NO. 34 OF 1948 1*

[19th April, 1948.]


An Act to provide for certain benefits to employees in case of
sickness, maternity and employment injury and to make provision for
certain other matters in relation thereto.

WHEREAS it is expedient to provide for certain benefits to
employees in case of sickness, maternity and employment injury and to
make provision for certain other matters in relation thereto;

It is hereby enacted as follows:--


CHAP

PRELIMINARY


CHAPTER I

PRELIMINARY


1.

Short title, extent, commencement and application.


1. Short title, extent, commencement and application.- (1) This
Act may be called the Employees' State Insurance Act, 1948.

(2) It extends to the whole of India 2***.

(3) It shall come into force on such date or dates3* as the
Central Government may, by notification in the Official Gazette,
appoint, and different dates 3* may be appointed for different
provisions of this Act and 4*[for different States or for different
parts thereof].

(4) It shall apply, in the first instance, to all factories

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(including factories belonging to the Government) other than seasonal
factories.

5*[Provided that nothing contained in this sub-section shall
apply to a factory or establishment belonging to or under the control
of the Government whose employees are otherwise in receipt of benefits
substantially similar or superior to the benefits provided under this
Act.]

(5) The appropriate Government may, in consultation with the
Corporation and 6*[where the appropriate Government is a State
Government, with the approval of the Central Government], after giving
six months' notice of its intention of so doing by notification in the
Official Gazette, extend the provisions of this Act or any of them, to
any other establishment or class of establishments, industrial,
commercial, agricultural or otherwise:

7*[Provided that where the provisions of this Act have been
brought into force in any part of a State, the said provisions shall
stand extended to any such establishment or class of establishments
within that part if the provisions have already been extended to
similar establishment or class of establishments in another part of
that State.];

5*[(6) A factory or an establishment to which this Act applies
shall continue to be governed by this Act notwithstanding that the
number of persons employed therein at any time falls below the limit
specified by or under this Act or the manufacturing process therein
ceases to be carried on with the aid of power.].
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1. This Act has been extended to Jaunsar Bawar Parganas in the Dehra
Dun District and the areas of South of Kaimpur range in the Mirzapur
District of the State of Uttar Pradesh by Schedule IV of Act 20 of
1954; Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I and Goa, Daman
and Diu by Reg. 11 of 1963, s. 3 and Sch.
2. The words "except the State of Jammu and Kashmir" omitted by Act
51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).
3. For dates, see Annexure.
4. Subs. by Act 53 of 1951, s. 2, for "for different States".
5. Ins. by Act 29 of 1989, s. 2 (w.e.f. 20-10-1989).
6. Subs. by Act 53 of 1951, s. 2, for "with the approval of the
Central Government".
7. Ins. by Act 29 of 1989, s. 2 (w.e.f. 16-5-1990).

224

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2.

Definations.


2. Definations.- In this Act, unless there is anything repugnant
in the subject or context,--

(1) "appropriate Government" means, in respect of
establishments under the control of the Central
Government or 1*[a railway administration] or a major
port or a mine or oilfield, the Central Government, and
in all other cases, the State Government;

2* * * * *


(3) "confinement" means labour resulting in the issue of a
living child, or labour after twenty-six weeks of
pregnancy resulting in the issue of a child whether
alive or dead;

(4) "contribution" means the sum of money payable to the
Corporation by the principal employer in respect of an
employee and includes any amount payable by or on
behalf of the employee in accordance with the
provisions of this Act;

4* * * * *


(6) "Corporation" means the Employees' State Insurance
Corporation set up under this Act;

3*[(6A) "dependant" means any of the following relatives of
a deceased insured person, namely:--

(i) a widow, a minor legitimate or adopted son, an
unmarried legitimate and adopted 4*[daughter;]

5*[(ia) a widowed mother;]
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1. Subs. by the A.O. 1950 for "a federal railway".
2. Omitted by Act 29 1989, s. 3 (w.e.f. .........).
3. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).

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4. Subs. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
5. Ins. by s. 3, ibid. (w.e.f. 20-10-1989).
225

(ii) if wholly dependent on the earnings of the insured
person at the time of his death, a legitimate or
adopted son or daughter who has attained the age
of eighteen years and is infirm;

(iii) if wholly or in part dependent on the earnings of
the insured person at the time of his death,--

(a) a parent other than a widowed mother,

(b) a minor illegitimate son, an unmarried
illegitimate daughter or a daughter legitimate or
adopted or illegitimate if married and a minor or
if widowed and a minor,

(c) a minor brother or an unmarried sister or
a widowed sister if a minor,

(d) a widowed daughter-in-law,

(e) a minor child of a pre-deceased son,

(f) a minor child of a pre-deceased daughter
where no parent of the child is alive, or

(g) a paternal grand-parent if no parent of
the insured person is alive;]

(7) "duly appointed" means appointed in accordance with the
provisions of this Act or with the rules or regulations
made thereunder;

1*[(8) "employment injury" means a personal injury to an
employee caused by accident or an occupational disease
arising out of and in the course of his employment,
being an insurable employment, whether the accident
occurs or the occupational disease is contracted within
or outside the territorial limits of India;]

(9) "employee" means any person employed for wages in or in
connection with the work of a factory or establishment
to which this Act applies and--

---

(i) who is directly employed by the principal
employer on any work of, or incidental or preliminary
to or connected with the work of, the factory or
establishment, whether such work is done by the
employee in the factory or establishment or elsewhere;
or

(ii) who is employed by or through an immediate
employer on the premises of the factory or
establishment or
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1. Subs. by Act 44 of 1966, s. 2, for cl. (8) (w.e.f. 28-1-1968).

226

under the supervision of the principal employer or his
agent on work which is ordinarily part of the work of
the factory or establishment or which is preliminary to
the work carried on in or incidental to the purpose of
the factory or establishment; or

(iii) whose services are temporarily lent or let
on hire to the principal employer by the person with
whom the person whose services are so lent or let on
hire has entered into a contract of service;

1*[and includes any person employed for wages on
any work connected with the administration of the
factory or establishment or any part, department or
branch thereof or with the purchase of raw materials
for, or the distribution or sale of the products of,
the factory or establishment 2*[ or any person engaged
as an apprentice, not being an apprentice engaged under
the Apprentices Act, 1961 (52 of 1961), or under the
standing orders of the establishment; but does not
include]]

(a)any member of 3*[the Indian] naval, military
or air forces; or

4*[(b) any person so employed whose wages
(excluding remuneration for overtime work) exceed
5*[such wages as may be prescribed by the Central
Government]:

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Provided that an employee whose wages (excluding
remuneration for overtime work) exceed 5*[ such wages
as may be prescribed by the Central Government] at any
time after (and not before) the beginning of the
contribution period, shall continue to be an employee
until the end of that period;]

(10) "exempted employee" means an employee who is not liable
under this Act to pay the employee's contribution;

2*[(11) "family" means all or any of the following relatives of
an insured person, namely:--

(i) a spouse;

(ii) a minor legitimate or adopted child dependent upon
the insured person;

(iii) a child who is wholly dependent on the earnings
of the insured person and who is--

(a) receiving education, till he or she attains
the age of twenty-one years,

(b) an unmarried daughter;

(iv) a child who is infirm by reason of any physical or
mental abnormality or injury and is wholly dependent on the
earnings of the insured person, so long as the infirmity
continues;

(v) dependent parents;

(12) "factory" means any premises including the precincts
thereof--

(a) whereon ten or more persons are employed or were
employed for wages on any day of the preceding twelve months, and in
any part of which a manufacturing process is being carried on with the
aid of power or is ordinarily so carried on, or

(b) whereon twenty or more persons are employed or were employed
for wages on any day of the preceding twelve months, and in any part
of which a manufacturing process is being carried on without the aid
of power or is ordinarily so carried on,

---

but does not include a mine subject to the operation of the Mines Act,
1952 (35 of 1952) or a railway running shed;]
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1. Subs. by Act 44 of 1966, s. 2, for "but does not include" (w.e.f.
28-1-1968).
2. Subs. by Act 29 of 1989 s. 3 (w.e.f. 20-10-1989).
3. Subs. by the A.O. 1950, for "His Majesty's".
4. Subs. by Act 44 of 1966, s. 2, for cl. (b) (w.e.f. 28-1-1968).
5. Subs. by Act 29 of 1989, s. 3 (w.e.f. ....... ).

227

(13) "immediate employer", in relation to employees employed by
or through him, means a person who has undertaken the
execution, on the premises of a factory or an establishment
to which this Act applies or under the supervision of the
principal employer or his agent, of the whole or any part of
any work which is ordinarily part of the work of the factory
or establishment of the principal employer or is preliminary
to the work carried on in, or incidental to the purpose of,
any such factory or establishment, and includes a person by
whom the services of an employee who has entered into a
contract of service with him are temporarily lent or let on
hire to the principal employer; 1*[and includes a
contractor];


2*(13A) "insurable employment" means an employment in a factory
or establishment to which this Act applies;]
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1. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
2. Clause (13A) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968).

228

(14) "insured person" means a person who is or was an employee in
respect of whom contributions are or were payable under this
Act and who is, by reason thereof, entitled to any of the
benefits provided by this Act;

1*[(14A) "managing agent" means any person appointed or acting as
the representative of another person for the purpose of
carrying on such other person's trade or business, but
does not include an individual manager subordinate to
an employer;

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2*[ (14AA) "manufacturing process" shall have the meaning
assigned to it in the Factories Act, 1948 (63 of 1948);]

(14B) "mis-carriage" means expulsion of the contents of a pregnant
uterus at any period prior to or during the twenty sixth
week of pregnancy but does not include any miscarriage, the
causing of which is punishable under the Indian Penal Code
(45 of 1860);]

(15) "occupier" of the factory shall have the meaning assigned to
it in the Factories Act, 3*[1948 (63 of 1948)];

4*[(15A) "permanent partial disablement" means such disablement
of a permanent nature, as reduces the earning capacity
of an employee in every employment which he was capable
of undertaking at the time of the accident resulting in
the disablement:

Provided that every injury specified in Part II of the Second
Schedule shall be deemed to result in permanent partial
disablement;

(15B) "permanent total disablement" means such disablement of a
permanent nature as incapacitates an employee for all work
which he was capable of performing at the time of the
accident resulting in such disablement:

Provided that permanent total disablement shall be deemed to
result from every injury specified in Part I of the Second
Schedule or from any combination of injuries specified in
Part II thereof where the aggregate percentage of the loss
of earning capacity, as specified in the said Part II
against those injuries, amounts to one hundred per cent. or
more;]

2*[(15C) "power" shall have the meaning assigned to it in the
Factories Act, 1948(53 of 1948);]

(16) "prescribed" means prescribed by rules made under this Act:
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1. Clauses (14A) and (14B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 53 of 1951, s. 3, for "1934".
4. Clauses (15A) and (15B) ins. by Act 44 of 1966, s. 2 (w.e.f. 28-
1-1968).

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229

(17) "principal employer" means--

(i) in a factory, the owner or occupier of the factory
and includes the managing agent of such owner or occupier,
the legal representative of a deceased owner or occupier,
and where a person has been named as the manager of the
factory under 1*[the Factories Act, 1948 (63 of 1948)], the
person so named;

(ii) in any establishment under the control of any
department of any Government in India, the authority
appointed by such Government in this behalf or where no
authority is so appointed, the head of the department;

(iii) in any other establishment, any person
responsible for the supervision and control of the
establishment;

(18) "regulation" means a regulation made by the Corporation;

(19) "Schedule" means a Schedule to this Act;

2*[(19A) "seasonal factory" means a factory which is exclusively
engaged in one or more of the following manufacturing processes,
namely, cotton ginning, cotton or jute pressing, decortication of
groundnuts, the manufacture of coffee, indigo, lac, rubber, sugar
(including gur) or tea or any manufacturing process which is
incidental to or connected with any of the aforesaid processes and
includes a factory which is engaged for a period not exceeding seven
months in a year--

(a) in any process of blending, packing or repacking of tea
or coffee; or

(b) in such other manufacturing process as the Central
Government may, by notification in the Official
Gazette, specify;]

(20) "sickness" means a condition which requires medical
treatment and attendance and necessitates abstention from
work on medical grounds;

(21) "temporary disablement" means a condition resulting from an

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employment injury which requires medical treatment and
renders an employee, as a result of such injury, temporarily
incapable of 3*[doing the work which he was doing prior to
or at the time of the injury];

(22) "wages" means all remuneration paid or payable, in cash to
an employee, if the terms of the contract of employment,
express or implied, were fulfilled and includes 4*[any
payment to an employee in respect of any period of
authorised leave, lock-out, strike which is not illegal or
lay-off and] other additional remuneration, if any, 5*[paid
at intervals not exceeding two months], but does not
include--

(a) any contribution paid by the employer to any
pension fund or provident fund, or under this Act;

(b) any travelling allowance or the value of any
travelling concession;
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1. Subs. by Act 53 of 1951, s. 3, for "clause (e) of sub-section (1)
of section 9 of the Factories Act, 1934".
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, s. 2, for "work" (w.e.f. 28-1-1968).
4. Ins. by s. 2, ibid. (w.e.f. 28-1-1968).
5. Subs. by Act 53 of 1951, s. 3, for "paid at regular intervals
after the last day of the wage period".

230

(c) any sum paid to the person employed to defray
special expenses entailed on him by the nature of his
employment; or

(d) any gratuity payable on discharge;

1*[ (23) "wage period" in relation to an employee means the
period in respect of which wages are ordinarily payable
to him whether in terms of the contract of
employment, express or implied or otherwise;]

2*[(24) all other words and expressions used but not defined in
this Act and defined in the Industrial Disputes Act,
1947 (14 of 1947), shall have the meaninsg respectively
assigned to them in that Act.]

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