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Velammal Engineering College, Chennai - 600 066
(An Autonomous Institution, Affiliated to Anna University, Chennai)
Department of Management Sciences
Subject Code: 19BA6112T
Subject Name: HUMAN RESOURCES MANAGEMENT
Name of the Student: RAMESH A
Registration number: 113221611034
Year: I
Semester: II
Batch: 2021 – 2023
Assignment Topic: WORKMAN’S COMPENSATION ACT
MATERNITY BENEFIT ACT
EMPLOYEE STATE INSURANCE ACT

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Faculty Name: DR.R.S.LEKSHMI
INDEX
S.NO CONTENTS PAGE NO
1 WORKMEN COMPENSATION ACT 3
2 OBJECTIVES 4
3 CONDITIONS 6
4 RELATED CASE 12
5 MATERNITY BENEFIT ACT 13
6 OBJECTIVES 14
7 RELATED CASE 21
8 EMPLOYEE STATE INSURANCE ACT 23
9 CONDITION 24
10 RELATED CASE 29
11 CONCLUSION 31

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WORKMEN COMPENSATION ACT
INTRODUCTION
The Workmen Compensation act was formed after noticing the labourers‘ exposure to
danger due to advanced machinery, which is comparatively more sophisticated.
According to the Compensation Act of 1884, employers were responsible for workmen
compensation only when a fatal road accident took place. In 1885, mining and factory inspectors
realised that the Fatal and Major Accident Act was insufficient in changing conditions.
After hearing the situation, the government formed a committee of experts from various
fields to enact the Workmen‘s Compensation Act,1923.
The act stopped the lengthy process of generally expensive courts; instead, the step was
taken to seek easy compensation for the injury caused during employment.
Later in 2010, the act came to be known as the Employee‘s Compensation Act.
SCOPE OF WORKMEN COMPENSATION ACT
This act is liable to the workers who work in an industry mentioned in the act.

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The act protects only those injuries caused by accidents during employment, but such
accidents are subject to certain exceptions.
APPLICABILITY OF WORKMEN COMPENSATION ACT
The act is known as the Employees Compensation Act,1923. This act is applicable
across India.
The act covers the following under the definition of employee:
 It is for the employees working in factories, mines, docks and other establishments mentioned
under Schedule II of the Act.
 It applies to the person hired to work abroad as mentioned under Schedule II of the Employee
Compensation Act,1923
 It applies to employees employed as drivers, mechanics, helpers, or persons connected with
motor vehicles, captains or other crew members on aircraft.
 The act does not apply to members of the armed forces of Union & Workmen who get covered
under the Employee State Insurance Act.
OBJECTIVE OF WORKMEN COMPENSATION ACT
The main object behind the enactment of the Act is:
 to provide compensation at the time of an accident. And ensure that the workmen have a
sustainable life after an injury caused during the employment.
 This act forms a duty and responsibility of an employer to look towards the welfare of workmen
when injured during employment. Still, it has also reserved the right to earn a profit from the
employer.
ASPECT OF THE WORKMEN COMPENSATION ACT
There are two basic concepts of the Act:
 The theory of minimum cost
The theory of including the cost of the workmen‘s efforts into the cost of production

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There are various resources used to run an industry like machinery, capital, skilled and
unskilled workers.
Every industry, keep aside a certain amount for any mishappening that may occur in the
factory, e.g. a machine does not work properly, a wall of an industry falls etc. So, a question arises,
if the machine gets such concerns, then why not humans
The Workmen Compensation Act, 1923 or the Employee‘s Compensation Act, 1923,
provides social security to the employee by providing them with compensation for injury or
accident during employment.
LIABILITY OF THE EMPLOYER FOR COMPENSATION
Section 3 of the Employee‘s Compensation Act deals with ‗Employer‘s Liability for
Compensation. This section provides the condition when an employer is liable to pay compensation
to the employees.
The condition is as follows:
 If the personal injury caused to an employee due to an accident that occurred during
employment
 If the injury is an occupational disease mentioned under Part A, Part B or Part C of the Schedule
III of the Employee‘s Compensation Act, the disease should have been caused due to an injury
by accident during employment.
CALCULATION OF COMPENSATION
Section 4 of the Employee‘s Compensation Act,1923 states the amount of compensation to get
paid by the employer. Such amount shall be as follows:
 In case of death of an employee: An amount equal to fifty per cent of the employee‘s monthly
wage that gets multiplied with relevant factors; or an amount of one lakh twenty thousand
rupees, whichever is more.
 In case of permanent or total disablement: An amount that is equal to sixty per cent of monthly
wages paid to the employee who is injured, the amount to be multiplied with relevant factors:
or, amount of one lakh forty thousand rupees, whichever amount is more.

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 In case of permanent partial disablement: Such Injury are dealt with under Part II of Schedule I
of the act. In such a case, compensation percentage payable gets specified as the percentage of
the loss of earning capacity caused by the injury.
 If in any case, Schedule I of the Act does not mention the injury, the compensation gets
calculated as the total disability in proportion to the loss of earning capacity.
 In case of temporary disablement: An amount equal to the half-monthly payment equal to
twenty-five per cent of the employee‘s monthly wages.
PROCEDURE TO CLAIM COMPENSATION
The process to claim the compensation is as follows:
 The applicant has to either give notice to the employer or enter it in the notice book within an
appropriate period.
 The notice should incorporate the name and address of the person injured, including the cause
of injury and the date of injury.
 Submit the claim application to the commissioner within two years from the accident date.
 In the case of occupational disease, the accident gets considered to occur on the first date when
illness occurs.
CONDITIONS
WHEN EMPLOYER IS NOT LIABLE TO PAY COMPENSATION
As per the workmen‘s compensation act, an employer has to pay the compensation to
the employee in case of injury caused during employment.
The employer is not liable to pay such compensation if
 The injury doesn‘t result in partial or total disablement of the employee for more than three
days.
 Any injury that doesn‘t result in partial, total disablement or employee death caused the
accident due to:
 The employee was under the drugs or alcohol influence during the time of the accident.

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 The employee was not following the rule or order that the employer expressly framed for the
employee‘s safety.
 The employee has removed the safety guard willingly, provided for their safety.
Workers Insurance Policy
Workers insurance policy ensures protection of labour from exploitation and any injury
caused at the workplace. This labour insurance has its importance in the lives of the labour working
in factories, industries.
IMPORTANCE OF WORKER’S COMPENSATION INSURANCE FOR EMPLOYEES
The Worker‘s compensation insurance for employees protects the employee and their
dependents in case of any mishappening at their workplace leading to death, permanent injury or
any other temporary injury which occurred while performing his functions while at the workplace.
Such insurance bears the cost of treatment of permanent disablement or death that occurs during
employment.
The employee gets the benefit of the compensation, in most cases, other than when it
was the fault of the employee himself.
Purpose of Workmen‘s Compensation Insurance Policy
The Workmen Compensation Policy ensures that the employee gets good quality
medical care, and also it provides the part of income that the employee loses. At the same time, he
is not able to work. In case if the employee dies suddenly, then the benefit of the policy is given to
the employee‘s family.
WORKERS INSURANCE POLICY INCLUDE
WC Policy cover situations that lead to a medical emergency, such as:
 Bodily Injury that occurred during duty
 Death benefits to the family of the employee
 Any disability due to injury
 Legal expenses, if it gets incurred with the consent of the company.

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WORKMEN COMPENSATION POLICY DOES NOT INCLUDE
WC policy does not include some situations:
 An injury that does not cause partial disablement of more than three days.
 An injury caused under the influence of drugs or alcohol
 Psychiatric disease
 Non-fatal diseases
EMPLOYEES NOT CONSIDERED AS WORKMEN UNDER THE EMPLOYEES
COMPENSATION ACT
The Rules for Workmen Compensation Changed in 2020
The central government has changed the rules for the calculation of compensation of employees
under the Workmen‘s Compensation Act, 1923.
The wages, which was Rs. 8000/- earlier, were increased to Rs. 15000/-..
SETTLEMENT OF CLAIMS UNDER THE ACT
The claims for compensation broadly fall in three categories, namely (i) uncontested cases of
disablement; (ii) disputed cases of disablement and (iii) fatal cases. The procedures for settlement
of the three types of cases are as given below:
 Uncontested Cases:
(a) After a workman has given notice of the accident, the employer is expected to arrange for
medical examination of the workman. It must be free of charge. The medical Examination will
indicate the nature of the disablement.
(b) If the disablement is of temporary nature the employer will pay compensation as half monthly
payments, direct to the workmen.
(c) If the disablement is of permanent nature compensation will be paid in lump sum by the
employer to the workman if he is a male over 18 years of age. In the case of woman and minors, the
employer will deposit the amount of compensation with the Com missioner, for disbursement.

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(d) Where a workman has agreed to accept and has taken a smaller sum than the amount fixed by
the Act his right to bring proceed ings for the balance are protected.
(e) Any agreement with the workman for a lump sum payment must be registered with the
Commissioner by the employer.
 Disputed Cases:
(a) If the employer refuses to pay compensation or does not pay the full amount due, the workman
has to make an application to the Commissioner for Workman‘s Compensation appointed by the
State Government or Union Territory.
The application has to be made in Form ‗F* prescribed under the Workman‘s Compensation Rules.
An illiterate person can have the application prepared under the direction of the Commissioner.
(b) A claim for compensation must be preferred before the Commis sioner within 2 years of the
occurrence of the accident or in the case of death within 2 years of the date of death.
In the case of contracting of a disease the accident is deemed to have occurred on the first of the day
during which the workman was continuously absent in consequence of the disablement caused by
the disease.
 Fatal Cases:
(a) The amount of compensation due has to be deposited by the employer with the Commissioner
for Workmen‘s Compensation. The Act specifically provided that no payment made directly by the
employer shall be deemed to be a payment of compensation.
(b) The Commissioner shall distribute the lump sum amount of com pensation to the dependants in
such proportion as he may decide.
(c) If the employer does not deposit the compensation the dependant or dependants have to make an
application to the Commissioner in Form ‗G‘ prescribed under the Workmen‘s Compensation Rules
for the issue of an order to deposit compensation.
 Extension of the provisions of the Workmen‘s Compensation Act to Hazardous Employments in
Agriculture:

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The Workmen‘s Compensation Act, 1923 already applies to workers employed in farming by
tractors or other contrivances driven by steam or other mechanical power or electricity etc.
The State Governments of Andhra Pradesh etc. were advised in March, 1976 to consider addition of
the following employments to Schedule-II to the Act in accordance with the provision of sub-
Section (3) of Section 2 of the Act:
(i) Employed in clearing of jungles or reclaiming land or ponds in which on any one day of the
proceeding twelve months more than twenty-five persons have been employed ;
(ii) Employed in cultivation of land or rearing and maintenance of live stock or forest operations or
fishing in which on any one day of the proceeding twelve months more than twenty-five persons
have been employed ;
(iii) Employed, otherwise than in cleric. I capacity, in installation, main tenance, repair of pumping
equipment used for lifting of water from wells, tube-wells, ponds, lakes, stream etc.;
(iv) Employed, otherwise than in clerical capacity, in the construction, boring or deepening of an
open well/dug well through mechanical contrivances;
(v) Employed, otherwise than in clerical capacity in the construction, working, repair or
maintenance of a bore well, bore-cum-dug well, fitter point etc.;
(vi) Employed in spraying and dusting of insecticides or persticides in agricultural operation/or
plantations;
(vii) Employed in working or repair of maintenance of bulldozers, tractors, power tillers etc.
As per available information, the State Governments of Andhra Pradesh, Arunachal Pradesh,
Assam, Bihar, Haryana, Karnataka, Kerala, Maharashtra, Meghalaya, Orissa, Punjab, Tamil Nadu
and Tripura and U.T.
Administrations of Chandigarh, Dadra and Nagar Haveli and Pondicherry have already made the
proposed additions with effect from 15.9.95.

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The Central Govern ment has included all the above mentioned employments in Schedule II of the
Act by amending the Schedule. The matter is not, therefore, being pursued further with the
remaining States/UTs.
Statement showing the names of States which have framed the Rules under the Workmen’s
Compensation Act, 1923.
- Pondicherry
- Uttar Pradesh
- Tamil Nadu
- Kerala
- Andhra Pradesh
- Sikkim
- Tripura
- Rajasthan
- Himachal Pradesh
- Goa
- Dadra & Nagar Haveli
- Daman and Diu
- Lakshadweep Andaman & Nicobar Karnataka
- Maharashtra
PENALTY
4A. Compensation to be paid when due and penalty for default
1. Compensation under section 4 shall be paid as soon as it falls due.
2. In cases where the employer does not accept the liability for compensation to the extent
claimed, he shall be bound to make provisional payment based on the extent of liability which he
accepts, and, such payment shall be deposited with the Commissioner or made to the workman, as
the case may be, without prejudice to the right of the workman to make any further claim.
3. Where any employer is in default in paying the compensation due under this Act within one
month from the date it fell due, the Commissioner shall—

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A . direct that the employer shall, in addition to the amount of the arrears, pay simple interest
thereon at the rate of twelve per cent per annum or at such higher rate not exceeding the maximum
of the lending rates of any scheduled bank as may be specified by the Central Government, by
notification in the Official Gazette, on the amount due; and
b. if, in his opinion, there is no justification for the delay, direct that the employer shall, in
addition to the amount of the arrears, and interest thereon pay a further sum not exceeding fifty per
cent of such amount by way of penalty:
Provided that an order for the payment of penalty shall not be passed under clause (b) without
giving a reasonable opportunity to the employer to show cause why it should not be passed.
Explanation.—For the purposes of this sub-section, ―scheduled bank‖ means a bank for the time
being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
 Defaulting employer to pay additional amount of compensation
Sub-section (3) of section 4A read with clauses (a) and (b) thereof, makes it clear that additional
amount of compensation can be levied against the defaulting employer by way of penalty if it is
shown that there is no justification for the delay on his part in making good the compensation
amount to the claimant; Ved Prakash Garg v. Premi Devi, JT 1997 (8) SC 229.
 Delayed payment or deposit of compensation entails interest as well as penalty
 Delayed payment or deposit of compensation entails interest @ 6 % p.a. as well as penalty not
exceeding 50% of the amount; Jayanti Lal & Co. v. Garesia Rajvirba, (1992) 1 Lab IC 1225
 Payment of compensation either to the workman or to deposit it with the Commissioner
 Section 4A (2) makes it clear that, in the first place, the employer has to accept the extent of his
liability for payment of compensation and on that basis he has to make payment either to the
workman or to deposit with the Commissioner. The requirement of this sub-section is payment
to the workman and not to any other person including his heirs and legal representatives. It
takes within its sweep the case where the workman has not breathed his last on account of the
accident met with by him in the course of his employment; Sumuben v. Patel Industries, 1994
LLR 338

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It is apparent that sub-section (3) of section 4A is beneficial provision made for the benefit of the
employee, having regard to the scheme of the Act, the provision for payment of interest and of
penalty have been enacted with a view to deter the employer from taking pleas and avoiding
payment of the compensation which becomes payable; Divisional Forest Officer v. Baijanti Bai,
1995 I LLJ MP (837).
Section 4A(3) of the Workmen‘s Compensation Act is not applicable in the matter of fixing rate of
interest in a claim under the Motor Vehicles Act; Abati Bezbaruah v. Dy. Director General, GSI,
(2003) 3 SCC 148.
RELATED CASES
General Manager, B.E.S.T. Enterprise, Bombay v. Mrs Agnes
B.E.S.T. Enterprise, a public transport service which Bombay Municipal Company ran. The
company owned buses and employed bus drivers to conduct transport services.
After completing his duty for the work, one of the drivers left the bus within the depot and boarded
another bus to go to his residence.
The bus he boarded collided with a parked lorry, due to which he was thrown out of the bus on the
highway and got injured. He died at the hospital during treatment.
His widow applied for compensation.
In this case, the Supreme Court held that a driver going to residence from the depot or vice versa is
in the middle of employment, and if he meets an accident, he is liable to receive compensation.
R.B. Moondra and Co. v. Mst. Bhanwari and Anr.
In this case, a truck driver was asked by his employer to drive a petrol tanker, and the driver found a
leak in the tank and took permission from the employer to look for the source of leakage.
While searching for the source of leakage, he lit a matchstick, and the tank caught fire.
The court held that the family member of the deceased should receive compensation as the accident
took place at the workplace and during employment

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MATERNITY BENEFIT ACT
INTRODUCTION
The Maternity Benefit Act, 1961 is a legislation that protects the employment of women
at the time of her maternity. It entitles women employees of ‗maternity benefit‘ which is fully paid
wages during the absence from work and to take care of her child. The Act is applicable to the
establishments employing 10 or more employees. The Maternity Benefit Act, 1961 has been
amended through the Maternity (Amendment) Bill 2017 which was passed in the Lok Sabha on
March 09, 2017. Thereafter, the said Bill was passed in Rajya Sabha on August 11, 2016. Further, it
received assent from the President of India on March 27, 2017. The provisions of the Maternity
Benefit (Amendment) Act, 2017 (―Amendment Act‖) came into effect on April 1, 2017, and the
provision with regard to crèche facility (Section 111 A) came into effect with effect from July 1,
2017.
APPLICABILITY
Upon reading Section 2 along with Section 3 (e) of Maternity Benefits Act, 1961
(―Act‖), it can be safely concluded that the Act is applicable to establishments such as factories,
(―factory‖ as defined in the Factories Act, 1948), mines (―mine‖ as defined in the Mines Act, 1952)
and plantations (―plantation‖ means a plantation as defined in the Plantations Labour Act,1951).

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The Maternity Benefit Act also applies to establishments belonging to Government and
establishments wherein persons are employed for the exhibition of equestrian, acrobatic and other
performances as per section 2(b). The said Act is also applicable to every shop or establishment
defined under law, wherein ten or more persons are employed on a day during the preceding twelve
months and which is applicable in relation to shops and establishments in a particular state.
Thus, considering the above, in Delhi, the Act applies to all ―establishments‖ and
―commercial establishments‖ which are covered under the ambit of Section 2(9) and 2(5)
respectively of the Delhi Shops and Establishments Act, 1954.
Further, as per the proviso of Section 2 of the Maternity Benefit Act, the State
Government may, subject to obtaining approval from the Central Government, declare that the
provisions of Act be applicable to any other establishment or class of establishments which are
either carrying out industrial, commercial or agricultural activities or otherwise any other activity.
It may be noted that the provisions contained in this Act, save as otherwise provided in
sections 5A and 5B, shall not be attracted to any factory or other establishments to which the
provisions of the Employees‘ State Insurance Act, 1948, as per Section 2(2) of the Act. Further, as
per Section 26 of the Act, the appropriate Government has the power to exempt through a
notification, an establishment, from the ambit of the Act subject to the conditions laid down in
Section 26.
OBJECTIVES AND NEED FOR MATERNITY BENEFIT LAWS IN INDIA
The most foundational purpose of the maternity benefit laws is protecting the dignity of
motherhood and Mothers, safeguard her and her child‘s health. Motherhood is the most beautiful
time in any women‘s life and it‘s her right to enjoy it and give proper care to her child having no
worries related to security of her job.
Further the ratio of working women in the urban sector has increased remarkably and
there is a need to make a gender friendly labour market providing a propitious and an encouraging
environment and thus it was natural to protect the women in her maternity seeing a large number of
female employees.
Maternity Benefit Laws under Indian Constitution

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There are several laws under the constitution of India that safeguard and protect the
rights of women. Under Article 14 –equality of the sex is stipulated, whereas Article 15 provides
for equality in employment, Article 39(a) mandates equal pay for equal work Article 42 stipulates-
right to just and humane conditions of work and maternity relief which is a DPSP and under the
same under Article 46 it is stated that state should make rules for improvement in employment
opportunities and conditions of the working women.
Article 15(3) gives the government the power to make special laws for the women and
under which it passed the ‗Maternity benefit Act‘.
Apart from this ‗Indian Labour Organisation‘ have made certain standards on maternity
benefits where the fundamental concern is to provide social and economical security to the women
employees and ensure that no risk is posed to her and her child in any way.
STANDARDS ON MATERNITY PROTECTION
International recognition for maternity benefit was achieved by the efforts of the International
Labour Organization (―ILO‖). The core concerns of ILO have been to ensure that women‘s work
does not pose risk to the health of the women and her children and to ensure that women‘s
reproductive roles do not come in the way of their economic and employment security.
 Conventions on Maternity
It was during the first International Labour Conference (ILC) in 1919 that the first Convention
on Maternity protection, Convention concerning the Employment of Women before and after
Childbirth, 1919 (Convention No. 3) was adopted. This Convention was followed by two other
conventions: Convention concerning Maternity Protection (Revised), 1952 (Convention No. 103)
and Convention concerning the revision of the Maternity Protection Convention (Convention
No.183) in 2000, which progressively expanded the scope and entitlements of Maternity protection
at work.
 Convention No. 3
The 1919 Convention provided that no woman should be permitted to work in any industrial or
commercial undertaking for a period of six weeks after in any confinement, and that she should be

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entitled to leave work during the six weeks before her confinement, on production of a suitable
medical certificate. During any such period of absence the employee was to be paid benefits
sufficient for the full and healthy maintenance of herself and her child, and is, in addition, to receive
free attendance by a doctor or certified midwife. The income security is also provided during this
period. It also guaranteed nursing facilities and reinstatement in employment after leave.The
amount of benefit is to be determined by the competent authority in each country, and the cost of
the scheme is to be defrayed out of public funds unless otherwise provided under a scheme of
insurance.
The ILO Maternity Protection Convention, 1919 was revised in 1952. According to the revised
convention every woman irrespective of age, nationality and status in public or private, industrial or
commercial undertaking was required to be absent for a period of six weeks after the child birth and
allowed to be absent for a period of six weeks prior to child birth. For such absence she was to be
paid full benefits sufficient for the full and healthy maintenance of herself and her child. These
benefits were to be paid either out of public funds or be means of a system of insurance but the
exact amount was to be determined by the competent authority in each country. Additional benefits
like free attendance by doctors and midwives, and two nursing breaks of half an hour‘s per day
were provided, and no employer could dismiss a woman for such absence.
Convention No. 183 is divided into a number of different aspects of Maternity protection such as:
Scope; Health protection; Maternity leave; Leave in case of illness or complications; Cash and
medical benefits; Employment protection and non-discrimination etc.
This Convention should normally be implemented through laws or regulations, although different
means are used in the national practice of the member states, by following protection, such as
collective agreements and arbitration awards, etc.

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CONDITIONS
ELIGIBILITY
A woman must be working as an employee in an establishment for a period of at least 80 days in
the past 12 months to be entitled to maternity benefit under the provisions of the Maternity Benefit
Act.
Main Highlights of the Amendment in Material Benefit
The time of maternity leave which a lady worker is qualified for has been expanded from 12 weeks
to 26 (twenty) weeks. The Act once in the past enabled pregnant ladies to profit Maternity Benefit
for just 6 a month and a half before the date of anticipated conveyance and a month and a half after
the date of conveyance. Presently, this period has been expanded to 8 months. The time of
maternity advantage of 26 weeks can be stretched out to ladies who are as of now under maternity
leave at the hour of usage of this revision in the Act. The improved Maternity Benefit can be
profited for the initial two kids. According to the revision, a lady having at least two enduring kids
will be qualified for 12 (twelve) weeks of Maternity Benefit of which not more than 6 (six) will be
taken preceding the date of the normal conveyance. A lady who embraces a kid underneath the age
of 3 (a quarter of a year, or an appointing mother (that is an organic mother, who utilizes her egg to
make an undeveloped organism embedded in some other lady), will be qualified for Maternity
Benefit for a time of 12 (twelve).
Each foundation having 50 (fifty) or more representatives will be required to have an obligatory
creche office (inside the recommended good ways from the foundation), either independently or
alongside other normal offices. The lady is likewise to be permitted 4 (four) visits per day to the
creche, which will incorporate the interim for rest permitted to her.
 Work from home:
If the idea of work allocated to a lady is with the end goal that she can telecommute, a business
may enable her to telecommute post the time of Maternity Benefit. The conditions for
telecommuting might have commonly concurred between the business and the lady.

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 Prior Intimation:
Every foundation will be required to give the lady at the hour of her underlying arrangement, data
about each advantage accessible under the Act.
The arrangement identifying with ―telecommute has been presented through the Act and can be
practiced after the expiry of 26 weeks‘ leave period. In light of the idea of work, a lady can profit
advantage of this arrangement on such terms that are commonly concurred with the business. The
raising of the maternity profits by 12 weeks to 26 weeks is in accordance with the proposal of the
World Health Organization which gives that kids must be solely breastfed by the mother for the
initial 24 weeks.
The expansion in the maternity leave can help in expanding endurance paces of youngsters and
solid improvement of a kid.
CRECHE FACILITY INTRODUCED BY MATERNITY BENEFIT (AMENDMENT) ACT,
2017
In terms of Section 11A of the Maternity Benefit Act, every establishment to which the Act applies
and have fifty or more employees must establish a Crèche facility within such distance as may be
prescribed through notification. The Creche must be established either separately or along with
common facilities. The employer must allow women at least four visits a day to the crèche and it
shall also include the interval for rest allowed to her. Every establishment is required to intimate in
writing and electronically to every woman at the time of appointing her initially regarding every
benefit available under the Maternity Benefit Act.
NATIONAL GUIDELINES FOR SETTING UP AND RUNNING CRECHES UNDER THE
MATERNITY BENEFIT (AMENDMENT) ACT, 2017
Section 11A mandates the establishment of crèches within such distance as may be prescribed,
either separately or along with common facilities. As per Section 2(l), ―prescribed‖ means
prescribed by rules made under this Act. Further, as per Section 28 of the Act, rules can be
prescribed by the State or Central Government as the case may be for carrying out the purposes of
the Act. The following are some of the key guidelines published in the Gazette by the Ministry of
Women and Child Development.

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 Crèche For Whom
The use of a crèche facility is proposed to be extended to children of the age group of 6 months to 6
years of all employees including temporary, daily wage, consultant and contractual personnel.
 Crèche Location
The center should be near/at the workplace site or in the beneficiaries‘ neighborhood, within 500
meters.
 Timings
The crèche preferably should open for 8 hours to 10 hours. In this case, the workers can follow a
shift system. In case the establishment has day and night shifts, then the crèche should also be run
in shifts.
 Facilities to be provided
Crèches should be concrete, with a min space of 10-12 sq.ft. per child, with ventilation, drinking
water and with no unsafe places such as open drains, pits, garbage bins near the center. Further,
other facilities to be provided include:
A guard, who should have undergone police verification.
- Ramps and handrails.
- Every Creche should have one supervisor per crèche.
- The Creche should have a minimum of one trained worker for every 10 children who are under
three years of age.
- For every 20 children above the age of three, the creche should have one trained worker along
with a helper.
- No plumbers, drivers, and electricians and other outside persons should be allowed inside the
crèche when children are present.
- A Crèche monitoring committee should be formed having representations from among crèche
workers, parents, and administration.
- Forming a grievance redressal committee for inquiring into instances of sexual abuse.

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MATERNITY BENEFIT (MINES AND CIRCUS) AMENDMENT RULES 2019
It is pertinent to note these rules do not apply to Crèches established in Mines and Circus
establishments. Crèches in Mines are regulated by the Maternity Benefit (Mines and Circus)
Amendment Rules 2019. Some of the key provisions include:
- Rule 2 (b) – The crèches are set up for children under 6 years of age.
- Rule 4- The crèches are divided into 4 Types (A, B, C, D) based on the number of women
employed.
- Rule 4- Basic Standard requirements to be provided.
- Rule 8- The crèches shall be open during the whole day and open at night if the women
employees are at the office.
- Rule 9- Restriction of access to outsiders.
- Rule 10- Guidelines for medical arrangements.
OTHER ACTS OFFERING MATERNITY BENEFITS
 Working Journalists (Condition of Service) and Miscellaneous Provisions Act, 1955
This Act offers 12 weeks of maternity leave to a woman working in a newspaper establishment.
Concerning eligibility, the woman must be employed for at least a year of service and must produce
a medical certificate from an authorized medical practitioner. The employer, at their discretion, may
extend this to 3 months from the date of start of the leave, or six weeks from the same, whichever is
earlier. The Act also provides for maternity leave in cases of miscarriage or abortion, however, it
must not exceed six weeks.
 Employee State Insurance Act, 1948
This Act applies to those earning less than Rs. 21,000 per month, for 26 weeks. It covers non-
government factories. Thus, it is for the benefit of those women who work in low-income jobs.
Additionally, it contains a provision to extend its application to other establishments, provided they
employ more than 20 people. Several states have availed of this option, extending applications to
places like shops, hotels, etc. The Act also provides for payment of an additional Rs. 5,000 in
confinement (labour resulting in a living child, or labour after 26 weeks of the pregnancy), where
necessary medical facilities are not available under the Employee State Insurance Scheme.

22
 Factories Act, 1948
The Factories Act, 1948, applies to all factories that use power and employ ten or more workers; or
do not use power and employ 20 or more workers [Section 2(m)]. Section 79 allows maternity leave
along with maternity benefits for 12 weeks. The Employee State Insurance Act and the Maternity
Benefits Act supplement the working of this act.
PENALTY
(1) If any employer fails to pay any amount of maternity benefit to a woman entitled under this Act
or discharges or dismisses such woman during or on account of her absence from work in
accordance with the provisions of this Act, he shall be punishable with imprisonment which shall
not be less than three months but which may extend to one year and with fine which shall not be
less than two thousand rupees but which may extend to five thousand rupees:
PROVIDED that the court may, for sufficient reasons to be recorded in writing, impose a sentence
of imprisonment for a lesser term or fine only in lieu of imprisonment.
(2) If any employer contravenes the provisions of this Act or the rules made thereunder, he shall, if
no other penalty is elsewhere provided by or under this Act for such contravention, be punishable
with imprisonment which may extend to one year, or with fine which may extend to five thousand
rupees, or with both:
PROVIDED that where the contravention is of any provision regarding maternity benefit or
regarding payment of any other amount and such maternity benefit or amount has not already been
recovered, the court shall, in addition, recover such maternity benefit or amount as if it were a fine
and pay the same to the person entitled thereto.
RELATED CASES
Pooja Jignesh Doshi Vs. The State of Maharashtra and Ors
The petitioner was unable to carry a second child and chose surrogacy as a solution. The
surrogate mother gave birth to a child, who was later adopted by the petitioner. The surrogate

23
mother, i.e. the petitioner, requested maternity leave prior to the birth of the child but was rejected.
The respondent refused the petitioner‘s request for maternity leave to care for the surrogate child,
claiming that the Leave Rules and the policy controlling the Rules do not allow for maternity leave
for a surrogate kid. As a result, the question of whether a surrogate mother is entitled to maternity
leave has arisen. Without delving into the merits of the case, the High Court relied on the same
court‘s decision in Dr. Mrs. Hema Vijay Menon vs. State of Maharashtra. The High Court explored
the idea of motherhood and pregnancy in this decision. Maternity is regarded to constitute a period
of pregnancy and the period immediately following the birth of a child, according to the High Court
in this case. The purpose of maternity leave is to maintain the dignity of motherhood and to offer
care for the child‘s and mother‘s well-being, as well as for the mother-child relationship. Maternity
leave is meant to help mothers and their children achieve social justice. To make a distinction
between a mother who has a biological kid and one who has a child via surrogacy would be
demeaning to the womanhood and motherhood of the woman who desires to nurture a surrogacy
child in the same way she would a biological child. The right to life, as defined by Article 21 of the
Indian Constitution, encompasses the right to motherhood as well as the right to the full
development of every child. If the government can grant maternity leave to an adoptive mother, it‘s
difficult to see why the government won‘t provide maternity leave to a mother who has a child
through surrogacy. The Court ruled that even if a child is born through surrogacy, the parents who
provided the ova and sperm are right to depart. Maternity leave is available to the mother, while
paternity leave is available to the father.
2. Anshu Rani vs State Of Uttar Pradesh And Ors.
In 2018, petitioner Anshu Rani applied to the District Basic Education Officer in Bijnor for
maternity leave. She was awarded 90 days of maternity leave with an honorarium from October 1,
2018, to December 29, 2018, in lieu of the 180 days she had requested. She was not provided a
rationale for having her leave term cut in half. Frustrated by the apparent lack of action, the
petitioner filed a complaint with the Allahabad High Court. The petitioner‘s learned counsel,
Avadesh Pratap Singh, referred to the Maternity Benefit Act, 1961, which was revised in 2017
(Maternity Benefit (Amendment) Act, 2017). According to the requirements of the 2017
amendment, maternity leave has been increased from 8 weeks to 26 weeks, and the petitioner is
allowed to take advantage of it. After hearing the arguments of both sides the Court opined,

24
―Maternity leave is social insurance. The maternity leave is given for maternal and child health and
family support.‖ Allahabad High Court also stated ―in consonance with the provisions of Article 42,
Parliament has made the Maternity Benefit Act, 1961. Since Article 42 specifically speaks of ―just
and humane conditions of work‖ and ―maternity relief, the validity of an executive or
administrative action in denying maternity benefit has to be examined on the anvil of Article 42.‖
3. Rasitha C.H. Vs State of Kerala & Anr
Women employees, regardless of whether their job is contractual or not, are entitled to
maternity leave, according to the Kerala High Court. ―The maternity benefit is not merely a
statutory benefit or a benefit flowing out of an agreement,‖ Justice A Muhamed Mustaq wrote in
allowing a petition filed by Rasitha, 35, who was denied maternity leave by the Calicut University
on the grounds that the terms of her contract did not envision the grant of such leave. ―The
maternity benefit is neither only a statutory benefit nor a benefit growing out of an agreement,‖
Justice A Muhamed Mustaq wrote. This court has consistently found that it is associated with a
woman‘s dignity…. it was held that a woman employee cannot be refused maternity benefits only
because her employment status is contractual. As a result, despite anything in the contract
agreement, the University is obligated to provide such benefits.‖ In light of these considerations, the
Court granted Rasitha‘s petition and ordered Calicut University to pay Rasitha‘s maternity benefits,
which are the same as those paid to other University workers, within two months.
4. stance of the Indian Judiciary related to the maternity Laws in India
 Municipal Corporation of Delhi v. Female Workers: It was held by the court that it is unlawful
to impel a women employee to do heavy work during her advanced pregnancy as it can be
deleterious for both the foetus and the mother.
 Air India v. Nergesh Meerza : Under the termination and retirement policy of Air India
Corporation (AIC) one of the mandatory conditions was that – on the first pregnancy the
women employee will be terminated which was held to be violative of Article 14,15 and 16 of
the Constitution Of India.
 Shah vs. Presiding Officer, Labour Court, Coimbatore and others: The question before the court
was that whether Sundays are to be included in calculating the maternity benefits of the women.
The court held that- In order to enable the woman worker to subsist during this period and to

25
preserve her health, the law makes a provision for maternity benefit so that the woman can play
her productive and reproductive roles efficiently.
EMPLOYEE STATE INSURANCE ACT
INTRODUCTION
The Employees‘ State Insurance Act incorporates a number of sections, these sections provide for
medical benefits and insurance for any employees working under factories registered under the ESI
Corporation. This is an exciting prospect from both an employee‘s and a legal perspective as the
beginning of a formal social security program in India.
This article will explain the highlight sections of the Act, as well as elaborate landmark cases that
prove the authenticity of the scheme, and how it worked for the benefit of its employees at times of
need.
APPLICATION AND SCOPE OF THE ACT
The Employees‘ State Insurance Act, 1948 (ESI), enables the financial backing and support to the
working class in times of medical distress such as:
- Sickness.

26
- Maternity Leave.
- Disorders(mental or physical).
- Disability.
- Death.
It is a self-financed initiative, which serves as a type of social security scheme, to prevent the
working class from any financial problems arising out of the above medical issues.
CONDITIONS
CONSTITUTIONALITY OF THE ACT
The ESI Act serves as a constitutional instrument because of its practice of providing insurance and
medical insurance. While the ESI Act is mostly executed through the ESI Corporation, the Central
Government takes control of most of the proceedings.
This control by the Central Government largely contributes to the constitutionality of the Act,
because Insurance, be it public or private, is listed in the Seventh Schedule of the Indian
Constitution as a Union List subject i.e. it can only be legislated by the Central Government.
- Corporation, Standing Committee & Medical Council
- Establishment of Employees‘ State Insurance Corporation
The ESI Act exercises its function through the Employees‘ State Insurance Corporation, established
via Section 3, a body created to maintain social security. It was established on 24 February, 1952.
The corporation is supposed to grant relief to the employees in case of medical emergencies.
DISQUALIFICATION
A person can be disqualified as a member of ESIC if:
- If he is declared to be of unsound mind by a qualified court.
- If he is an undischarged insolvent.
- If at any time, he has been convicted of an offence regarding moral turpitude.

27
METHOD OF PAYMENT OF CONTRIBUTIONS
The manner for payments which the Act provides regulations for, has been elaborated in the
following conditions:
- The nature and time of contribution being paid.
- Payment which involves the usage of stamps or other adhesives fixed upon the books of
accounts, or any other documents.
- The evidence of the contributions, which reaches the Corporation, is to be dated.
- The different entries in the books of accounts along with the details of the insured persons.
- The replacement of documents which have been lost, destroyed or defaced.
- Employers to furnish returns and maintain registers in certain cases
According to the provisions given as per the ESI Act, the principal and immediate employers are to
submit all the investment profits, as well as any and all details relating to their employees in any
factory under their jurisdiction. In case of failure to submit a return, that the corporation had
reasonable cause to believe, should have been submitted, the corporation can require the employers
to present all the details.
BENEFITS
Section 46 of the ESI Act grants benefits to employees as social security in case of injury, which
can be availed during the course of employment. There are 6 types of benefits that can be availed:
 Medical Benefits
These benefits are guaranteed to the employee as soon as he/she is hired, with the benefits
extending to their family members as well.
This benefit covers the payment of all treatment expenses in lieu of medical issues faced by the
employee
 Sickness Benefits
The employees covered by the ESI Act can avail periodical payments in case of sickness as per
Section 46(1)(a), as long as the medical condition is verified by the appointed medical practitioner.

28
The compensation is approximately 70% of their wages, with the upper limit for availing
compensation being 91 days in a year.
In a period of 6 months of employment, the employee must have been working for a minimum of
78 days, else the benefit cannot be claimed.
 Maternity Benefits
As per Section 46(1)(b) of the ESI Act, an insured woman can claim periodical payments in case of
occurrence of any of the following situations:
- confinement (labour leading to birth or birth after 26 weeks)
- miscarriage
- sickness arising out of pregnancy
- premature birth of child
The benefit is payable for three months, with an extension of one month, if required. The minimum
work duration must be 70 days in the year preceding the year of pregnancy.
 Dependants‘ Benefits
Section 46(1)(d) prescribes periodical payments(often made monthly) to the dependants/family
members of the person who dies during the course of employment, with the cause of death being an
employment injury or an occupational hazard. Compensation is generally 90% of the employee‘s
wages.
 Disablement Benefits
In case an employee suffers an injury during the course of employment which results in their
disablement. The nature of the disablement may be temporary or permanent. Unlike the other
benefits, there is no minimum work contribution required to avail the disablement benefit, although
eligibility for the same will be determined by the Medical Board.
This determination also affects the amount of compensation granted, if any, with the general
percentage of wages granted being around 90%.
 Other Benefits

29
‗Other benefits‘ refer to the miscellaneous benefits apart from the five major benefits that can be
availed by the employees. These are as follows:
Funeral Expenses: Compensation of Rs. 10,000 is granted to the eldest surviving member of an
employee‘s family to perform his last rites.
Vocational Rehabilitation: The benefit is payable to disabled employees undergoing rehabilitation.
Old age medical care: This benefit is available for retired employees, or those who eft employment
after suffering an injury, with general compensation being Rs. 120 p/m.
POWER OF EMPLOYEES’ INSURANCE COURT
The Employees‘ Insurance Court will function with the same powers as that of a Civil Court, in
which, to enforce the provisions of the ESI Act, it can enforce witness attendance, compel
document and material evidence to be presented, it can administer an oath and can record evidence.
All expenses incurred before a proceeding are subject to the discretion and liability of the court
itself.
 Reference to High Court
An Employees‘ Insurance Court, according to Section 81 may submit any question of law for the
decision of the High Court and if it does so, the answer to the question shall hold precedence before
any judgment.
 Appeal
Section 82 defines that no appeal can be laid down as against an order from the Employees‘
Insurance Court. However, appeals from the High Court can stand if they involve a substantial
question of law.
PENALTIES
 Punishments
Sections 84, 85, and 85A cover all the punishments for default listed within the ESI Act.

30
False Statement: Any person caught increasing the payment or benefit to avoid payment by himself
is known to make a false statement. Punishable with up to six months and/or with fine not greater
than Rs. 2000. Insured persons convicted of this will not be entitled to cash benefits.
Failure to pay contribution: Persons failing to pay the contribution, unlawfully deducts wages or
benefits, unfairly punishes an employee, obstructs inspector‘s duties, etc. can be punishable for up
to three years, no less than one year with a fine up to Rs. 10000.
Subsequent Punishment: If a person is found committing the same offence twice, he shall be
punished with imprisonment for a term extending up to two years with a fine of Rs. 5000 for each
subsequent offence.
 Power to recover damages
If an employer fails to pay the contributions due in any aspect, whether it be from his side or his
employee‘s side, the Corporation can recover the deficit from him by way of penalty.
However, this recovery of contribution will not take place until after the person in charge has been
given a reasonable opportunity to be heard regarding the failure to pay the contribution.
 Power of Court to make orders
Along with the power of the court to recover damages, it also has provisions to enforce judicial
orders. If the defaulting employer fails to meet the time conditions for payments that have been
stated by the Court, the employer will be deemed to have committed another offence, which can be
punishable with imprisonment and/or fines.
 Prosecution
Section 86 dictates that any sort of prosecution cannot take place under the provisions of ESI Act
unless it has previously obtained the sanction of the Insurance Commissioner or any other
authorised authority such as the Director-General of the Corporation. No court lower than a First
Class Magistrate can try an offence under the ESI Act, and no Court will take cognizance of any
offence reported under this Act.
 Offences by companies

31
Taking inference from the concept of business entity, where every company is its own individual
i.e. it is a separate legal entity of its own and can sue or be sued in a court of law accordingly.
As such, when an offence is said to have been committed by a company, all of its managerial
employees, who were responsible for the company at the time, will be tried along with the
company, deemed to be guilty of the same offence. They are liable for punishment accordingly.
 Miscellaneous
Exemptions
Sections 87, 88, 90, 91 and 91A list the criteria under which certain exceptions to benefits can be
made under ISA. Via a notification in the Official Gazette, the appropriate government(appropriate
here meaning the government exercising more authority, in a closer proximity), can exempt the
following from the benefits of the ESI Act(if they were enjoying those same benefits before):
 Misuse of benefits
In case of any misuse of benefits by the insured persons, the Central Government can, at its
discretion, publish a notice in the Official Gazette that disentitles such persons from their benefits
that they have under ESI Act.
 Delegation of powers
The bodies of ESIC possess authority that they can delegate to authorised personnel, at their
discretion. These authorised personnel can exercise the powers given to them by their specific ESIC
bodies, but only for a temporary period.
 Medical care for the families of insured persons
Medical care is guaranteed for family members of the insured person, covered at the cost of the
Corporation if the funds at the time permit the coverage.
RELEATED CASES
 Mr. A. Tehan V/S M/S. Associated Electrical Agencies & Anr.

32
In this case, the plaintiff was under the employment of defendant 1 for carrying out television
repairs. On July 17, 1987, he was injured during the course of employment while repairing a
television set, when a component burst and he suffered injuries on his face.
After claiming relief from the ESIC Corporation under Section 46 of the Act, he then filed an
appeal asking for compensation under the Workmens‘ Compensation Act, which required an
amount paid by the defendant.
This was challenged by the defendant in the Bombay High Court via an appeal, which contested
their payment of the compensation, and called into usage Sections 38 and 46 of the ESI Act, which
lay the foundation for the insurance offered by the Act. (Section 38 guaranteeing that every worker
is insured and Section 46 defining the relief available to workers).
This was further verified by the High Court, whose Division Bench further stated that the worker‘s
appeal for the amount to be paid by the plaintiff could not be upheld. Instead, he would receive
appropriate relief, to be determined by the ESIC.
 Western India Plywood Ltd V/S Shri. P. Ashokan
In this case, the defendant, P. Ashokan, was appealing to claim damages from the appellant, his
employer, ‗Western India Plywood Ltd.‘ as compensation for an injury which he had suffered
during the course of employment. However, the defendant had already claimed compensation from
ESIC for his injuries as he was insured under the ESI Act.
The appeal was filed in lieu of the existence of Articles 53 and 61, the former restricting
compensation to be availed from the Workers‘ Compensation Act, and the latter restricted
compensation being availed from any law or action other than the ESI Act. This bar would only
hold if the employee who had suffered the injury had received adequate compensation for the same.
The Full Bench assigned to this judgment then attempted to define what could constitute as
‗adequate compensation‘ if an injury had been suffered, for which the reliefs received by the ESIC
under Sections 38 and 46 of the ESI Act were eligible as ‗adequate compensation‘.
The final judgment laid down by the bench was to both, restrict the employee from getting double
relief as compensation from his employer, and to define the objective of Section 53, which was then

33
laid down as not only a bar to guarantee only the required amount of relief for an injury by ESIC,
but also to save the employer from facing more than one claim in relation to the same accident, i.e.
an indirect form of double jeopardy, in which he may have to compensate twice for the same injury.
 Kerala CBSE School Management vs State Of Kerala
This is one of the premier landmark judgments in relation to the ESI Act as the basis of this case is
the determination of whether a particular institution can be covered under the ESI Act or not.
The matter originally under contention was the release of a new notification by the Kerala State
Government in the Official Gazette, which extended the scope of the ESI Act, i.e. which
organisations could fall under it, was extended to schools and other educational institutions. The
matter was then decided through the interpretation of the statute in Section 1 of the ESI Act.
It was held that educational institutions, while not being commercial in nature, nor having the
functions of a traditional factory, was not completely excluded from the statute itself, and could still
be applied as an instrument under the ESI Act.
The deciding contention was when the final responsibility towards educational institutions was
discussed. Since the Central Government had a priority to control and manage most educational
institutions, the notification which extended the provision of the ESI Act to schools was held valid.
CONCLUSION
The workmen compensation act got enacted for the employees to give them their financial security
in case of an accident that caused a considerable loss. The act ensures that the employee‘s right is
protected even after he is disabled or injured in an accident that happens at their workplace.
Thus, making it the employer‘s duty to ensure the employee‘s safety and security and make the
employer liable to pay compensation to its workers who encountered injury or died during
employment.

34
The workmen compensation act provides with the rights of labour. It provides the duties that labour
has to fulfil, e.g. following all the rules and regulations of the workplace, using all the safety gear
provided while doing tasks, etc.
The amendment of the Maternity Benefits Act has very beneficial provisions for working women.
But, the drafters of the amendment failed to consider the shortcomings of the Act. These
inadequacies have been discussed in the suggestions. The amendment has brought the Indian
legislation at par with the International legislations and taken the recommendations given by the
259th Law Commission report and the 2nd Commission on Labour, but they should study the
provisions in various countries as well. Like in Singapore, the state shares the burden with the
employer for paying maternity benefits. As the full burden is now on the employer, they might be
hesitant to hire more women employees. The Amendment is also not fully future-ready. This is
because, although on one hand, it added provisions to enable employees to work from home, it did
not consider the factor of paternity benefits.
The ESI Act is unique in the fact that it works in advantageous ways for both employees and
employers. While employees are insured under the act and get financial aid in case of an injury, the
employers are also protected from being jeopardized twice in lieu of paying compensation to the
employees.
The Employees‘ State Insurance Act, apart from medical benefits provided to employees, also
controls many more indirect aspects of efficiently managing the Corporation established by the Act,
be it its sales proceedings, account management or separation of powers amongst its various
officers.
REFERENCES

35
https://indiacode.nic.in/handle/123456789/1441?view_type=browse&sam_handle=12345678
9/1362
https://indiankanoon.org/doc/1787127/
https://indiankanoon.org/doc/746330
[1] Municipal Corporation of Delhi v. Female Workers (2000) SCC 22
[2] Air India v. Nergesh Meerza (1981) 4 SCC 33
[3] Shah vs. Presiding Officer, Labour Court, Coimbatore and others (1977) 4 SCC 384
https://getlegalindia.com/workmen-compensation-act/

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