Friday, October 1, 2010

Recent Amendments in ESI Act

 The Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI) organized an interactive meeting on October 1, 2010, on “Recent Amendments in ESI Act”, at Surana Udyog Auditorium, Federation House, Red Hills, Hyderabad.
       Mr. U. H. Rao, Additional Commissioner, E.S.I. Corporation, was the Chief Guest at the interactive meeting held at FAPCCI.   Mr. Shekhar Agarwal, President, FAPCCI, Mr. V. S. Raju, Senior Vice-President, Mr. S. Subba Rao, Chairman, HRD, Industrial Relations Committee, Co-Chairman Mr. V. Kumar, FAPCCI, Mr. M V Rajeshwara Rao, Secretary General, FAPCCI and many other businessmen, industrialists and others participated in the said interactive session.
 Mr. U. H. Rao enlightened the guests about the recent amendments made to ESI Act through a presentation interspersed with clarifications and latest case examples. Few of them are:-
  1. Wage ceiling raised from Rs.10, 000/- per month to Rs.15, 000/- for coverage of employees under the ESI Scheme.

  1. Apprentice employed under the Standing Order Act are also covered under ESI Act.
  2. The age limit of the dependants has been enhanced from 18 to 25.
  3. ESI coverage extended to all factories which employ 10 or more persons.
  4. VRS employees now covered under the ESI Act.
  5. An Amnesty Scheme has been announced.  Under this Scheme, cases filed upto 28/02/2010 by and against the corporation under Sections 75, 84, 85, 85A of the ESI Act will be withdrawn   under the ESI Act, if employer pays the contribution with interest in full as per records.  Damages are not leviable for contributions paid under the new Amnesty Scheme. 

  1. Exemptions can be granted to an employer only on the ground of provision of substantial similar or superior benefits provided by the employers and only prospectively.
  2. Medical benefit extended to dependant minor brother and sister where I.P. has no family and whose parents are not live.
  3. Under Section 51E, accidents occurring while commuting from Residence to place of work for duty or place of work to residence for performing duty will be treated as employment injury subject to certain conditions.
       He also informed about the future activities and plans of ESI Corporation.
The interactive meeting was followed by an Open Question and Answer session.
     Welcoming the Chief Guest, President, Mr. Shekhar Agarwal said that the ESI Corporation is extending very good services to the citizens.  Recently the ESI Corporation had brought out few amendments and the same will substantially improve the medical and other benefits under the Scheme.  He further said that emphasis has been given for development expansion of infrastructure for augmenting the benefits under the Scheme. 
      Mr. V. S. Raju, Senior Vice-President, FAPCCI, proposed vote of thanks.

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