THE EMPLOYEES' STATE INSURANCE (AMENDMENT) ACT, 2010
[Act nº 18 of 2010]
[24th May, 2010]
An Act further to amend the Employees' State Insurance Act, 1948.
Be it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:--
Section 1. Short title and commencement
(1) This Act may be called the Employees' State Insurance (Amendment) Act, 2010.
(2) Section 18 shall be deemed to have come into force on the 3rd day of July, 2008 and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Section 2. Amendment of section 1
In the Employees' State Insurance Act, 1948(34 of 1948) (hereinafter referred to as the principal Act), in section 1, in sub-section (5), for the words "six months'", the words "one month's" shall be substituted.
Section 3. Amendment of section 2
In section 2 of the principal Act, --
(A) in clause (6A),--
(a) for sub-clause (i), the following sub-clause shall be substituted, namely.--
"(i) a widow, a legitimate or adopted son who has not attained the age of twenty-five years, an unmarried legitimate or adopted daughter,";
(b) in sub-clause (ii), for the words "eighteen years", the words "twenty-five years" shall be substituted;
(B) in clause (9), for the words "or under the standing orders of the establishment;", the words "and includes such person engaged as apprentice whose training period is extended to any length of time" shall be substituted;
(C) in clause (11), for sub-clause (v), the following sub-clauses shall be substituted, namely:--
"(v) dependant parents, whose income from all sources does not exceed such income as may be prescribed by the Central Government;
(vi) in case the insured person is unmarried and his or her parents are not alive, a minor brother or sister wholly dependant upon the earnings of the insured person;";
(D) for clause (12), the following clause shall be substituted, namely:--
'(12) "factory" means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on 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;'.
Section 4. Amendment of section 10
In section 10 of the principal Act, in sub-section (1), for clauses (a) and (b), the following clauses shall be substituted, namely:--
"(a) the Director General, the Employees' State Insurance Corporation, ex officio as Chairman;
(b) the Director General, Health Services, ex officio as Co-chairman;".
Section 5. Amendment of section 12
In section 12 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:--
"(3) A person referred to in clause (i) of section 4 shall cease to be a member on becoming a Minister or Speaker or Deputy Speaker of the House of the People or Deputy Chairman of the Council of States or when he ceases to be a member of Parliament.".
Section 6. Amendment of section 17
In section 17 of the principal Act, in sub-section (2), in clause (a), after the proviso, the following proviso shall be inserted, namely:--
"Provided further that this sub-section shall not apply to appointment of consultants and specialists in various fields appointed on contract basis,".
Section 7. Amendment of section 37
In section 37 of the principal Act, for the words "five years", the words "three years" shall be substituted.
Section 8. Amendment of section 45
In section 45 of the principal Act,--
(a) for the words "Inspectors" and "Inspector", wherever they occur, the words "Social Security Officers" and "Social Security Officer" shall respectively be substituted;
(b) after sub-section (3), the following sub-section shall be inserted, namely:--
"(4) Any officer of the Corporation authorised in this behalf by it may, carry out re-inspection or test inspection of the records and returns submitted under section 44 for the purpose of verifying the correctness and quality of the inspection carried out by a Social Security Officer.".
Section 9. Amendment of section 45A
In section 45A of the principal Act, in sub-section (1),--
(i) for the word "Inspector", the words "Social Security Officer" shall be substituted;
(ii) after the proviso, the following proviso shall be inserted, namely:--
"Provided further that no such order shall be passed by the Corporation in respect of the period beyond five years from the date on which the contribution shall become payable.".
Section 10. Insertion of new section 45AA
After section 45A of the principal Act, the following section shall be inserted, namely:--
"45AA. Appellate authority.--
If an employer is not satisfied with the order referred to in section 45A, he may prefer an appeal to an appellate authority as may be provided by regulation, within sixty days of the date of such order after depositing twenty-five per cent. of the contribution so ordered or the contribution as per his own calculation, whichever is higher, with the Corporation:
Provided that if the employer finally succeeds in the appeal, the Corporation shall refund such deposit to the employer together with such interest as may be specified in the regulation.".
Section 11. Amendment of sections 51A and 51B
In the principal Act, in sections 51A and 51B, for the words "an insured person's", the words "an employee's" shall be substituted.
Section 12. Amendment of sections 51C and 51D
In the principal Act, in sections 51C and 51D, for the words "insured person", the word "employee" shall be substituted.
Section 13. Insertion of new section 51E
After section 51D of the principal Act, the following section shall be inserted, namely:--
"51 E. Accidents happening while commuting to the place of work and vice versa.--
An accident occurring to an employee while commuting from his residence to the place of employment for duty or from the place of employment to his residence after performing duty, shall be deemed to have arisen out of and in the course of employment if nexus between the circumstances, time and place in which the accident occurred and the employment is established.".
Section 14. Amendment of section 56
In section 56 of the principal Act, in sub-section (3), for the third proviso, the following proviso shall be substituted, namely:--
"Provided also that an insured person who has attained the age of superannuation, a person who retires under a Voluntary Retirement Scheme or takes premature retirement, and his spouse shall be eligible to receive medical benefits subject to payment of contribution and such other conditions as may be prescribed by the Central Government.".