Corporate Social Responsibility
Sub – topics Included:
• Corporate social Responsibility
• Social security – concepts and components.
• Industrial social work
Recommended Books :
1) Human resource management by : T.N Chhabra.
• Medical Benefit:
• The Scheme provides full range of medical care to Insured person
and family, through a network of ESI Dispensaries & Panel clinics,
diagnostic centres and ESI Hospitals etc.
• Super speciality facilities are provided to the beneficiaries through
recognised advanced medical institutions empanelled for the
purpose on referral basis.
• The Corporation has set up a revolving fund in most of the States to
ensure smooth flow of funds for super-speciality treatment of ESI
• All Insured Persons and members of their family are entitled to free,
full and comprehensive medical care under the Scheme.
• The package covers all aspects of health care from primary to super
• IP and his family members are entitled to avail treatment in ESI
Dispensary/Hospital/Diagnostic centre and recognised institutions such as :-
• Out patient treatment
• Domiciliary treatment
• Superspeciality treatment
• Specialist consultation and diagnostic facilities
• In-Patient treatment
• Free supply of drugs and dressings.
• X-ray and laboratory investigations
• Vaccination and preventive innoculations
• Ante-natal care, confinement and post natal care
• Ambulance Service or conveyance charges for going to hospitals diagnostic
centres, etc. wherever admissible
• Free diet during admission in hospitals
• Free supply of artificial limbs, aids and appliances for physical rehabilitation
• Family welfare services and other national health programme services
• Medical certification
• Sickness Benefit
• Sickness Benefit represents periodical cash payments made to an IP during
the period of certified sickness occurring in a benefit period when IP
requires medical treatment and attendance with abstention from work on
• The maximum duration of Sickness Benefit is 91 days in two consecutive
• There is a waiting period of 2 days which is waived if the insured person is
certified sick within 15 days of the spell for which sickness benefit was last
• The sickness benefit rate is roughly equivalent to 50% of the average daily
wages of the insured person.
After exhausting the Sickness Benefit payable upto 91 days, an insured
person if suffering from Tuberculosis/Leprosy, mental and malignant
diseases or any other specified long-term disease, he is entitled to
Extended Sickness Benefit at a higher cash benefit rate of about 70% of
average daily wage for a period of two years.
• Sickness Benefit Eligibility
• To qualify for sickness benefit, the contribution should have been paid or
payable for 78 days in the corresponding contribution period.
• In case of new entrant, for whom a shorter contribution period is available,
he will be qualified for sickness benefit if the contribution in respect of him is
payable for not less than half the no. of days in that contribution period.
• For a new entrant, the benefit period shall commence on the expiry of the
period of 9 months from the date of joining insurable employment.
• The daily rate of sickness benefits during any benefit period shall be the
standard benefit rate corresponding to the average daily wages of that person
during the the corresponding contribution period.
• This is roughly equivalent to 50% of the average daily wages.
• Maternity Benefit (Section 50 of ESI Act)
• Maternity benefit consists of periodical cash payments in case of
confinement or miscarriage or sickness arising out of pregnancy,
confinement, premature birth of child or miscarriage, to an insured
woman as certified by a duly appointed medical officer or mid wife.
• Maternity Benefit for confinement
Insured women is entitled to receive maternity benefit for confinement
for a period of 12 weeks for all the days on which she does not work for
For entitlement to maternity benefit, the insured woman should have
contributed for not less than seventy days in the immediately preceding
two consecutive contribution periods prior to actual or expected date of
confinement as the case may be.
• Disablement Benefit
• Disablement benefit is admissible for disablement caused by employment
• At the first instance, temporary disablement benefit is payable as long as
the temporary disability lasts.
• If the employment injury results in partial or total/permanent disability,
permanent disablement benefit is payable till the death of the insured
• No contributory conditions are prescribed for this benefit. While the rate
of temporary disablement benefit is 70% or a little more of the wages and
that of permanent disablement benefit is proportionate to the loss of
earning capacity caused by the injury.
• Permanent Disablement Benefit has to be paid periodically to the insured
person whose permanent disablement has been assessed by the Medical
• Dependant Benefit
• Dependants' benefit consists of periodical payments to dependants of an
insured person who dies as a result of an employment injury sustained as
an employee under the ESI Act.
• There are no contributory conditions for qualifying to this benefit.
• Thus, if a person dies of employment injury even on the first day of his
employment, his dependants are entitled to the benefit
• Funeral Expenses
• Funeral expenses are in the nature of a lump sum payment upto a
maximum of Rs. 5000/- (with effect from 01.09.2009) made to defray the
expenditure on the funeral of deceased insured person.
• The amount is paid either to the eldest surviving member of the family or,
in his absence, to the person who actually incurs the expenditure on the
The Workmen’s Compensation Act
Employer includes any person whether incorporated or not and any agent
of employer and when services are temporarily lent or let on hire to
another person, then means such other person.
Any workman who is injured by accident arising out of and in the course of
his employment in specified list of employment contracts any disease
specified therein as an occupational disease peculiar to that occupation.
• Benefits: Amount of compensation shall be payable by the employer
i) Where death results from injury 40% of monthly wages x relevant factor
or Rs. 20,000/- whichever is more.
ii) Where permanent total disablement results from the injury 50% of
monthly wages x relevant factor or Rs. 24,000/- whichever is more
(relevant factor depends upon the age of a workman)
iii)Where permanent, partial disablement or temporary disablement
results from injury as per prescribed schedule.
• Penal Provisions
Any contract by a worker waiving his right to be compensated under this
Act is null and void.
• Compensation should be paid early–delay beyond 1 month attract
interest @ 6% p.a. and penalty of up to 50% of the compensation.
• Certain other offenses attract fine up to RS 5,000.
Employee’s Provident Fund Act
• The Constitution of India under "Directive Principles of State Policy"
provides that the State shall within the limits of its economic capacity
make effective provision for securing the right to work, to education and
to public assistance in cases of unemployment, old-age,
sickness & disablement and undeserved want.
The EPF 1952 was enacted by Parliament and came into force with effect
from 14th March,1952. A series of legislative interventions were made in
this direction, including the Employees' Provident Funds & Miscellaneous
Provisions Act, 1952.
• Presently, the following three schemes are in operation under the Act:
• 1. Employees' Provident Fund Scheme, 1952
2. Employees' Deposit Linked Insurance Scheme, 1976
3. Employees' Pension Scheme, 1995 (replacing the Employees' Family
Pension Scheme, 1971)
• The Employees' Provident Fund Organisation, India, is one of the largest
provident fund institutions in the world in terms of members and volume
of financial transactions that it has been carrying on.
• APPLICABILITY OF EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS
PROVISIONS ACT '1952
• The Employees' Provident Fund and Miscellaneous Provisions Act 1952
applies to the whole India except Jammu & Kashmir.
Employees' Provident Fund and Miscellaneous Provisions Act 1952 is
• Every establishment which is engaged in any one or more of the industries
specified in Schedule I of the Act or any activity notified by Central
Government in the Official Gazette.
• Employing 20 or more persons .
• Cinema Theatres employing 5 or more persons.
• The Act does not apply to:
• The co-operative societies employing less than 50 persons and working
without the aid of power. 16(1)(a)
• The establishment to which this Act applies shall continue to be governed
by this Act , even if the number of employees falls below 20 at a later
date. [ 1(5)].
• 16(1)(b) Establishments under the control of state/central Govt.&
employees who are getting benefits in the nature of 16(1) (b) contributory
P.F. or old age pension as per rules framed by the Govt.
16(1)(c) Establishment set up under any central, provincial or state act and
the employees who are getting benefits in the nature of contributory P.F.
or old age pension as per rules.
• Voluntary Coverage
• If any of the establishment is not satisfying the above two conditions for
coverage and if the employer and majority of the employees are willing ,
the Act may be applicable to such establishment ( voluntary coverage
under section 1(4)
• CONTRIBUTION OF EMPLOYERS
• Rates of Contribution:
a) The Employees' Provident Fund Scheme
• In respect of establishments employing 20 or more persons and engaged
in industry notified under Section 6 of Act ( other than the
Establishments. declared as sick ) 12% of the basic pay DA , Cash value of
food concession and retaining allowance , if any, subject to a maximum of
Rs.6500/- per month. Voluntary higher contributions are also acceptable
at the joint request of the member and the employer . However, the rate
of contribution is 10% in respect of the following categories of
• Any establishment covered prior to 22.9.97 in which less than 20 persons
• Any sick industrial company as defined in Clause(0) of Sub-Section(1) of
Section 3 of the sick industrial companies ( special provisions ) Act 1985
and which has been declared as such by the Board for Industrial and
• Any Establishment which has at the end of any financial year accumulated
losses equal to or exceeding its entire net worth.
• Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c)
Brick , (d) Coir (other than spinning sector), (e) Guar Gum
• b) The Employees' Pension Scheme
• From and out of employer's share of Provident Fund contributions 8.33%
of the total wages limited to Rs. 6500/- per month is segregated and
credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 )
• The Central Government also would contribute at the rate of 1.1 / 6% of
• c) Employees' Deposit Linked Insurance Scheme:
No amount is recovered from employee's wages . Employer should pay
0.5% of total wages subject to a ceiling of Rs. 6500/- per month
( w.e.f. 1-06-2001 ).