Category Archives: Powerpoints

Attachment of Immovable Property by ESIC & EPFO !

The procedure followed for the recovery of arrears from the defaulters is common for both the ESIC and the EPFO. The provisions of the Second Schedule to the Income Tax Act, 1961 and the Income Tax (Certificate Proceedings) Rules, 1962 as were in force as on 01.04.1989 are followed by both the organisations. The procedure followed by the Recovery Officers and the rights of the defaulters and the general public are brought out in the Power Point Presentation given below.

Click on the slide below to reach the Presentation
 

Slide1

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Filed under For Trainees, Powerpoints, Recovery

Sorry! No ‘hostages’ there, Mr. Finance Minister!

The following are the excerpts from the speech of the Finance Minister, Mr. Arun Jaitely while presenting the Budget of the Government on 28.02.2015:

“61. Madam Speaker the situation with regard to the dormant Employees Provident Fund (EPF) accounts and the claim ratios of ESIs is too well known to be repeated here. It has been remarked that both EPF and ESI have hostages, rather than clients. Further, the low paid worker suffers deductions greater than the better paid workers, in percentage terms.

62With respect to the Employees Provident Fund (EPF), the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme (NPS). Secondly, for employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer’s contribution. With respect to ESI, the employee should have the option of choosing either ESI or a Health Insurance product, recognized by the Insurance Regulatory Development Authority (IRDA). We intend to bring amending legislation in this regard, after stakeholder consultation.”

(http://www.thehindu.com/news/resources/full-text-of-budget-201516-speech/article6945026.ece)

 

We, first of all, thank Mr. Arun Jaitely that he has chosen to consult the stakeholders before making amendments to further his observations on ESI Scheme.

In regard to his proposal to allow option to the employees to choose either ESI or a Health Insurance product, recognized by the IRDA, we have already brought out the well-known fact the medical benefit provided by the ESIC is just one of the many benefits and that it has close connection with important cash benefits like Sickness Benefit, Extended Sickness Benefit and also Sickness arising out of pregnancy and Sickness arising out of Confinement, Sickness arising out of premature birth of child or miscarriage.

In the present write-up we would like to remind the Minister just one fact which might not have been brought to his notice by the overzealous bureaucrats who wanted to please him so that he could, in turn, please the private players who would be pleased if the ESIC, which affects their area of operation, is not there.

The Minister has gone on record having said that the ESIC does “have hostages, rather than clients”.

The fact is that the ESI Scheme is run by government. Mr. Arun Jaitely belongs to that Government now. And his statement implies that he is of the opinion that the Government of India does have hostages through its ESI Scheme and not clients.

But, the employers through whom and with whose  active co-operation the scheme is run, would not and cannot say that they are held hostages. The ESI Act is not a compulsory provision. Because, the employers are free to get themselves and their employees totally exempted from ESI coverage.

Sections from 87 to 91-AA deal with exemptions. If the employers are able to provide benefits which are ‘substantially similar’ or ‘superior’ to those provided by the ESI Corporation, they can, as a matter of right, demand exemption from coverage under the ESI Scheme.

It is so simple. There is a format in the ESIC offices for this purpose. There are three columns in it. The first one lists out the benefits provided by the ESI Scheme. The next column is to be filled in by the employer recording the benefits that he provides. The third column is intended to be filled by the employer wherein he would say whether, in his own assessment, the benefits provided by him are ‘substantially similar’ or ‘superior’. Let them assess themselves first that way, before coming to the Minister and saying that the ESIC is holding them and their employees hostages.

The ESIC had successfully challenged all the employers, on many an occasion, whether they were ready to provide benefits on par with those provided by the ESIC. But, none came forward.

The Private Players do not want to provide all the benefits provided by the ESIC. Their intention is not to provide ‘social security’ but to ‘earn profit and throw a portion of it to all the political parties’.

But, ESI Act is for the welfare of humanity. It has kindness in-built. The deficiencies in providing service were and are only man-made and they can be set right by committed leadership backed by the Labour Ministry committed for honesty and transparency in running the organization. “Cleaning corruption is like cleaning the stair-case. It must start from the top”. There had been many an illustrious era that the ESIC has seen in its 63 years of existence, although it had seen many dark spells too.

ESIC has the capacity and can make the nation strong economically, if it is well-run.

We, therefore, request the Hon’ble Finance Minister not to rely only upon the convenient filenoting submitted by his pliant bureaucrats without studying the 210 years-old poignant and heart-rending history behind the ESIC.

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The Finance Minister may better advise the employers to give all kinds of cash and medical benefits to their employees in a better manner than what is provided by the ESIC and seek proper exemptions as per the existing law itself. There is no need for amendments of any kind to the ESI Act, 1948, if the advice given to him by the bureaucrats was to free the ‘hostages’. For ready reference, we provide, in the following link, a presentation on the provisions in the ESI Act, 1948 that govern Exemptions:

 Exemptions

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Filed under Amendment 2015, Benefits, For Trainees, Inspections, Powerpoints

Coverage of Man-Power Supply Agencies!

Man-power supply agencies are coverable under the ESI Act as Shops, but only their offices, as the premises in which those offices are functioning are utilised to render service for a price.

The persons supplied by them to do the work of the other factories or establishments cannot be treated as employees of these Man-power supply agencies, just because they got an ESI Employer’s Code Number.

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A lot of evasion, manipulation and abuse of the benefits of ESI and denial of benefits takes place in the coverage and non-coverage of the employees deputed by these agencies, which use their employer code number to cover the non-coverable employees also.

Sweatshops

The responsibility for their coverge lies only with the ultimate employer who utilizes their services. The Principal Employer for the employees deputed by these agencies to work in other factories or establishments are only those employers who utilize the services of these employees and not the man-power supply agencies which depute them.

Relevant details in this regard are provided in the Powerpoint Presentation available in the following link:

Manpower supply agencies

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Theory & Procedure on ‘Employment Injury’ – A Presentation!

A powerpoint Presentation on the theory and procedure pertaining to Employment Injury is given below. Hope readers will find it useful.

Employment Injury

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Filed under Benefits, For Trainees, Powerpoints

Administrative Procedure: A Powerpoint Presentation

A powerpoint presentation that highlights the importance of Policy, Procedure, Law, Theory and Practice of Administrative Procedure, the direct connection between internal administrative procedure of a department and the interests of the society at large, the extent to which the administrative decisions must be treated as quasi judicial ones, etc., is the Post of this week.

Information culled out from various sources have been threaded together in the Presentation.

Readers are welcome to make use of it.

 Presentation on Administrative Procedure

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Amendment 2010: The amazing Validation Clause

Action had been taken in the years 2008 and 2009 by the ESI Corporation for setting up large number of medical colleges. Parliament enacted law for this purpose only later in May, 2010 which came into effect from June, 2010.

Consultants were appointed for construction of buildings involving expenditure of thousands of crores of rupees.   Specialists / Professors were appointed to start medical colleges, with pay pockets of more than a lakh per month per person. The fee for the Consultant for setting up medical colleges was very huge.

All these things were beyond the powers conferred by the ESI Act and had been done without prior Parliamentary approval.

Although the Standing Committee meetings could usually be arranged even at short notice, expenditure of hundreds of crores of rupees was sanctioned without obtaining the prior approval of even the Standing Committee and those cases were placed before it later for ex-post facto approval.

Was the Parliament also, then, approached for ex-post facto approval?

If not, how were these actions regularised or validated?

Were these issues so urgent, at that point of time, that action had to be taken so early even when there was no provision in the Act?

An attempt was made by Mr. A. Veerappan to find out the truth.  If  you want to go through the amazing process of law-making in India, please click on the following link:

presentation-on-validation-clause

Mark you, Mr. Veerappan could make only an attempt.It would be helpful, if you could enlighten the public more on this issue.

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Filed under Amendments 2010, Powerpoints

Enigmatic Amendment 2011 that affects the Benefits

There was, all of a sudden, an amendment, which came into force from 01.07.2011, stating that it was intended to simplify the term ‘average daily wages’ mentioned  in Rule 2 (1) (1-A) of the ESI (Central) Rules, 1950.  The definition in this sub-rule is meant for regulating the rates of various Benefits provided under the Act while the definition in in sub-rule 1-B is for deciding coverage.

The need for such simplification, after the vigorous efforts to computerize all works of the Branch Offices is not clear. But, the fact is that that amendment has reduced the rates of benefits which were available to the insured population up to 30.06.2011.

After 01.07.2011,

  1. the employees receiving wages at the lower level like Rs. 5000 or Rs. 8000 etc., p.m. get less amount when they seek two benefits, Sickness and Maternity;
  2. the employees in higher income group get less amount of benefit only for Maternity;
  3. but, all of them get more benefits for Disablement.

Natural justice demands that no amendment should result in reduction of benefits, unless such reduction is actually contemplated and discussed openly before making such amendment.

Can there be reduction of benefits through indirect amendments without making the public aware of it through categorical proclamations, beforehand?

How can the bar under Sec. 61 of the ESI Act be justified, hereafter?

Readers are welcome to share their enlightened opinions!

Please Click on the small Presentation on Amendment that affects Benefits

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Filed under Amendments 2010, Benefits, Powerpoints

No time to read! So, ESIC got Medical Colleges.

“Why did the Congress bring the proceedings of the Lok Sabha to a stand-still for seven days over the issue of ….?” asks and justifies Ms. Girija Vyas in her article in http://www.congresssandesh.com/apr_issue/viewpoint1.html

That was when BJP was in power. Now a days, we see how BJP is also doing even more vigorously what the Congress was doing earlier.

Where is, then, the time for the MPs to read, study, understand, analyse and take a considered stand over the Bills placed before the House of the People for approval? Naturally, they do not have time.

The important Bills are just taken as read on the last day of the Session or simply ignored and taken to the next session. If people whose vote alone is essential for the Bills to become Law choose to remain indifferent or ignorant of the intricacies of the Bills and their votes are taken for granted on the last day of every session, with or without their being aware of it, who else can discuss the impact of a Bill?

Will there be any law to make all such Bills public and enable the Public to offer their opinion on the Lok Sabha website so that the points of view expressed therein are analysed on record and a report placed before the Lok Sabha so that the Members will be free from reading the Bills and will be free to stall the House.

Some solution, we have to find.

One such instance that shows what happened in the Lok Sabha  on 03.05.2010, when the Members did not have time to discuss the Bill because of the practice of stalling the proceedings of the House,  is analysed in the Powerpoint Presentation given hereunder. Please click on the links:

Presentation on Medical Colleges

Appendix I – Parliamentary Standing Committee report on Amendment Bill 2009

Appendix II – Parliament passed the bill

Readers are welcome to correct the mistakes, if any,or offer their viewpoints!

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Filed under Amendments 2010, Powerpoints

Amendment 2010: The enigma – Episode 1

Amendment to Sec. 17 (2) (a) the ESI Act, 1948:

 Insertion of the second proviso regarding the appointment of Consultants.

The complete details on this topic, as made available to this website, run into fifteen pages, with date-wise details. The relevant photocopies, if scanned and uploaded, would add to the already unwieldy size of the article. The essential facts are, therefore, placed before the readers in the Powerpoint Presentation for the benefit of their own analysis.

Firstly, there was glaring discrepancy between the ‘Statement of Objects and Reasons’ and the actual version inserted as the second proviso to Sec. 17 (2) (a) of the ESI Act, 1948. While the former stressed on the need for Consultants and Specialists in medical field, the latter was an omnibus provision for appointment of anyone as Consultant or Specialist in any field.

Continue reading

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Quasi-Judicial Procedure in the ESIC & EPFO: Powerpoint

The intricate aspects of quasi-judicial procedure are highlighted in the Powerpoint Presentation for the benefit of the stake-holders of the ESIC and EPFO.

Please click on the link:

Quasijudicial procedure in ESIC & EPFO for employers

It can be seen best with MS Powerpoint 2010

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Filed under For Trainees, Powerpoints