Labour Law

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02 November 2009 Can anyone tells me about Section 68 and sec.73 of the Employees State Insurance Act,1948?

ANIL JANGID

ANIL JANGID (Expert)
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02 November 2009 Section 68:Recovery for short payment or non-payment of any contribution under

Under Section 73, an employer cannot dismiss or punish an employee during the period of his certified sickness etc. Contravention of these provisions attracts penalties provided under Section 85 of the Act.

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2009 can anyone provide me more detailed information regarding this???

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Asha Kanta Sharma

Asha Kanta Sharma

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02 August 2024 Certainly! Sections 68 and 73 of the Employees' State Insurance Act, 1948 (ESI Act) pertain to important aspects of the administration and enforcement of the ESI scheme. Here’s a detailed overview of each section:

### Section 68: **Powers of the Corporation to Conduct Inquiry**

**Purpose**:
Section 68 empowers the Employees' State Insurance Corporation (ESIC) to conduct inquiries into the implementation and adherence to the ESI Act.

**Key Provisions**:

1. **Inspection and Inquiry**:
- The Corporation or an authorized representative has the power to inspect and conduct inquiries into the affairs of the ESIC and its affiliated establishments. This includes examining records and inspecting facilities.

2. **Compliance Verification**:
- The purpose of such inquiries is to ensure that employers are complying with the provisions of the ESI Act and that the benefits are being properly administered.

3. **Report and Action**:
- The results of these inquiries are reported to the Corporation, which can then take appropriate actions if there are any discrepancies or non-compliance issues.

**Implications**:
- Employers and establishments must maintain proper records and cooperate with the inspections and inquiries conducted by ESIC or its representatives.
- Non-compliance or failure to provide required information during an inquiry can lead to penalties or legal actions.

### Section 73: **Recovery of Contribution and Penalties**

**Purpose**:
Section 73 deals with the recovery of contributions and penalties from employers who fail to pay the required contributions to the Employees' State Insurance Fund.

**Key Provisions**:

1. **Recovery of Contributions**:
- If an employer fails to pay the contributions due under the Act, the ESIC can initiate recovery procedures.
- Contributions, along with any penalties, can be recovered from the employer in the manner specified by the Act.

2. **Penalties**:
- Section 73 provides the legal framework for imposing penalties on employers who default on their contributions or violate other provisions of the Act.
- The penalties are intended to encourage compliance and deter non-payment or delays.

3. **Procedure for Recovery**:
- The recovery process can involve legal action and may include attachment and sale of the employer's property or other measures as authorized under the Act.

4. **Legal Recourse**:
- Employers have the right to appeal against the recovery orders or penalties imposed by the ESIC if they believe there has been an error or unfair treatment.

**Implications**:
- Timely payment of contributions and adherence to the Act's provisions are crucial to avoid penalties and legal actions.
- Employers should be aware of their obligations under the ESI Act and ensure that contributions are paid promptly to avoid disputes and penalties.

### Summary:

- **Section 68** provides ESIC with the authority to inspect and inquire into the adherence to the ESI Act, ensuring compliance and proper administration of benefits.
- **Section 73** outlines the process for the recovery of unpaid contributions and penalties, aiming to enforce compliance with the Act’s provisions.

For accurate and detailed application of these sections to specific situations, consulting the ESI Act's text or seeking advice from a legal expert specializing in employment law or ESI matters would be prudent.