The promulgation of Employees’ State Insurance Act, 1948(ESI Act), by the parliament was the first major legislation on Social Security for workers in independent India. It was a time when the industry was still in a nascent stage and the country was heavily dependent on an assortment of imported goods from the developed or fast developing countries. The deployment of manpower in manufacturing processes was limited to a few select industries such as jute, textile, chemicals etc. The legislation on creation and development of a fool proof multi-dimensional Social Security system, when the countries economy was in a very fledging state was obviously a remarkable gesture towards the socio economic amelioration of a workforce though limited in number and geographic distribution. India , notwithstanding other pressing compulsions of self reliance and self sufficiency, thus, took the lead in providing organized social protection to the working class through statutory provisions.
The ESI Act 1948, encompasses certain health related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, occupational disease or death due to employment injury, resulting in loss of wages or earning capacity- total or partial. Social security provisions made in the Act to counterbalance or negate the resulting physical or financial distress in such contingencies, are thus, aimed at upholding human dignity in times of crises through protection from deprivation, destitution and social degradation while enabling the society the retention and continuity of a socially useful and productive manpower.
The ESI Scheme is based on the principle of ‘polling of risks and resources’ in which every contributor, at any given point of time, emerges as a beneficiary of a benefactor and society at large is the net gainer. Employees, employers, State Govts. And the Corporation are the major stake holders in the system of organized and coordinated effort providing social protection to benefactors. The role of employers, in particular remains pivotal to the success of the scheme, be it surveys for coverage, implementation, registration of factories establishments, registration of employees, regular payment of contribution, facilitating inspections and timely action to ensure steady flow of benefits to the employees.
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