CA Book Questions for LLB II for subject Labour

Laws II
1. Explain in detail the benefits under ESI Act, 1948

Introduction
The Employees’ State Insurance Act, 1948 is one of the
most important laws that provide social security. It contains
six kinds of ESI benefits that injured employees can avail. All
of these benefits must arise in the course of employment in
order to enable workers to access them.
The Employees’ State Insurance Act incorporates a number
of sections, these sections provide for medical benefits and
insurance for any employees working under factories
registered under the ESI Corporation. This is an exciting
prospect from both an employee’s and a legal perspective as
the beginning of a formal social security program in India.
ESI Benefits
Section 46 of the Act describes all benefits that an injured
employee can avail. It is important to note that a worker can
avail these benefits in the course of employment only.
For example, if a worker suffers an injury, this injury must be
an employment injury only.
Section 2(8) says that an employment injury is a personal
injury that an employee suffers. Such injury must be the
result of an accident or occupational disease that arises out
of employment.

Apart from benefits related to injuries and sickness, some

ESI benefits can arise after maternity as well. The ESI
Corporation provides some compensation and financial
support to employees during these periods.
The following are some ESI benefits that employees can
avail under the ESI Act
• Medical benefit
• Sickness benefit
• Maternity benefit
• Dependants benefits
• Disablement benefits
• Other benefits

1. Medical benefit
Every insurable employee under the Act gets medical
benefits the day he becomes an employee. This benefit
extends to his family members as well. This medical benefit
has no ceiling in terms of expenditure on healthcare.
Hence, the ESI Corporation takes care of all treatment
expenses as per its rules.
Apart from general healthcare benefits, retired and
permanently disabled workers also get an annual premium
of Rs. 120. This benefit extends to the spouses of the
workers as well.
Learn more about the Employees State Insurance Act, 1948
here in detail

2. Sickness benefit
Insurable employees under the Act can draw some cash
compensation in case they fall sick. This compensation is
generally 70% of their wages during the period of sickness
for a maximum of 91 days in a year.
In order to avail this sickness benefit, a worker must pay his
contribution for 78 days out of 6 months. Hence, he cannot
seek this benefit if he contributes for less than 78 days.
3. Maternity benefit
All female insurable employees can avail maternity benefits
under the Act in cases of pregnancy or confinement.
Confinement, in this case, means labour which results in the
birth of a living child. It can also mean birth after 26 weeks of
pregnancy, whether the child is living or not.
This maternity benefit is generally payable to employees for
three months. It may, however, be extendable for one more
month depending on medical advice.
The compensation amount in such cases is the full wage
amount of the employees. This is payable only if the
employee makes a contribution for 70 days in the preceding
year.

4. Dependants benefits
ESI benefits extend not only to the employees but to their
dependents as well in case of the employee’s death. Such
death, however, must occur in the course of an employment
injury or an occupational hazard.
This compensation is generally 90% of the dead employee’s
wages in the form of monthly payments.

5. Disablement benefits
In case an employee suffers some disablement due to an
employment injury, he can seek disablement benefits. Such
disablement may be either temporary or permanent.
In the case of temporary disablement, the compensation is
generally 90% of the wage amount until the disablement
continues. The employee can claim this benefit irrespective
of whether or not he paid his contribution.
As far as permanent disablement is concerned, the
compensation amount depends on 0n the extent of the
injury. The Medical Board first determines the extent of the
employee’s loss of earning capacity and then decides it.

6. Other benefits
Apart from these five basic ESI benefits, an insurable
employee can avail the following miscellaneous benefits
also:
a) Funeral expenses: The dependents of a deceased
employee receive Rs. 10,000 to perform his last rites.
b) Vocational/physical rehabilitation: This is generally
payable to permanently disabled employees. They can avail
of this benefit for undergoing vocational and physical
rehabilitation.
c) Old age medical care: This is payable for employees
retiring on superannuation or under VRS/ERS. Even persons
who leave employment after suffering a permanent injury
and their spouses can avail this benefit. The compensation
amount here is generally Rs. 120 per month.

Conclusion
For a working-class employee in India, the ESI Act is an
essential utility that works in their favour, while also being
beneficial for sectors outside that of the working class.
The ESI Act is unique in the fact that it works in
advantageous ways for both employees and employers.
While employees are insured under the act and get financial
aid in case of an injury, the employers are also protected
from being jeopardized twice in lieu of paying compensation
to the employees.
 2. Discuss the benefits available to women under Maternity
Benefit Act, 1961

Introduction
The Maternity Benefits Act of 1961 was passed by the Union of
India on December 12, 1961, following the country’s
independence. The statute included conditional benefits for
pregnancy, childbirth, and complications related to those, in
conformity with the then-current international standards. The Act
covered a lot of areas with meticulous precision and care was
paid to many dimensions of considerations influencing maternity
benefits, despite the fact that India was still a developing nation
and in its 14th year of independence.
The Maternity Benefit Act, 1961 governs maternity benefits in
India. Every organisation with ten (10) or more employees is
subject to the Act. According to the Act, maternity benefits are
available to any woman who has worked for an organisation for at
least eighty (80) days.
Applicability of the Maternity Benefit Act 1961

The Maternity Benefit Act is applicable to all the organizations

including the factories, plantations, mind, government
organizations, legislative organizations, shops or any other
organization that is centered by the central government.

Eligibility required availing the benefits of the Maternity Benefit Act

1961
As per the details available, women working in any organization for
a minimum of 80 days in the last year are eligible to get the
Maternity Benefit. The amount given to the pregnant women will
be based upon the daily wages that they receive while working.
Benfits under the Act
1. Maternity Leave

• Duration: The Act entitles a female employee to 26 weeks of

paid maternity leave for the birth of her first two children. For
the third child, the leave is reduced to 12 weeks.
• Pre- and Post-Natal Leave: Out of the total 26 weeks, the
employee can avail up to 8 weeks before the expected
delivery and the remaining weeks post-delivery.

2. Leave for Adoptive and Commissioning Mothers

• A woman adopting a child below the age of three months or

a commissioning mother (for surrogacy) is entitled to 12
weeks of maternity leave from the date the child is handed
over.

3. Medical Bonus

• Every woman entitled to maternity benefit is also entitled to

receive a medical bonus of ₹3,500 if pre-natal confinement
and post-natal care is not provided by the employer.

4. Protection from Dismissal

• A woman cannot be dismissed or discharged during her

maternity leave. Employers are prohibited from giving notice
of dismissal that expires during her maternity leave period.
• The Act also protects women from being dismissed on
account of maternity or pregnancy-related absence.

5. Nursing Breaks

• After returning to work, a woman is entitled to two nursing

breaks in addition to her regular break until the child is 15
 months old. These are provided to ensure the mother can
feed her child.

6. Work from Home Option

• The Act also allows for a work-from-home option after

maternity leave, if the nature of work permits, and if mutually
agreed upon between the employer and employee.

7. No Reduction in Wages

• During the maternity leave period, the woman is entitled to

full wages based on her average daily wage for the three
months preceding the date of her maternity leave.

8. Prohibition on Hazardous Work

• Pregnant women cannot be required to do work that is of an

arduous nature, or that involves long hours of standing or
likely to interfere with pregnancy, cause miscarriage, or
adversely affect health.

9. Maternity Benefit for Miscarriage or Medical Termination

• In the event of a miscarriage or medical termination of

pregnancy, a woman is entitled to 6 weeks of paid leave
from the date of the incident.

10. Leave for Tubectomy Operation

• Women undergoing tubectomy (sterilization) are entitled to

two weeks of paid leave following the procedure.

11. Health Protection

• Employers are required to provide any additional medical

facilities for the safety and health of pregnant women, such
 as providing clean and hygienic conditions, avoiding heavy
lifting work, etc.

12. Compensation in Case of Death

• In case the woman dies during delivery or due to pregnancy

complications, the employer is required to provide maternity
benefits to the legal heir of the woman. The benefit covers a
period up to the day of death.

Conclusion
The Maternity Benefit Act, 1961, plays a crucial role in ensuring
the rights and well-being of women in the workforce during
pregnancy and childbirth. While it has significantly improved
maternal and child health outcomes and boosted female
workforce participation, challenges such as making sure everyone
knows about it and making it work for all kinds of jobs still persists.
It’s important for companies to follow the Maternity Benefit Act and
make sure everyone knows about it. This will help promote
fairness for women at work and make sure they get the support
they need during pregnancy.
 3. Write a short note on Bonded Labour
Bonded Labour is a system in which borrowers are forced to
repay their loans through labour. Here, the employers give loans
at very high-interest rates. As the loan amounts to be repaid are
unreasonably high, the time required to pay off is very large,
thereby creating a vicious cycle of generational inequality.
o Bonded Labour is also known as Bandhua Mazdoori or Debt
Bondage in India. The Supreme Court of India has interpreted
bonded labour as the payment of wages that are below the
prevailing market wages and legal minimum wages.
o Bonded labour was historically associated with rural
economies where peasants from economically disadvantaged
communities were bound to work for the landlords.
o Bonded labour is found to exist in both rural and urban
pockets in unorganized industries such as brick kilns, stone
quarries, coal mining, agricultural labour, domestic servitude,
circus, and sexual slavery.
o Reasons for the Persistence of Bonded Labour:

o The lack of awareness among workers and

employers.
o Low conviction rates.
o Social bias towards bonded labour.
o Migratory nature of bonded labour.
o Weaker implementation of Bonded Labour System
(Abolition) Act 1976.
o Punishment for forced labour (Section 374 of IPC–
unlawful compulsory labour) is not appropriate.
 o Lack of proper coordination at the national and
regional level, and among governments.
o Measures Needed to End Bonded Labour:

o Organising national campaigns to provide information

to the public on how to report and identify victims of
bonded labour.
o Popularising the National Child Hotline which is partly
supported by the Ministry of Women & Child
Development, and a national helpline for trafficking
victims exists, run by Operation Red Alert.
o Efficient rehabilitation of rescued victims to prevent
them from being forced into bonded labour again.

o Productive and income generating

schemes must be formulated in advance
otherwise they will again fall back upon the
system of bonded labour after their release.