REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 1
PUBLISHED BY AUTHORITY
No. 45] NEW DELHI, FRIDAY, AUGUST 1, 1975/SRAVANA 10,1897
Separate paging is given to this Part in order that it may be filed as a separate compilation
MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 1st August, 1975/ Sravana 10, 1897 (Saka)
The following Act of Parliament received the assent of the President on the 1st August, 1975, and is hereby published for general informa- tion : —
THE EMPLOYEES' STATE INSURANCE (AMENDMENT) ACT, 1975 No. 38 OF 1975
[1st August, 1975]
An Act further to amend the Employees, State Insurance Act, 1948, and to incorporate an explanatory provision connected therewith in section 405 of the Indian Penal Code.
BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows: —
1. (1) This Act may be called the Employees' State Insurance (Amend- ment) Act, 1975.
Short title and com- mence- ment.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
34 of 1948.
Amend- ment of section X 2. In section 2 of the Employees' State Insurance Act, 1948 (herein- after referred to as the principal Act), in sub-clause (fa) of clause (9), for the words "five hundred rupees" in both the places where they occur, the words "one thousand rupees" shall be substituted.
3. In sub-section (1) of section 17 of the principal Act, for the words "with a maximum monthly salary of five hundred rupees and above", the words "the maximum monthly salary of which exceeds one thousand and two hundred rupees" shall be substituted.
( 2 5 5)
256 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—Amend-
ment of
lection
89.
4. In section 85 of the principal Act, for the words "he shall be punish- able with imprisonment which may extend to three months or with fine which may extend to five hundred rupees, or with both.", the follow- ing shall be substituted, namely: —
"he shall be punishable—
(i) where he commits an offence under clause (a), with Imprisonment for a term which may extend to six months but—
(a) which shall not be less than three months, in case of failure to pay the employees' contribution which has been deducted by him from the employee's wages;
(b) which shall not be less than one month, in any other case,
and shall also be liable to fine which may extend to two thousand rupees:
Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term or of fine only in lieu of imprisonment;
(li) where he commits an offence under any of the clauses (b) to (g) (both inclusive), with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.".
5. After section 85 of the principal Act, the following sections shall be inserted, namely: —
Inser-
tion o*
new sec-
tions
8BA, 88B
and
8BC.
"85A. Whoever, having been convicted by a court of an offence punishable under this Act, commits the same offence shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to one year, or with fine which may ex- tend to two thousand rupees, or with both:
En-
hanced
punish-
ment in
certain
cases
after
pre-
vious
con-
viction.
Provided that where such subsequent offence is for failure by the employer to pay any contribution which under this Act he is liable to pay, he shall, for every such subsequent offence, be punish- able with imprisonment for a term which may extend to one year but which shall not be less than three months and shall also be liable to fine which may extend to four thousand rupees.
Power
to re-
cover
damages.
85B. (I) Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover from the employer such damages not exceeding the amount of arrears as it may think fit to impose:
Provided that before recovering such damages, the employer lhall be given a reasonable opportunity of being heard.
(2) Any damages recoverable under sub-section CO may be recovered as an arrear of land revenue.
SKC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 25785C. (I) Where an, employer is convicted of an offence for Power of court to make orders.
failure to pay any contribution payable under this Act, the court may, in addition to awarding any punishment, by order, in writing, require him within a period specified in the order (which the court may if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution in respect of which the offence was committed.
(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any, allowed by the court, but if, on the expiry of such period or extended period, as the case may be, the order of the court has not been fully com- plied with, the employer shall be deemed to have committed a furthej- offence and shall be punishable with imprisonment in res- pect thereof under section 85 and shall also be liable to pay fine which may extend to one hundred rupees for every day after such expiry on which the order has not been complied with.".
6. After section 93 of the principal Act, the following section shall be
inserted, namely: —
Inser- tion of new sec- tion "3A.
Liability in case of transfer of establish- ment.
"93A. Where an employer, in relation to a factory or establish- ment, transfers that factory or establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer:
Provided that the liability of the transferee shall be limited to
the value of the assets obtained by him by such transfer.".
Amend- ment of section 95.
1 In section 95 of the principal Act, in sub-section (4), for the words "or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following", the words "or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid" shall be substituted.
8. In the First Schedule to the principal Act, in paragraph 3, for the
Table, the following Table shall be substituted, namely: —
258 THE GAZETTE OF INDIA EXTBAORDINARY [PART II—SEC. 1]"TABLE
Em- Corres-
ployees' Em- ponding
weekly con- ployer's daily
Group of employees whese tribution weekly standard
average daily wages are (recover- contri- benefit
able bution rate
from
employees)
Total weekly contri- bution (employee's and employer's contri- bution)
I
2
3
4
5
Poise
Paise
Paisc Nil
Paise 100
Below Rs. 2 . . ..
1.
75
75
Rs. 2 and above but below
2.
80
40
120
130
Ra. 3
3-
ICO
50
Rs. 3 and above but below Ra. 4 .
150
175
4-
140
Rs. 4 and above but below R s .6 .
70
250
210
5. Rs. 6 and above but below Rs. 8 .
190
35o
95
285
6. Rs. 8 and above but below R s. 12 . ..
250
5
125
375
7-
700
Rs. 12 and above but below Rs. 16
175
525
350
8. Rs. 16 and above but below Rs.24
1000
550
825
275
Rs. 24 and above .
750 1125
1500".
375
9-
9. In section 405 of the Indian Penal Code, the Explanation shall be numbered as Explanation 1 thereof and after the Explanation as so numbered, the following Explanation shall be inserted, namely: —
Amend- ment of Act 43 01 1860.
34 of 1948, "Explanation 2.—A person, being an employer, who deducts the employees' contribution from the wages payable to the employee for credit to the Employees' State Insurance Fund held and administer- ed by the Employees' State Insurance Corporation established under the Employees' State Insurance Act, 1948, shall be deemed to have been entrusted with the amount of the contribution so deducted by him and if he makes default in the payment of such contribution to the said Fund in violation of the said Act, shall be deemed to have dishonestly used the amount of the said contribution in violation of a direction of law as aforesaid.".
K. K. SUNDARAM,
Secy, to the Govt, of India.
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