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Advantages |
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While conceiving a comperhensive social security scheme like ESI Act‚ the difficulties faced by the employers due to the employers’ liabilities under other enactment such as‚ Workmen’s Compensation Act‚ Maternity Benefit Act and Accident Compensation Act‚ law of Tort etc.‚ were very much considered and the Scheme was so drafted as to substantially reduce the burden of the employers from the onerous and total responsibility of employer in case of accident‚ disability and death due to employment injury and Maternity. By payment of a small monthly contribution‚ which is shared by the employees as well‚ a corpus fund is created under a statutory and independent Organisation thus taking away the burden of huge financial liability upon the employers in case of unexpected contingencies. Replacement of existing medical reimbursement scheme or medical leave facility helps the employer by reducing administrative cost and indirectly reducing industrial problems. Therefore‚ the ESI Scheme in fact benefits the employers and more particularly small and medium-sized employers who cannot shoulder the burden of sudden financial liabilities due to some of the contingencies taken care of by the Scheme. A well contended workforce‚ fully aware of the Social protection available to them through an independent statutory agency and the knowledge that they will get certain well defined reliefs in case of accident‚ disability and death due to Employment Injury besides medical facility as well as compensation for loss of wages‚ ensures better production and productivity and reduces industiral accidents. |
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Employers who come under the purview of the ESI Act‚ 1948 derive the following benefits from the applicability of the Act:- |
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Employers are absolved of all liability of providing Medicare facilities to employees and their dependants in kind or in the form of fixed cash allowance‚ reimbursement of actual expense‚ lump sum grant or opting for any health insurance policy of limited scope. |
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Employers are exempted from the applicability of the: |
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(a) |
Maternity Benefit Act |
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(b) |
Workmen's Compensation Act |
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Employers have at their disposal a well-secured workforce‚ an essential ingredient for better productivity. |
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The amount of contribution i.e. "the employer‚s share of contribution is exempted from the INCOME TAX". |
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