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During the course of employment, there come many instances where the employee needs instant and extra financial support and thus wishes to be insured against any of such losses and damages. In order to provide insurance in terms of health care and cash benefit payments, the legislature introduced the Employment state insurance scheme. This article discusses employer’s liability under the Employee State Insurance Scheme.
The term “employer” has not been defined explicitly under the Employee State Insurance Act. However, the ESI Act[1] has divided the employer into two categories:
Principal Employer
The term “principal employer” has been defined as:
Immediate Employer
The term “Immediate Employer” has been defined as:
What are the liabilities and obligations of an employer under the Employee State Insurance Scheme?
Following are the liabilities and obligations of an employer under the Employee State Insurance Scheme:
What are the benefits enjoyed by the employers under ESI Act?
Following are the benefits that employers enjoy under the ESI Act:
From the above discussion, it can be observed that registration and contributions made under the Employee State Insurance Scheme are very important from the viewpoint of both the employer and the employees. The employees get social security and insurance under all circumstances during the course of their employment, both financially and medically. On the other hand, the employer gets a reduced burden of compliances and is further able to claim tax deductions, thereby reducing the overall tax levy on it.
Read our Article: Understanding the ESIC Scheme and its Benefits
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