STATE INSURANCE CORPORATION PANCHDEEP BHAVAN, CIG ROAD, NEW DELID-II Phone/Fu-Oll-2S238810

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1 ,. EMPLOYEES' HQRS.OFFICE Immediate SPEED POST STATE INSURANCE CORPORATION PANCHDEEP BHAVAN, CIG ROAD, NEW DELID-II Phone/Fu-Oll-2S No. X-ll/14/3/2010-P&D Dated: 27/10/2010 To The Regional Director, Employees' State Insurance All (Except RO, Delhi) Corporation, Subject: Reduction of threshold of coverage of certain Establishments u/s 1(5) of ESI Act, issue of notification of intention by the State Government. Sir In continuation of Hqrs. Office circular no. X-11 / 14/ 1/2002-P&D dated 19 th July, 2010, it is informed that on being approached by the State Governments of West Bengal, Bihar, Jharkhand and Puducherry, the Central Government has granted approval Under Section 1(5) of the ESI Act for issue of notification by these State Govts. for extending the scheme to all establishments employing 10 or more persons. Vide this office letter of even no. dated 29 th September, 2010 (copy enclosed). the Central Government was requested to consider granting a general approval for issue of requisite notification under Section 1(5) of the Act for speeding up the process of issue of requisite notification by the remaining State Governments. (2) Now, the Central Government vide their letter no. S /20/ dated 15 th October, 2010 (copy enclosed) has conveyed their approval for the issue of notification by the State Governments under Section 1(5) of the ESI Act, 1948 to reduce the threshold of coverage for nonfactory establishments as per detail mentioned in the letter of this office dated 19 th July, 2010 as mentioned above.

2 - 2 (3) Keeping in view the tmportaneeof above issue. Regional Directors are requested to bestow their personal attention and take up the matter with the respective State Government immediately for issue of intention notification under intimation to Central Government and thereafter completion of process. The Regional Director of Jharkhand may pursue the State Government to issue final notification in pursuance to the notification of intention dated 4th September issued by the said State Government. (4) The efforts so made and result thereof may kindly be intimated to the Insurance Commissioner by name by 5 th of each month positively till the issue of final notification by the State Government. J Copy Encl: as above. to: - The Joint Director (System), Hqrs. Office for uploading Yours faithfully. / (R.C.SHARMA) DIRECTOR (P&D) for Insurance Commissioner this circular on website of Hqrs. Office., '\ ~ \".---- DEPUTY DIRECTOR (P&D)

3 - No. S-38025/20/2010-SS.1 Government of India Ministry of Labour & Employment Dated the 15 th Oct'2010 \~ The Director General, ESI Corporation, Sub: Amendment in the ESI Act, 1948 vide ESI(Amendment) Act, Notification to be issued by the State Govts. for reduction in threshold of coverage of establishments. ' Sir, I am directed to refer to your office letter No. X-ll/14/3/2010-P&D dated ~e 29 th Septemb~-,-~10_9n the subject rnentionec -above.ano to convey the'. approval of the Govt. to the issue of notification by the State Govts. under Section 1(5) of the ESI Act, 1948 to reduce the threshold of coverage for non factory establishments. It is requested that the State Govts. may accordingiy be requested for issue of notification at the earliest under intimation to this Ministry. //,.r" 0'/~;~J/~ \f Yours faithfully, ' 0 V', ',"er t) /'\( (, >- VI' (S.D.XAVIER) Under Secretary G?,l f.tm cm ~i~t1rfi ~ D.G, PERSONAL SECTION ~nr~',~./oy, No.".7.~.~'?'J,lt1 fu~ 1rr.rt~"",,2-,?.f..t.,f..~,,\I.l..g',.) I I ( I I I I j. l' I \ ), / / t JJ! ".

4 r-t A. I ( <jt\o,c,(i) e EMPLOYEES' STATE INSURANCE CORPORATION PANCHDEEP BHAWAN, CIG ROAD, NEW DELHI (Website address: ) No. X-11/14/3/2010-P&D Jl 1)2. Dated: zs" September, 2010 To The Secretary to the Government of India, Ministry of Labour & Employment, (SS-1 Section) Shram Shakti Bhawan SUb.Ject:~ l!ame..ndments in the EmPfO.v ees,.-. Statil ns ura.'nee- Ad.,' f.9-48 vide Employees' State Insurance (Amendment) Act, Notification to be issued by the state governments for reduction in threshold of _..._.~~~~~_~~~~~~~~.._.. ~ I Sir, The Corporation had approved reduction in the threshold for coverage of factories as well as other establishments from 20 to 10 in case of non-power using factories as well as other non-factory establishments. Based on the recommendations of the Corporation, the Employees' State Insurance (Amendment) Act, 2010 (No 18 of 2010) was enacted with effect from 1si June, 2010 vide which, among other things. the threshold for coverage of factories has been brought down from 20 to Keeping in view the recommendation of the Corporation to bring about uniformity in coverage criteria of both factories and non-factory establishments. all State Governments have been requested to issue a notification with the prtor approval of the Central Government, under Section 1(5) of the Act, to reduce the threshold for coverage of establishments under the Act in their State (Copy enclosed). The State Governments of West Bengal, Bihar, Jharkhand and Puduchhery have already approached the Ministry of Labour & Employment in this regard and the Government has granted approval in their case. 3. In order to speed up the process of issue of requisite notification by the remaining State Governments (except Delhi where the appropriate government is the Central Government and the states/uts where scheme is not in force i.e Sikkim. Arunachal Pradesh, Mizoram, Manipur, Andaman & Nicobar & Lakshadweep) the Ministry of Labour & Employment is requested to consider granting a general approval

5 - ~- for issue of the requisite notification under Sec.1 (5) of the Act to reduce the threshold of coverage for other non-factqry estabtishrnentsi, \'. Yours f41f. ully, tr. (ri'[ ~R.C.SHARMA) Director (P&D)