In exercise of the powers conferred by Subsection 5 of Section 1 of the Employees State Insurance Act

## Report on Notification Regarding Extension of Employees State Insurance Act, 1948 **1. Executive Summary:** This report analyzes a notification from the Ministry of Labour and Employment, Government of India, published on June 7, 2021. This notification signals the intention to extend the provisions of the Employees State Insurance (ESI) Act, 1948, to specific establishments within the National Capital Territory of Delhi. The key change involves extending the Act's coverage to establishments employing ten or more persons, including casual and contractual employees, within specific areas of Delhi. This report details the provisions of this notification, its target audience, and its expected impact. **2. Introduction:** The purpose of this report is to provide an informative overview of a notification issued by the Ministry of Labour and Employment regarding the extension of the Employees State Insurance (ESI) Act, 1948, based solely on the provided text. The report will analyze the notification's core objective, key provisions, target audience, and potential implications. **3. Policy Overview:** * **Policy Type:** Extension of existing Act - The Employees State Insurance Act, 1948. * **Core Objective(s):** Based on the text, the objective is to extend the coverage of the ESI Act, 1948, to a broader segment of the workforce, specifically including casual and contractual employees in establishments located in Delhi. **4. Background and Rationale:** The notification seems designed to address the issue of extending social security benefits to a larger segment of the workforce in Delhi, especially those in less secure employment arrangements like casual and contractual positions. The rationale appears to be providing these employees with access to healthcare and other benefits under the ESI Act, thereby enhancing their social security net. This suggests a prior gap in coverage that excluded these employee categories in these locations. **5. Key Provisions / Changes:** The core change introduced by this notification is the intended extension of the ESI Act, 1948, to: * **Establishments:** Those employing ten or more persons, including casual and contractual employees. * **Location:** All areas in the National Capital Territory of Delhi where the ESI Act, 1948, has already been implemented via Subsection 3 of Section 1 of the Act. * **Employee Category:** All casual and contractual employees within the aforementioned establishments and locations. This means that establishments meeting the criteria will now be required to comply with the provisions of the ESI Act for their casual and contractual employees, potentially impacting their operational costs and HR practices. The amendment effectively broadens the scope of the ESI Act's coverage within Delhi. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this notification are: * Establishments in Delhi employing ten or more persons, especially those employing casual and contractual workers. * Casual and contractual employees working in these establishments. * The Employees State Insurance Corporation (ESIC). **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Labour and Employment, in consultation with the Employees State Insurance Corporation. * **Timeline:** The notification states that the provisions will be extended "on or after one month from the date of publication in the official gazette" (June 7, 2021). This suggests an implementation date approximately one month after this date. * **Procedure:** The notification provides a mechanism for objections and suggestions to be submitted to the Ministry of Labour and Employment within the specified period. Shri Madan Chaurasia, Under Secretary, Ministry of Labour and Employment is the specified contact person. This indicates a period of consultation before final implementation. * Based on the existing Act, once implemented employers will have to register with the ESIC and employees will be eligible for benefits. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes and impact of these changes are: * Increased social security coverage for casual and contractual employees in Delhi. * Improved access to healthcare and other benefits for this segment of the workforce. * Potentially increased compliance costs for establishments employing such workers due to contributions to the ESI scheme. * Expanded role and responsibilities for the ESIC in managing and administering the scheme for the newly included employees. **9. Conclusion:** The notification signifies a significant expansion of the ESI Act's coverage in Delhi, extending its benefits to casual and contractual employees in establishments employing ten or more people. While the provided text outlines the key provisions of this intended extension, further investigation into the specific implementation guidelines and the response from stakeholders would be necessary for a more comprehensive understanding of its impact. This broadening of coverage demonstrates a commitment to providing social security to a wider range of workers.

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