1. SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION. –
(1) This act may be called the Employees’ State Insurance Act, 1948.
(2) It extends to the whole of India.1[***]
(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 2for different States or for different parts thereof.
(4) It shall apply, in the first instance, to all factories (including factories belonging to the Government other than seasonal factories :
3Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.
(5) The appropriate Government may, in consultation with the Corporation and 4where the appropriate Government is a State Government, with the approval of the Central Government, after giving six months’ notice of its intention of so doing by notification in the Official Gazette, extend the provision of this Act or any of them, to any other establishment or class of establishments, industrial, commercial, agriculture or otherwise :
5Provided that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishment or class of establishments in another part of that State.
6 (6) A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.
(i) Once the Act has become applicable to a factory or an establishment, its application will be continuous; Kuriacone v. Employees’ State Insurance Corporation, (1988) 2 CLR 301 (Ker).
(ii) An advertising agency is a “shop”; Kuriacone v. Employees’ State Insurance Corporation, (1988) 2 CLR 301 (Ker).
(iii) Regional office which carries on the administration and supervises the business of selling of goods in various branches and sales emporiums is a shop; Employees’ State Insurance Corporation v. The Tamil Nadu Handloom Weavers Co-op. Society Ltd., (1990) 60 FLR 305 (AP).
(iv) The premises of an advertising agency is a “shop”; Employees’ State Insurance Corporation v. R.K. Swamy, 1994 LLR 51 (SC).
(v) The word ‘shop’ has acquired an expanded meaning. Where in a premises any economic activity is carried on leading to sale or purchase that premises will have to be held a ‘shop’ for the purpose of the Act even though there is no actual giving or taking of goods in such premises. If the business carried on in a premises results in having some nexus with the purchase or sale of goods is sufficient to be ‘shop’ for the purpose of the Act; Southern Agencies, Rajamundry v. Andhra Pradesh Employees’ State Insurance Corporation, AIR 2000 SC 3718.
1. The words “except the State of Jammu and Kashmir” which were subs. for “except Part B States” by Act 53 of 1951, sec. 2, have been omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971).
2. Subs. by Act 53 of 1951, sec. 2, for “for different States” (w.e.f. 6-10-1951).
3. Ins. by Act 29 of 1989, sec. 2(i) (w.e.f. 20-10-1989).
4. Subs. by Act 53 of 1951, sec. 2, for “with the approval of the Central Government” (w.e.f. 6-10-1951).
5. Ins. by Act 29 of 1989, sec. 2(ii) (w.e.f. 16-5-1990).
6. Ins. by Act 29 of 1989, sec. 2(iii) (w.e.f. 20-10-1989).