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Section 17 – Employees State Insurance Act, 1948

Employees State Insurance Act, 1948



17. STAFF. –


(1) The Corporation may employ such other staff of offi­cers and servants as may be necessary for the efficient transac­tion of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such salary as may be prescribed by the Central Government].


3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:


Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government.


(b) In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]


(3) Every appointment to 4[posts 5[(other than medical posts)] corresponding to 6[Group A and Group B] posts under the Central Government], shall be made in consultation with the 7[Union] Public Service Commission:


Provided that this sub-section shall not apply to an officiating or temporary appointment for 8[a period] not exceeding one year:


9[Provided further that any such officiating or temporary ap­pointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regula­tions for promotion to next higher grade.]


9([4) If any question arises whether a post corresponds to a 6[Group A and Group B] post under the Central Government, the question shall be referred to that Government whose decision thereon shall be final.]




Even if it is assumed that the respondent being an employee of a non-statutory canteen runs by the managing committee formed by the employees of the appellant at their regional office had acquired the status of the employee of the corporation, he is to governed by the rules and regulation issued by the Corporation and not by the memorandum issued by the Central Government; Director General, Employees’ State Insurance Corporation v. B.K. Parida, AIR 2000 SC 3571.



1. Subs. by Act 38 of 1975, sec. 3, for certain words (w.e.f. 1-9-1975).


2. Subs by Act 29 of 1989, sec. 7, for “exceeds two thousand and two hundred fifty rupees” (w.e.f. 1-2-1991).


3. Subs. by Act 29 of 1989, sec. 7, for sub-section (2) (w.e.f. 8-11-1989).


4. Subs. by Act 44 of 1966, sec. 11, for “post carrying a maximum monthly pay to five hundred rupees and above” (w.e.f. 17-6-1967).


5. Ins. by Act 29 of 1989, sec. 7(iii)(a) (w.e.f. 16-5-1990).


6. Subs. by Act 45 of 1984, sec. 3, for “Class I or Class II” (w.e.f. 27-1-1985).


7. Subs. by the A.O. 1950, for “Federal”.


8. Subs. by Act 29 of 1989, sec. 7(iii), for “an aggregate period” (w.e.f. 20-10-1989).


9. Ins. by Act 29 of 1989, sec. 7(iii) (w.e.f. 20-10-1989).



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Employees’ State Insurance Act, 1948


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