Important Definitions

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Important Definitions

There are certain important definitions in The Employees’ State Insurance Act, 1948.

• Appropriate Government:

The term Appropriate Government stands in respect of the establishments under the control of the control of the Central Government or the State Government, a railway administration, oil field, major port, etc.

• Contribution:

This stands for the sum of money payable to the corporation by the principal employer in respect of the employees. This includes any payable amount on or behalf of the employees in accordance with provisions of the respected Act.

• Dependent:

Under section 2 of the Act, means any of the following relatives of a deceased insured person namely:

1. A legitimate or adopted son under the age of twenty-five years or an adopted or legitimate unmarried daughter.
2. A widow or widowed mother (wholly or partially dependent on the insured person’s earnings at the time of his death.
3. A parent other than a widowed mother.
4. A minor legitimate or adopted son and daughter (unmarried).
5. An unmarried or widowed sister if minor or a minor brother.
6. A widowed daughter-in-law, or a pre-deceased son’s minor son or daughter.
7. A paternal grandparent in case of no parent is alive of the insured person.

• Employee:

Under section 2 of the Act, an employee is a person employed for the wages in return for the work of a factory to which the Act is applied for.

• Exempted employee:

This means an employee who is not liable to pay the contribution made by the employees, under section 2 of the Act.

• Principle Employer:

The principal employer in a factory is the factory occupier, which includes the managing agent of the owner or the occupier of the factory.

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