Why in news
- The Employees' State Insurance Corporation launched recovery proceedings to clear statutory default certificates pending under the ESI Act.
What is the ESI Act, 1948?
- A social security law providing medical care and cash benefits to wage earners in organized factories and commercial establishments.
- Financed through mandatory joint statutory contributions from covered employers and employees.
Enforcement mechanisms under the Act
- Section 45C empowers designated ESIC Recovery Officers to issue attachment and sale orders against defaulters' properties.
- Authorizes direct arrest and detention of non-compliant employers in cases of persistent contribution evasions.
Why it matters
- Ensures structural liquidity for social safety nets protecting formal low-income sector workers.
- Reflects administrative compliance challenges in transitioning informal units into formal social security frameworks.
Key terms
Recovery Certificate
A legal instrument issued by an authorized officer specifying unpaid statutory dues to initiate property attachment or recovery.
Social Security Code
The consolidated labor reform code intended to integrate the ESI Act and other welfare statutes.
Prelims facts
- The ESI Act of 1948 is administered by a statutory body comprising representatives from central/state governments, employers, and employees.
Mains discussion
- Examine the statutory enforcement powers of ESIC and the challenges in implementing social security coverage across micro enterprises.
Source: Hindu Business Line
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2024 · Q97 · General Studies · 2 marks
Consider the following statements : Statement-I : Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries. Statement-II : Venezuela has the world's largest oil reserves. Which one of the following is correct in respect of the above statements ? -
2021 · Q11 · GS III · 15 marks
Do you agree that the Indian economy has recently experienced V- shapes recovery? Give reasons in support of your answer. -
2024 · Q50 · General Studies · 2 marks
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2021 · Q2 · General Studies · 2 marks
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2019 · Q2 · GS II · 10 marks
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