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