awareness of esi act among the contract workers of jusco
TRANSCRIPT
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A
Project Report
On
Awareness about Benefits of ESI Act among
Contract Workers in JUSCO
By
KARTIK K. PRAKASH
3071210182
3RD YEAR B.COM GENERAL ‘C’
FACULTY OF SCIENCE & HUMANITIES
SRM UNIVERSITY
KATTANKULATHUR
CHENNAI
In partial fulfillment of
BACHELOR OF COMMERCE
UNDER THE GUIDANCE OF SidheshwarVishwakarma
Head (HR/IR) Contractor Cell
JUSCO
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DECLARATION FROM STUDENT
I hereby declare that the work incorporated in this report entitled ―A Project Report on
Awareness about benefits of ESI ACT among Contract Workers in JUSCO is the outcome of
original study undertaken by me under the guidance of Mr. SidheshwarVishwakarma, Head
(HR/IR), Contractor Cell JUSCO.
I further declare that the matter in this report has not been submitted by me as a whole or in
part at any other University or Institution for the award of any Degree or Diploma.
Date- ------------------------------
Place- Kartik K. Prakash
3071210182
3rd year B.Com,SRM UNIVERSITY
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CERTIFICATE
This is to certify that the contents of this thesis entitled “A Project Report on Awareness about
benefits of ESI ACT among Contract Workers in JUSCO” by Kartik K. Prakash, 3rd year
submitted to SRM UNIVERSITY for the Award of Degree IN BACHELOR OF COMMERCE (B.COM)
is original research work carried out by him under my supervision.
This report has not been submitted either partly or fully to any other University or Institute for
award of any degree or diploma to best of my knowledge.
Date- ------------------------------
Place- SidheshwarVishwakarma Head (HR/IR)
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JUSCO
PREFACE
In this era of fast changing world, mere class room teaching is not sufficient to attend maturity and
perfection for application of theory into practice. The dynamic economy, political and technological
environment, in which we live continually place demand on us to change, improve and learn more about
jobs, superiors and subordinates. Three years of continuous classroom teaching is sufficient for student
to implement directly their knowledge in the market. A practical approach is needed.
The knowledge through project report is an essential requirement for B.Com students, so keeping this in
mind, reference to JUSCO.
The purpose of this project report is to study the Employee state insurance Act of Contract Workers
with special reference to JUSCO.
I have tried my level best to do justice with the project. And I hope the study which was conducted will
help not only the Organization, but also me and the society too.
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ACKNOWLEDGEMENT
I express our deep and sincere thanks to our guide Mr.SidheshwarVishwakarma. Initially he
helped me in selecting this project and then guided me throughout the project. He also helped
me by taking a lot of pain and sacrificing their personal valuable time in completion of this
project report.
I would like to thank the other members of the organization who helped me get acquainted
even with the minute of details regarding this topic.
Last but not the least, I would like to cite my beloved parents and all my friends for their and
encouragement, support and blessings. These pages could scarcely have been written without
their help.
I express my gratitude to the staff members of SCIENCE & HUMANITIES ,SRM UNIVERSITY
who directly or indirectly helped me.
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Content
Sl.no
List of Tables
Page No.
1 Introduction 8-9
2 Organizational Profile 9-10
3 Mission, Vision, Value 11-12
4 Stakeholder 12
5 Area of Operation 13-15
6 Awards & Recognitions 15-18
7 Workforce Profile 18
8 Organizational Hierarchy 19-22
9 Future Growth & Prospects 23
10 Mckinsey 7S Framework 24-25
11 7S Model 26
12 Key Services 26-30
13 Swot Analysis 30-31
14 Environmental Analysis 32-34
15 Organizational Culture 34-36
16 Socialization 36-37
17 Organizational Change 38
18 Contractor Cell 39-40
19 ESI Act An Overview 41-49
20 Literature Review 50-51
21 Objective Of Study 51
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22 Research Methodology 52
23 Analysis Of Questionnaire & Interpretation 53-72
24 Conclusion 73
25 Findings 74
26 Suggestion & Recommendation 75
27 Limitation 76
28 Bibliography 77
29 Annexure 78-81
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Introduction
Jamshedpur Utilities & Services Company Limited is a utilities company based in Jamshedpur,
Jharkhand. It offers urban infrastructure services such as water, electricity, engineering & construction
and municipal solid waste & public health management. The company is a subsidiary of Tata Steel, a
Fortune 500 organization with more than 81,000 employees and over $2.5 billion revenues.
JUSCO was carved out of Tata Steel from its Town Services Division in 2004. In JUSCO, the
steel major reposed nine decades of experience and expertise. The mandate for JUSCO was to
convert an obligatory service into a customer focused sustainable corporate entity.
Jamshedpur Utilities & Services Company is today India‟s only comprehensive urban
infrastructure service provider. A Tata Enterprise, its services focus on the Tata Group Purpose
“to improve the quality of life of the communities we serve”.
Genesis
Genesis of JUSCO is at Jamshedpur, site of India‟s first steel plant, envisioned by the founder to
usher in industrial revolution in the country. Realizing the competitive advantage world-class
facilities could provide in attracting best talent to sustainably run the steel plant, he planned a
fully-fledged township around the plant. Jamshedpur was thus born as modern India‟s first
planned township, which has been carefully nurtured over the years by all subsequent leaders of
TSL with love and dedication. Town and Power Service divisions of TSL were instrumental in
creation, operation and maintenance of Jamshedpur for the better part of last century thereby
developing competencies in delivery of urban infrastructure services.
Jusco Today
Urban infrastructure sector in India (managed by the ULBs) is mostly characterized by very low
efficiencies and poor service deliveries, which is estimated to have a 2-3% retarding impact on
economic growth. This along with clamour for better and professional service by urban Indians
has forced the ULBs to focus on improvements, which has lead to opportunities for private sector
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participation. Realizing this opportunity and the support it could provide in accelerating
country‟s growth, TSL took the path breaking initiative in 2003 of creating a separate corporate
entity named Jamshedpur Utilities and Services Company Limited (JUSCO), India‟s first and so
far only comprehensive urban infrastructure services provider in private sector, by hiving off its
Town and Power Service divisions (including 1373 employees).
The mandate of this entity was to grow its services sustainably beyond boundaries of Jamshedpur
and in the process learn and implement world-class practices at Jamshedpur thereby continuously
improving quality of life of citizens of Jamshedpur. Since its creation, JUSCO has grown rapidly
and is currently having operations in eight states across the country.
Details of Maintenance by JUSCO
- Number of Schools run by JUSCO 9
- Number of Colleges run by JUSCO 1
- Roads maintained by JUSCO 524km
- Sewer Lines maintained by JUSCO 487km
- Drinking water pipe lines maintained by JUSCO 490km
- Drains maintained by JUSCO 358(storm water drain)
- Small & Large Park maintained by JUSCO 17
Organizational Profile
Products and Services
After its formation, JUSCO‟s senior leadership team evaluated its services in the context of
market environment and decided to grow in following services:
Water & Waste Water – EPC, O&M, BOT/BOOT, Concession, Lease and Management
Contract
Power Distribution – Licensee, Franchisee and O&M
MSW Management – EPC, O&M and BOT/BOOT
Civil & Structural Construction – EPC, BOT/BOOT and Consultancy‟
Broad Functions of Jusco
Ensuring planned development of the city taking into consideration requisite infrastructure and
the future growth.
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Providing and maintaining high quality of service level in respect of water, Supply, electric
supply, road maintenance and sewerage system.
Providing modern and comfortable accommodation for employees and striving to meet the
growing requirement.
Social upliftment of communities through 16-community development center.
Maintaining high level of cleanliness, health & hygiene through an effective public health
service, including timely inoculation to prevent epidemic.
Providing high standard of school education to children of the employees.
Preventing encroachment in the city and overcrowding in the markets.
Maintaining and further beautifying the township by planting trees, providing parks and
developing markets.
Departments
Planning, Engineering and Construction
Integrated Customer Services
Water Management
Public Health and Horticultural Services
Power Business Division
Education
Liaison & Administration
Directors Bungalow and Guest Relations
Billing and Customer Relations
Strategy & Business Development
Finance & Accounts
JUSCO markets itself as the „Tata‟ vehicle in urban infrastructure sector through the phrase „A
Tata Enterprise‟, which it has earned the right to use by virtue of having signed the BEBP
agreement with Tata Sons. JUSCO‟s operations at Jamshedpur have been conferred with Total
Productive Maintenance (TPM) Award by Japan Institute of Plant Maintenance (JIPM) at Kyoto,
Japan, the only services company in the world to get this award. In 2009, JUSCO was conferred
with the National Urban Water Award by the President of India for „Citizen Services and
Governance‟.
Group Purpose Statement
Our purpose in Tata is to improve the communities we serve. We do this through Leadership in
sectors of National Economic Significance to which we bring a unique set of capabilities. This
requires us to grow aggressively in focused areas of business. Our heritage of returning to society
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what we earn evokes trust among consumers, employees, shareholders and the community. This
heritage will be continuously enriched by formalizing the high standards of behavior expected
from employees and companies. The TATA name is a unique asset representing Leadership with
Trust. Leveraging this asset to enhance group synergy and become globally competitive is the
route to sustained growth and long term success.
Mission
The Group purpose is reflected in JUSCO‟s Mission of providing “quality services for life”. Its
services include water, power, infrastructure, public health and horticulture services. JUSCO
works alongside civic bodies, large and small industries, local government bodies, communities
and individuals to deliver value through sustainable solutions.
The Company believes that a clear sense of the Tata Values and Mission allows it to achieve
immense clarity on its role for the future. JUSCO intends to rise to the challenge of meeting
India's need for infrastructure development in a sustainable manner by anticipating and
addressing the country's growth needs such that the ability of future generations to meet their
own needs is not compromised.
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Vision Mission Value architecture (fig above) guide the organization in all its actions, conduct
and behavior. Vision, Mission and Values were co-created by employees after the company
became operational in Apr‟04, which has undergone change this year to reflect changed
aspirations.
JUSCO‟s core competency is “creation and subsequent operation and maintenance of urban
infrastructure and utilities having large consumer base”.
Vision
We shall be a provider of best-value Infrastructure and Utilities Services. Serving customer in
the most fundamental way
Serving the most basic needs of citizens of the country
Providing lifeline services to citizens of the country
Sustainable solutions for India‟s urban infrastructure sector
VALUES
• Integrity
• Excellence
• Responsibility
• Understanding
• Unity
• Agility
Stakeholders
The stakeholders involved in JUSCO can be grouped as follows:
Internal Stakeholders include Tata Steel (as Umbrella customer and promoter) forming the
Board, Employees including the Managers, Employees. Since the company is not listed there are
no shareholders but the board directors (which majorly include members of its parent company-
Tata steel) are very prominent.
External Stakeholders includes its customers (end consumers), suppliers, Government & the
society as a whole. The customers‟ goals get priority in the organization. But the most prominent
stakeholder is Tata Steel.
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Area of Operation
Regional Level
Seraikela-Kharsawan
The Seraikela-Kharsawan district of Jharkhand is contiguous to JUSCO's service area of
Jamshedpur. Under the provisions of Electricity Act 2003, JUSCO was granted a distribution
license in Dec' 2006 to distribute power by creating its own distribution network in the revenue
district of Seraikela-Kharasawan.
Haldia
Haldia development authority (HDA) has entered into a concession agreement with Haldia water
management Limited (HWML), a joint venture between JUSCO and Ranhill utilities for
development and O&M of Haldia water supply scheme for next 25 years.
Under the concession agreement HWML will construct a 113.5 MLD new water
treatment plant and operate and maintain the existing as well as the new treatment
plant. The total plant capacity after construction of new plant will be 227 MLD.
The O&M includes the Operation and maintenance of water treatment plants, intermediate
pumping stations, series tube wells, existing as well as new pipe network, Customer
management, Billing and collection and renovation of existing plants and equipments.
National Level
Mysore Project
Salient features of the Project
Six year Performance Based Management Contract
Tripartite Agreement between Mysore City Corporation (MCC), Karnataka Urban Water
Supply & Drainage Board (KUWS & DB) and JUSCO
Agreement signed on 28/11/2008 (Effective Date-ED)
Mobilization Period two months from ED
Preparatory Commencement Date (PCD): 28/01/2009
Three Phases & Corresponding Activities
Ownership Pattern
Jusco is the 100% subsidiary of Tata Steel Co, Jusco is 100% share holder of TATA steel ltd.
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Competitors Information
The Competitors like Jindal Steel,Bhusan Steel,Jharkhand Muncipal Corporation are on the
regional and national level.The most of the srevice provider companys are also big competitors
of jusco company.The competitors of TATA steel are planning to establish the service company
like Jusco to provide the service to the customers and the employees to being in the position as
TATA.
Infrastructure Facilities
Environment Sanitation
Disease Prevention and Control
Horticulture Services
Veterinary Service
Canteen Facilities
Transport Services
TMH hospitals Services
Awareness Programme
Operation and Maintenance of Water Treatment Plants Sewage Treatment Plants,
distribution networks.
Build new Water Treatment Plant and Sewage Treatment Plant on EPC or BOOT basis.
Technical and Management support to improve performance of the Water Treatment
Plants, Sewage Treatment Plants and Distribution Systems.
Control of Unaccounted for Water (UFW) or Non -Revenue Water (NRW).
Creation of 24 x 7 municipal water supply systems.
GIS for asset management including updating of existing drawings.
Customer support services including call center facilities for prompt handling of
complaints.
Education
Tata Steel has always believed that the future of a country rests on a strong and evolving system
of education. The Company has, from its inception undertaken various initiatives in education
that have catered to the needs of youth in rural and urban areas alike.
Health
Preventive Interventions - Primary healthcare for prevention of illness.
Clinical Outreach Programmes -Mobile medical facilities and medicine distribution.
Community based primary healthcare.
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Immunization Programmes - For prevention of diseases.
Curative Services - Promoting awareness and offering cure for ailments.
Tuberculosis Control Programme.
Eye Cure Services.
Malaria Control Programmes.
Sexual Health Awareness Programmes.
HIV/AIDS awareness Programmes and interventions.
Disability Management Programmes.
AWARDS AND RECOGNITIONS
(Photograph Showing the MD (2nd
from right) receiving the award.)
The Award was received by Mr. Manish Sharma, Managing Director, JUSCO along with Mr.
Raghunath Pandey, President, JUSCO Shramik Union. Speaking while receiving the coveted
award, Mr. Manish Sharma, Managing Director, JUSCO said that the KPMG Infrastructure
Today Awards acknowledges an organization‟s landmark achievements in various infrastructure
projects. JUSCO is highly obliged to receive the title of Most Admired Developer in Water &
Urban Infrastructure Sectors try in times to come.
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JUSCO Gold Award
JUSCO Samachar (vernacular) was conferred “Gold
Award” by the Public Relations Council of India (PRCI)
at their 4th Global Meet held on 3 April 2010 at India
Habitat Centre, New Delhi. The Global Meet together
with Annual PRCI 2010 Chanakya Awards, Corporate
Collateral Awards and Hall of Fame in PR was
inaugurated by the Hon‟ble Advisor to Bureau of
Parliamentary Studies on Training and Former Union
Minister Sri Mani Shankar Aiyer.
Best Exhibitor Award
JUSCO was declared the Winner for "BEST EXHIBITOR
of Urban Infrastructure Services" at the 1st International
Conference on Solid Waste Management on Nov 6, 2009.
The award was given by Prof Saugata Roy, Hon'ble Minister
of State for Urban Development Govt. of India to Mr. Rajesh
Rajan, Head Corporate Communications JUSCO at the
valedictory function.
Jamshedpur Utilities & Services Company limited (JUSCO) won the National Urban Water
Award (NUWA) in "Citizen Services & Governance category."
(ref-juscoltd.com)
National Urban Water Award 2009
The Ministry of Urban Development, Government of India, in partnership with the
Administrative Staff College of India (ASCI) and Gesellschaftfür Technische
Zusammenarbeit (GTZ) has instituted the National Urban Water Awards (NUWA)
for urban local bodies and water boards to recognize, inspire and celebrate
excellence in urban water management.
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JUSCO honored with "Award for TPM Excellence, Category A 2008" by JIPM
At the 2008 Total Plant Maintenance Award ceremony, JUSCO was honored with “Award for
TPM Excellence, Category A” by the Institute of Plant Maintenance (JIPM) held at Kyota, Japan
on March 12, 2009.asures to improve equipment‟s availability time, performance and reduce gaps
in process to reduce losses
The Japan Institute of Plant Maintenance (JIPM), a public corporation under the administration
of Ministry of Economy, Trade and Industry, Japan in association with association française
desingénieurs et responsible de maintenance, Confederation of Indian Industry, Corporate
Synergy Development Center, Korean Standards Association, SMMT Industry Forum,
Technology Promotion Association facilitated JUSCO along with 20 other Indian companies.
HR Excellence Award
JUSCO won the “HR Excellence Award 2008 – 2009” at a ceremony
organized by the Confederation of Indian Industry (Eastern Region) on
March 10, 2009. This certification was awarded in appreciation to
promote excellence in Human Resource Management in the company.
It is indeed an honour for JUSCO to be recognized for its initiatives and make Human Resource
(HR) achieve excellence. The only company to be awarded with the award for the year 2008 -
2009 apart from JUSCO was the Phoenix Group.
GWI Global Water Award 2008
JUSCO has been conferred with Highly Commended Certification as “ One of the most effective
water service providers on the Indian Subcontinent” during the GWI Global Water Award 2008
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Workforce Profile
Ability of JUSCO to take on the challenges arising from split from Tata Steel and venturing into
emerging business sectors in the country is due to its committed employees (1556 nos.)
organized into officers, supervisors and workers. MD and GMs/DGMs/Chiefs/Heads of various
Businesses/Functions form senior management of the Company (as shown in the organization
structure). Procurement, Accounts, Corporate Communication, Legal, HRIR, IT, etc. provide
support services.
JUSCO has a recognized Union as collective bargaining unit. Two JUCs, having representation
from union and management, help in communication and managing day-to-day affairs. Nature of
JUSCO‟s business requires large scale deployment of personnel. In order to maintain a rational
size of workforce, contractors are employed for jobs of non-permanent nature. However, it is
ensured that all regulatory, safety and health requirements are complied by them.
Organizational Design
Differentiation
Differentiation is the process by which an organization allocates people and resources to
organizational tasks and establishes the task and authority relationships that allow the
organization to achieve its goals. It is broadly divided into Horizontal and Vertical
differentiation.
Horizontal differentiation refers to the way an organization groups its tasks into roles and roles
into subunits. JUSCO has very high levels of horizontal differentiation. The company is divided
into various verticals like HR/IR, Finance, Legal, Procurement, Markets, and Billing and
includes the following service functions:
1. Water & Waste Water Services
JUSCO supplies water to both industrial and domestic customers. The services cover operations
& maintenance of the entire water cycle from intake to treatment, conveyance and distribution.
The Company has ventured beyond Jamshedpur to create new water facilities across the country
apart from modernizing and maintaining existing ones.
function held on 21 April 2008 in London. During the conference Mr.
Sanjiv Paul, Managing Director, JUSCO, was invited to give a
presentation on “The Effective Management of Water – The JUSCO
Story – Lessons to be learnt”.
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2. Power Distribution
JUSCO provides electricity services in Jamshedpur &Seraikela Kharsawan minimizing the
overall level of transmission & distribution losses. The Power Services Division holds two
licenses for the purchase, sale and distribution of electricity:
Jamshedpur Operations - India's first Private Power Utilities Company to manage
operation and distribution for the entire city since 1923.
Seraikela Kharsawan Operations - First district in the country where two utilities have
been allowed to build parallel network for distribution of power.
3. Engineering & Construction
JUSCO offers design, construction and turnkey services according to individual needs. It
undertakes end-to-end projects or provides standalone solutions in the areas of Building &
Industrial Construction, Road Construction & Maintenance, Design & Planning Consultancy,
and Township Management.
4. Municipal Solid Waste & Public Health
JUSCO offers integrated solutions to Municipal Waste Management. The services in Municipal
waste comprise of Waste Transfer, Secondary collection and Transportation, Transfer Station
Management, Composting, Recycling of Municipal and specialized wastes.
JUSCO's Public Health & Horticulture Services integrate environment sanitation, disease
prevention and control and horticulture. The services in Public health comprise of Environment
Sanitation, Disease Prevention and Control, Horticulture Services, Veterinary Service.
Vertical Differentiation - Organization Hierarchy
It refers to the way an organization designs its hierarchy of authority and creates reporting
relationships to link organizational roles and subunits. JUSCO has a very high degree of vertical
differentiation with its hierarchal levels being around 10. JUSCO follows a hierarchical structure
divided into officers & non-officers. The non-officers primarily include workers & supervisors.
The officers are given ratings from 1-5 in a yearly appraisal on the basis of which bonus is
decided. However, for non-officers the bonus is predefined.
For band E4, campus recruitment is done from engineering colleges such as BIT Sindri, BIT
Mesra, NIT Jamshedpur, Jadavpur University & NIT Surathkal. Campus recruits in job band E4
are considered as future leaders and they think of promotion after 3 years of service. JUSCO is
thinking of introducing new job levels to satisfy these recruits as they can only be promoted to
E3/E2 after which there is very little growth. Job bands O1, O2 & O3 have been newly
introduced for non-officers as JUSCO wanted to shift away from unionized
environmentespecially in high growth projects like Haldia (where the non-officers are
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unionized). These job bands are referred to as Officers but they are actually supervisory
positions.
Fig: JUSCO Organization Hierarchy for Officers
Owing to such tall hierarchy it faces major constraint of time delay, wastage and inefficient
operation. For e.g. for any customer located in any of its numerous geographic market they have
a central procurement division (at Jamshedpur headquarters) which obtains the raw materials, a
central HR/IR , Finance & Accounts department etc. which process and operate in serial order
causing substantial and irrelevant delay. For any contingencies decisions are taken by the higher
executives and only then can some action be taken.
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Organizational Structure
JUSCO has organized itself in a Functional Structure orientation where people are grouped on
basis of their common expertise, experience as they use same resources. It has its HR/IR,
Finance & Accounting, Markets, Services Department (which includes Power division, Water
Management Division etc) as the various functions. We don‟t classify this as a product structure
because the various services department do not have an independent HR or finance division;
these are all centrally located. The rationale behind using this structure other than promoting
specialization and division of labor is higher control. The organization believes that it is in
nascent stage currently so needs to ensure avoidance of numerous possible wrong incidents while
dealing with projects of such high magnitude and thus it is essential to have direct supervision
and more control. For this they advocate tall hierarchies and functional structure. However,
owing to problems faced due to tall hierarchies they are open to adopting a new feasible and
better structure.
JUSCO‟s Board has put in place a transparent, ethical and responsible Corporate Governance
framework, which emanates from intrinsic, will and passion for good governance ingrained in
the business entity and group values. Although JUSCO is not a listed company, it has adopted
most of the corporate governance best practices from its parent organization. JUSCO has seven
directors on its Board, four of whom are nominees of Tata Steel and two are independent
directors. Mr. B L Raina, ex-MD, TCIL is the nonexecutive Chairman. TSL, the parent
organization, has representation on the Board through five directors including MD. Board of
Directors has vested its powers in MD through a duly executed Power of Attorney for day-to-day
management of Company. There are three sub-committees of the Board as listed below:
Audit Committee – Reviews internal control systems and related risks and MBE issues
Committee of Board – Reviews new projects‟ financials, capital expenditure and risks
Remuneration Committee
Representation on the Board and Management of JV companies is governed by AoA which
emanates from the shareholders‟ agreement with the partner. JUSCO‟s Board nominates
representatives of JUSCO on the JV companies‟ Board. Financials along with status of SPVs are
reported to Audit Committee and the Board.
As is distinctly visible the organization has a very centralized manner of decision making (i.e.
authority to make decisions is retained by the managers at top of the hierarchy) and policy
implementation. The higher tier of Executive Board and department heads take all major
decisions which are then passed along the hierarchy.
Board of Directors
Mr. SandipanChakravortty ( CHAIRMAN)
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Mr. Varun Kumar Jha
Mr. Narayan Prasad Sinha
Mr. Sanjiv Paul
Mr. Tapas Kumar Mitra
Mr. DebasishBhattacharjee
Mr. AshishMathur ( MANAGING DIRECTOR )
Organization Structure
Senior Leadership Team
Governing Body
Audit
Committee
Remuneration
Committee
Commit
tee of
Board
Ashish Mathur
Managing Director
BOARD OF DIRECTORS
Sandipan Chakravortty (Chairman)
Non – Executive Director
Sunil Bhaskaran, Debasish Bhattacharjee, T. K. Mitra,
Sharad Kumar
GM (PS & CRM)
Deepak P. Kamath
GM (HR/IR and
Strategy)
Chandar Kashyap
GM (EPC)
Umanath Mishra
GM (F&C and Real
Estate)
Capt. Dhananjay
Mishra
GM (JTO)
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Span of Control is the number of subordinated directly under the control of the manager. CEO
i.e. MD OD JUSCO has a span of control of 140 people. The organization lays emphasis on
principles of Standardization i.e. conforming to specific models or examples defined by set of
rules and norms considered proper for a situation. It follows use of formalized written and well
documented strict rules, methodologies, and procedures to standardize operations. Being a
subsidiary there is more influence of the parent body and rules are more popular than informal
norms in terms of influence on employee behavior.
Features of JUSCO
Individual Specialization: As indicated employees are
trained and acquire skills specific to their department.
Integrating Mechanisms: Hierarchy of Authority and Direct
contact
Centralization: The Board of Directors and Managing
Director along with General Managers make the top
management and control the entire decision making power.
Standardization: Formalized Standard Operating Procedures
are used
Future Growth and Prospects
Jusco‟s primary focus is to grow in the water sector. We are also looking very keenly at the
townships that will come up when Tata Steel grows beyond Jamshedpur. There are plans to set
up three steel plants: one near Jamshedpur, another in Chhattisgarh and a third at Kalinganar in
Orissa. We are hoping to win our share of work as and when these townships come up.
We would like to grow and be a leader in the water and sanitation area. It is hardly a sector now,
but we believe it will grow. We have nearly 100 years of experience in the management of water
and waste water assets. We can proudly say that you can drink water straight from the tap here;
you can't do that in most parts of the country.
In power, Jusco is one of the better-managed utilities in the country. However, we plan to limit
ourselves to Jamshedpur and its surroundings at present and concentrate on improving the
quality of life of citizens in this region.
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On the infrastructure front, Jusco has recently won the bid to develop and manage the first SEZ
in Jharkhand at Adityapur. We would be leveraging the experience we have gained in developing
and managing a full-fledged township like Jamshedpur to win business beyond it.
The group is negotiating with three firms to sell about 200 MW power in long-term
contracts from its under-development 540 MW power project at Jamshedpur in
Jharkhand, Kedia said.
“JUSCO (Jamshedpur Utilities and Services Company), then DIAL (Delhi International
Airport Ltd, a unit of GMR Infrastructure (GMRI.BO)) and CESC (CESC.BO) – are the
three companies with which we are actively negotiating.”
It has already entered into long-term contract to sell 100 MW to Tata Power Trading Co
at 2.75 rupees per unit for short term trades. In case of higher realisations, 85 percent of
the upside would go to Adhunik and 15 percent to Tata Power, he said.
It aims to keep 200 MW of its 540 MW Jamshedpur project for short term trading, Kedia
said, adding he expects short term rates to remain in the range of 4-5 rupees per unit for
next five years.
The Jamshedpur project is expected to be completed by March 2015, when the group will
consider raising funds for its power unit by launching an initial public offer.
The McKinsey 7S Framework
Ensuring that all parts of the organization work in harmony
How do you go about analyzing how well your organization is positioned to achieve its intended
objective? This is a question that has been asked for many years, and there are many different
answers. Some approaches look at internal factors, others look at external ones, some combine
these perspectives, and others look for congruence between various aspects of the organization
being studied. Ultimately, the issue comes down to which study.
While some models of organizational effectiveness go in and out of fashion, one that has
persisted is the McKinsey 7S framework. Developed in the early 1980s by Tom Peters and
Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the
basic premise of the model is that there are seven internal aspects of an organization that need to
be aligned if it is to be successful.
The 7S model can be used in a wide variety of situations where an alignment perspective is
useful, for example to help us:
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Improve the performance of a company.
Examine the likely effects of future changes within a company.
Align departments and processes during a merger or acquisition.
Determine the Seven Elements
The McKinsey 7S model involves seven interdependent factors which are categorized as either
"hard" or "soft" elements:
Hard Elements Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staff
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes and
IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful.
The way the model is presented in Figure below depicts the interdependency of the elements and
indicates how a change in one affects all the others.
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7s model is as follows:-
Structure:
Planning, Engineering and Construction
Integrated Customer Services
Water Management
Public Health and Horticultural Services
Power Business Division
Education
Liaison & Administration
Directors Bungalow and Guest Relations
Billing and Customer Relations
Strategy & Business Development
Finance & Accounts
The key services rendered by each department are as follows:
Planning, Engineering and Construction:
Renders services to the residents of Jamshedpur within TISCO Township as approved by the
management of TATA STEEL., and expanded its activities outside also vig. NIT Jamshedpur.
The department is responsible for civil maintenance of all TISCO‟s buildings, quarters, flats, bungalows,
Tata Main Hospital and connected dispensaries, entire road, water and sewer network of the Township.
The department plans and executes construction of buildings, water towers, culverts/bridges,
roads and laying of water and sewer mains in Jamshedpur.
Integrated Customer Service:
It is a new department, which came into existence on 1st May 2001. The functions of this
department have been divided into three phases: -
FIRST PHASE: Maintenance and decoration of buildings.
SECOND PHASE: Maintenance of Town Electrical.
THIRD PHASE: Maintenance of Public Health.
The objective of this department is that instead of separate windows for lodging complaints, one
window is maintained for the placing of all complaints. At present it is functioning in the first
phase where it is concerned with the maintenance of buildings.
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Water Management:
Ensures the supply of clean, pure drinking water to the citizens of Jamshedpur. The entire
Township is divided into 3 zones: -
Eastern Zone-
Central Water Tower
Sakchi Water Tower
Western Zone-
Kadma
Sonari
Central Zone-
Burmamines
Tatanagar Water Tower
Sidhgora
It has departmental staff and maintenance staff, which handle the complaints. The water and
sewage works department undertake a cordial task of purifying portable water for the residents of
Jamshedpur as well as for the operational needs of the Power Engineering department (works).
This conforms to a very high quality comparable to international standards. In order to carry out
this function, the management of raw water resources and routine analysis of water and sewage
are two supporting functions. To carry out its function there are seven water towers and eleven
sewage treatment plants located in the different parts of the city.
Public Health and Horticulture Service:
The department divides TISCO Township into zones called „depots‟. There are six depots. Each
depot is in turn divided into „muster places‟. They are:
Horticulture department maintains the ecological and environmental balance of Steel City. It also
undertakes the beautification work of the city. It assists in keeping the city evergreen and free from
pollution. In order to achieve the goal, the department ensures that a large number of evergreen and
timber species of economic value are planted, besides maintaining a large number of parks, traffic islands
and also supplying green inputs, viz. floral decoration and various social occasions as well as important
official functions.
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Power Business Division
Functions
Maintenance of electrical installation of Steel corporate
Maintenance of distribution network and maintenance of power supply to premises
Providing power supply to private parties in its command area if approved by
administration.
Providing temporary power supply for the functions as and when required
Meter reading at points supply
Education
The department provides education from primary to +2 level to the employee children of Tata
Steel and JUSCO through 6 schools and 1 Inter College. It also executes the process of granting
scholarship to the students enrolled for Higher education in premier institutions of various
streams.
Liaison & administration
It takes care of complete administration viz. travels, etc. and liaison with different external
agencies viz. political personalities, govt. officials etc.
Directors’ Bunglowun & Guest Relations
The department takes care of the hospitality services of the company through making staying
arrangements of guests at Guest Houses. It also caters to the Management Development Centre
at Dimna and maintains Dalma Guest House.
Billing & Customer Relations
It runs the JUSCO Sahyog Kendra, a unique experiment of lodging all complaints related to
staying problems of employees residing in Tata Steel‟s accommodations at one phone number
and maintaining all records of status of the complaints through sending the complaints to the
respective depts. and getting the status report and apprising the complainant on their request.
The collection of bills raised for electricity, water etc. consumed by the residents of the city and
the associated companies is done by the dept.
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Strategy & Business Development
The department is basically the responsible for the strategy development for various activities of
other depts. as well as to give them a structured approach and plan to fulfill it.
Finance & Account
The department is responsible for the accounts & finance related activities of the company.
Fleet Management Center
It maintains all the vehicles of the company, from car to heavy duty vehicles like Excavator,
Road Roller, and Trucks etc.
Style
JUSCO has a top down styles of functioning. Decisions are taken by the top management &
conveyed to lower level employees. Some decisions makings are participative others are
authoritative. Major decisions are taken by the higher authority in consultation with lower
employees. There is a delegation of authority function followed in Jusco. Employer and
employee relationship is the major strength in Jusco.
Strategy
JUSCO business strategies are based on three core values; they are operational excellence,
customers focus & serviced leadership. The business strategy emphasizes the following:-
Increase their market shares.
Reduced cost of production.
Increase company performance.
Produce always quality product.
To meet social responsibilities.
Provide employment opportunity to the people of the area.
Meet the national & regional demand of quality services
Reduce the impact of utilities and services from the foreign market.
System
JUSCO follows a clearly well-defined management information system. It contributes to the
organizations effectiveness & efficiency in achieving its objectives. All the departments in the
company have their own information systems & are fully computerized. Each & every
department has its own systems & the company has a common management information system.
Performance Appraisal System
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Performance of the employees is appraised on the basis of their commitment toward the work,
their regular attendance & the quality of work done.
Quality Control System
Each department is headed & its activities are controlled by its departmental heads. Well-
equipped quality control department is maintained. Here the quality of the services is strictly
ensured as per ISO 9001-2000 specification.
Staff
Staffs are the most important input in any type of organization. The success of any organization
depends on both labor & staffs. JUSCO has more than 1001-2500 employees. The total no of
employees are categorized into as:-
Managerial Category- These are people who have the ultimate power to take any sort of
decision.
Staff Category- These are people of middle level & mostly they are clerks & office staffs.
Workmen Category- These are people who perform all the work required in a plant to
provide service they are categorize into three parts:
a) Grade 2 workers – They are mainly operators of heavy machines and skilled labor.
b) Attended Grade/ Unskilled workers – They are mainly unskilled workers. They are
mainly called peon.
c) Grade 1 Workers – They are mainly very lower level workers mostly do very hard kind
of jobs like cleaning & washing the floor and environment.
Shared Value
The basic philosophy of JUSCO is to achieve business excellence & to create & enhance the
value for its shareholders, customers, employees & business associates & there by to make
significant contribution to the economy. The company endeavors to achieve the highest level of
transparency, accountability, integrity & responsibility by following the best practices in service
industry
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SWOT Analysis of Jusco
A. Strength
Maintaining the Industrial Relation.
Quality of service.
Better safety and HR policy.
Low cost and efficient labor force.
Strongly managerial capability.
Strongly globalized industry and emerging global competitiveness.
Modern new plants & modernized old plants.
Stable balance sheet (Low debt to equity ratio).
Experience of Tata Group in doing global acquisitions.
Provide the better service to the employee and the customer.
Well defined structure of the organization.
B. Weakness
High cost of energy, power and capital investment
Higher duties and taxes.
Infrastructure.
Misconduct Labor laws.
Dependence on imports for manufacturing equipment‟s& technology.
C. Opportunities
Huge infrastructure demand.
Rapid urbanization.
Increasing demand for consumer durables.
Untapped rural demand.
Consolidation trend in service industry.
To get exposed to the global Service market (will save time and learning space for Tata
steel)
D. Threats
Slow growth in infrastructure development.
Market fluctuations
Global economic slowdown.
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Threat of hostile takeover by its competitions
Competitors like other service industry.
Laws and acts are being changed by the govt.
Environmental Analysis
Competitors and Environmental Uncertainty
The source of uncertainty in the environment is
measured by Environmental Complexity (the
strength, number, and interconnectedness of the
specific and general forces that an organization
has to manage) , Environmental Dynamism (the
degree to which forces in the specific and general
environments change over time) , Environmental
Richness (the amount of resources available to
support an organization‟s domain).
In Jamshedpur, by virtue of its association with TSL and quality of services provided over nine
decades, JUSCO is the preferred supplier of services. Vested interest in the state government of
Jharkhand has been trying to create a municipality in Jamshedpur. However, this has been
opposed by citizens vehemently who are extremely satisfied with service provided by JUSCO.
However, it does not provide a major threat to JUSCO as its Power Distribution, Civil &
Structural Construction and all businesses beyond Jamshedpur are beyond the jurisdiction of
municipality. Also for Municipal Services, like W&WW and MSW, entry barriers for any
competitor eyeing the Jamshedpur market would be prohibitively high as related assets like
WTPs, STPs, Distribution networks, landfill sites, etc belong to TSL and replicating these would
be uneconomical.
Beyond Jamshedpur majority of potential clientele of JUSCO are various government bodies, as
key services that the company provides e.g. Water and Wastewater, MSW management and
Power Distribution lie in their domain. JUSCO currently is the only private sector player in India
engaged in providing comprehensive Municipal and Civic services, resulting in absence of like-
to-like competitive comparison.
The major challenge faced by JUSCO is in terms of its dynamic nature of tasks involved. The
various geographies and markets of its customer segments are:
Water - Reach of water business has increased continuously every year based on attractiveness of
geography and JUSCO‟s competitiveness as per strategy decided each year. While Bihar,
Jharkhand, Orissa, Karnataka, Madhya Pradesh and West Bengal are the states being focused
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currently, some specific cities in other states are also being targeted e.g. Chennai, Jaipur, Nagpur,
Hyderabad and Pune.
MSW – MSW management business started its growth journey beyond Jamshedpur in FY09
through an analysis of attractiveness of various states. It has planned to leverage presence of
Water service in eastern and southern states. Accordingly, it is selectively focusing on projects in
states of West Bengal, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka and Kerala.
Power - Power Distribution business had been focusing on Jamshedpur as a managing agency of
the Licensee (TSL) and adjoining Saraikela-Kharsawan district as a parallel Licensee to state
utility (JSEB) till FY09. From FY10, it has identified Input-Based Franchisee (model adopted by
state utilities for inviting private sector participation through tender route) as the target segment
for growth. It is selectively focusing on projects in the states of Bihar, Jharkhand, Madhya
Pradesh and Uttar Pradesh.
Civil & Structural Construction – Civil and structural construction business is targeting business
opportunities in road and industrial civil and structural construction sectors in eastern states of
Jharkhand, Bihar, West Bengal and Orissa and within Tata group of companies.
By virtue of its lease agreement with the Government of Jharkhand, TSL is obliged to provide
civic and municipal services in Jamshedpur. This responsibility has been entrusted by TSL to
JUSCO. Therefore, in Jamshedpur the primary customer of JUSCO is TSL. However, by virtue
of the nature of its services which serves citizens, JUSCO treats end consumers (segmented into
industrial, commercial and domestic) as its customers. Within domestic segment, Tata Steel
employees constitute a very important segment. In areas beyond lease of TSL, JUSCO interfaces
with BAVS to extend its services to those who do not reside in lease area.
Owing to operations in such diverse geographies JUSCO faces challenge of different constraints
and restrictions for every new project. For e.g. variations in labour laws, other government
regulatory practices, situations like strikes, environmental limitations etc in different states
constrain operations. The organisation addresses these challenges through its mechanism of
standardization. There is a coordination meeting conducted every two weeks chaired by MD and
attended only by all the General Managers of various divisions through video conferencing. Here
all such constraining issues are discussed and brainstormed by the top management and solutions
are carved for them. There is time and efficiency lag due
to this procedure and remedial solutions are sometimes
not provided at the required hour but organization
strictly follows this to ensure control over all matters.
As per the Lawrence and Lorsch study JUSCO‟s
organizational structure is consistent with respect to
uncertainty faced by it. It has a mechanistic structure
dominated by standardization consequent to the low
levels of uncertainty faced by it.
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It faces low level of uncertainty, exceptions occur occasionally though there are no efficient
exception handling mechanisms followed.
Organizational Culture
Organizational Culture is the set of shared values and norms that controls organizational
members‟ interactions with each other and with people outside the organization. JUSCO‟s
culture is primarily dominated by its structure and organizational ethics.
JUSCO‟s senior leadership team comprising of MD, GMs, DGMs and all Business / Function
Chiefs provides vision and direction for performance excellence through the TBEM framework.
Along with other officers, senior leaders continually focus on guiding the organization towards
improving operational efficiencies and service levels in quest of the Vision. Mission, Vision and
Values of JUSCO were originally co-created by employees at the time of its formation through
vision workshops. These are revisited annually. V-M-V has been changed in 2009 through a
series of V-M-V workshop to capture the growth aspiration of the organization. Behaviours
demonstrating the values in day-to-day working are also defined. V-M-V and behaviours are
deployed across the organization through the leadership system shown in the figure below.
Leaders at all levels live JUSCO values through their behaviour. V-M-V act as the integrating
bonds which ensure commonality of message throughout the organisation. Senior Leadership
Team actively communicates and reinforces understanding of Values at every level through
displays, AQUIP, formal and informal meetings, dialogues, reviews, in-house publications etc.,
to translate Values into day-to-day behaviour of employees. V-M-V is also communicated to key
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suppliers and partners, customers and other stakeholders through various communication forums.
Effectiveness in communication is improved through feedback from Employee engagement
surveys and communication effectiveness surveys. Action plan arising out of survey findings are
deployed and implementation is reviewed regularly.
Vision is deployed across the organization through strategy cascade, which results in actionable
and measurable LT / ST plans. Values are embedded in Company‟s ethos and are visible in
defined behaviour across the organisation.
JUSCO has maintained a strong organizational
culture formed by its disciplined hierarchal
structure, strong organizational ethics, and
emphasis on recruiting people who fit with the
culture and then giving sufficient access and
rights to use organizational resources. As per
standards of centralized organization people
have little say in the matters of daily operation
and decisions are enforced by top management.
However, lately it has introduced various
policies to ensure efficient communication of
employees with top management. The idea is to
extract and use ideas of employees for
company‟s benefit. Weekly meetings are
conducted by general managers of departments
with their employees to seek input for such initiatives; cross functional departments meetings are
also conducted. Some of the steps taken include:
“Open door Policy”, where the employees have free access to raise any concerns directly to the
General Manager or even Managing Director. Through its Seedhi Baat initiative, JUSCO has
enabled its officers at any level to talk directly to the MD once a month along with the GM –
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HR/IR regarding issues such as promotion, housing or other personal problems. The aim is to
improve communication with the top management but the employees still are not given latitude
to take decisions.
Socialization
Socialization is the process by which members learn and internalize the values and norms of
organizational culture. Organizational culture fabric encourages diverse ideas and thinking of
workforce through participative management, innovative problem solving mechanisms and
recruitment approaches. Recruitment of a mix of people from different regions, culture,
background, etc. brings diversity in workforce. Lateral recruits bring in different culture and
knowledge of systems and processes from other organizations and spur innovation. Through
initiatives like CFTs, Task Forces, Coordination meeting, ASPIRE projects, QCs, SGA teams,
JUC meeting etc. benefit of diverse ideas and culture is realized. Skill sharing platforms like
TPM, Kaizen, OPL, In-house talk, positional training, Gyanmanch, KM, presentation and
discussions, SGA presentation, structured capturing of knowledge from parting employees, job
rotation, etc help to build a culture of continuous learning and improvement.
The various socialization tactics used by the organization are implemented to develop an
institutionalized role orientation amongst employees i.e. when individuals are taught to respond
to a new context in the same way that existing organizational members respond to it. It
encourages obedience and conformity to rules and norms. Analyzing the various features
rendering JUSCO this orientation:
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JUSCO uses several types of ceremonial rites to communicate culture value and norms.
Rites of Passage which mark an individual‟s entry to, promotion in and departure from
the organization. This includes the extensive training and induction program undertaken
for new recruits and lateral recruits.
Rites of Integration to build common norms and values. It has annual functions which
includes members of all departments called officers get together. Also events like city
founder‟s day, cultural festivals are celebrated across the organization.
Rites of Enhancement which motivate commitment to norms and values. JUSCO
follows practices like employee of the month and other awards or rewards for taking
initiatives.
Organizational stories and language are an important media for communicating culture.
However, JUSCO does not have this as a very prominent feature. Stories usually include policy
related information or some legendary incidents but they share no informal or colloquial
language per se. Stories are used effectively as a socialization tactic. There are initiatives like
JUSCO samachar which is primarily a mean to create a discussion platform sharing ideas on
general trends and happenings around in the environment. It includes various articles related to
industry and special pages for achievements made in particular departments on pan India level
and other recognitions and awards rewarded. There is also a Hindi circulation that is made
periodically. Other than these they effectively use department notice boards to highlight the
norms of the organization with special emphasis on “Ethics Month”, “Whistle blower Policy”,
“Annual Business Plan”, “Gift Policy – where the motto of saying no to bribery is promoted”.
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Organizational Change Since its inception JUSCO has come a long way and has had some major exploratory changes
during this period of growth. Since its formation, JUSCO has been consistently acquiring
technologies, equipment and facilities. These (like Dual Media Filtration, SAP IS Utilities, ERP
– SAP R/3, Customized software for complaint management, Compost Plant, 3D Animation etc)
are being acquired based on need and/or their strategic importance in providing JUSCO
competitive advantage and/or meeting pre-qualification requirements. The change is
evolutionary in character owing to its strategic timing and introduction.
It has developed extensive performance management and improvement system (as indicated
above). Fundamental approach to continuous improvement used is the “P-D-C-A cycle”.
Employee appraisal is conducted annually. The top management – MD and GM‟s of different
departments prepare an Annual Business Plan (ABP). Also Balanced Score Card (BSC) for
different departments is made. Key Result Areas (KRA‟s) for individual employees are
identified. Each officer has KRA divided into customer & financial targets. KRA‟s are changed
for all officers after mid-year review if they are under/over loaded.
JUSCO has taken two important improvement initiatives – KM & ASPIRE. All officers have to
put 8-12 KM‟s (knowledge management pieces) every year that are graded by their superiors.
ASPIRE involves self-improvement plans for projects that do not perform well in terms of
cost/quality. They are submitted to improvement portal.
Employees at each level are trained in appropriate improvement tools and techniques. Learning/
improvements are documented/standardized through KM/ISO framework. Through recognition
functions, e.g. ASPIRE and SGA Nite, employees are suitably recognized for their efforts.
Improvements for „Running‟ the business is affected through Small Group Activities, Self
Initiated Projects and Six Sigma / DMAIC Story Kaizen methodologies.
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Contactor Cell
Main objective of contractor cell is to ensure that different laws for workers welfare is being
properly implemented
Major activities under contractor cell
1. Pf/ESI management of contract workers.
2. Assuring timely payment of wages to contract workers.
3. Assuring that Minimum wages is being paid by different contractor on the behalf of jusco
contractor cell.
4. Providing gate pass to contract workers.
5. Township compliance management.
6. Medical safety/ complaint management.
7. Labour welfare management.
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Mr. Saraswati Das Ghosh (Supervisor) {Reception & Enquiry}
Contractor Cell
Mr. Sidheshwar Vishwakarma (Head)
Mr. Ujjwal Mahto (Sr. Manager) {Labour Welfare Management}
Mr. Lalitesh Kumar Mishra (Asst. Officer) {Project Management}
Mr. H.D Tripathi (Supervisor) {Documents Verification & Certification}
Mr. S.D Jha (Supervisor) {Gate Pass Management}
Mr. Sukhbir Singh (Gate Pass Management)
Mr. K.K Mishra (Sr. Supervisor) {Township Compliance Management}
Mr. Nitish Kr. Singh (Project Management)
Mr. Suraj Nayak (PF/ESI Management)
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Employee State Insurance Act, 1948 – An overview
Introduction
The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation enacted
primarily with the object of providing certain benefits to employees in case of sickness,
maternity and employment injury and also to make provision for certain others matters incidental
thereto. The Act in fact tries to attain the goal of socio-economic justice enshrined in the
Directive principles of state policy under part 4 of our constitution, in particular, articles 41, 42
and 43 which enjoin the state to make effective provision for securing, the right to work, to
education and public assistance in cases of unemployment, old age, sickness and disablement.
The act strives to materialize these avowed objects through only to a limited extent. This act
becomes a wider spectrum than factory act, in the sense that the factory act is concerned with the
health, safety, welfare, leave etc of the workers employed in the factory premises only. But the
benefits of this act extend to employees whether working inside the factory or establishment or
elsewhere or they are directly employed by the principal employee or through an intermediate
agency, if the employment is incidental or in connection with the factory or establishment.
Related Legislations: ESI (Central) Rules, 1950 and ESI (General) Regulations, 1950
Origin
The Employee State Insurance act was promulgated by the Parliament of India in the year 1948.
To begin with the ESIC scheme was initially launched on 2nd February 1952 at just two
industrial centers in the country namely Kanpur and Delhi with a total coverage of about 1.20
lakh workers. There after the scheme was implemented in a phased manner across the country
with the active involvement of the state governments.
Objectives:
The ESI Act is a social welfare legislation enacted with the object of providing certain benefits to
employees in case of sickness, maternity and employment injury. Under the Act, employees will
receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased
workers and compensation for fatal or other injuries and diseases.
Definitions
According to Section 2 (m) of Factories Act, 1948, Factory means any premises including the
precincts thereof - (a) whereon ten or more persons are employed or were employed for wages
on any day of the preceding twelve months, and in any part of which a manufacturing process is
being carried on with the aid of power or is ordinarily so carried on, or (b) whereon twenty or
more persons are employed or were employed for wages on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on without the aid of
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power or is ordinarily so carried on. But does not include a mine subject to the operation of
Mines Act, 1952 or a railway running shed;
According to Section 2 (k) of Factories Act, "manufacturing process" means any process for - (i)
making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking
up, demolishing, or otherwise treating or adapting any article or substance with a view to its use,
sale, transport, delivery or disposal, or (ii) pumping oil, water, sewage or any other substance; or;
(iii) generating, transforming or transmitting power; or (iv) composing types for printing,
printing by letter press, lithography, photogravure or other similar process or book binding; [lra-
6 ] [ lra-7 or lra-7 ] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up
ships or vessels; (vi) preserving or storing any article in cold storage;
According to Section 2 (h) of The Minimum Wages Act, "wages"- means all remuneration
capable of being expressed in terms of money which would if the terms of the contract of
employment express or implied were fulfilled be payable to a person employed in respect of his
employment or of work done in such employment and includes house rent allowance but does
not include -
(i) The value of - (a) any house accommodation supply of light water medical attendance or (b)
any other amenity or any service excluded by general or special order of the appropriate
government;
(ii) Any contribution paid by the employer to any person fund or provident fund or under any
scheme of social insurance;
(iii) Any traveling allowance or the value of any traveling concession;
(iv) Any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or
(v) Any gratuity payable on discharge
Applicability:
The ESI Act extends to the whole of India.
It applies to all the factories including Government factories (excluding seasonal factories),
which employ 10 or more employees and carry on a manufacturing process with the aid of power
and 20 employees where manufacturing process is carried out without the aid of power.The act
also applies to shops and establishments. Generally, shops and establishments employing more
than 20 employees are covered by the Act. “Shop” according to the Delhi Shops and
Establishment Act, 1954 means any premises where goods are sold either by retail or wholesale
43 | P a g e
or where services are rendered to customers, and includes an office, a store-room, godown,
warehouse or workhouse or work place, whether in the same premises or otherwise, used in or in
connection with such trade or business but does not include a factory or a commercial
establishment. “Establishment” means a shop, a commercial establishment, residential hotel,
restaurant, eating-house, theatre or other places of public amusement or entertainment to which
this Act applies and includes such other establishment as Government may, by notification in the
Official Gazette, declare to be an establishment for the purpose of this Act. According to the
Delhi Shops and Establishment Act, 1954, “Commercial Establishment” means any premises
wherein any trade, business or profession or any work in connection with, or incidental or
ancillary thereto is carried on and includes a society registered under the Societies Registration
Act, 1860, and charitable or other trust, whether registered or not, which carries on any business,
trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and
printing establishments, contractors and auditors establishments, quarries and mines not
governed by the Mines Act, 1952, educational or other institutions run for private gain, and
premises in which business of banking, insurance, stocks and shares, brokerage or produce
exchange is carried on, but does not include a shop or a factory registered under the Factories
Act, 1948, or theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other
places of public amusements or entertainment. Form 01 – Employers‟ Registration Form also
requires a copy of the registration certificate or license obtained under the Shops and
Establishment Act to be attached along with this form. From this it is quite evident that ESI Act
will be applicable to shops and establishments. Again the definition of shops and establishment
will vary from state to state depending on the shops and establishment act of that particular state.
The act does not apply to any member of Indian Naval, Military or Air Forces. All employees
including casual, temporary or contract employees drawing wages less than Rs 10,000 per month
are covered. The ceiling limit has been raised from Rs.7500 to Rs.10000 with effect from
01.10.06.Apprentices covered under the Apprenticeship Act are not covered under this Act.
According to Apprenticeship Act 1961, “apprentice” means a person who is undergoing
apprenticeship training in pursuance of a contract of apprenticeship.The apprentices under any
scheme as the name suggests come to learn the tricks of the trade and may not count much so far
as the output of the factory is concerned, with that end in view, the apprentices are exempted
from the operation of laws relating to labour unless the State Government thought otherwise.--
Regional Director ESIC v. M/s Arudyog 1987 (1) LLJ 292.
A factory or establishment, to which this Act applies, shall continue to be governed by its
provisions even if the number of workers employed falls below the specified limit or the
manufacturing process therein ceases to be carried on with the aid of power subsequently.
Where a workman is covered under the ESI scheme,
Compensation under the Workmen's Compensation Act cannot be claimed in respect of
employment injury.
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No benefits can be claimed under the Maternity Benefits Act.
Areas Covered
The ESI Scheme is being implemented area-wise by stages. The Scheme is being implemented in
almost all union territories and states except Nagaland, Manipur, Tripura, Sikkim, Arunachal
Pradesh and Mizoram.
Administration of the Act
The provisions of the Act are administered by the Employees State Insurance Corporation. It
comprises members representing employees, employers, the central and state government,
besides, representatives of parliament and medical profession. A standing committee constituted
from amongst the members of the corporation, acts as an executive body. The medical benefit
council, constituted by the central government, is another statutory body that advises the
corporation on matters regarding administration of medical benefit, the certification for purposes
of the grant of benefits and other connected matters.
Registration
The employer should get his factory or establishment registered with the ESI Corporation within
15 days after the Act becomes applicable to it and also obtain the employer‟s code number.
Application should be made in Form 01 and after having being satisfied with the application
form, the regional office will allot a code number to the employer, which must be quoted in all
documents and correspondence.
Identity Card
An employee is required to file a declaration form upon employment in factory or establishment
to show that he is covered under the Act.
On registration every insured person is provided with a „temporary identification certificate‟
which is valid ordinarily for a period of three months but may be extended, if necessary, for a
further period of 3 months. Within this period, the insured person is given a permanent „family
photo identity card‟ in exchange for the certificate. The identity card serves as a means of
identification and has to be produced at the time of claiming medical care at the dispensary /
clinic and cash benefit at the local office of the corporation. In the event of change of
employment, it should be produced before the new employer as evidence of registration under
the scheme to prevent any duplicate registration. The identity card bears the signature/thumb
impression of the insured person. Since medical benefit is also available to the families of
Insured persons, the particulars of family members entitled to medical benefit are also given in
the identity card affixed with a postcard size family photo. If the identity card is lost, a duplicate
card is issued on payment as prescribed.
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Employers’ / Employees’ Contribution
Like most of the social security schemes, the world over, ESI scheme is a self-financing health
insurance scheme. Contributions are raised from covered employees and their employers as a
fixed percentage of wages. Presently covered employees contribute 1.75% of the wages, whereas
as the employers contribute 4.75% of the wages, payable to the insured persons. Employees
earning less than and up to Rs. 50 per day are exempted from payment of contribution.
The contribution is deposited by the employer in cash or by cheque at the designated branches of
some nationalized banks. The responsibility for payment of all contributions is that of the
employer with a right to deduct the employees share of contribution from employees‟ wages
relating to the period in respect of which the contribution is payable.
There are two contribution periods each of six months duration and two corresponding benefit
periods. Cash benefits under the scheme are generally linked with contribution paid.
Contribution period - 1st April to 30th September, its corresponding Cash Benefit period is 1st
January to 30th June of the following year.
Contribution period - 1st October to 31st March, its corresponding Cash Benefit period is 1st
July to 31st December of the following year.
Certification of Return of Contribution by Auditor
Regulation 26 of Employees‟ State Insurance (General) Regulations, 1950 was amended by
Notification No.N-12/13/1/2008-P&D to include certain details to be mentioned in the Return of
Contribution to be submitted by employers. The salient features of amendments made in the
Returns of Contribution are as under:-
Self-declaration by Employers regarding maintenance of records and registers, submission of
Declaration Forms, employees engaged directly or through immediate employers and wages paid
to the workers.
All the Employers employing 40 and more employees shall have to append a certificate duty
certified by a Chartered Accountant, in the revised format of Returns of Contribution.
The Employers employing less than 40 employees will have to provide self- certification without
any certification from the Chartered Accountants in Return of Contribution.
The Chartered Accountant should certify that he has verified the return from the records and
registers of the company.
This notification has come into force with effect from 01-04-2008.
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Benefits under the Scheme
Employees covered under the scheme are entitled to medical facilities for self and dependants.
They are also entitled to cash benefits in the event of specified contingencies resulting in loss of
wages or earning capacity. The insured women are entitled to maternity benefit for confinement.
Where death of an insured employee occurs due to employment injury or occupational disease,
the dependants are entitled to family pension. Various benefits that the insured employees and
their dependants are entitled to, the duration of benefits and contributory conditions thereof are
as under:
Medical benefits
Sickness benefits
Extended sickness benefit
Enhanced sickness benefit
Maternity benefit
Disablement benefit
Dependants benefit
Other benefits like funeral expenses, vocational rehabilitation, free supply of physical aids and appliances,
preventive health care and medical bonus.
A. MEDICAL BENEFIT- Full medical care is provided to an insured person and his family
members from the day he enters insurable employment. There is no ceiling on expenditure on
the treatment of an insured person or his family member. medical care is also provided to
retired and permanently disabled insured persons and their spouses on payment and
their spouses on payment of a token annual premium of rs. 120/-.
1. System of treatment
2. Scale of medical benefit
3. Benefits to retired ips
4. Administration of medical benefit in a state
5. Domiciliary treatment
6. Specialist consultation
7. In-patient treatment
8. Imaging services
9. Artificial limbs & aids
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10. Special provisions
11. Reimbursement
B. SICKNESS BENEFIT (SB)-Sickness benefit in the form of cash compensation at the rate of
70 per cent of wages to insured workers during the periods of certyified sickness for a maximum
of 91 days in a year.in order to qualify for sickness benefit the insured worker is required to
contribute for 78 days in a period of six months.
extended sickness benefits(esb)-sb extendable upto two years in the case 34 malignant and lond
term diseases at an enhanced rate of 80 per cent of wages.
enhanced sickness benefit(esb):equalling to full wage is payable to insured persons undergoing
sterilization for 7/14 days for male and female workers respectively.
C. MATERNITY BENEFIT(MB)- It Is Payable For Three Months For Confinement/Pregnancy
Which Is Extendable Further For One Month On Medical Advice At The Rate Of Full Wage
Subject To Contribution For 70 Days In The Preceding Year.
D. DISABLEMENT BENEFIT Temporary Disablement Benefit (TDB): From Day One Of Entering
Insurable Employment & Irrespective Of Having Paid Any Contribution In Case Of Employment
Injury.Temporary Disablement Benefit At The Rate Of 90% Of Wage Is Payable So Long As
Disability Continues.
PERMANENT DISABLEMENT BENEFIT (PDB) : The Benefit Is Paid At The Rate Of 90% Of
The Wage In The Form Of Monthly Payment Depending Upon The Extent Of Loss Of Earning
Capacity As Certified By A Medical Board.
E. DEPENDANTS BENEFIT(DB): Db Paid At The Rate Of 90% Of Wage In The Form Of Monthly
Payment To The Dependants Of A Deceased Insured Person In Cases Where Death Occurs Due To
Employment Injury Or Occupational Hazards.
F. OTHER BENEFITS
FUNERAL EXPENSES – An Amount Of Rs 10,000/- Is Payable To The Dependents Or To The Person
Who Performs The Last Rites From Day One Of Enterinf Insurable Employment
CONFINEMENT EXPENSES – Insured women or an i.p. In respect of his wife in case confinement
occurs at a place where necessary medical facilities under esi scheme are not available.
SOME OTHER ADDITIONAL BENEFITS ARE :-
VOCATIONAL REHABILITATION-To Permanently Disabled Insured Person For Undergoing Vr
Training At Vrs.
PHYSICAL REHABILITATION –In Case Of Physical Disablement Due To Employment Injury.
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OLD AGE MEDICAL CARE- For Insured Person Retiring On Attaining The Age Of Superannuation
Or Under Vrs/Ers And Person And Having To Leave Service Due To Permanent Disablity Of Insured
Person On Payment Of Rs 120/- Per Annum.
RAJIV GANDHI SHRAMIK KALYAN YOJANA-This scheme of unemployment allowance was
intoduced w.e.f from 1.04.2005.an insured person who becomes unemployed due to closure of factory
after working for 3 or more years are entitled to :-
1.Unemployment allowance equal to 50% of wage for a maximum period of upto one year.
2.Medical care for self and family from esi hospitals and dispensaries during the period ip receives
unemployment allowance.
3.Vocational training provided for upgrading skills-expenditure on fee /travelling allowance to be borne
by esic.
INCENTIVE TO EMPLOYERS IN THE PRIVATE SECTOR FOR PROVIDING REGULAR
EMPLOYMENT FOR PERSONS WITH DISABILITY :
1. Minimum wage limit for physically disabled persons for availing esic benefits is rs.25,000/-
2. Employers contibution is paid by central government for three years.
3.
ESI SCHEME-A TOTAL SOCIAL SECURITY FOR WORKMEN
1
MEDICAL CARE PRIMARY,SECONDARY AND TERTIARY MEDICAL CARE
WITH NO CAP OF
INDIVIDUAL EXPENDITURE.
2 SICKNESS BENEFIT 91 DAYS
3 EXTENDED SICKNESS
BENEFIT
730 DAYS(UPTO 2 YEARS) FOR SPECIFIED 34 DISEASES.
4 MATERNITY BENEFIT 84 DAYS PLUS ONE MONTH (DUE TO COMPLICATIONS
ARISING OUT OF PREGNANCY,CONFINEMENT , CHILD BIRTH
,ETC.)
5 PERMANENT
DISABLEMENT
BENEFIT/TEMPORARY
DISABLEMENT BENEFIT
BASED ON LOSS OF EARNING CAPACITY/AS LONG AS
DISABILITY LASTS.
6 DEPENDANTS‟ BENEFIT ON THE DEATH OF IP TO WIFE TILL SHE IS ALIVE OR
REMARRIED AND TO FAMILY MEMBERS AS PER
CONDITIONS
7 RAJIV GANDHI SHRAMIK
KALYAN
YOJANA(UNEMPLOYMENT
ALLOWANCE)
50% OF DAILY AVERAGE WAGES UPTO 12 MONTHS
UNEMPLOYMENT ON ACCOUNT OF CLOSURE OF
FACTORIES,RETRENCHMENT OR PERMANENT INVALIDITY
OF NOT LESS THAN 40% ARISING OUT OF NO EMPLOYMENT
INJURY.
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8 INCENTIVE SCHEME TO
EMPLOYERS FOR
EMPLOYING PERSONS
WITH DISABILITIES
THE EMPLOYERS SHARE OF CONTRIBUTION IS PAID BY THE
GOVERNMENT FOR 3 YEARS FOR PROVIDING EMPLOYMENT
TO PERSONS WITH DISABILITIES DRAWING MONTHLY
WAGES UPTO Rs.25000/-
9 MEDICAL CARE TO
RETIRED IPs
MEDICAL FACILITY AVAILABLE WHITHIN ESIC ON
PAYMENT OF Rs.120/-PER ANNUM
Obligations of Employers
1. The employer should get his factory or establishments registered with the E.S.I. Corporation within 15
days after the Act becomes applicable to it, and obtain the employers Code Number.
2. The employer should obtain the declaration form from the employees covered under the Act and
submit the same along with the return of declaration forms, to the E.S.I. office. He should arrange for the
allotment of Insurance Numbers to the employees and their Identity Cards.
3. The employer should deposit the employees‟ and his own contributions to the E.S.I. Account in the
prescribed manner, whether he has sufficient resources or not, his liability under the Act cannot be
disputed. He cannot justify non-payment of E.S.I. contribution due to non-availability of finance.
4. The employer should furnish a Return of Contribution along with the challans of monthly payment,
within 30 days of the end of each contribution period.
5. The employer should not reduce the wages of an employee on account of the contribution payable by
him (employer).
6. The employer should cause to be maintained the prescribed records/registers namely the register of
employees, the inspection book and the accident book.
7. The employer should report to the E.S.I. authorities of any accident in the place of employment, within
24 hours or immediately in case of serious or fatal accidents. He should make arrangements for first aid
and transportation of the employee to the hospital. He should also furnish to the authorities such further
information and particulars of an accident as may be required.
8. The employer should inform the local office and the nearest E.S.I. dispensary/hospital, in case of death
of any employee, immediately.
9. The employer must not put to work any sick employee and allow him leave, if he has been issued the
prescribed certificate.
10. The employer should not dismiss or discharge any employee during the period he/she is in receipt of
sickness/maternity/temporary disablement benefit, or is under medical treatment, or is absent from work
as a result of illness duly certified or due to pregnancy or confinement.
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LITERATURE REVIEW
Muralidharan VR (2011) of Indian Institute Of Technology Did RESEARCH ON THE ESI
ACT 1948 IN ORDER TO FIGURE OUT A WAY to reduce the monetary cost of accessing
health services, thereby enabling individuals with substantial unmet needs to access
otherwise unaffordable care. The study uses primary data collected through a semi structured
questionnaire which sought detailed information on healthcare utilisation and spending and
on other key individual and household factors.
National institute of health and family welfare undertook a research on ESI ACT TO
note that :
The ESI schemes through its hospitals and clinics have provided curative health care to
workers all over India and have recently entered the area of occupational health. The ESI
scheme is administered by the ESIC, and autonomous body consist of Minister for Labour,
Ministry of Health, 5 representatives of Central Government, one representative each from
the States and one representative from all union territories, 5 representatives of employees
and 5 of employers, 2 of medical profession and 3 Members of Parliament, and Director
General of Corporation. This body meets twice a year. The ESI Corporation‟s main
function is to frame policies. The Standing Committee is an executive body and the
Medical Benefit Council is an advisory body. The Director General is the Chief Executive
Officer assisted by 4 principal officers – 1) Medical Commissioner, 2) Financial Advisor
and Chief Accounts Officers, 3) Insurance Commissioner, and 4) Actuary.
Nishith desai in his research analyzed that:
The ESI Act is a social security enactment primarily applicable to establishments
engaged in activities that may be considered to be manufacturing processes and
extended to other establishments by way of specific circulars. Only employees who are
employed in establishments to which the ESI Act applies and who earn less than INR
15,000 are entitled to benefits under the statute. This ruling of the Bombay High Court
is important to the IT/ITeS industry, particularly companies engaged in activities that
constitute 'software development'. In our view, while the classification as a factory,
leading to the applicability of the ESI Act to the IT sector in general may not be an
issue in view of the low salary threshold for coverage of employees, we believe that
this ruling could limit the flexibility for the sector if some of the other labour laws are
extended to this industry on the basis that software development is a manufacturing
process.
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The BOMBAY HIGH COURT in 2005 ruled that:
under section 2(12) of the ESI Act and the definition under section 2(m) of the Factories
Act, held that the definition of 'factory' under the ESI Act has a wider meaning as
compared to the definition of same term under the Factories Act. The court further held
that the meaning of the term 'factory' for the purpose of the ESI Act is not to be
understood in the context of Explanation II of Section 2(m) of the Factories Act and that
borrowing the meaning from the Factories Act would be a myopic view, defeating the
object and spirit of the ESI Act.
The INTERNATIONAL LABOUR ORGANISATION defines the ESI Act as:
An Act to provide for certain benefits to employees in case of sickness, maternity and
employment injury and to make provision for Certain other matters in relation thereto.
Where as it is expedient to provide for certain benefits to employees in case of sickness,
maternity and employment injury and to make provision for certain other matters in
relation there to.
OBJECTIVE
1. To know about the awareness of workers about different benefits under ESI Act.
2. To know which are the benefits availed by most of the workers.
3. To know whether the workers are satisfied with the benefits or not.
4. To know whether the benefits are easily available to workers or not.
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Research Methodology
Research methodology is a purely and simply the framework or a plans for the study that guides
the collection and analysis of data. Research is the scientific way to solve the problems and it‟s
increasingly used to improve market potential. This involves exploring the possible methods, one
by one, and arriving at the best solution, considering the resource s at the disposal of research.
Research in common parlance refers to search for knowledge. In fact, research is an art of
scientific investigation. Research methodology is the science of collecting, identifying and
presenting facts in such a way that it leads to unearthing some truths or angles of reality.
The following research methodology was used for the study:
1) Study area Public Health Care (Ramdas Bhatta Depot), Kasidih Depot
2) Sample 50 contract worker of Jusco (27 Male and 23Female) who
were registered under Jusco contractor‟s cell (HR/IR) taken
as sample of the study.
3) Sample techniques Random sampling method was used to select the samples.
4) Research Instrument The instrument used to collect the data was questionnaire. A set of
20 questions were there in the questionnaire. The Questionnaire
Was checked by Mr. Sidheswar Vishwakarma to assist validity
before it distributed.
5) Data collection Data was collected through personal visit. Questionnaires were
filled by the contractual workman of Jusco.
6) Data analysis Data was analyzed in the light of the objective of the study.
Percentage was calculated and presented in the graphical form.
7) Tool used Excel, word
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ANALYSIS OF QUESTIONAIRE AND INTERPRETATION
1. Do you have ESI card?
Interpretation
By the above analysis I can observe that most of the workers have ESI Card
70%
30%
Do you have ESI card
Yes No
Options Yes No
No of respondents 35 15
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2. Are you aware of all the benefits covered under ESI Act?
Options Fully aware Partially aware Not at all
No of respondents 4 32 14
Interpretation
By the above analysis I can observe that most of the workers are partially aware about the
benefits covered under ESI Act
Fully aware 8%
Partially aware 64%
Not at all 28%
Awareness about Benefits
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3. Which are the benefits you have received under ESI Act?
Options
Medical
Benefit
Sickness
benefit
Maternity
Benefit
Disablement
Benefit
Dependants
Benefits
No of
respondents 50 50 50 50 50
Interpretation
By the above analysis I can observe that all the workers gets all the benefits covered under ESI
Act
Medical Benefit
Sickness benefit
Maternity Benefit
Disablement Benefit
Dependants Benefits
Benefits recieved by workers
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4 .Out of these benefits, which are the benefits you have availed?
Interpretation
By the above analysis I can observe that 40% of workers did not avail any of the benefits, and
40% of workers avail medical benefits covered under ESI Act
Medical Benefit 40%
Sickness benefit 20%
Maternity Benefit 0%
Disablement Benefit
0%
Dependants Benefits
0%
None of these 40%
Benefits availed by workers
Options
Medical
Benefit
Sickness
benefit
Maternity
Benefit
Disablement
Benefit
Dependants
Benefits
None
of
these
No of
respondents 20 10 0 0 0 20
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5. Are you satisfied with the benefits under ESI Act?
Options Yes No
No of respondents 19 31
Interpretation
By the above analysis I can observe that most of the workers are not satisfied with the
benefits
Yes 38%
No 62%
Are you satisfied with the benefits
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6. Are the benefits easily available to you, when needed?
Options Yes No
No of respondents 6 44
INTERPRETATION
By the above analysis I can observe that most of workers face difficulties in availing benefits
Yes 12%
No 88%
Are the benefits easily available to you
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7. Are you aware about medical benefit under ESI Act?
Options Yes NO
No of respondents 48 2
Interpretation
By the above analysis I can observe that most of the workers are aware about Medical Benefits
under ESI Act
Yes 96%
NO 4%
Awareness about Medical Benefit
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8. Are you aware that your family members can also avail medical benefits under ESI act
Interpretation
By the above analysis I can observe that most of the workers are aware that there family
members can also avail Medical Benefits
Yes 90%
NO 10%
Are you aware that your family members can avail Medical Benefit
Options Yes NO
No of respondents 45 5
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9. Are you aware that under medical benefit under ESI Act there is no ceiling on the
expenditure on treatment?
Options Yes No
No of respondents 6 44
Interpretation
By the above analysis I can observe that most of the workers are not aware about the fact that
there is no ceiling on expenditure of treatment under Medical Benefits
Yes 12%
No 88%
Are you aware that under Medical Benefit there is no ceiling on expenditure of treatment
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10. Are you aware about Sickness Benefit under ESI Act?
Options Yes NO
No of respondents 48 2
Interpretation
By the above analysis I can observe that most of the workers are aware about sickness benefits
under ESI Act
Yes 96%
NO 4%
Awareness about Sickness Benefit
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11 .Are you aware that sickness benefits are extendable upto two years in case of long term
diseases?
Options Fully aware Partially aware Not at all
No of respondents 0 10 40
Interpretation
By the above analysis I can observe that most of the workers are not aware about the fact that
Sickness Benefits are extendable upto two years in case of long term disease
Fully aware 0%
Partially aware 20%
Not at all 80%
Are you aware that Sickness Benefit are extendable upto two years in case of long
term diseases
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12. Are you aware about disablement benefit under ESI Act?
Options Yes NO
No of respondents 26 24
Interpretation
By the above analysis I can observe that most of the workers are aware about Disablement
Benefit under ESI Act
Yes 52%
NO 48%
Awareness about Disablement Benefit
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13. Are you aware about dependants benefit under ESI Act?
Interpretation
By the above analysis I can observe that 50% are aware about Dependants Benefits and 50% of
workers are not aware about Dependants Benefits under ESI Act
Yes 50%
NO 50%
Awareness about Dependants Benefit
Options Yes NO
No of respondents 25 25
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14. Are you aware about funeral expenses paid under ESI Act?
Options Fully aware Partially aware Not at all
No of respondents 2 9 39
Interpretation
By the above analysis I can observe that most of the workers are not aware about Funeral
Expenses under ESI Act
Fully aware 4%
Partially aware 18%
Not at all 78%
Awareness about Funeral Expenses
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15. Are you aware of Rajiv Gandhi Shramik Kalyan Yojna under ESI scheme?
Options Yes NO
No of respondents 2 48
Interpretation
By the above analysis I can observe that most of the workers are not aware about Rajiv Gandhi
Shramik Kalyan Yojna under ESI Act
Yes 4%
NO 96%
Awareness about Rajiv Gandhi Shramik Kalyan Yojna
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16. When you are sick did you get sickness leave by contractor?
Options Yes No
No of respondents 45 5
Interpretation
By the above analysis I can observe that most of the workers get Sickness leave by their
contractor when they are sick
Yes 90%
No 10%
When you are Sick did you get Sickness Leave
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17. Are you aware about employee & employer contributions under ESI Act?
Options Yes No
No of respondents 36 14
Interpretation
By the above analysis I can observe that most of the workers are aware about employee &
employer contributions under ESI Act
Yes 72%
No 28%
Awareness about Employee&Employer Contribution
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18. Are you aware about contribution period & cash benefit period under ESI Act?
Interpretation
By the above analysis I can observe that most of the workers are not aware about contribution
period & cash benefit period under ESI Act
Yes 36%
NO 64%
Awareness about Contribution&Cash Benefit Period
Options Yes NO
No of respondents 18 32
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19. Do you prefer ESI hospital at time of sickness?
Options Yes NO
No of respondents 48 2
Interpretation
By the above analysis I can observe that most of the workers prefer ESI hospital at time of
sickness
Yes 96%
NO 4%
Do you prefer ESI hospital at time of sickness
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20. Are you satisfied with the facility provided by ESI hospital?
Options 1 2 3 4 5
No of respondents 0 5 31 13 1
Interpretation
By the above analysis I can observe that most of the workers are satisfied with the facility
provided by ESI hospital
1 0%
2 10%
3 62%
4 26%
5 2%
Are you satisfied with the facility provided by ESI Hospital
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CONCLUSION
1. Most of the workers have ESI card but they are not aware about different benefits under ESI
Act.
2. Most of the workers are partially aware about the benefits under ESI Act.
3. All the workers said that they get all the benefits as communicated by their contractor.
4. Most of the workers said that employee contribution i.e. 1.75% of wages should decrease.
5. Most of the workers are aware about Medical & Sickness benefits under ESI Act.
6. Most of the workers are not aware about Rajiv Gandhi Shramik Kalyan Yojna under ESI Act.
7. Most of the workers get Sickness leave by their contractor when they are sick.
8. Most of the workers are aware about employee & employer contribution under ESI Act.
9. Most of the workers are not aware about contribution & cash benefit period under ESI Act.
10. Most of the workers prefer ESI hospital at time of Sickness.
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FINDINGS
1. Communication of benefits by contractor to workers is done only as formality & not
considering the real interest of workers.
2. Most of the workers are illiterate.
3. They are unaware about most of the benefits provided under ESI Act.
4. Most of the workers are complaining that they are not getting basic facilities like fan, wash
room, bathroom in their lunch room.
5. Most of the workers are not satisfied with the benefits since they are not aware how to avail
such benefits
6. Some of the workers have availed Medical Benefits and some workers are new so they did
not face any necessity to use any of the benefits under ESI.
7. Most of the workers said that the benefits is not easily available to them since there are many
process in between and and it is very time taking.
8. Most of the workers are not aware that Sickness Benefit is extendable upto two years in case
of long term diseases.
9. Most of the workers are not at all aware that funeral expenses are paid under ESI Act.
10. Most of the workers are satisfied with the facility provided by ESI hospital.
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SUGGESTION $ RECOMMENDATION
1. Benefits should be communicated in local language or in other language understandable by
most of the workers.
2. Benefits should also be communicated by using calendar and all the essential information
about benefits should be written in such a way that is understandable by workers.
3. Every month workers should be given free counselling about different benefits under ESI Act
and how they can avail such benefits.
4. Free medical check up camp should be organized by the employer such that all the workers
and their family members comes there and if there is any problem benefits should be
provided immediately as per benefits under ESI Act.
5. The process in between the availability of benefits to workers should be minimised such that
benefits should be easily available to workers.
6. Contribution made by employees i.e. 1.75% of wages should decrease such that there take
home will increase.
7. Basic facilities like wash rooms, bathrooms, fan should be provided in lunch room of
workers.
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LIMITATION
1. The workers provided us with the information keeping in mind the influence of contractor.
2. Had difficulty in collecting data since most of the workers are illiterate.
3. Time span of the project was limited
4. There is chance of biasness since most of the workers had copied the answer which the other
workers have given.
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BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Employees'_State_Insurance
http://www.juscoltd.com
http://www.esicdelhi.org.in/esiact.php
http://www.esickar.gov.in/esi_act.pdf
http://www.crehs.lshtm.ac.uk/india_esis_12jul.pdf
http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN023817.pdf
http://www.esic.nic.in/pdf/CitizensCharter0112.pdf
http://www.prsindia.org/uploads/media/1224762058/1224762058_The_Employees___State_Insu
rance__Amendment__Bill__2008.pdf
ESI ACT, 1948(BARE ACT), Universal Publication
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ANNEXURE
Questionnaire on Employee State Insurance Act
Name: _________________________________________________________________
Age: _________________________________________________________________
Gender: _________________________________________________________________
Qualification: _________________________________________________________________
4. Do you have ESI card?
YES NO
5. Are you aware of all the benefits covered under ESI Act?
Fully aware partially aware Not at all
3. Which are the benefits you have received under ESI Act?
MEDICAL BENEFIT SICKNESS BENEFIT MATERNITY BENEFIT DISABLEMENT
BENEFIT DEPENDANTS BENEFIT
4 .Out of these benefits, which are the benefits you have availed?
MEDICAL BENEFIT SICKNESS BENEFIT MATERNITY BENEFIT DISABLEMENT
BENEFIT DEPENDANTS BENEFIT
5. Are you satisfied with the benefits under ESI Act?
Yes No
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If No, why?
_____________________________________________________________________________________
____________________________________________________________________________________
6. Are the benefits easily available to you, when needed?
Yes No
If no explain
……………………………………………………………………………………………………………………………….....................
7. Are you aware about medical benefit under ESI Act?
Yes No
If yes, what changes you want in medical benefit under ESI Act?
........................................................................................................................................................................
.....................................................................................................................................................................
8. Are you aware that your family members can also avail medical benefits under ESI act?
Yes No
9. Are you aware that under medical benefit under ESI Act there is no ceiling on the expenditure on
treatment?
Yes No
10. Are you aware about Sickness Benefit under ESI Act?
Yes No
If yes, what changes you want in sickness benefit under ESI Act?
........................................................................................................................................................................
.....................................................................................................................................................................
11 .Are you aware that sickness benefits are extendable upto two years in case of long term diseases?
Fully aware partially aware Not at all
80 | P a g e
12. Are you aware about disablement benefit under ESI Act?
Yes No
If yes, what changes you want in disablement benefit under ESI Act?
..................................................................................................................................................................
...............................................................................................................................................................
13. Are you aware about dependants benefit under ESI Act?
Yes No
If yes, what changes you want in dependants benefit under ESI Act?
........................................................................................................................................................................
.....................................................................................................................................................................
14. Are you aware about funeral expenses paid under ESI Act?
Fully aware partially aware Not at all
15. Are you aware of Rajiv Gandhi Shramik Kalyan Yojna under ESI scheme?
Yes No
If no, explain why?
........................................................................................................................................................................
........................................................................................................................................................................
16. When you are sick did you get sickness leave by contractor?
Yes No
17. Are you aware about employee & employer contributions under ESI Act?
Yes No
If yes, what changes you want in employee & employer contributions under ESI
Act?.................................................................................................................................................................
81 | P a g e
........................................................................................................................................................................
....
18. Are you aware about contribution period & cash benefit period under ESI Act?
Yes No
If yes, what changes you want in contribution & cash benefit period under ESI Act?
........................................................................................................................................................................
.....................................................................................................................................................................
19. Do you prefer ESI hospital at time of sickness?
Yes No
20. Are you satisfied with the facility provided by ESI hospital?
1 2 3 4 5
(1 for least satisfaction and 5 for highest satisfaction)
SIGNATURE ……………………………………….