The Promulsation of Employees' State Insurance Act. 1948 (ESI Act), by the parliament was the first major legislation on Social Security for workers in independent India. It was a time when the industry was still in a nascent stage and the country was heavily dependent on an assortment of imported goods from the developed or fast developing countries. The deployment of manpower in manufacturing processes was limited to a few select industries such as jute, textile, chemicals etc. The legislation on creation and development of a fool proof multi-dimensional Social Security system, when the countries economy was in a very fledgling state was obviously a remarkable gesture towards the socio economic ameiloration of a workforce though limited in number and geographic distribution. India, notwithstanding other pressing compulsions of self reliance and self sufficiency, thus, took the lead in providing organised social protection to the working class through statutary.

The ESl Act 1948, encompasses certain health related eventualities that the workers are generally exposed to such sickness, maternity, temporary or permanent disablement, occupational disease or death due to employment 'injury, resulting loss of wages or earning capacity - total or partial. ' Social security provisions made in the Act to counterbalante or negate the resulting physical or financial distress in such. contingencies are thus, aimed at upholding human dignity in timesof crises through protection from deprivation, destitution and social degradation while enabling the society the retention and continuity of a socially useful and productive manpower.

The ESI Scheme is a based on the principal of 'pooling of risks and resources' in which every contributor, at any given point time, emerges as a beneficiary of a benefactor and society at large is the net gainer. Employees. employers, State Govts. and the Corporation are the major stake holders in the system of organised and coordinated effort providing social protection th benefactors. The role employers, in particular remains pivotal to the success of the scheme, be it surveys for coverage, implementation, registration of factories/establishments, registration of employees, regular payment of contribution,facilatating inspections and timely action to ensure steady flow of benfits to the employees.

COVERAGE: The ESI Act 1948 in the first instance, applies to non-seasonal factories using power in the manugacturing process and employing 10 or more persons and non-power using factories or establishments employing 20 or more persons for wages. The provision of the Act are being implemented areawise by stages. The Act contains an enabling provision under which the "Appropriate Government" is empowered to extend the provisions of the Act to other classes of establishments - industrial, commercial, agricultural or otherwise. Under these provisions most of the State Governments have extended the provisions of the ESI Act to the following classes of establishments.

ORGANISATION : At the national level, the ES1 Scheme is administered by a statutory body called the "Employees State Insurance Corporation" set-up under Employees' State Ingurance Act, 1948. The Corporation comprises representatives of employees, employers, the Central Government, State Governments, medical profession and the Parliament. A Standing Committee, constituted from amongst the members of the Corporation acts as the executive body. The Medical Benefit Council, a statutory body, advises the Corporation on matters related to the provision of medical care to the beneficiaries of the Scheme. The Director General, is the chief executive of the Corporation and is also an ex-oficio member of the Corporation and the Standing Committee. At the State level, Regional Boards have been constituied in each State and at the grass-root level, Local Committees have been formed as advisory bodies for smooth functioning of the Scheme. The Regional Boards and the Local Committees have representation, both hem employers and employees. For day-to-day administration, the Corporation has its Central Headquarters at New Delhi, besides Regional Offices and Sub-Regional Offices in the States and over 800 Local Offices etc. at industrial centres throughout the country.