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Recovery machinery
Recovery Officer, appointed under Section 45(I)(b) of the ESI Act has been empowered to recover ESI Contribution, Interest and Damages determined under the provisions of Section 45(A), Regulation 31A, under Section 85(B)(I) and Regulation 31C of the ESI Act. Such Recoveries are made under the provisions of Section 45(C) to 45(I) of the Act, provisions contained in second and third schedule to the Income Tax Act, 1961(43 of 1961) and Income Tax (Certificate Proceedings) Rule 1962 as amended from time to time, with necessary modifications/substitutions of certain words referred as arrears.
Regulation 97
Regulation 97 permits an employer to discontinue or reduce benefits payable to his employees under conditions of their service which .are similar to the benefits conferred by the Act, to the extent specified below, namely
a) From the date of the commencement of the first benefit period following the Appointed Day for his factory or establishment -
  • Sick leave on half pay to the full extent;
  • Such proportion of any combined general purposes and sick leave on half pay as may be assigned as a sick leave but in any case not exceeding 50 per cent of such combined leave.
b) Any maternity benefits granted to a woman employee to the extent to which such a woman employee may become entitled to the Maternity Benefit under the ESI Act.

Where an employee avails himself/herself of any leave from the employer for sickness, maternity or temporary disablement, the employers shall be entitled to deduct from the leave salary of the employee the amount of benefit to which he/she may be entitled under the Act for the corresponding period.

It is only when a workman actually obtains or receives cash benefit under the ESI Scheme that the employer can exercise his right to make a suitable deduction from the wages due to him by way of leave salary.
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