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Unemployment BENEFITS


The ESI Scheme has introduced  a scheme of unemployment allowance to the IPs who have been rendered unemployed involuntarily due to closure of the factory / establishment , retrenchment or permanent invalidity arising out of non-employment injury w.e.f. .

Affected IPs and their families will also be entitled to medical care from ESI Dispensaries / hospitals during periods of unemployment allowance.

Kinds of employment covered under the scheme

Unemployment which arises due to following reasons shall be covered under the Scheme:-

  • Retrenchment as defined in the Industrial Disputes Act, 1947

  • Closure of the factory / establishment as defined in the Industrial Disputes Act, 1947.

  • Permanent invalidity not less than 50% arising out of non-employment injury. (The invalidity should be duly certified by a Medical Board constituted by the Central or State Government)