Corporation Governance Quiz

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Questions and Answers

What is the primary provision regarding re-nomination or re-election for outgoing members of the Corporation, the Standing Committee, or the Medical Benefit Council?

  • They are eligible for re-appointment or re-election as the case may be. (correct)
  • They are only eligible if approved by the Central Government.
  • They are eligible for re-nomination or re-election only after a gap of one year.
  • They are ineligible for re-appointment or re-election under any circumstances.

How are orders and decisions of the Corporation typically authenticated?

  • By the signature of the Corporation's legal counsel.
  • By the collective signatures of all standing committee members.
  • By any member of the Corporation's signature.
  • By the signature of the Director General of the Corporation. (correct)

Who appoints the Chairman of the Standing Committee?

  • Appointed by the Central Government. (correct)
  • Appointed by the State Government.
  • Appointed by the Medical Benefit Council.
  • Elected by the Corporation members.

Besides the Chairman, how many members of the Corporation are appointed by the Central Government to the Standing Committee?

<p>Three (B)</p> Signup and view all the answers

How many members representing employers are elected by the Corporation to the Standing Committee?

<p>Three (D)</p> Signup and view all the answers

What is the standard term of office for an elected member of the Standing Committee (excluding those appointed by the Central Government)?

<p>Two years (C)</p> Signup and view all the answers

What happens to a member of the Standing Committee when they cease to be a member of the Corporation?

<p>They cease to hold office immediately. (B)</p> Signup and view all the answers

During whose pleasure does a Standing Committee member appointed by the Central Government hold their office?

<p>The Central Government's (D)</p> Signup and view all the answers

According to the provided text, how can a principal employer recover an employee's contribution when the employee is directly employed by them?

<p>By deducting it from the employee's wages. (B)</p> Signup and view all the answers

What is the primary limitation on deductions made from an employee's wages for the employee's contribution by a principal employer?

<p>The deduction cannot go above the amount of the employee's contribution for the period. (A)</p> Signup and view all the answers

If a principal employer deducts a sum from an employee's wages for contributions, what is that sum considered to be?

<p>Entrusted to them by the employee for the purpose of paying the contribution in respect of which it was deducted. (A)</p> Signup and view all the answers

Who bears the responsibility for the expenses of sending the contributions remitted to the Corporation, after an employee's dues have been deducted?

<p>The principal employer. (D)</p> Signup and view all the answers

If a principal employer pays contributions for an employee employed through an immediate employer, what can be recovered from the immediate employer?

<p>Both the employer's and the employee's contributions. (B)</p> Signup and view all the answers

According to the provided text, how can the principal employer recover funds paid for an employee of an immediate employer?

<p>Either by deduction from amounts payable under contract or as a debt from the immediate employer. (C)</p> Signup and view all the answers

What does the immediate employer need to maintain and submit to the principal employer according to the text provided?

<p>A register of all employees they hired or were hired through them. (C)</p> Signup and view all the answers

How can an immediate employer recover an employee's contribution from an employee that works through them?

<p>By deducting it from wages, subject to conditions similar to those for a principal employer. (A)</p> Signup and view all the answers

Which of the following is NOT considered part of the definition of a 'factory' under this provision?

<p>A mine subject to the Mines Act, 1952. (A)</p> Signup and view all the answers

Who is considered an 'immediate employer'?

<p>A person who undertakes work on the factory premises under the principal employer's supervision. (C)</p> Signup and view all the answers

What defines 'insurable employment' according to the provided text?

<p>Employment in a factory or establishment to which this Act applies. (A)</p> Signup and view all the answers

An 'insured person' is best defined as:

<p>An employee for whom contributions are or were payable under this Act, who is entitled to its benefits. (A)</p> Signup and view all the answers

Which statement is true regarding a 'managing agent'?

<p>They act as a representative of another person carrying out business matters. (B)</p> Signup and view all the answers

The meaning of 'manufacturing process' is to be determined using which act?

<p>The Factories Act, 1948 (D)</p> Signup and view all the answers

'miscarriage' is defined as:

<p>Expulsion of the contents of a pregnant uterus prior to or during the 26th week of pregnancy, not punishable under the Indian Penal Code. (C)</p> Signup and view all the answers

What is the meaning of 'occupier' of a factory?

<p>The person who is legally liable for the operation of the factory as specified in the Factories Act, 1948. (C)</p> Signup and view all the answers

What is 'permanent partial disablement' characterized by?

<p>A permanent reduction in earning capacity of an employee in every employment he was capable of before the accident. (D)</p> Signup and view all the answers

Which of these best reflects the definition of a 'principal employer' in a factory?

<p>The owner or occupier of the factory, their managing agent, legal representative, or the named manager under the Factories Act, 1948. (D)</p> Signup and view all the answers

A 'seasonal factory' is primarily defined by its:

<p>Engagement in specifically named manufacturing processes within a limited period of time. (D)</p> Signup and view all the answers

What constitutes 'sickness' under this act?

<p>A condition requiring medical treatment that necessitates absence from work on medical grounds. (A)</p> Signup and view all the answers

'temporary disablement' means:

<p>A condition resulting from an employment injury which temporarily prevents an employee from doing their original job. (B)</p> Signup and view all the answers

What is included in the meaning of 'wages' according to the text?

<p>Remuneration paid in cash, and payments in respect of authorised leave, lock-out, or strike, but excluding employer contributions to pension or provident funds. (A)</p> Signup and view all the answers

What is NOT included in the definition of 'wages'?

<p>Any contribution paid by the employer to a pension fund. (A)</p> Signup and view all the answers

What must the authorised officer do if a certificate for recovery has been issued and the demanded amount is reduced due to an appeal?

<p>Stay the recovery of the reduced amount until further proceedings are resolved. (C)</p> Signup and view all the answers

How does the authorised officer handle a modified order that affects an outstanding demand after a recovery certificate has been issued?

<p>They should stay recovery related to the modification until the appeal is resolved. (D)</p> Signup and view all the answers

What action is necessary once the order concerning an appealed amount becomes final and conclusive?

<p>The officer must amend or withdraw the recovery certificate if necessary. (D)</p> Signup and view all the answers

Who may require a person to deduct arrears from amounts due to a factory or establishment?

<p>The Director General or any officer authorized by the Corporation. (B)</p> Signup and view all the answers

What is not applicable regarding the deductions from the amounts due under the recovery provisions?

<p>Amounts that are exempt from attachment in execution of a decree. (A)</p> Signup and view all the answers

What happens if a recovery certificate is issued and an appeal leads to a decrease in the amount owed?

<p>The recovery certificate must be amended to reflect the reduced amount. (D)</p> Signup and view all the answers

When a recovery certificate has been issued, what is the primary obligation of the authorised officer regarding payment information?

<p>Keep the Recovery Officer informed of any payments or extensions granted. (B)</p> Signup and view all the answers

Under what condition can an authorized officer withdraw a recovery certificate?

<p>After the conclusion of any appeal where the related order has become final. (C)</p> Signup and view all the answers

What happens if a person objects to a notice by stating on oath that the sum demanded is not due?

<p>They are liable only if the statement is false. (B)</p> Signup and view all the answers

Who has the authority to amend or revoke a notice issued under this sub-section?

<p>The Director General or authorized officer. (A)</p> Signup and view all the answers

What is the consequence for a person who pays an amount in compliance with a notice?

<p>They are fully discharged from liability to the principal employer. (D)</p> Signup and view all the answers

What happens if an individual fails to make payment after receiving a notice?

<p>They are deemed a principal or immediate employer in default. (C)</p> Signup and view all the answers

In case of false statements on oath about liabilities, which is true?

<p>They are liable to the extent of their own liability. (A)</p> Signup and view all the answers

What type of notice is stated to have the same effect as an attachment of debt?

<p>A notice sent under this sub-section. (C)</p> Signup and view all the answers

What determines the extent of liability for a person who discharges their liabilities after a notice?

<p>The amount they paid in compliance. (C)</p> Signup and view all the answers

What may occur as a consequence of the director's action regarding a notice?

<p>Extensions granted for compliance. (A)</p> Signup and view all the answers

Under what condition is an accident deemed to arise out of and in the course of employment when travelling in employer's transport?

<p>The accident would have been considered so had there been an obligation to use the vehicle. (D)</p> Signup and view all the answers

What does the term 'vehicle' encompass as per the provided content?

<p>Vessels and aircraft as well as land vehicles (A)</p> Signup and view all the answers

An accident at the workplace is considered an employment-related injury if it occurs during what type of situation?

<p>Actions taken in response to a supposed emergency (B)</p> Signup and view all the answers

What is the criteria for dependants' benefits to be paid following an insured person’s death due to an employment injury?

<p>Dependants must specified in prescribed conditions. (A)</p> Signup and view all the answers

What occurs if an insured person dies without any specified dependants as defined?

<p>Benefits will be paid to other dependants of the deceased. (C)</p> Signup and view all the answers

In relation to employer's transport, what is a criterion for the vehicle's operation?

<p>It must be provided in arrangements made with the employer. (D)</p> Signup and view all the answers

What is a key factor when determining if an accident occurred during the course of employment in emergency situations?

<p>The person must be actively engaged in employer-related duties. (D)</p> Signup and view all the answers

What type of accident does not qualify as arising out of and in the course of employment when using a company vehicle?

<p>Accidents involving driving a company vehicle for personal errands. (A)</p> Signup and view all the answers

Flashcards

Re-appointment/Re-election Eligibility

A member of the Corporation, Standing Committee, or Medical Benefit Council can be re-appointed or re-elected for another term.

Authentication of Corporation Orders

The Director General of the Corporation authenticates all orders and decisions made by the Corporation.

Composition of the Standing Committee

The Standing Committee of the Corporation is composed of members chosen from various categories: a Chairman appointed by the Central Government, three Corporation members appointed by the Central Government, three members representing State Governments, and eight members elected by the Corporation itself.

Elected Members of the Standing Committee

The Standing Committee members representing employers, employees, and the medical profession are elected by the Corporation's members.

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Parliamentary Standing Committee Member

The Standing Committee member representing Parliament is elected by Parliament.

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Term of Office for Standing Committee Members

The term of office for most Standing Committee members is two years, starting from the date their election is announced.

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Continuation of Standing Committee Members

Members of the Standing Committee continue in their positions until their successor is elected, even if their two-year term ends.

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Term of Office for Certain Standing Committee Members

The Chairman and members representing State Governments appointed by the Central Government serve at the pleasure of the Central Government, meaning their term can end if the Government decides so.

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Immediate Employer

A person who has undertaken work on a factory's premises, under the supervision of the principal employer or agent, that is part of the factory's usual operations, or preliminary or incidental to those operations. This includes temporary workers lent from another employer.

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Insurable Employment

An employment in a factory or establishment covered by the Act.

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Insured Person

A person who is or was an employee with contributions payable under this Act and is therefore entitled to benefits.

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Managing Agent

A person appointed to act as a representative for another person's trade or business, but not including an individual manager subordinate to an employer.

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Mis-carriage

The expulsion of the contents of a pregnant uterus before the 26th week of pregnancy, excluding those resulting from criminal actions.

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Occupier of the Factory

The person who is responsible for the factory as per the Factories Act, 1948.

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Permanent Partial Disablement

Permanent impairment that reduces an employee's earning capacity in all jobs they were capable of doing before the injury.

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Permanent Total Disablement

A permanent injury that totally disables an employee from doing any work they were capable of performing before the injury.

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Power (in factories)

Any source of power used in a factory, as defined by the Factories Act, 1948.

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Seasonal Factory

A factory that operates only for a specific period each year, usually not exceeding seven months.

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Sickness

A health condition requiring medical treatment and attendance, causing someone to be unable to work due to medical reasons.

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Temporary Disablement

An injury from work that needs medical treatment and temporarily prevents an employee from performing their usual work duties.

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Wages

All cash remuneration paid or payable to an employee, including wages, authorized leave pay, bonuses, except for certain contributions, allowances, and gratuities.

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Principal Employer Contribution Responsibility

The main employer is responsible for paying both the employer and employee contributions to the social security corporation. They can deduct the employee's contribution from their wages.

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Recovery of Contributions from Immediate Employer

The principal employer can recover the contributions they paid for employees hired through an immediate employer from the immediate employer.

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Employee Contribution Deduction

The employee contributions can be deducted from the employee's wages only for the period of employment.

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Employer Contribution Deduction

The principal employer cannot deduct their own contribution from employee wages.

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Deducted Wages as Trust

Any money deducted from wages for contributions is considered entrusted to the principal employer for the purpose of paying the contribution.

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Remitting Contributions Costs

The principal employer is responsible for paying the costs of sending the contributions to the Corporation.

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Immediate Employer Register Requirement

Immediate employers are required to maintain a register of employees they hire and submit it to the principal employer before settling any payments.

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False Statement Liability

If a person claims they don't owe the money, but later it's found to be false, they become personally liable to the Director General, up to the amount they owed the original employer or the amount the employer owed under this Act, whichever is less.

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Notice Modification

The Director General has the power to change or cancel a notice, or extend the payment deadline.

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Payment Discharge

When payment is made according to a notice, the person paying is released from their debt to the original employer.

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Post-Notice Payment Liability

If someone pays the original employer after receiving a notice, they now also become liable to the Director General. The liability is capped at their own debt or the employer's debt under the Act, whichever is less.

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Defaulting on Payment

If a person fails to pay, they are considered in default and face further actions as if they were the original employer.

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Notice as Attachment

The notice acts like a legal attachment of the debt, allowing the Recovery Officer to collect the money.

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Notice Issuance

The Director General or an authorized officer issues notices to individuals who hold money owed to the principal or immediate employer.

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Content of the Notice

The notice demands payment of a specific sum from the individual holding the money, stating the reason.

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Information requirement for Recovery Officer

When a certificate for recovery of an amount is issued, the authorized officer must inform the Recovery Officer about any subsequent payments made or payment deadlines granted.

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Recovery suspension during appeal

If an appeal or other procedure modifies the original order, and as a result the recovery amount is reduced, the authorized officer must temporarily halt the recovery of the reduced portion while the appeal is pending.

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Certificate amendment or withdrawal

When a certificate for recovery is issued and the outstanding amount is later reduced due to an appeal or other procedure, the authorized officer must amend or withdraw the certificate after the appeal becomes final.

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Alternative recovery methods

The Director General or authorized officer can utilize various methods to recover the amount owed, even if a certificate has been issued to the Recovery Officer.

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Deduction of arrears

If someone owes money to an establishment that owes money to the Corporation, the Director General or authorized officer can require the person to deduct the arrears and pay it to the Corporation.

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Exemption from deduction

The deduction of arrears from a person cannot include any amount exempt from attachment in a civil court case.

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Deduction from debt

A person owes money to both a company and the Corporation. The Corporation can require the person to deduct the money owed to the Corporation from the money owed to the company.

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Deduction limitations

If a person owes money to a company, and the company owes money to the Corporation, the Corporation can require the person to deduct the money owed to the Corporation from the money owed to the company. However, this can't be done for money that is legally protected from seizure by a court.

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Travel in Employer's Transport

An accident happening while an insured person is traveling to or from work using their employer's vehicle, even if they are not required to do so, is considered work-related if the employer allows it.

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Vehicle Operation Requirement

For an accident to be considered work-related when traveling in an employer's vehicle, the vehicle must be operated by or on behalf of the employer or someone arranged by them, but not part of a public transport service.

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Emergency at Workplace

An accident is considered work-related if it happens while an employee is taking action to rescue, help, or protect people or property on the premises where they work, during an emergency.

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Dependants' Benefit

If an insured person dies due to a work injury, their dependants specified in the law may receive benefits.

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Dependants' Benefit (Alternative)

If an employee dies without specific dependants mentioned in the law, other dependants may still receive benefits.

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Dependants' Benefit Conditions

The rates, duration, and conditions for dependants' benefits after a worker's death from a work-related injury are decided by the Central Government.

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Definition of 'Vehicle'

The term 'vehicle' includes water and air transportation, such as vessels (boats) and aircraft.

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Workplace Accident During Emergency

An accident occurring at an employee's workplace, even outside of their regular duties, is considered work-related if it happens during an emergency.

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Study Notes

Employees' State Insurance Act, 1948

  • An Act to provide benefits to employees in cases of sickness, maternity, and employment injury.
  • Applies to all factories (except seasonal factories) and establishments belonging to or under the control of the government, whose employees are already receiving similar benefits.
  • The Act extends to the whole of India.
  • The commencement date and application of different provisions might vary for different states and districts.

Chapter I: Preliminary

  • Short Title, Extent, Commencement, and Application:
    • The Act is called the Employees' State Insurance Act, 1948.
    • It applies to the whole of India.
    • The Central government can appoint different dates for different provisions or parts of the Act for different states.
    • Provisions may be extended to other establishments after 6 months notice.
  • Definitions:
    • Appropriate Government: Central Government for establishments under its control (railways, major ports, mines, oilfields), State Government for other establishments.
    • Confinement: Labor resulting in the birth of a live or dead child—including after 26 weeks of pregnancy.
    • Contribution: Sum payable by the principal employer and the employee.
    • Corporation: Employees' State Insurance Corporation.
    • Dependant: Relatives of deceased insured person (widow, minor children, etc.).
    • Employment Injury: Personal injury caused by accident or occupational disease during employment, whether within or outside India.
    • Employee: Any person employed for wages within a factory, or establishment, directly or through an immediate employer, including those employed in administration or purchase, and apprentices. -Factory: Premises with 10 or more employees on any day over the preceding 12 months, and including manufacturing with or without power.
    • Insurable employment: Employment within a factory or establishment to which the Act applies.
    • Insured person: A person who has been and/or is currently an employee covered by the Act, and thus is eligible for benefits.
    • Immediate Employer: A person who undertakes work within a factory, for the principal employer, and includes contractors.
    • Managing Agent: A person appointed as a representative of another person in managing a trade or business, excluding subordinate individual manager.
    • Miscarriage: Expulsion of contents of a pregnant uterus before or during the 26th week of pregnancy, but does not include those under the Indian Penal Code.
    • Occuper: Meaning from Factories Act, 1948
    • Permanent Partial Disablement: Permanent impairment in earning capacity.
    • Permanent Total Disablement: Permanent incapacity for any work.
    • Power: Meaning from Factories Act, 1948
    • Principal Employer: Owner/Occupier or responsible person of a factory or establishment. Includes managing agents and legal representatives
    • Regulation: Rules from the Corporation.
    • Schedule: Appendix to the Act.
    • Sickness: Condition requiring medical treatment and attendance, necessitating work abstention.
    • Wage period: The specific period for which wages are payable.
    • Wages: All cash remuneration, including authorized leave, strikes, lock-outs, and lay-offs.

Other Chapters

  • Various chapters cover details on the establishment of the Employees' State Insurance Corporation, Standing Committee, Medical Benefit Council, contributions, benefits, liabilities, and other specifics about the act. Specific sections contain detailed information about the methods of payment, penalties, and the dispute resolution mechanisms.

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