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Section 87 of ESI Act 1948: Exemption of a Factory or Establishment

Section 87 (Exemption of a factory or establishment or class of factories or establishments) under the Chapter VIII (Miscellaneous) of the Employees’ State Insurance Act 1948

❝The appropriate Government, may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.

 Provided that such exemptions may be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act:

 Provided further that an application for renewal shall be made three months before the date of expiry of the exemption period and a decision on the same shall be taken by the appropriate Government within two months of receipt of such application.❞




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Notes:

The Employees’ State Insurance Act, 1948 was amended by the:
- the A.O. 1950;
- the A.O. (No. 3) 1956;
- the A.O. (No. 4) 1957;
- the Employees' State Insurance (Amendment) Act, 1951 (Act No. 53 of 1951);
- the Employees' State Insurance (Amendment) Act, 1966 (Act No. 44 of 1966);
- the Employees' State Insurance (Amendment) Act, 1975 (Act No. 38 of 1975);
- the Employees' State Insurance (Amendment) Act, 1984 (Act No. 45 of 1984);
- the Employees' State Insurance (Amendment) Act, 1989 (Act No. 29 of 1989);
- the Employees' State Insurance (Amendment) Act, 2010 (Act No. 18 of 2010).

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