Industrial Relations And Labour Laws
Assistant Human Resource Manager

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Dear All,

Greetings for a day!

In our organisation, we have employees who all are working in 3 categories:-


However al the whether executive & Staff category & supervisors we are giving medical reimbursement and Hospitalisation, one who all are not covered in ESIC or not.

According to ESIC defination of AOD, a person is entitled while coming on duty from home or while going back also inspite of during working hours.

In our company we have implemented the same defination to the employees who all are not covered in ESIC irrespective of Grades.

Now my Manager had consulted reowned labour laws lawyer about the same.

He suggested (employees who are not covered in the esic), we should give the AOD till the time they all are in the unit premises.

I just want to know whether we can implement the same keeping in mind all legal views.

Whether the employees who all are not covered in ESIC is entitled for the same or not.

Personally, i want to keep this leave as it is much more towards a welfare for all the employees.

If we will implement the AOD leave inside the hotel premises, whether it is correct or not.

If we want to change the same, what should be the procedure adopt.

Would also like to apprise you that it is a part of our service rules also and we have unions in our company also.

Secondly as a part of welfare, we are giving medical reimbursement to all staff associates also who are covered in the ESIC defination. whether we should give that facility to such employees also. We have given insurance benefit to our staff employees also.

Would appreciate your early views on it.

With Warm Regards
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Treating accidents taken place while the employee is going to office from home and returning home from office no longer exists now. The ESIC now will not accept such cases as accidents while on duty. However, accidents taking place while the employee is travelling for and in connection with official duty are covered as AOD.

If you incorporate the accidents while the employee is on his way to office or back from office as Accidents On Duty, there will be a tendency to misuse the privilege at least by some employees. A small sprain or dislocation to ankle/ foot taken place elsewhere may be fabricated as happened while he was about to get into or alight from bus while he was travelling to office or back home. Otherwise, you will have to define what is accident, like that taking place in the exact route to office or home the address of which is available in the official records. If so, if any accident takes place (very genuine) but at a place different from the route as mentioned in the official records, he will be denied of the medical facility. I feel though it is a good welfare scheme to employees who are not covered by ESI, there are plenty of drawbacks.

Medical reimbursement of ESI covered employees shall be acceptable. Now a days medical facility to dependent parents of the insured employee is available only if the monthly income of such dependent parents is less than Rs 1500. Correct me if my understranding is wrong.


Dear Madhu Sir,
Thanks a ton!
I really appreciate your efforts to help the others.
Would request you to give that provision or circular of esic for this change becoz till now in almost all the companies we all are following the same policy on AOD in ESIC. The latest in ESIC that i come to know across is about those smart cards.
Sir, I have some in Industrial Dispute act.
Required your approval to post the same here in this topic.
Dear All,
Need your advice urgently on this issue.
Mr.Amit working in the security department slipped on the stairs and claimed AOD for 2 months from Jan, 2009 onwards.
Now in the month of November, he is again asking for the AOD leaves as he has submiteed a medical certifiacte from the AIIMS related to the injury.
He had written that his leg injury has been again there. He is asking for the AOD leaves again since the first time the incident had been happened in our premises.
Please suggest whether we have to give him these leaves or not. what are the statuary bindations in this case.
It can also happen that he is sitting in the home. we can ask him to meet with our company doctor.
Would appreciate your prompt action.
If you have company Doctors, you can ask the employee to consult that Doctor and get his certificate. But still, it may be difficult to decide whether the present treatment is in continuation to what has happened while on duty. I believe that such kind of attitude of employees is the greatest evil of Indian Organised Labour whereas there are lot of establishments which even do not bother for even the basic laws like Maternity Benefit Act.
Again i am facinfg the problem with the same employee. we have stopped his salary for this month and consult the lawyer. lawyer told us to give him only his Privilege leave , not AOD.
NEed your advice as this case is going to be more difficult.
Continuous illness is one of the legal reasons for termination of employment as per Industrial Disputes Act. If your Standing Orders support this, please explore the possibility of terminating him by mutual agreement. You can also direct him to appear before the Medical Board failing which to face disciplinary action.
Dear MAdhu Sir,
Our employment manual states that a persons services will be terminated on the ground of continuos illness of 6 or more months.
Whther we can considerhis injury as illness. Secondly, he got this injury while working in the premises.
Injuries can be considered as illness.
What are the various measues we can adopt now.
Leave due to and following an employment injury can not be treated as continuous illness on the basis of which services can be terminated. However, in the present case, his absence is not due to a genuine reason. If you feel that he is taking the matter for granted, you can proceed with an enquiry or ask him to report before your medical board for examination. If he refuses, then it will be deemed that he is not interested to follow the policies of the company and it will then become a misconduct which, in turn, will be a ground for disciplinary action. However, in such proceedings the obligation to prove that he has been taking undue advantage of the employment injury rests with you only. Therefore, you will have to gather all evidences to prove that he is not sick.
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