Navigating Workman Termination Due to Ill Health: How to Handle ESIC Benefits?

What is the procedure to be followed for terminating a workman on grounds of continued ill health if:
(a) he is availing sickness benefits under ESIC
(b) if he is not availing sickness benefits under ESI?

Thank you.

There seems to be no separate set of rules for terminating an employee due to ill health. Therefore, all the procedures required as per the ID Act must be followed in such cases. Although the discharge of an employee during a period of sickness is prohibited under Section 73 of the ESI Act, 1948, discharge due to continuous ill health caused by certain diseases is permitted under Regulation 98 of the Employees State Insurance (General) Regulations, 1950. These diseases include Tuberculosis, Leprosy, Mental disorders, etc.

For a better understanding, refer to the Standing Orders of the company where the procedures for terminating an employee will be detailed.

Regards,
Madhu.T.K

Many thanks, Madhu. By procedure under ID Act, I understand you mean the procedure to be followed for retrenchment under V(a) or V(b) as applicable. I have gone through the standing orders and the model standing orders and did not find any specific reference to termination on grounds of continued ill-health. Would be a great help if you could post the text pertaining to Rule 90 of ESIC Regulations.

Regulation 98 of the ESI (General) Regulations, 1950: Discharge, etc., of an employee under certain conditions - If the conditions of service of any employee allow, an employer may discharge or reduce an employee on due notice in the following situations:

(i) an employee who has been in receipt of disablement benefit for temporary disablement after receiving such benefit continuously for six months or more;

(ii) an employee who has been under medical treatment for sickness or has been absent from work due to illness certified in accordance with these regulations to arise from pregnancy or confinement, rendering the employee unfit for work, after undergoing such treatment or being absent from work continuously for six months or more;

(iii) an employee who has been under medical treatment for any of the following diseases certified in accordance with these regulations, after undergoing such treatment continuously for 18 months or more, regardless of provisions in clauses (i) and (ii):

Diseases:
1. Tuberculosis
2. Leprosy
3. Mental diseases
4. Malignant diseases
5. Paraplegia
6. Hemiplegia
7. Chronic congestive heart failure
8. Immature cataract with vision 6/60 or less in the affected eye
9. Bronchiectasis
10. Lung abscess
11. Myocardial infarction
12. Dislocation and prolapse of intervertebral disc
13. Parkinson's disease
14. Aplastic anemia
15. Detachment of retina
16. Non-union or delayed union of fracture
17. Empyema
18. Intracranial space-occupying lesion
19. Spinal cord compression
20. Chronic glaucoma
21. Cardiac valvular diseases
22. Chronic renal failure
23. Hemiparesis of more than 8 weeks duration
24. Post-traumatic surgical amputations of lower extremity
25. More than 50% burns with infection
26. Compound fracture with chronic osteomyelitis
27. Chronic cor pulmonale with congestive heart failure

Regards,
Madhu T.K