Navigating ESI Leave: Can We Terminate an Employee Due to Physical Disability?

In our organization, one of our employees had an accident, and he is covered under the ESI Act. Initially, he went to a private hospital, but later he went to an ESI Hospital. Now, the ESI doctor has given him medical leave for one year, and he is still on ESI leave. Our management is now asking him to see our factory doctor, who will certify whether he can continue in our service or not.

In my opinion, the factory doctor will likely certify that he cannot continue in our service due to physical disability. In this case, can we terminate this employee from factory services? If yes, will he still be eligible for ESI medical benefits?

Employment Injury and ESI Benefits

Sir, you have not indicated in your question whether the accident was such that it has been admitted as an employment injury by ESIC. Whether the said employee has received Temporary Disablement Benefit (TDB) from ESIC during the period of such incapacity after his accident. If the accident is admitted as that of an employment injury (after the employer submitted the accident report), then in such a case, permanent disablement benefit can be claimed by the employee, and that too after the said employee is declared fit, if the appropriate Medical Board of the area, as constituted by ESIC, approves his loss of earning capacity, if any. Kindly see the provisions of the ESI Act, 1948, and rules/regulations framed thereunder. If the case is not of employment injury, I think the employee will not be entitled to such Permanent Disablement Benefit (PDB).

Termination and ESI Act Provisions

So far as the termination of the said employee is concerned, please see Section 73 of the ESI Act, 1948, as well as Regulation 98 of ESI (General) Regulations, 1950, the provisions of which, I think, are very clear.