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The
provisions of the ESI Act are not
applicable to factories or
establishments, run by the State
Governments / Central Government,
whose employees are, otherwise, in
receipt of social security
benefits substantially similar or
superior to the benefits provided
under the ESI Act. The case of
each such Public Sector
Undertaking, is decided on merit
by comparing the quality and
quantity of benefits being
provided to the employees by the
concerned managements, with those
admissible under the ESI Act.
The
"Appropriate
Government", may grant or
renew exemption under Section 87
of the ESI Act in respect of a
Factory/Establishment or class of
factories or establishments in any
specified area from the operation
of the Act for a period not
exceeding one year at a time.
Exemption Under Section 88 of the
Act is granted by the
"Appropriate Government"
to employees, or class of
employees, who remain away from
their Hqrs. for more than 7 months
in a year, and those employees who
are posted in non-implemented
areas.
No exemption, under Section 87, or
Section 88 can be granted unless a
reasonable opportunity has been
given to the Corporation to make
any representation and the same is
considered by the
"appropriate
Government".
Exemption Under Section 90 can be
granted to a factory /
establishment belonging to any
local authority such as a
Municipality / Corporation, etc.
if employees in any such
factory/establishment are
otherwise in receipt of benefits
substantially similar or superior
to the benefit. provided under the
Act.
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