A unique scheme for extending cash-assistance to the employees covered under the ESI Act (Insured Persons) while they become unemployed in certain contingencies has been introduced by the ESI Corporation with effect from 1-4-2005.

According to this Scheme, cash payment will be given to the affected insured persons to the maximum of 24 months or till re-employed whichever is earlier. This benefit is called as RAJIV GANDHI SHRAMIK KALYAN YOJANA.

Factors constitute to determine the insured persons as ?unemployed? :

1. Permanent closure of factories / establishments;

2. Retrenchment of employees;

3. Loss of employment due to not less than 40% of permanent invalidity on account of accidents happened to the insured persons other than in the factory / establishment called as ?non-employment injury? (i.e. accidents happened in other places (out-side accidents) for the insured persons? own reasons).

1. On the date of declaration as unemployed the affected persons should be come within the meanings as Insured Persons.

2. The insured persons should have contributed for 3 years (6 contribution periods) prior to their unemployment.

3. The insured persons who have become unemployed on or after 1-4-2005 alone will be eligible for claiming this benefit.
4. Unemployment Allowance is not eligible, if similar benefit is made available to the affected insured persons under the provisions of any other Acts / Law / Scheme, in force.

The period of service of an I.P need not be continuous with one employer. The I.P. shall be entitled to this allowance irrespective of the fact whether part of his/her service as employee was rendered in the insurable employment with any other employer in the same or in any other region.

1. The daily rate of unemployment allowance is computed to Standard Benefit Rate with reference to the Average Daily Wages arrived on the basis of last four contribution periods prior to the date of unemployment of the affected insured persons..Rate: 50% of the Average daily wages for first 12 months and 25% of average daily wages from 13 to 24 Months

2. The entitled insured persons under this Scheme can opt for cash payment either on monthly basis or on one-lump-sum basis at a maximum of 6 months or till re-employed whichever is earlier.

3. This cash payment will not be combined with any other cash payment on Sickness Benefit or Temporary Disablement Benefit or Maternity Benefit, if entitled to the affected insured persons, under this Scheme. However, the insured persons can opt for any one of the aforesaid benefits including unemployment allowance according to their choice.

4. The affected insured persons and their family members are entitled to medical care / treatment in ESI Hospital / ESI Dispensaries, if eligible for unemployment allowance under this Scheme.

5. The cash payment under this Scheme can be claimed / paid to the affected insured persons at the Branch Office of the ESI Corporation where they have been attached prior to the date of unemployment. The prescribed form for the claim of unemployment allowance can be had from the Branch Offices and the claim made with necessary documents for the proof of unemployment.

Unemployment allowance shall not be admissible in the following circumstances:

1. During lockout
2. Layoff / temporary closure of factory/establishment
3. Strike resorted to by the employers
4. Voluntary abandonment of employment/voluntary retirement/premature retirement
5. Less than three years contributory service
6. On attaining age of superannuation or 60 (sixty) years whichever is earlier
7. Convicted (i.e punished for false statement) under provisions of section 84 of ESI Act.
8. On being re-employed elsewhere during the period he/she is in receipt of unemployment allowance
9. Dismissal/termination under disciplinary action
10. On death of I.P

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Last Updated on February 25, 2007 07:53:31