Section 17 of THE EMPLOYEES’ STATE INSURANCE ACT, 1948
- (1)The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such salary as may be prescribed by the Central Government].] 3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay: Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government: 4[Provided further that this sub-section shall not apply to appointment of consultants and specialists in various fields appointed on contract basis.]
- (b)In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and
responsibilities of such officers and employees under the Central Government and in case of any doubt,
the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]
- (3)Every appointment to 5[posts 6[(other than medical posts)] corresponding to 7[Group A and Group B] posts under the Central Government] shall be made in consultation with the 8[Union] Public Service Commission: Provided that this sub-section shall not apply to an officiating or temporary appointment for 9[a period] not exceeding one year: 10[Provided further that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.] 11[(4) If any question arises whether a post corresponds to a 7[Group A and Group B] post under the Central Government, the question shall be referred to that Government whose decision thereon shall be final.]
Summary
- The Corporation can hire the staff and servants it needs to do its work properly.
- The Central Government must approve the creation of any high paying job that exceeds a specific salary limit.
- Staff rules for hiring, pay, and discipline usually follow the same rules as Central Government employees with similar pay.
- If the Corporation wants to use different rules for its staff, it must get permission from the Central Government first.
- Hiring for top level Group A or Group B roles usually requires talking to the Union Public Service Commission first.
Practical examples
FAQ
1. Does the Union Public Service Commission help with hiring under Section 17 of the Employees State Insurance Act 1948?
Yes, Section 17 of the Act requires consultation with the Commission for most Group A and Group B appointments.
2. Are consultants covered by the standard staff rules in Section 17 of the Employees State Insurance Act 1948?
No, Section 17 of the Act specifically says the standard rules do not apply to consultants or specialists hired on a contract basis.
3. Who has the final say on job categories under Section 17 of the Employees State Insurance Act 1948?
If there is a doubt about whether a post is Group A or Group B, the Central Government makes the final decision under Section 17 of the Act.
4. Can a temporary employee claim seniority under Section 17 of the Employees State Insurance Act 1948?
No, Section 17 of the Act states that temporary service for less than a year does not count toward seniority or promotion.
Test yourself
Q1.Under Section 17 of the Employees State Insurance Act 1948, which type of hire is exempt from the standard service regulations?
Q2.According to Section 17 of the Employees State Insurance Act 1948, what is the maximum duration for a temporary appointment that does not require UPSC consultation?
Q3.Under Section 17 of the Employees State Insurance Act 1948, whose approval is needed if the Corporation wants to deviate from Central Government staff rules?
Q4.If there is a dispute about whether a job matches a Group A or Group B post under Section 17 of the Employees State Insurance Act 1948, who decides?