Section 99A of ESI Act : Section 99A: Power To Remove Difficulties

Explanation using Example

Imagine a situation where a new type of employment contract has emerged in the industry, which does not clearly fall under the existing categories recognized by The Employees State Insurance Act, 1948. Employers and employees are unsure about the applicability of the Act to these new contracts, leading to confusion and potential non-compliance with the Act's provisions.

In such a case, the Central Government has the power under Section 99A of the Act to step in and issue an order to clarify the situation. This order might specify that the Act does apply to these new contracts and provide guidance on how the contributions should be calculated and collected to ensure that the employees under these contracts receive the benefits they are entitled to.

This order would be published in the Official Gazette and would take precedence over any existing rules or regulations that might conflict with this clarification, thereby resolving the difficulty and ensuring the smooth implementation of the Act in light of the new employment practices.