In a recent court decision, the request to make disability benefits equal to minimum wages was denied. Here's what happened in the case of Munna Prasad vs. Employees State Insurance Corporation (ESIC).
Munna Prasad, who worked at Sawhney Rubber Industries, had an accident in 1989 that resulted in the loss of both hands. He received a Permanent Disablement Benefit (PDB) from the ESIC, but it was much less than the minimum wage.
Munna Prasad challenged the rules of the ESIC, arguing that they were unfair because they didn't provide benefits equal to minimum wages. He wanted the court to declare certain ESIC rules invalid and to increase his disability benefits to match minimum wages.
Initially, the Labour Court decided his firing was valid. However, a Single Judge later reversed this, ordering compensation. A Division Bench then agreed with the Labour Court's decision but didn't change the compensation amount.
Petitioner's Argument: Munna's lawyer argued that the ESIC rules were unfair because they offered benefits below minimum wages, which is not right for disabled workers.
Respondent's Argument: ESIC's lawyer said that benefits are set by law and linked to average wages, not minimum wages. They argued that ESIC's role is to follow the rules set by the Central Government and cannot change them.
The court, led by Judges Om Prakash Shukla and C. Hari Shankar, concluded that the ESIC rules are not unfair. They explained that disability benefits are not wages but are meant to help with social security. Therefore, they can't be directly compared to minimum wages.
"The ESIC benefits are designed to provide social security, not to serve as wage replacements," the court stated.
While the court didn't grant Munna's request, they expressed concern about the low level of disability benefits. They suggested the formation of a committee to periodically review and potentially increase these benefits, considering inflation and living costs.
