It was passed after AIADMK and CPI (M) workers raised slogans and voiced for the bill. According to the bill, the gratuity amount of an employee would be raised from 3.5 lakh to Rs 10 lakh.
This statute law was enacted after the trade unions demanded for a hike in the gratuity payment to the employees. Another bill, Employees’ State Insurance (Amendment) Bill 2009 was also passed for providing medical assurance to the workers who work for small sectors and also below the poverty line.
According to the bill, the Employees' State Insurance Corporation (ESIC) should take part with the Rashtriya Swasthya Bima Yojana for covering the BPL workers under the unorganized segment. Moreover, it proposes that the age of the dependents of the employees should be raised to 21 from 18 years so that they can claim for medical assistance for accidents.