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Hi,
Actually I belong to a Façade Industry who is having his own manufacturing set up and at same time we also do the various kind of job work at construction site through sub contractors.
Our factory is covered under the ESI and we pay contribution as per law. But since we also work at construction site so don't pay their ESI contribution as construction site are not covered under ESI.We are also registered under BOCW act and also having the WC for all our labors
Now during the ESI inspection, they raised the penalty of Rs.10 lacs in lieu of this non contribution of ESI of construction labor who are deployed by us for various kind of job work like installation of glass and other related work.
Now I request you all to give your valuable suggestion in this regard other we will have to bear huge amount of penalty.
In my personal hearing I contested the same but as per them we fall under ESI.
Looking forward for support.
Thanks and Regards.

From India, New Delhi
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Sir,

Please provide the following details of your unit for which a claim has been made by ESIC so that we can offer any comments:

1. Name of the city where the main office of your construction company is located. Is it situated in an implemented area?
2. Name of the city/area where the construction site is located. Is the construction site in an implemented area?
3. What type of work is being carried out at your construction site?
4. Have you informed ESIC authorities that the labor/workers at the construction sites are not covered under the ESI Act? If yes, what is their response/opinion based on which the claim is considered justified/legally valid?

Please provide the above information at your earliest convenience.

Thank you.

From India, Noida
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Please indicate following particulars of your unit in respect of which claim has been made by ESIC so that we are in a position to offer any comments:-

1. Name pf city where main office of your construction company is located. Whether it is located in implemented area ?

Ans:-Our manufacturing unit is situated at Manesar, Distt Gurgaon,Haryana.

2. Name of city/area where the Construction site is situated. Whether, the construction site is located in implemented area ?

Ans:-NCR, Kolkata, Mumbai : Yes implemented area

3. What type of work is being done or undertaken at your construction site.

Ans:- Installation of Glass, Façade,ACP works,Fabrication etc.

4. Whether you informed ESIC authorities that constructions sites labour /workers are not covered under ESI Act ? If so, what is their reply/opinion on the basis of which such claim is treated by them as justified/legally valid ?

Ans:-We have not informed ESI about this since we were not aware about it.

attribution https://www.citehr.com/509607-esi-ap...#ixzz3HKaRQCs3

From India, New Delhi
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Dear Dhirender Singh Ji,

Regarding the applicability of ESIS in construction worksites, there have been numerous discussions on this forum, including some of my own. I would like to request you to carefully read Circular by ESIC New Delhi - Construction 4/99 dated 14.06.1999.

Upon reviewing this circular, if your argument is that ESI is not applicable to construction sites at all, then that is incorrect. It appears that many individuals, including employers involved in construction, consultants, as well as ESI officers, have misinterpreted this circular.

In your situation, the ESI inspector is correct in requesting contributions for laborers you have deployed at construction sites for various types of work, such as the installation of glass and related tasks, in my opinion.

From India, Mumbai
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Sir,
1. I agree with the views of Sh. Korgaonkarji and it is clear that the contribution in respect of the claims made by ESIC is payable by the company.
2. This is based on the reason that the firm/company from which contribution has been claimed is not a construction company, but a firm manufacturing glass etc. Only the employees of Construction establishments working at construction sites are not coverable.
3. However, the company/firm can reduce its liability by making payment of contribution on actual basis, if in the case the claims are raised by ESIC on total amounts paid for "Installation of Glass, Façade,ACP works,Fabrication etc." and that too within the period, the final order is not passed by the competent authority.

From India, Noida
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Dear Dhirender Singh ji,

Please find a link below containing good material to help understand the applicability of ESI to construction activities. It is essential to read all the posts carefully before drawing any conclusions.

URL: [ESI Applicability to Construction Companies](https://www.google.com/url?q=https://www.citehr.com/492505-esi-building-construction-company.html&sa=U&ei=-hFRVLKYJ8bWmAWu4YLIDw&ved=0CAwQFjAD&am p;client=internal-uds-cse&usg=AFQjCNE6pEQ5vJvoUww1LYMOdp6RVH51Xg )

Please review the information provided in the link. Thank you.

From India, Mumbai
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Dear Dhirender Singh ji,

I appreciate the comments given by Sh. Keshav Korgaonkar Sir that you have to critically examine the implications of the circular issued by ESIC New Delhi vide their no. 4/99 dated 14.06.1999 (Copy attached) and decide to what extent the order is applicable in your case.

BS Kalsi

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf Coverage of construction workers under ESI.pdf (180.6 KB, 508 views)

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Dear HR Professionals,

Our factory building is under construction, and we have awarded the contract to a construction company. Could anyone please clarify if ESI and PF are applicable to the construction workers who are involved in the construction activity.

From United Kingdom, London
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Please refer to the stay order issued by Apex Court in the matter of applicability of ESI to construction site workers.
From India, Mumbai
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