Hi! One of our employees wants to waive ESIC as she is holding a personal health insurance policy. Is it possible to waive ESIC by a mutual agreement of employer and employee? Please provide your valuable feedback.
Regards,
Gargi Chakraborty
HR
Accompany Group
From India, Kolkata
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Regards,
Gargi Chakraborty
HR
Accompany Group
From India, Kolkata
Acknowledge(0)Amend(0)
Benefits of labor law cannot be waived by contract. ESIC can only be waived by taking a group policy for all enrolled with special permission from the department. Kindly go through this Employees Covered under ESI Act, 1948 | Indian Labour Laws & Shram Suvidha Simplified.
Also, go through Employees State Insurance or ESI Act, Rules, Forms, Returns: Simplified: Employees Covered under ESI Act, 1948.
From India, Kolkata
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186Also, go through Employees State Insurance or ESI Act, Rules, Forms, Returns: Simplified: Employees Covered under ESI Act, 1948.
From India, Kolkata
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Dear Gargi,
As pointed out by LLI, by mutual agreement, such legal liabilities cannot be overcome. However, the following provisions of the ESI Act could be considered if you are genuinely interested in being exempted from the Act:
87. Exemption of a factory or establishment or class of factories or establishments:
The appropriate government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.
88. Exemption of persons or class of persons:
The appropriate government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any person or class of persons employed in any factory or establishment, or class of factories or establishments to which this Act applies from the operation of the Act.
91. Exemption from one or more provisions of the Act:
The appropriate government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.
But in all these cases, you have to establish that your establishment is providing benefits at par or better than that provided under the Act from time to time. It is a herculean task, particularly concerning the medical benefits to the whole family, sick leave payment, etc.
From India, Mumbai
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As pointed out by LLI, by mutual agreement, such legal liabilities cannot be overcome. However, the following provisions of the ESI Act could be considered if you are genuinely interested in being exempted from the Act:
87. Exemption of a factory or establishment or class of factories or establishments:
The appropriate government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.
88. Exemption of persons or class of persons:
The appropriate government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any person or class of persons employed in any factory or establishment, or class of factories or establishments to which this Act applies from the operation of the Act.
91. Exemption from one or more provisions of the Act:
The appropriate government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.
But in all these cases, you have to establish that your establishment is providing benefits at par or better than that provided under the Act from time to time. It is a herculean task, particularly concerning the medical benefits to the whole family, sick leave payment, etc.
From India, Mumbai
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Dear Gargi,
One needs to understand the ESIC and its applicability to an establishment. Why do you want to get rid of ESI? Merely having a health insurance policy cannot evade the scope of applicability to any establishment. Furthermore, does a health insurance policy provide a component of the MB Act for the working lady? Does a health insurance policy provide any workmen compensation in case of any accident caused to the workmen?
The proviso of ESIC is not easy to waive by a mutual agreement of the employer and employee. You have to fight a long battle with the establishment and prove that your workmen are availing better facilities than the provisions under ESIC. Despite all your efforts, if the appropriate Government does not waive it, then you have to move to the High Court of the jurisdictional area for a waiver. It is not certain to get as per your wish.
In 1995, we got the ESIC waived for my establishment but had a long battle of 3-4 years and a lot of expenditure.
Regards,
From India, Mumbai
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One needs to understand the ESIC and its applicability to an establishment. Why do you want to get rid of ESI? Merely having a health insurance policy cannot evade the scope of applicability to any establishment. Furthermore, does a health insurance policy provide a component of the MB Act for the working lady? Does a health insurance policy provide any workmen compensation in case of any accident caused to the workmen?
The proviso of ESIC is not easy to waive by a mutual agreement of the employer and employee. You have to fight a long battle with the establishment and prove that your workmen are availing better facilities than the provisions under ESIC. Despite all your efforts, if the appropriate Government does not waive it, then you have to move to the High Court of the jurisdictional area for a waiver. It is not certain to get as per your wish.
In 1995, we got the ESIC waived for my establishment but had a long battle of 3-4 years and a lot of expenditure.
Regards,
From India, Mumbai
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Dear Seniors,
Kindly suggest how a location comes under ESIC non-implemented area. What can be the maximum distance from the nearest ESIC hospital/dispensary for an ESIC-implemented area? Furthermore, if ESIC has empanelled doctors in some place but does not have a dispensary in the near vicinity, will it be considered under an ESIC-implemented area?
Regards
From India, Aizawl
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Kindly suggest how a location comes under ESIC non-implemented area. What can be the maximum distance from the nearest ESIC hospital/dispensary for an ESIC-implemented area? Furthermore, if ESIC has empanelled doctors in some place but does not have a dispensary in the near vicinity, will it be considered under an ESIC-implemented area?
Regards
From India, Aizawl
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