Hi all, Which are all applicable for labours in Zone C? 1) PF 2) ESI or 3 Workmen compensation Policy. Reply me as soon as possible. Thanks, sankar
From India, Chennai
Dear,
PF & Workmen compensation policy are compulsory.
For ESI, you have to find out whether the scheme is existing in your area or not. If existing, it is also applicable, provided you have min. no. of workers required.

From India, Thane
Dear Mr. Sankaraprasanth,
Greetings .....
I do not think WC is COMULSORY as said. You may kindly refer thread https://www.citehr.com/575067-workme...red-under.html where I have discussed in detail that Section 53 created a bar on recovery of Compensation under any other law in cases where the insured person had received an employment injury and is covered under ESIC. In case your workplace is in ESIC Zone you are not left with much choice but to cover your Workmen under ESI Act and in that case taking a WC policy would be just superfluous and premium paid is wastage of Company Fund.
Regards,

From India, Pune
A small corrigendum in my earlier statement Yes, that is right, workers need to be covered either under WC or under ESI. If they are covered under ESI, then WC is not required. Tks PL Kanthan
From India, Thane
Shankaran,
The concept of zone C probably refers to the division of the state into categories stated in the minimum wages notification in your state. It only does so for the purpose of deciding the minimum wages as those in urban areas have a higher cost of living as compared to those in backward areas. It has no impact on labour laws other than deciding the minimum wages.
Applicability of PF is to all companies that have more than 19 workers. Location does not matter.
ESIC applies to all areas notified by ESIC. It includes many C zone also. But it applies to factories and offices with more than 10 employees at that location. But it applies to employees with gross earning of ₹15000 or lower (Expected to be revised soon).
Where ESIC is not applicable and for all employees outside the limit, workman compensation act applies. Again, zone is immaterial

From India, Mumbai
Dear Mr. Sankaraprasanth,
If I have correctly understood, you are referring to Zone C, which is categorized for the purpose of payment of minimum wages. Different
rates of minimum wages are fixed keeping in view the cost of living index, zone C being the lowest. When it comes to the question of implementation of the existing labour laws viz. PF, ESI or Employee's Compensation Act, there is no relaxation.It is to be treated at par with Zone A or Zone B.
I agree with Sh Saswata Banerjee that Workman Compensation Act ( Now Employee's Compensation Act) is applicable where ESIC is not in existence due to the following reasons:-
1. the establishment being in the Non- implemented area of ESI Scheme, or
2. the existing employees are outside the coverage limit of ESI Act.
BS Kalsi,
Member since August, 2011

From India, Mumbai
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