Respected friends,
Kindly advise me whether the State Government of Tamil Nadu or the Central Government has extended the provisions of the ESI Act to shops, establishments, and offices in Tamil Nadu. My friend has started an office in Chennai in July 2010 employing 20 persons with a salary below Rs 10,000 per month. If applicable, please provide the notification number.
With regards,
Sr. Laksminarasimman
From India, Madras
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1Kindly advise me whether the State Government of Tamil Nadu or the Central Government has extended the provisions of the ESI Act to shops, establishments, and offices in Tamil Nadu. My friend has started an office in Chennai in July 2010 employing 20 persons with a salary below Rs 10,000 per month. If applicable, please provide the notification number.
With regards,
Sr. Laksminarasimman
From India, Madras
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Dear Mr. Kapoor,
Till recently, only the number of employees drawing wages of the prescribed limit or above was required to be counted for deciding coverage due to the SC judgment in the Suri Case. However, the ESI Act has been amended this year (applicable from April or so), by which all employees, irrespective of their wages, need to be taken into account for deciding coverage (10 in the case of manufacturing units and 20 for shops, transport, newspapers, establishments, etc.).
O. Abdul Hameed Formerly Addl. Commissioner ESIC
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Dear Hamid Sir,
As you mentioned, we had approached the ESI authorities in Chennai for the coverage of our establishment, which is involved in mobile tower supply and erection business (16 persons were drawing salaries less than 15001/- pm, whereas the total strength was 76). However, they stated that our establishment cannot be covered as the number of coverable employees was below 20. Additionally, they mentioned that the said amendment was applicable only to factories and not to establishments. Is this true?
Furthermore, they indicated that since mobile tower erection is not confined to a particular location and is analogous to civil construction work, only the count of office staff would be considered for the purpose of coverage, and not the field technicians/field engineers. As a result, they rejected the application.
I have reviewed the Act, its rules, and regulations. However, I am unable to find any clause supporting their contention. Your clarification would be immensely helpful to me. Thank you.
Ramesh
From India, Madras
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Till recently, only the number of employees drawing wages of the prescribed limit or above was required to be counted for deciding coverage due to the SC judgment in the Suri Case. However, the ESI Act has been amended this year (applicable from April or so), by which all employees, irrespective of their wages, need to be taken into account for deciding coverage (10 in the case of manufacturing units and 20 for shops, transport, newspapers, establishments, etc.).
O. Abdul Hameed Formerly Addl. Commissioner ESIC
---
Dear Hamid Sir,
As you mentioned, we had approached the ESI authorities in Chennai for the coverage of our establishment, which is involved in mobile tower supply and erection business (16 persons were drawing salaries less than 15001/- pm, whereas the total strength was 76). However, they stated that our establishment cannot be covered as the number of coverable employees was below 20. Additionally, they mentioned that the said amendment was applicable only to factories and not to establishments. Is this true?
Furthermore, they indicated that since mobile tower erection is not confined to a particular location and is analogous to civil construction work, only the count of office staff would be considered for the purpose of coverage, and not the field technicians/field engineers. As a result, they rejected the application.
I have reviewed the Act, its rules, and regulations. However, I am unable to find any clause supporting their contention. Your clarification would be immensely helpful to me. Thank you.
Ramesh
From India, Madras
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Dear Mr.O.Abdul Hameed Sir, Your reply is fantastic. Your reply demonstrates your knowledge. Pls. do reply all ESI doubts in future also Sir. Thanks & Regards R. Swaminathan
From India, Madras
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From India, Madras
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Hello,
The State Government of Tamil Nadu issued a notification under section 1 (5) of the ESI Act several years ago, around 1977, covering shops employing 20 or more persons in specified and notified areas. The entire Chennai area is notified. Please send the registration form to the Regional Office at Sterling Road.
Best regards,
O. Abdul Hameed
Former Additional Commissioner, ESIC
From India, Coimbatore
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The State Government of Tamil Nadu issued a notification under section 1 (5) of the ESI Act several years ago, around 1977, covering shops employing 20 or more persons in specified and notified areas. The entire Chennai area is notified. Please send the registration form to the Regional Office at Sterling Road.
Best regards,
O. Abdul Hameed
Former Additional Commissioner, ESIC
From India, Coimbatore
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Dear Ashok,
The Workmen's Compensation Act is applicable to those sectors where ESI is not applicable or to those employees who are not covered under any medical scheme. You can refer to the Workmen's Compensation Act of 1923 for better understanding.
Kind regards,
Yogesh Jalota
From India, Jalandhar
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The Workmen's Compensation Act is applicable to those sectors where ESI is not applicable or to those employees who are not covered under any medical scheme. You can refer to the Workmen's Compensation Act of 1923 for better understanding.
Kind regards,
Yogesh Jalota
From India, Jalandhar
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I express my thanks to Mr. Hamid for his clarifications. We are very fortunate to have Mr. Hamid as a member of our citehr community. His clarifications on the applicability and other provisions of the ESI Act have enriched our professional knowledge. Like Mr. Swaminathan, I also expect that Mr. Hamid will continue giving his valuable guidance and clarification on matters relating to the ESI Act to our community members as he is an expert on the subject.
One more thing I want to bring to the notice of all community members is that there is no such Act entitled as the Workmen's Compensation Act now. It has been replaced by 'The Employee's Compensation Act' due to the recent amendment made in 2009. By virtue of this amendment, for the words "workman/workmen", wherever they occur in the Principal Act, the words "employee/employees" shall be substituted. This Act is applicable to all employees of factories, mines, shops, or industrial establishments, whether they are a Pvt Ltd. or Ltd. or Pvt. Sector organization, as detailed under Schedule II of the E.C. Act, provided the ESI Act is not applicable to it.
Further, as per the newly amended Act, the minimum compensation payable to an employee/legal heir of an employee (of a deceased employee) in case of an accident arising out of and/or in the course of employment are as follows:
i) In case of a fatal accident - Rs. 1.20 lakh
ii) In case of permanent total disablement - Rs. 1.40 lakhs
However, the lower the age of the injured employee, the higher the compensation amount at the same monthly wage rate. For example:
- The wage rate is Rs. 8000/- p.m. (this is the max monthly wage rate allowed vide the Central Govt. L&E Dept. notification dated 31.5.2010)
- Age (a) for Min. 18 years (an adult employee) at the time of the accident
- Factor as per Schedule IV of the Act - 226.38
- Amount of compensation payable - 8000 * 60% * 226.38 = Rs. 10,86,624.00
(b) for Max 58 years (normal retirement age)
- Factor as per Schedule IV of the Act - 124.70
- Amount of Compensation payable - 8000 * 60% * 124.70 = Rs. 5,98,560.00
S.K. Hota
Bhubaneswar (Orissa)
From India, Calcutta
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One more thing I want to bring to the notice of all community members is that there is no such Act entitled as the Workmen's Compensation Act now. It has been replaced by 'The Employee's Compensation Act' due to the recent amendment made in 2009. By virtue of this amendment, for the words "workman/workmen", wherever they occur in the Principal Act, the words "employee/employees" shall be substituted. This Act is applicable to all employees of factories, mines, shops, or industrial establishments, whether they are a Pvt Ltd. or Ltd. or Pvt. Sector organization, as detailed under Schedule II of the E.C. Act, provided the ESI Act is not applicable to it.
Further, as per the newly amended Act, the minimum compensation payable to an employee/legal heir of an employee (of a deceased employee) in case of an accident arising out of and/or in the course of employment are as follows:
i) In case of a fatal accident - Rs. 1.20 lakh
ii) In case of permanent total disablement - Rs. 1.40 lakhs
However, the lower the age of the injured employee, the higher the compensation amount at the same monthly wage rate. For example:
- The wage rate is Rs. 8000/- p.m. (this is the max monthly wage rate allowed vide the Central Govt. L&E Dept. notification dated 31.5.2010)
- Age (a) for Min. 18 years (an adult employee) at the time of the accident
- Factor as per Schedule IV of the Act - 226.38
- Amount of compensation payable - 8000 * 60% * 226.38 = Rs. 10,86,624.00
(b) for Max 58 years (normal retirement age)
- Factor as per Schedule IV of the Act - 124.70
- Amount of Compensation payable - 8000 * 60% * 124.70 = Rs. 5,98,560.00
S.K. Hota
Bhubaneswar (Orissa)
From India, Calcutta
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