Hi all, I am a Finance man from a reputed construction company. I have gone through all the answers and postings in this forum on the issue of ESI applicability to construction workers.
My question is: Is ESI applicable for construction workers involved in new construction within a compound where there is already a running unit established?
Please let me know.
Mr. Kodandaramu
Email: accounts@pramur.com
From India
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My question is: Is ESI applicable for construction workers involved in new construction within a compound where there is already a running unit established?
Please let me know.
Mr. Kodandaramu
Email: accounts@pramur.com
From India
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Dear all seniors,
My name is Ramesh, and I recently completed my MHRM at Gythri Vidya Parisdh in Vizag. I am seeking some information regarding the procedures for obtaining a P.F. code in a newly established organization. Could you please advise on the steps we need to follow?
Kindly reply to me at your earliest convenience. I am eagerly awaiting your response.
Thank you.
From India, Visakhapatnam
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My name is Ramesh, and I recently completed my MHRM at Gythri Vidya Parisdh in Vizag. I am seeking some information regarding the procedures for obtaining a P.F. code in a newly established organization. Could you please advise on the steps we need to follow?
Kindly reply to me at your earliest convenience. I am eagerly awaiting your response.
Thank you.
From India, Visakhapatnam
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Hi, this is Padma Rao, working as an HR in a construction company in Bangalore.
Construction companies are excluded from the ESIC scheme since the risk factor is very high compared to other types of industries. As I am working for ESIC, engaging in the construction of ESIC model hospitals and medical colleges all over India, we are also excluded from this scheme.
Coming to the second question, where we are not covered in this scheme, we have to take an insurance policy as a group for all contract laborers who will be working under the Workmen's Compensation Act, 1923.
Regards,
Padma Rao K.
Senior Executive HR
Kanakadhara Ventures Pvt Ltd
Bangalore-10
From India, Hubli
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2Construction companies are excluded from the ESIC scheme since the risk factor is very high compared to other types of industries. As I am working for ESIC, engaging in the construction of ESIC model hospitals and medical colleges all over India, we are also excluded from this scheme.
Coming to the second question, where we are not covered in this scheme, we have to take an insurance policy as a group for all contract laborers who will be working under the Workmen's Compensation Act, 1923.
Regards,
Padma Rao K.
Senior Executive HR
Kanakadhara Ventures Pvt Ltd
Bangalore-10
From India, Hubli
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Dear Padma Rao,
Hi, this is Padma Rao, working as an HR in a construction company in Bangalore.
Construction companies are excluded from the ESIC scheme since the risk factor is very high compared to other types of industries. I am working for ESIC, engaging in the construction of ESIC model hospitals and medical colleges all over India; therefore, we are also excluded from this scheme.
Regarding the second question about not being covered in this scheme, we have to take out an insurance policy as a group for all contract laborers who will be working under the Workmen Compensation Act, 1923.
Though yours is a construction agency, as per ESI provisions, your individual office is covered if you have 20 administrative and other clerical staff, including supervisors/engineers whose nature of the job is permanent within your establishment. Only the persons working on the site will not come under the purview of the ESI Act. If you have 20 or more of your permanent workers in your office and they earn less than the wage ceiling, it's better to apply for your office.
Regards,
Padma Rao K.
Senior Executive HR
Kanakadhara Ventures Pvt Ltd
Bangalore-10
From India, Hyderabad
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Hi, this is Padma Rao, working as an HR in a construction company in Bangalore.
Construction companies are excluded from the ESIC scheme since the risk factor is very high compared to other types of industries. I am working for ESIC, engaging in the construction of ESIC model hospitals and medical colleges all over India; therefore, we are also excluded from this scheme.
Regarding the second question about not being covered in this scheme, we have to take out an insurance policy as a group for all contract laborers who will be working under the Workmen Compensation Act, 1923.
Though yours is a construction agency, as per ESI provisions, your individual office is covered if you have 20 administrative and other clerical staff, including supervisors/engineers whose nature of the job is permanent within your establishment. Only the persons working on the site will not come under the purview of the ESI Act. If you have 20 or more of your permanent workers in your office and they earn less than the wage ceiling, it's better to apply for your office.
Regards,
Padma Rao K.
Senior Executive HR
Kanakadhara Ventures Pvt Ltd
Bangalore-10
From India, Hyderabad
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Dear All,
The civil construction industry does not fall under ESI coverage. The Principal Contractor and Sub-contractors' workers are all covered by the Principal employer's coverage, and he has to comply with the provisions of ESI. Even if the contributions are paid, no benefits would be available as any accidents occurring in relation to civil work are not considered under any manufacturing activity. Therefore, cash benefits or compensatory benefits could not be extended in such cases. This issue could also be checked with the local ESI Regional Office, where the compliance officer would guide you.
Thank you.
PS: The present ESI coverage limit is Rs. 15,000/-.
From India, Madras
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The civil construction industry does not fall under ESI coverage. The Principal Contractor and Sub-contractors' workers are all covered by the Principal employer's coverage, and he has to comply with the provisions of ESI. Even if the contributions are paid, no benefits would be available as any accidents occurring in relation to civil work are not considered under any manufacturing activity. Therefore, cash benefits or compensatory benefits could not be extended in such cases. This issue could also be checked with the local ESI Regional Office, where the compliance officer would guide you.
Thank you.
PS: The present ESI coverage limit is Rs. 15,000/-.
From India, Madras
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Dear All,
I came across various old posts on ESI Applicability to construction Employees today itself. I thought of sharing the information I have with me on this subject.
I am attaching herewith a copy of letter dated 14.06.1999 by Shri. S.P.S. Khetal, Addl. Commissioner ( Revenue ), ESI Corporation, New Delhi addressed to ESI Regional Offices / Sub – Regional Offices, which is self explanatory on ESI coverage of Construction Industry.
Please be also noted that the judgment of the Supreme Court in C.E.S.C. Ltd. Vs. Subhash Chandra Bose & others (Civil Appeal Nos. 3197-98 of 1988) delivered on 15.11.1991 has discussed on the same issue in which two Supreme Court Judges had differed on the applicability of ESIS to employees of contractor and the third Judge, Chief Justice Ranganath Mistra, had asked parliament to resolve the conflict by an amendment to the Law. The above letter dated 14.06.1999 by Addl. Commissioner (Revenue) is subsequent to the Supreme Court Judgment.
Recently I heard there is a case law of Delhi Metro in which the ESI law is made applicable to Delhi Metro on the ground that the construction activity is done with the help of machinery. Recently I also heard that in case of Ready Mix Plant locate in Construction Site, the ESI Act is made applicable to the site. However, I could not confirm the above with details.
The senior members / senior consultants and law practitioners are requested to comment on this subject.
Thanks with regards.
Keshav Korgaonkar
Cell: +91 99675 16383 / 98201 16383
From India, Mumbai
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I came across various old posts on ESI Applicability to construction Employees today itself. I thought of sharing the information I have with me on this subject.
I am attaching herewith a copy of letter dated 14.06.1999 by Shri. S.P.S. Khetal, Addl. Commissioner ( Revenue ), ESI Corporation, New Delhi addressed to ESI Regional Offices / Sub – Regional Offices, which is self explanatory on ESI coverage of Construction Industry.
Please be also noted that the judgment of the Supreme Court in C.E.S.C. Ltd. Vs. Subhash Chandra Bose & others (Civil Appeal Nos. 3197-98 of 1988) delivered on 15.11.1991 has discussed on the same issue in which two Supreme Court Judges had differed on the applicability of ESIS to employees of contractor and the third Judge, Chief Justice Ranganath Mistra, had asked parliament to resolve the conflict by an amendment to the Law. The above letter dated 14.06.1999 by Addl. Commissioner (Revenue) is subsequent to the Supreme Court Judgment.
Recently I heard there is a case law of Delhi Metro in which the ESI law is made applicable to Delhi Metro on the ground that the construction activity is done with the help of machinery. Recently I also heard that in case of Ready Mix Plant locate in Construction Site, the ESI Act is made applicable to the site. However, I could not confirm the above with details.
The senior members / senior consultants and law practitioners are requested to comment on this subject.
Thanks with regards.
Keshav Korgaonkar
Cell: +91 99675 16383 / 98201 16383
From India, Mumbai
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Dear Anbu,
It is suggested that if you have any letter or document that may be helpful to our colleagues, please share it through this forum.
Thanks with regards,
Keshav Korgaonkar
99675 16383 / 98201 16383
From India, Mumbai
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It is suggested that if you have any letter or document that may be helpful to our colleagues, please share it through this forum.
Thanks with regards,
Keshav Korgaonkar
99675 16383 / 98201 16383
From India, Mumbai
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Dear all,
As per my understanding, the recovery of ESIC contribution from DMRC is based on the jobwork bill rather than being deducted from the salary and wages directly.
Thanks and Regards,
Sumit Kumar Saxena
+91-9899669071
From India, Ghaziabad
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As per my understanding, the recovery of ESIC contribution from DMRC is based on the jobwork bill rather than being deducted from the salary and wages directly.
Thanks and Regards,
Sumit Kumar Saxena
+91-9899669071
From India, Ghaziabad
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