Dear all,
If employee like to deduct esic if he crossed monthly wages of more than 15000/-/ till his service in compnay like voluntary ESIC. If yes then any provision in ESIC act for same as it is there for PF as voluntary PF if crossed limit.
Regards
Pranay Patil
From India, Delhi
1If employee like to deduct esic if he crossed monthly wages of more than 15000/-/ till his service in compnay like voluntary ESIC. If yes then any provision in ESIC act for same as it is there for PF as voluntary PF if crossed limit.
Regards
Pranay Patil
From India, Delhi
Dear Pranay
In case of VPF the contribution part is only as like saving which will fetch the prevailing rate of interest and nothing more than that. But this Voluntary ESIC is not possible as the same will be have more impact (financial) to the company. The employee share of 1.75% and employer share of 4.75% is to be contributed. Even if the employee agrees to pay both the part from his salary, then also, the employee can play with the leave benefit which is available for the ESI members.
Hence please reconsider all the aspects before declaring such policy in your organisation.
From India, Kumbakonam
In case of VPF the contribution part is only as like saving which will fetch the prevailing rate of interest and nothing more than that. But this Voluntary ESIC is not possible as the same will be have more impact (financial) to the company. The employee share of 1.75% and employer share of 4.75% is to be contributed. Even if the employee agrees to pay both the part from his salary, then also, the employee can play with the leave benefit which is available for the ESI members.
Hence please reconsider all the aspects before declaring such policy in your organisation.
From India, Kumbakonam
Sir(s),
1. Social Security Schemes like ESI Scheme under ESI Act, 1948 and rules/regulations framed thereunder are statutory and compulsory. There cannot be any element of option in its scope and implementation.
2. If any element of option is introduced, the scheme will either reduce to be a commercial insurance scheme based on a specific contract between insured, insurer/employer and insurance company or a social assistance programme funded and controlled by the State.
From India, Noida
1. Social Security Schemes like ESI Scheme under ESI Act, 1948 and rules/regulations framed thereunder are statutory and compulsory. There cannot be any element of option in its scope and implementation.
2. If any element of option is introduced, the scheme will either reduce to be a commercial insurance scheme based on a specific contract between insured, insurer/employer and insurance company or a social assistance programme funded and controlled by the State.
From India, Noida
The ESI Act takes care of those who are covered under Act. But what about those workers, clerks, supervisors, officers etc. who are deriving salary more than Rs. 15,000 pm and as such are not under ESI. The Employer has a liability under EC Act. ESI Act does not exempt employer from his liability in respect of non-coverable employees. Hence, those who are drawing above ceiling, there contribution should be restricted upto the ceiling salary. This sort of regulation is much needed in the ESI to cover all employees on wages and contribution just restricted up to the ceiling.
From India, Kolhapur
From India, Kolhapur
Dear Kulkarni ji,
1. I think, your views in above remarks relating to line:- "ESI Act does not exempt employer from his liability in respect of non-coverable employees." appears to be not in accordance with provisions of ESI Act, 1948 and rules/regulations framed thereunder.
2. Under said Act and rules/regulations, there is no liability of principal employer in respect of employees not coverable under said Act. I hope your goodself will like to further elaborate your views so that I may be able to correct myself accordingly.
From India, Noida
1. I think, your views in above remarks relating to line:- "ESI Act does not exempt employer from his liability in respect of non-coverable employees." appears to be not in accordance with provisions of ESI Act, 1948 and rules/regulations framed thereunder.
2. Under said Act and rules/regulations, there is no liability of principal employer in respect of employees not coverable under said Act. I hope your goodself will like to further elaborate your views so that I may be able to correct myself accordingly.
From India, Noida
Dear Mehataji,
Thanks for your post and query.
The Question whether ESI Act absolves the liability of Employer in respect of all of his employees? I think the answer is negative.
1. Question- whether ESI Act and EC Act cancel each other? Meaning if ESI Act is applicable to any factory, then whether EC Act gets automatically nullified? To answer this question, we will have to see the implication of Section 53 of ESI Act.
Section 53 of ESI Act is quoted for ready reference:
53. Bar against receiving or recovering of compensation or damages under any other law- An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workman's Compensation Act, 1923 (8 of 1923) (Now known as EC Act), or any other law for the time being in force or otherwise, i respect of an employment injury sustained by the insured person as an employee under this Act.
Thus, from the above provision, a restriction is put on the INSURED PERSON for claiming multiple benefits for the employment injury from the employer
Case A- ESI Act applicable to factory, but certain persons drawing wages less than 15,000 pm are not insured under ESI, though eligible to be covered? In such a case, they being "not insured persons under ESI Act" whether can file and claim compensation under EC Act? The answer is yes. (Recourse may be taken to Judgment of Madras High Court in Management of Bhavanji Mills v/s Dy. Commr. of Labour, Madurai and another reported in 2001 FJR page 185= 2000-III, LLN page 315.
In the reported court case, a trainee died of accident in the course of employment, his dependents claimed damages. The management contended that, since the deceased was covered under ESI Act, no compensation was payable under EC Act. The High Court ruled out that, since contribution of deceased was not paid under the ESI Act, as such, claim under EC Act is maintainable.
Case B- The Employees who are drawing more than 15,000 pm and hence, not covered under ESI Act- In this situation also, analogy of Case A applies.
The provisions of EC Act are of universal application which cast a liability on the Employer to pay compensation/damages for an employment injury as per the scheme of the EC Act. This is the basic feature of the EC Act. Now when ESI Act is made applicable to any factory, as far as the scheme of ESI Act is concerned, it takes care of liability of employer provided contribution is paid. But, the question remains about the liability of employer in respect of those employees who are non-covered under ESI Act because of their high wages.
I do not find any difficulty in answering the question in affirmative. I think there is definitely a liability cast on employer under EC Act when workers are not covered under ESI Act- 1. Due to sheer failure to cover by the employer or his contractor and 2. Due to wages above ceiling of Rs. 15,000.
I hope I have tried to elaborate the point.
Thanking you and wishing you a very Happy Diwali.
Adv. K. H. Kulkarni
From India, Kolhapur
Thanks for your post and query.
The Question whether ESI Act absolves the liability of Employer in respect of all of his employees? I think the answer is negative.
1. Question- whether ESI Act and EC Act cancel each other? Meaning if ESI Act is applicable to any factory, then whether EC Act gets automatically nullified? To answer this question, we will have to see the implication of Section 53 of ESI Act.
Section 53 of ESI Act is quoted for ready reference:
53. Bar against receiving or recovering of compensation or damages under any other law- An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workman's Compensation Act, 1923 (8 of 1923) (Now known as EC Act), or any other law for the time being in force or otherwise, i respect of an employment injury sustained by the insured person as an employee under this Act.
Thus, from the above provision, a restriction is put on the INSURED PERSON for claiming multiple benefits for the employment injury from the employer
Case A- ESI Act applicable to factory, but certain persons drawing wages less than 15,000 pm are not insured under ESI, though eligible to be covered? In such a case, they being "not insured persons under ESI Act" whether can file and claim compensation under EC Act? The answer is yes. (Recourse may be taken to Judgment of Madras High Court in Management of Bhavanji Mills v/s Dy. Commr. of Labour, Madurai and another reported in 2001 FJR page 185= 2000-III, LLN page 315.
In the reported court case, a trainee died of accident in the course of employment, his dependents claimed damages. The management contended that, since the deceased was covered under ESI Act, no compensation was payable under EC Act. The High Court ruled out that, since contribution of deceased was not paid under the ESI Act, as such, claim under EC Act is maintainable.
Case B- The Employees who are drawing more than 15,000 pm and hence, not covered under ESI Act- In this situation also, analogy of Case A applies.
The provisions of EC Act are of universal application which cast a liability on the Employer to pay compensation/damages for an employment injury as per the scheme of the EC Act. This is the basic feature of the EC Act. Now when ESI Act is made applicable to any factory, as far as the scheme of ESI Act is concerned, it takes care of liability of employer provided contribution is paid. But, the question remains about the liability of employer in respect of those employees who are non-covered under ESI Act because of their high wages.
I do not find any difficulty in answering the question in affirmative. I think there is definitely a liability cast on employer under EC Act when workers are not covered under ESI Act- 1. Due to sheer failure to cover by the employer or his contractor and 2. Due to wages above ceiling of Rs. 15,000.
I hope I have tried to elaborate the point.
Thanking you and wishing you a very Happy Diwali.
Adv. K. H. Kulkarni
From India, Kolhapur
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