Dear Sir,
I am currently employed at a Construction Company that has already been assigned an ESI number. We have secured contracts with various companies, such as Power Project, where the HR representatives of the principal employer are requesting our Workmen Compensation Policy for our staff and laborers working on their premises.
Could you please clarify whether having the ESI number and our staff being covered under the ESI Scheme exempts us from the necessity of obtaining a Workmen Compensation Policy?
Regards,
SANDEEP KUMAR SRIVASTAVA
From India, Madras
Acknowledge(0)
Amend(0)
3I am currently employed at a Construction Company that has already been assigned an ESI number. We have secured contracts with various companies, such as Power Project, where the HR representatives of the principal employer are requesting our Workmen Compensation Policy for our staff and laborers working on their premises.
Could you please clarify whether having the ESI number and our staff being covered under the ESI Scheme exempts us from the necessity of obtaining a Workmen Compensation Policy?
Regards,
SANDEEP KUMAR SRIVASTAVA
From India, Madras
Acknowledge(0)Amend(0)
Dear Sandeep,
Normally, ESI will be covered areawise and not nationwide. Whereas the WC Policy can be obtained for the entire nation or even for worldwide workers/staff. As your company's registered office is covered under the Shops and Commercial Establishment Act, the company HR might have obtained ESI Registration for those employees working with less than Rs. 15,000/- per month. In some places, ESI Exempted areas are also available. For employees working with more than Rs. 15,000/- per month and workers working in construction sites, WC Policy coverage is necessary.
In view of the above, you must obtain the WC Policy for all employees who are earning more than Rs. 15,000/- per month and for workers engaged in construction sites.
Thank you.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Normally, ESI will be covered areawise and not nationwide. Whereas the WC Policy can be obtained for the entire nation or even for worldwide workers/staff. As your company's registered office is covered under the Shops and Commercial Establishment Act, the company HR might have obtained ESI Registration for those employees working with less than Rs. 15,000/- per month. In some places, ESI Exempted areas are also available. For employees working with more than Rs. 15,000/- per month and workers working in construction sites, WC Policy coverage is necessary.
In view of the above, you must obtain the WC Policy for all employees who are earning more than Rs. 15,000/- per month and for workers engaged in construction sites.
Thank you.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Yes , Mr Bhasker rightly said if your employees covered under ESIC no need of WC policy Bcs. WC act not applicable on u. Rgds
From India, Velluru
Acknowledge(0)Amend(0)
From India, Velluru
Acknowledge(0)Amend(0)
Hi Sandeep As per WC act,Wc will not be exist where ESI is applicable. AS per the above said things,take WC for above 15000 gross employees. Hari
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Above two pieces of advice are correct.
If an employee is drawing wages less than Rs. 15,000 per month, they shall be covered under the ESI Scheme. The ESI Scheme is a nationwide program, but there are some difficulties that need to be addressed for its implementation.
However, what about employees drawing more than Rs. 15,000 per month? For those employees not covered under the ESI Scheme, they must be covered under the Employee's Compensation Act (formerly known as the Workmen's Compensation Act).
Regards,
Tirupathi Raju/Advocate
Advisor - Labour Laws
From India, Hyderabad
Acknowledge(0)Amend(0)
If an employee is drawing wages less than Rs. 15,000 per month, they shall be covered under the ESI Scheme. The ESI Scheme is a nationwide program, but there are some difficulties that need to be addressed for its implementation.
However, what about employees drawing more than Rs. 15,000 per month? For those employees not covered under the ESI Scheme, they must be covered under the Employee's Compensation Act (formerly known as the Workmen's Compensation Act).
Regards,
Tirupathi Raju/Advocate
Advisor - Labour Laws
From India, Hyderabad
Acknowledge(0)Amend(0)
In addition to the above, I have 2 advises:
Please note that where the ESI is applicable, WC doesn't apply. At a time, the implementation of multiple special legislations is not possible as per the law.
Employees drawing wages more than Rs. 15,000/- are out of ESI coverage. Hence, you have to make your own arrangements for compensation (it may be equal to the WC Act or above/below as per your company's policy/rules).
In my opinion, a group personal accident policy (GPA) is preferable for employees/workers' benefits, and mediclaim for their medical treatment.
Regards,
Kaleswara Rao
HR Professional
From India, Guntur
Acknowledge(0)Amend(0)
Please note that where the ESI is applicable, WC doesn't apply. At a time, the implementation of multiple special legislations is not possible as per the law.
Employees drawing wages more than Rs. 15,000/- are out of ESI coverage. Hence, you have to make your own arrangements for compensation (it may be equal to the WC Act or above/below as per your company's policy/rules).
In my opinion, a group personal accident policy (GPA) is preferable for employees/workers' benefits, and mediclaim for their medical treatment.
Regards,
Kaleswara Rao
HR Professional
From India, Guntur
Acknowledge(0)Amend(0)
Subject: ESI vs W.C. Act
Both are two separate acts. If the ESI Act is applicable, it takes care of employees covered under the Act regarding their health, sickness benefits, employment injury treatment, etc., and in case of any untoward incidence (Death/loss of limb), compensation payments.
Regarding uncovered employees (temporary employees/employed in outstation works where ESI is not applicable, who are not covered), it is the bounden duty of the employer to cover them by taking a W.C. Policy. Otherwise, management is held responsible for all consequences/compensation. To avoid all unnecessary complications/unrest and in the interest of cordial employee relations, it is better to have a W.C. Policy.
D. GURUMURTHY HR/IR CONSULTANT
From India, Hyderabad
Acknowledge(0)Amend(0)
Both are two separate acts. If the ESI Act is applicable, it takes care of employees covered under the Act regarding their health, sickness benefits, employment injury treatment, etc., and in case of any untoward incidence (Death/loss of limb), compensation payments.
Regarding uncovered employees (temporary employees/employed in outstation works where ESI is not applicable, who are not covered), it is the bounden duty of the employer to cover them by taking a W.C. Policy. Otherwise, management is held responsible for all consequences/compensation. To avoid all unnecessary complications/unrest and in the interest of cordial employee relations, it is better to have a W.C. Policy.
D. GURUMURTHY HR/IR CONSULTANT
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi,
Please check your contract agreement clause and take action accordingly.
1. If the clause states that you must have an EC Policy, you need to comply with the client's demand, and no option is left for you.
2. If there is no such clause, you may address the matter with the right person at the client's end.
3. It is advisable to have an Umbrella Policy to cover risks. This is in the interest of your company as well as your client.
Best regards,
SV
9204855987
From India, Jamshedpur
Acknowledge(0)Amend(0)
Please check your contract agreement clause and take action accordingly.
1. If the clause states that you must have an EC Policy, you need to comply with the client's demand, and no option is left for you.
2. If there is no such clause, you may address the matter with the right person at the client's end.
3. It is advisable to have an Umbrella Policy to cover risks. This is in the interest of your company as well as your client.
Best regards,
SV
9204855987
From India, Jamshedpur
Acknowledge(0)Amend(0)
how to apply workmen compensation policy. I mean , what it is. Can Seniors please brief out. Regards, Smitha
From India, Thana
Acknowledge(0)Amend(0)
From India, Thana
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Workmen Compensation Notification.pd f
Workmen Compensation Return.doc