Please inform me an employee who reaches salary of rs.15000 or above he will be out of esi benefits then what would be liability of the employer towards this employee ?
From India, Ghaziabad
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From India, Ghaziabad
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After reaching the ceiling limit of ESI Coverage, the employee must be covered with Employee Compensation Policy. The liability will be taken care of by the insurance company if the employer has the WC Policy; otherwise, the employer has to bear the cost.
From India, Kumbakonam
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1257From India, Kumbakonam
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There is no option to continue with ESI coverage once an employee exceeds the wage limit of Rs. 15,000 per month. However, if the wage limit is exceeded in the midst of the contribution period, the ESI coverage will last until the end of the contribution period.
B. Saikumar
From India, Mumbai
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B. Saikumar
From India, Mumbai
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(Fact Checked)-The user reply is correct in stating that once an employee exceeds the wage limit of Rs. 15,000 under ESI, coverage will continue until the end of the contribution period. No amendment needed. (1 Acknowledge point)
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Once an employee is under ESI coverage and gradually exceeds the limit of Rs. 15,000/-, and his contribution continues on this ceiling amount adding that of the employer's contribution, the employee shall be covered. If the employer doesn't want to contribute beyond when the employee exceeds the ceiling amount and wanted to provide alternate insurance benefits to the employee, then the employee will be out of ESI after the completion of the benefit period.
Eswararao Ivaturi
From United States, Cupertino
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Eswararao Ivaturi
From United States, Cupertino
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Once an employee's salary exceeds Rs. 15,000, they will be excluded from ESI coverage, regardless of the employer's contribution or providing alternate insurance benefits. The liability of the employer towards this employee would involve complying with other relevant labor laws and providing suitable benefits.
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There is no liability from the employer's side if the statutory ESI limit of Rs. 15,000 or more is reached. Some companies provide insurance through tie-ups with other insurance companies. Some don't.
Regards,
Srinivas
From India, Hyderabad
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Regards,
Srinivas
From India, Hyderabad
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(Fact Check Failed/Partial)-The employer still has a liability towards an employee even if they are not covered under ESI. Other benefits or insurance may be provided, but legal obligations remain.
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The ESIS laws are clear on this; however, the interpretation given by some for this query is wrong. Upon exceeding 15k, the employee becomes exempt and hence is out of ESIS. As such, the employer has no bounden liability as long as the employee is accident-free. The problem starts if the employee meets with any kind of accident in the course of discharging his duties. Here, the Workmen Compensation Act is applicable. It is advisable to cover such liability by paying a negligible sum as a premium to any insurance company for Employee Accident Policy where such payouts are taken care of by the insurance company within the sum insured for each employee.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The information provided is partially correct. Once an employee's salary exceeds Rs. 15,000, they are exempt from ESI but still covered under the Workmen Compensation Act. The employer's liability extends to providing benefits under this act. It is advisable to have an Employee Accident Policy for additional coverage.
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A women employee not covered by ESI will be eligible for benefit under Maternity Benefit Act.Insurance is not a legal liability of employer. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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(Fact Check Failed/Partial)-The information provided is partially correct. Under the Maternity Benefit Act, women employees not covered by ESI are eligible for maternity benefits. However, the employer still has a legal obligation to provide health insurance or medical benefits to employees not covered under ESI.
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In the light of some confusing interpretations on the coverage of employees for ESI benefits, I would like to refer to Sec.2(9) which defines an 'employee' for the purpose of coverage. As per the said definition, every person employed for wages, whether directly by the principal employer or indirectly through a contractor or let on hire to the principal employer to do the work of an establishment or any work connected with that of the establishment, is eligible to be insured for ESI benefits. However, the said subsection (9) of Sec. (2) excludes the following persons from the definition of 'employee', which in other words means excluding them from the coverage of ESI.
a) A member of the armed forces;
b) Any person whose wages (excluding OT) exceeds the wage limit fixed by the Central Government. The Central Government has fixed the wage limit under ESI Rule (50) at Rs. 15,000/- per month (which is likely to be revised to Rs. 25,000/- as it is learned).
Provided that whose wages exceed the wages so fixed by the Central Government, which is now Rs. 15,000/- per month at any time after the beginning of the contribution period, shall continue to be an employee (for the purpose of coverage) till the end of the contribution period.
To sum up, the meaning of Sec. 2(9) of the ESI Act read with Rule 50 of ESI Rules is that an employee whose wages exceed Rs. 15,000 per month at the beginning of the contribution period is excluded from the coverage. However, if his wages exceed at any time after the beginning of the contribution period (in the middle of the contribution period), he will continue to be covered till the end of the contribution period only.
This is what the Act and rules say.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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a) A member of the armed forces;
b) Any person whose wages (excluding OT) exceeds the wage limit fixed by the Central Government. The Central Government has fixed the wage limit under ESI Rule (50) at Rs. 15,000/- per month (which is likely to be revised to Rs. 25,000/- as it is learned).
Provided that whose wages exceed the wages so fixed by the Central Government, which is now Rs. 15,000/- per month at any time after the beginning of the contribution period, shall continue to be an employee (for the purpose of coverage) till the end of the contribution period.
To sum up, the meaning of Sec. 2(9) of the ESI Act read with Rule 50 of ESI Rules is that an employee whose wages exceed Rs. 15,000 per month at the beginning of the contribution period is excluded from the coverage. However, if his wages exceed at any time after the beginning of the contribution period (in the middle of the contribution period), he will continue to be covered till the end of the contribution period only.
This is what the Act and rules say.
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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(Fact Checked)-The user's reply is correct regarding the coverage of employees for ESI benefits as per Sec. 2(9) of the ESI Act and Rule 50 of ESI Rules. (1 Acknowledge point)
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Ultimately, no employer would like to take the liability of contributing to the employee who exceeds the ceiling amount. It is advisable to cover such employees under the Group Insurance scheme.
Eswararao Ivaturi.
From United States, Cupertino
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Eswararao Ivaturi.
From United States, Cupertino
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(Fact Check Failed/Partial)-The liability of the employer towards an employee who exceeds the ESI salary limit should be to provide the employee with Group Insurance. It is not advisable for the employer to stop all benefits abruptly.
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(Fact Check Failed/Partial)-The reply provided contains some inaccuracies. Once an employee's salary reaches the threshold for ESI coverage, they are no longer eligible for ESI benefits. However, the employer's liability towards the employee in terms of health insurance or compensation would depend on the specific company policies, labor laws, and any collective bargaining agreements in place. It's important for the employer to ensure compliance with relevant laws and provide appropriate benefits or coverage as required.