Hello members,
I am in a manufacturing company. Some of the workers and employees are under the ESI Act, but there are also some employees and managers who are not covered under ESI because their wages are higher than the ESI ceiling limit. Now my confusion is... Are these employees covered under the compensation act or excluded from both Acts?
From India
I am in a manufacturing company. Some of the workers and employees are under the ESI Act, but there are also some employees and managers who are not covered under ESI because their wages are higher than the ESI ceiling limit. Now my confusion is... Are these employees covered under the compensation act or excluded from both Acts?
From India
First impressions matter! Give new hires a seamless onboarding experience. See It In Action - Book Your Demo
Dear Pankaj, who are not cover under ESIC, they are automaticaly applicable as per workmen compensation act. you need to cover them under the Mediclaim & Personal Accident policy.
From India, Mumbai
From India, Mumbai
Those who are not covered under the ESI Act will not be automatically covered under the EC Act. They will be covered under the EC Act only if they fall under the definition of 'employee' under the EC Act 1923. There is no law in India that mandates employees outside the purview of the ESI scheme to be covered under a Medical/Personal Accident insurance scheme.
Vaeghese Mathew
TVM - 09961266966
From India, Thiruvananthapuram
Vaeghese Mathew
TVM - 09961266966
From India, Thiruvananthapuram
Sir(s),
The definition of the term "employee" as laid down in section 2(1)(dd) read with Schedule II of the Employees' Compensation Act, 1923 is a very long list of persons who are treated as "employees" and are entitled to compensation under the said Act. State Governments have also made some additions to the list.
In my opinion, it may be safe to conclude that those employees who are neither entitled as "employees" under the Employees' Compensation Act, 1923, nor under the ESI Act, 1948, are not entitled to any compensation even though the accident may have occurred during and in the course of employment. Perhaps, such employees in such eventualities may have to approach civil courts by way of civil suits for compensation.
From India, Noida
The definition of the term "employee" as laid down in section 2(1)(dd) read with Schedule II of the Employees' Compensation Act, 1923 is a very long list of persons who are treated as "employees" and are entitled to compensation under the said Act. State Governments have also made some additions to the list.
In my opinion, it may be safe to conclude that those employees who are neither entitled as "employees" under the Employees' Compensation Act, 1923, nor under the ESI Act, 1948, are not entitled to any compensation even though the accident may have occurred during and in the course of employment. Perhaps, such employees in such eventualities may have to approach civil courts by way of civil suits for compensation.
From India, Noida
Other than ESI-covered employees, other employees will be covered under the Workmen's Compensation Act if they come under the definition of workmen in the Act. You have to provide medical insurance for the safety of the employer. Otherwise, the employer is responsible for the payment of compensation in case of employment injury or death. It is always better to cover such employees under WC/Medical insurance.
From India, Hyderabad
From India, Hyderabad
In my view, if an employee is neither covered by the ESI Act nor by the Employee Compensation Act, it is advisable to cover them under an accident policy of an insurance scheme. Failing to do so, the employer renders himself personally liable for the compensation if the employee pursues the case before any Tribunal or Civil court.
B. Saikumar
In-House HR & IR Advisor
From India, Mumbai
B. Saikumar
In-House HR & IR Advisor
From India, Mumbai
Sirs,
I understand that the provision of social security at the workplace for employees not covered by either the ESI Act, 1928, or the EC Act, 1923 is nonexistent. It entirely depends upon the discretion of the employer/management whether to provide compensation or not. Filing a case in a civil court and continuing to contest it is a challenging task, and if the employer can prove negligence or any shortcomings on the part of the injured officer/employee, they will receive no compensation.
From India, Noida
I understand that the provision of social security at the workplace for employees not covered by either the ESI Act, 1928, or the EC Act, 1923 is nonexistent. It entirely depends upon the discretion of the employer/management whether to provide compensation or not. Filing a case in a civil court and continuing to contest it is a challenging task, and if the employer can prove negligence or any shortcomings on the part of the injured officer/employee, they will receive no compensation.
From India, Noida
Dear all,
An employee falling under the definition of a workman as per the Workmen Compensation Act, drawing wages/salary beyond the ceiling limit, i.e., Rs. 15,000, will definitely be entitled to compensation if the injury/death occurs during the course of employment. It is at the sole discretion of the management to obtain insurance coverage for such employees to avoid any legal financial liability at any stage. There is a provision to obtain a policy for gratuity under the Payment of Gratuity Act.
From India, Delhi
An employee falling under the definition of a workman as per the Workmen Compensation Act, drawing wages/salary beyond the ceiling limit, i.e., Rs. 15,000, will definitely be entitled to compensation if the injury/death occurs during the course of employment. It is at the sole discretion of the management to obtain insurance coverage for such employees to avoid any legal financial liability at any stage. There is a provision to obtain a policy for gratuity under the Payment of Gratuity Act.
From India, Delhi
Employees drawing Rs 15000 or more are not eligible for ESIC. They can be covered under EC/WC Policy in case of ESIC jurisdiction-notified areas. In the case of non-notified areas, all should be covered under WC/EC.
From India, Mumbai
From India, Mumbai
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.