ESI applicability for construction workers on contractual projects: If the principal employer is covered under ESI and gives construction work to a subcontractor, then are the subcontractor employees also eligible for ESI?
From India, Madras
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From India, Madras
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Construction workers working at sites are not covered by ESI whereas workers who report to the office of the construction company are covered. Regards, Madhu.T.K
From India, Kannur
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4519From India, Kannur
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Sir,
To correct you, there has been a recent circulation in January 2011 from the Director of ESIC at Panchdeep Bhawan, Delhi to all SOs and ROs, stating that now construction site workers shall be covered under the ESI Act and can avail medical benefits. With this circulation, the ESI Authorities have rescinded their own circular from the year 1999.
The survey for the same is ongoing, and the coverage of such site work will now commence.
From India, Delhi
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To correct you, there has been a recent circulation in January 2011 from the Director of ESIC at Panchdeep Bhawan, Delhi to all SOs and ROs, stating that now construction site workers shall be covered under the ESI Act and can avail medical benefits. With this circulation, the ESI Authorities have rescinded their own circular from the year 1999.
The survey for the same is ongoing, and the coverage of such site work will now commence.
From India, Delhi
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But who is responsible to pay ESI, contractor or principal employer ? Regards, Avinash Pawar
From India, Mumbai
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From India, Mumbai
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Yes, the construction workers at the site are also covered as per the new policy of ESI. The primary responsibility for coverage and payment of contributions lies with the contractor. However, if the contractor fails to pay, the principal employer should pay on behalf of the contractor and can deduct the amount paid from the contractor's payable amount.
Regards, Madhu.T.K
From India, Kannur
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Regards, Madhu.T.K
From India, Kannur
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There is no practical way out but to engage a regular employee to do the work related to ESI, whose primary, rather sole duty will be to call each new employee to the cabin and register him under ESI and take a printout of a temporary ID card and hand it over to that employee. It is up to him to decide whether to continue on the site and if continuing, to go to the ESIC with his family members, take a photograph, and get a smart card. I do not think that these daily wagers will come with their photographs when they come for their work. If so, we are stuck. But one thing is clear, even if you do not register, we should be prepared to pay the contribution at the prescribed rate of 6.5% of wages paid. That's all.
Regards, Madhu.T.K
From India, Kannur
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Regards, Madhu.T.K
From India, Kannur
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Sir, If we have EC (WC) Policy in place of ESI, then also are we mandatory liable to pay ESI Contribution. An Early reply is awaited. Regards, Sandeep K. Rai
From India, Bangalore
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From India, Bangalore
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Yes, even if you have a Workers' Compensation (WC) policy, you have to ensure coverage of employees (eligible) under ESI. In fact, in respect of employees covered by ESI, you need not take any WC policy because any liability in respect of such employees will be taken care of by the ESIC.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Sanjeeb,
Sec. 53. Bar against receiving or recovery 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 Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.
Therefore, Employee Compensation policy can not substitute ESIC Act, enforcement.
Regards,
A.K. Sharma
Team-HR
From India, Gurgaon
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Sec. 53. Bar against receiving or recovery 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 Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.
Therefore, Employee Compensation policy can not substitute ESIC Act, enforcement.
Regards,
A.K. Sharma
Team-HR
From India, Gurgaon
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No matter what you have WC or EC eligible employees are always covered under ESI. WC is for those ho are not covered under ESI and met with an accident or death. Siddhartha Guhathakurta GM-HR
From India, Calcutta
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From India, Calcutta
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Dear Sir,
As per the new ruling of the Supreme Court, where the Building Association of India filed a case and obtained a stay order until further notice, the construction workers have been excluded from ESIC contribution and benefits. Kindly find the notification for further reference.
From India, Korba
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As per the new ruling of the Supreme Court, where the Building Association of India filed a case and obtained a stay order until further notice, the construction workers have been excluded from ESIC contribution and benefits. Kindly find the notification for further reference.
From India, Korba
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ESI - Construction site workers.pdf
ESI- Construction workers.doc