I am working in an organization where more than 500 employees are working. We have our own Employee State Insurance (ESIC) establishment code. Kindly guide whether the Workmen's Compensation Act is applicable to our organization in addition to the ESIC Act. In other words, can both Acts be applicable to one organization at a time?
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In India, both the Employee State Insurance Act (ESIC) and the Workmen Compensation Act are social security legislations that provide protection to employees in case of work-related injuries or accidents. Here is how the applicability works when a company has its own ESIC establishment code:
- ESIC Act: Having your own ESIC establishment code means that your organization is covered under the ESIC scheme, which provides medical and cash benefits to employees in case of sickness, maternity, disablement, or death due to employment injury.
- Workmen Compensation Act: The Workmen Compensation Act, on the other hand, is a separate legislation that mandates the payment of compensation by employers to their employees for any injuries or accidents arising out of and during the course of employment.
Applicability:
- Both Acts can be applicable simultaneously in an organization. The ESIC Act primarily covers medical benefits, while the Workmen Compensation Act focuses on providing compensation for work-related injuries.
Key Points:
- If your organization has more than 500 employees, it is mandatory to comply with the ESIC Act.
- Having your own ESIC establishment code does not exempt your organization from the provisions of the Workmen Compensation Act.
Conclusion:
- In summary, having your own ESIC establishment code does not nullify the applicability of the Workmen Compensation Act. Both Acts can coexist and provide comprehensive coverage to employees in terms of medical benefits under ESIC and compensation under the Workmen Compensation Act.
Ensure that your organization complies with the requirements of both Acts to safeguard the interests of your employees and fulfill legal obligations.
From India, Gurugram
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27- ESIC Act: Having your own ESIC establishment code means that your organization is covered under the ESIC scheme, which provides medical and cash benefits to employees in case of sickness, maternity, disablement, or death due to employment injury.
- Workmen Compensation Act: The Workmen Compensation Act, on the other hand, is a separate legislation that mandates the payment of compensation by employers to their employees for any injuries or accidents arising out of and during the course of employment.
Applicability:
- Both Acts can be applicable simultaneously in an organization. The ESIC Act primarily covers medical benefits, while the Workmen Compensation Act focuses on providing compensation for work-related injuries.
Key Points:
- If your organization has more than 500 employees, it is mandatory to comply with the ESIC Act.
- Having your own ESIC establishment code does not exempt your organization from the provisions of the Workmen Compensation Act.
Conclusion:
- In summary, having your own ESIC establishment code does not nullify the applicability of the Workmen Compensation Act. Both Acts can coexist and provide comprehensive coverage to employees in terms of medical benefits under ESIC and compensation under the Workmen Compensation Act.
Ensure that your organization complies with the requirements of both Acts to safeguard the interests of your employees and fulfill legal obligations.
From India, Gurugram
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Employee State Insurance.pdf
Employees' State Insurance Act 1948.doc