Hello all,
We have outsourced our construction to a vendor, and he has deputed his workers at our construction site. He says he has covered their insurance through an insurance policy under the Workmen Compensation Act. But is it not mandatory for him to cover his workers through ESIC if they fall below minimum wages?
Please help me with your experts' inputs to explain.
From India, Mumbai
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2We have outsourced our construction to a vendor, and he has deputed his workers at our construction site. He says he has covered their insurance through an insurance policy under the Workmen Compensation Act. But is it not mandatory for him to cover his workers through ESIC if they fall below minimum wages?
Please help me with your experts' inputs to explain.
From India, Mumbai
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Dear StrictlyHR,
ESI applies only in notified areas under the ESI Act, 1948. If your construction site falls within the notified area, then the contract workers falling within the definition of the term 'employee' should be covered under the ESIA.
EC Act, 1923 would apply to those falling within the definition of the term 'employee' u/s 2(dd) r.w the list enumerated under Schedule II of the Act. Check these facts and decide accordingly.
From India, Salem
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ESI applies only in notified areas under the ESI Act, 1948. If your construction site falls within the notified area, then the contract workers falling within the definition of the term 'employee' should be covered under the ESIA.
EC Act, 1923 would apply to those falling within the definition of the term 'employee' u/s 2(dd) r.w the list enumerated under Schedule II of the Act. Check these facts and decide accordingly.
From India, Salem
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Dear Umakanthan Sir, Thanks for your input. Pl also guide me how to find out if the site which is in Sricity,Andhra - is notified area that will come under ESI Act, 1948
From India, Mumbai
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From India, Mumbai
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The Workmen's Compensation Act 1923.pdf
Workmen's Compensation Act 1923.doc