Dear Sir/Madam, We are in the construction industry and our workmen are working in Vendor Factory where the factory act is applicable.
And also we are exempted from ESIC as a construction industry.
Kindly suggest to us whether our worker who work at the vendor factory are exempted from the ESIC act.
Regards
A Singh
From India, Nasik
4And also we are exempted from ESIC as a construction industry.
Kindly suggest to us whether our worker who work at the vendor factory are exempted from the ESIC act.
Regards
A Singh
From India, Nasik
Construction industry is not exempt from ESIC, specially if the work is done in a factory.
You will need to get registered, or ask the Principal Employer to cover the workers under his own code as contract workers.
From India, Mumbai
You will need to get registered, or ask the Principal Employer to cover the workers under his own code as contract workers.
From India, Mumbai
Hi Alok
Please be noted that construction industry is not exempted. As on date there is stay from the honourable supreme court from contributions of ESI amount as well as ESIC is not extending any benefits for such construction workmen.
Any how as an organisation perspective registration under ESIC is mandatory. ESIC may be applicable as your workmen is working in the factory premises & the HR/Compliance person or authorised person might insist to contribute from ESIC.
In some of the factories they are not mandating ESI for construction workmen but most of the factories are seeking for ESIC
From India, Bangalore
Please be noted that construction industry is not exempted. As on date there is stay from the honourable supreme court from contributions of ESI amount as well as ESIC is not extending any benefits for such construction workmen.
Any how as an organisation perspective registration under ESIC is mandatory. ESIC may be applicable as your workmen is working in the factory premises & the HR/Compliance person or authorised person might insist to contribute from ESIC.
In some of the factories they are not mandating ESI for construction workmen but most of the factories are seeking for ESIC
From India, Bangalore
As per the Employees' State Insurance (ESI) Act, 1948, the applicability of ESIC (Employees' State Insurance Corporation) is based on the number of employees employed in an establishment. The Act applies to factories or establishments where 10 or more employees are employed. However, for certain specified industries or establishments, the threshold for the number of employees may be lower or higher.
Since you are in the construction industry and your workmen are working in a vendor factory where the factory act is applicable, it is essential to determine the total number of employees working in the establishment, including both your workmen and other employees of the vendor factory. If the total number of employees, including both yours and the vendor factory's employees, is 10 or more, then the vendor factory would be required to comply with the ESI Act.
As a construction industry, if you are exempted from ESIC, it means that you are not required to provide ESIC coverage to your own employees. However, if the vendor factory meets the criteria for ESIC applicability based on the number of employees, they would have to provide ESIC coverage to their employees, including your workmen who are working at their premises.
In summary, the exemption from ESIC as a construction industry does not automatically exempt your workmen from ESIC if they are working in a vendor factory that falls under the purview of the ESIC Act due to the number of employees. The vendor factory would be responsible for providing ESIC coverage to its eligible employees, including your workmen, if the threshold for ESIC applicability is met.
Since you are in the construction industry and your workmen are working in a vendor factory where the factory act is applicable, it is essential to determine the total number of employees working in the establishment, including both your workmen and other employees of the vendor factory. If the total number of employees, including both yours and the vendor factory's employees, is 10 or more, then the vendor factory would be required to comply with the ESI Act.
As a construction industry, if you are exempted from ESIC, it means that you are not required to provide ESIC coverage to your own employees. However, if the vendor factory meets the criteria for ESIC applicability based on the number of employees, they would have to provide ESIC coverage to their employees, including your workmen who are working at their premises.
In summary, the exemption from ESIC as a construction industry does not automatically exempt your workmen from ESIC if they are working in a vendor factory that falls under the purview of the ESIC Act due to the number of employees. The vendor factory would be responsible for providing ESIC coverage to its eligible employees, including your workmen, if the threshold for ESIC applicability is met.
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