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Esi Or Wc..which Is Applicable? - Doc Download - CiteHR

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nitinkandya
2

Dear Sir,
my company has undertaken to lay transmission lines for approx 500 kms covering approx 15 districts of Uttar Pradesh. EPC contractors have been further awarded the work and have been issued Form V.
My question is whether registration under ESI act 1948 is necessary to be taken by us as a Principal Employer or workmen (Employee) compensation Act 1923 will suffice.
Where ESI is precisely applicable? Our work will go stretches of kilometers in different districts.
Kindly throw some light on it and help me.
Regards
Nitin

From India, Farrukhnagar
gskhule2007@rediffmail.com
Dear Nitin you take contractual empolyee WC policy from Insurance company or take guideline of insuracne company Goraksh
From India, Nasik
Madhu.T.K
3891

First of all you should have ESI registration and then the contractor should also have his own ESI registration. In respect of employees engaged through the contractor the contractor will take care of contributions etc and being the principal employer it will be your responsibility to ensure that the contractor is paying the contributions in time. If the contractor fails to pay the contributions it will become your liability to pay it in the first instance and recover the amount so paid from the amount payable to the contractor.
If the work is being carried out in a place which is not a ESI notified area, then ESI will not be applicable and in such a scenario you may go for policy under Employees Compensation Act.
Madhu.T.K

From India, Kannur
nitinkandya
2

Dear Madhu Ji,
We have our office in Lucknow which is a ESI notified area, but the work will be carried out in different remote areas of different districts which may or may not be ESI notified areas, and further more we do not have any office establishments there. So getting registered under ESI would be a difficult task to comply with.........I am still confused.
Pls guide..
Nitin

From India, Farrukhnagar
Madhu.T.K
3891

In such scenario the office to which the employees are attached to will decide whether the employees come under ESI or not. If they work for at least sven months in a area not notified by ESI, you can exclude them from ESi, otherwise, you will have to give them coverage.
Madhu.T.K

From India, Kannur
essykkr
87

Dear Madhu,

Is it the office of the Company which decide the critera for applicabililty of ESI Act or the location of Work? Suppose some company have their office in ESI implemented Area and Employees are working in Area where ESI Scheme is non implemented. In that senerio all the workers attached to this office shall be covered by the Act, Even those working in non implemented Areas. I don't think so, because then where they will get benefit, there is no ESI facilities, even they are paying contribution every month.

Secondly, if office is non implemented Area but Employee are working in implemented Area, then only those employee working in implemented Area, need to cover under the Scheme.

As per my understanding, its the job location as well as Office location which decide the applicablity of the Scheme, please through some light on this?

I think if the employer don't have office in implemented Area, then code or sub-code can be taken at the address of any Employee for compliance purpose.

Third, I have on more doubt that Where ESI Act will Applicable, EC Act shall not applicable?? As per my understanding there is no such kind of provisions in both Acts. It only section 61 of ESI Act which bar entitlement of similar and same kind of benefit provided by the ESI Act under any other Act. But in case of death ESI Act does not provide any compensation to family or dependent, it only prescribed dependent benefit in terms of periodical payments i.e can say pension.

But EC Act which provide compensation for dependent in case of death during the course of employment does not provide any kind of pensionable benefits.

So can it would be better to take EC Policy in case of death to get compensationand also covered the Employee under ESI Act for getting treatment or getting super speciality facilities for dependant or family members.

I can understand that for compensation for Permanent disablement/Temperary disablement, employee can get benefit only under one Act ESI/EC Act, and Section 61 of ESI Act will come in operation, but in case of death, section 61 can not bar for getting compensation for death.

Please share you views on this!!!!!

Regards

Sanjay Kumar


Madhu.T.K
3891

Your apprehensions about quantum of compensation payable under WC Act and ESI act is true but the fact is that in respect of employees covered by ESI, the liability for payment of compensation for employment injuries and death due to employment injuries is with ESIC only. And ESIC is committed to pay it as per Workmen's Compensation Act and not below that.
Regarding coverage of employees working in non implemented area, the same notification as is issued in respect of touring employees shall apply, I believe. Please find the attachment.
Madhu.T.K

From India, Kannur
essykkr
87

Dear Madhu,
Thanks !!! for your reply. You missed the attachment.
Secondly, Is the dependent Benefits i.e periodical payment shall be equal to the quantum of compensation payable under EC Act. but the kind of Compensation under EC Act is onetime, based on the the furmula given in Schedule, However the the rate of dependent benefit provided under ESI Act is something different as per Regulation 58.
Have also gone through Section 53 of ESI Act, which provide bar against any compensation to injured person or dependent from Employer under EC Act. But last wording of this section is again confusing"in respect of Employment Injury by accident arising out of employment".
So again it Bar against the compensation for injury, not for death compensation.
Regards
Sanjay Kumar


Madhu.T.K
3891

Obviously, Employees Compensation Act provides for compensation to employees who have met with employment injury or death due to employment injury only. That is why section 53 has reproduced it as ....resulting from employment injury.
Madhu.T.K

From India, Kannur
Attached Files (Download Requires Membership)
File Type: doc Touring Employees.doc (28.0 KB, 60 views)

essykkr
87

Dear Madhu, Thanks !!! for sharing, but this notification is issued by Kerla Govt, only. Is there any notification by central Govt on this subject. Regards

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