dear all seniors
I have one query related esic applicable on construction worker . my factory is covered under factory act 1948 and now we are constructing one more building in same premises through contractors and he has engaged around thirty labour for new building construction in which 10 people are permanent type labour and rest they have engage through daily market labour which are changed everyday . contractor have his own esic no and but taken esic no.s for only 10 permanent type his labours at site . Rest labour are not covered neither esic nor under wc act 1923 pls suggest what to do for cover all construction worker in case accident .
Pls advice if esic is applicable to our factory then we/contractor can also opted wc policy for construction workers parallely
in our area all companies are coverable under esic .
regards
ps
From India, Dehra Dun
10I have one query related esic applicable on construction worker . my factory is covered under factory act 1948 and now we are constructing one more building in same premises through contractors and he has engaged around thirty labour for new building construction in which 10 people are permanent type labour and rest they have engage through daily market labour which are changed everyday . contractor have his own esic no and but taken esic no.s for only 10 permanent type his labours at site . Rest labour are not covered neither esic nor under wc act 1923 pls suggest what to do for cover all construction worker in case accident .
Pls advice if esic is applicable to our factory then we/contractor can also opted wc policy for construction workers parallely
in our area all companies are coverable under esic .
regards
ps
From India, Dehra Dun
Dear, You have not mentioned whether you are covered under ESI or not. If you are not covered then there is no need for the contractor to cover his workers. However, if you are covered under ESI Act, the contractor has to cover his employees too otherwise ESI officials are not going to spare you. KK
From India, Bhopal
From India, Bhopal
Dear Paramjeet Singh
As a matter of fact your factory might have been covered under ESI. If so, then you must cover all the workers engaged in the same premises in construction activities. If the salary is above the stipulated limit then you can opt for any Group Personal Accident Policy from any one insurance companies in place of WC Policy. If you are not covering them in the WC Policy (GPAP) then in case of any accident or untoward incident, your factory should bear the cost of medical and compensation part.
From India, Kumbakonam
As a matter of fact your factory might have been covered under ESI. If so, then you must cover all the workers engaged in the same premises in construction activities. If the salary is above the stipulated limit then you can opt for any Group Personal Accident Policy from any one insurance companies in place of WC Policy. If you are not covering them in the WC Policy (GPAP) then in case of any accident or untoward incident, your factory should bear the cost of medical and compensation part.
From India, Kumbakonam
Sir,
1. You have not disclosed whether your unit is covered under ESI Act, 1948 or not. In case your unit is covered under said Act then I hope you are required to make compliance of construction work activities/extension of building work in your premises.
2. The said Act makes no distinction between permanent/casual/temporary etc. persons employed for any work in factory/unit premises. All persons working in connection with or relating to the work of the covered unit/factory are employees within the meaning of said Act. The only distinction is of employees getting wages upto and including Rs. 15000/- per month (covered employees) and employees getting wages exceeding to Rs. 15000/-( non-coverable) under said Act.
3.So far as compliance in respect of coverable employees is concerned, you have mentioned that you have engaged one contractor who has ESIC Code Number. The responsibilities of principal employer always remain there even if the work is got done through any contractor even having his separate ESI Code number. Please make sure that your Contractor makes compliance regularly in respect of all coverable employees. After the work is finished, you can retain the copies of ESI challans, returns of contributions and other records pertaining to employment and payment of wages of such contractor employees with you so that at the time of inspection of records you/your staff may be in a position to produce the same before Social Security Officer to prove the compliance. If you will not produce the required records or if the contractor fails to produce the records at the time of verification of records, the assessing authority will have no option except to recommend the contributions on total amounts incurred for such project. In my opinion, there is no utility of taking any WC Policy in respect of any of such coverable/covered employees as mentioned above since coverage under above Act is compulsory.
4. So far as insurance of non-covered employees( i.e. getting wages exceeding to Rs. 15000/-) is concerned, I think, Boss 2966 Super Moderator in his remarks has rightly suggested to get the Group Accident Insurance Policy from any of commercial insurance provider. In my opinion, such policy must be in accordance with the value of compensation as laid down in the Employees' Compensation Act, 1923.
From India, Noida
1. You have not disclosed whether your unit is covered under ESI Act, 1948 or not. In case your unit is covered under said Act then I hope you are required to make compliance of construction work activities/extension of building work in your premises.
2. The said Act makes no distinction between permanent/casual/temporary etc. persons employed for any work in factory/unit premises. All persons working in connection with or relating to the work of the covered unit/factory are employees within the meaning of said Act. The only distinction is of employees getting wages upto and including Rs. 15000/- per month (covered employees) and employees getting wages exceeding to Rs. 15000/-( non-coverable) under said Act.
3.So far as compliance in respect of coverable employees is concerned, you have mentioned that you have engaged one contractor who has ESIC Code Number. The responsibilities of principal employer always remain there even if the work is got done through any contractor even having his separate ESI Code number. Please make sure that your Contractor makes compliance regularly in respect of all coverable employees. After the work is finished, you can retain the copies of ESI challans, returns of contributions and other records pertaining to employment and payment of wages of such contractor employees with you so that at the time of inspection of records you/your staff may be in a position to produce the same before Social Security Officer to prove the compliance. If you will not produce the required records or if the contractor fails to produce the records at the time of verification of records, the assessing authority will have no option except to recommend the contributions on total amounts incurred for such project. In my opinion, there is no utility of taking any WC Policy in respect of any of such coverable/covered employees as mentioned above since coverage under above Act is compulsory.
4. So far as insurance of non-covered employees( i.e. getting wages exceeding to Rs. 15000/-) is concerned, I think, Boss 2966 Super Moderator in his remarks has rightly suggested to get the Group Accident Insurance Policy from any of commercial insurance provider. In my opinion, such policy must be in accordance with the value of compensation as laid down in the Employees' Compensation Act, 1923.
From India, Noida
Dear P S,
As far as applicability of ESIC is concerned, Construction (Purely construction work within a certain periphery) work is exempted from liability
of ESIC, but for that your establishment should be registered within BOCW Act ( Building & Other Construction Work) with Labour department.
And establishment is automatically covered under WC Policy if it is exempted from ESIC, but better to assign a GPA (Group Personal Accident)
Policy especially from any of Govt. agencies (Preferable)
Regards,
Manish Gupta
Lucknow
From India, Ghaziabad
As far as applicability of ESIC is concerned, Construction (Purely construction work within a certain periphery) work is exempted from liability
of ESIC, but for that your establishment should be registered within BOCW Act ( Building & Other Construction Work) with Labour department.
And establishment is automatically covered under WC Policy if it is exempted from ESIC, but better to assign a GPA (Group Personal Accident)
Policy especially from any of Govt. agencies (Preferable)
Regards,
Manish Gupta
Lucknow
From India, Ghaziabad
Shri Manish Gupta: It will be of immense help if you could elaborate the basis of the statement 'Construction (Purely construction work within a certain periphery) work is exempted from liability of ESIC'. KK
From India, Bhopal
From India, Bhopal
Nair Sir,
If I commit any mistake in my statement, Plz rectify me, It would be a greatest honor to have such an elegant mentor like you & will prove
so much worthy to me.
I am desperately looking for your benedictions sir!!!.....:)
With sincere regards,
Manish
Lucknow
From India, Ghaziabad
If I commit any mistake in my statement, Plz rectify me, It would be a greatest honor to have such an elegant mentor like you & will prove
so much worthy to me.
I am desperately looking for your benedictions sir!!!.....:)
With sincere regards,
Manish
Lucknow
From India, Ghaziabad
Dear Manish
There are two types of work orders being raised in construction industries. The first is supply of manpower work order, which will attract PF and ESI (If client establishment is covered under ESI). The second is Hire of machinery / equipment, for which the PF and ESI will not be deducted. For them as per work order TDS only deducted.
As for as BOCW is concerned, it is nowhere mentioned that the ESI is not applicable. If the Factories Act or Mines Act is applicable in any place, there the BOCW Act will not be applicable.
If we are involving ourselves in construction work within the existing Factory premises, then we have to take clearance from BOCW Commissioner (pay the 1 % Cess) and after that our construction activity will be covered under factories act. Hence if the factory is under the covered area, obviously we must pay the ESI for the construction workers also.
Further there was some draft memo was released during 2011 regarding ESI coverage for construction workers. Even some states are trying to implement the same. The same memo was available in this site (CiteHR).
From India, Kumbakonam
There are two types of work orders being raised in construction industries. The first is supply of manpower work order, which will attract PF and ESI (If client establishment is covered under ESI). The second is Hire of machinery / equipment, for which the PF and ESI will not be deducted. For them as per work order TDS only deducted.
As for as BOCW is concerned, it is nowhere mentioned that the ESI is not applicable. If the Factories Act or Mines Act is applicable in any place, there the BOCW Act will not be applicable.
If we are involving ourselves in construction work within the existing Factory premises, then we have to take clearance from BOCW Commissioner (pay the 1 % Cess) and after that our construction activity will be covered under factories act. Hence if the factory is under the covered area, obviously we must pay the ESI for the construction workers also.
Further there was some draft memo was released during 2011 regarding ESI coverage for construction workers. Even some states are trying to implement the same. The same memo was available in this site (CiteHR).
From India, Kumbakonam
Bhaskar Sir,
With due respect, I would like to put my personal experience as I have been associated with one of the Construction company, & we have been
dealing with both cases i.e. Machinery Rental & Construction work within a premises.
As far as Rental is concerned we have provided many machinery like Transit Mixers, Roller, Pumps, JCB's & Hydraulic Pilling rigs to various renowned
clients such as Lafarge, ACC, L&T & Ultrateck, we have been asked to provide them undertaking of providing wages sheet, ESI & EPF challans to clear our Rental bills every month ( Contradictory to your statement : The second is Hire of machinery / equipment, for which the PF and ESI will not be deducted. For them as per work order TDS only deducted)
As far as applicability of ESIC over BOCW is concerned, I got to know by documents as well as in practical at our project site (Where we have been working with State Govt) that "ESIC is neither applicable nor suitable for construction work at such project sites"
If you have have any memo related to updation in my current knowledge, pls share it, I would be obliged for that.
Thanks,
From India, Ghaziabad
With due respect, I would like to put my personal experience as I have been associated with one of the Construction company, & we have been
dealing with both cases i.e. Machinery Rental & Construction work within a premises.
As far as Rental is concerned we have provided many machinery like Transit Mixers, Roller, Pumps, JCB's & Hydraulic Pilling rigs to various renowned
clients such as Lafarge, ACC, L&T & Ultrateck, we have been asked to provide them undertaking of providing wages sheet, ESI & EPF challans to clear our Rental bills every month ( Contradictory to your statement : The second is Hire of machinery / equipment, for which the PF and ESI will not be deducted. For them as per work order TDS only deducted)
As far as applicability of ESIC over BOCW is concerned, I got to know by documents as well as in practical at our project site (Where we have been working with State Govt) that "ESIC is neither applicable nor suitable for construction work at such project sites"
If you have have any memo related to updation in my current knowledge, pls share it, I would be obliged for that.
Thanks,
From India, Ghaziabad
Dear PS,
Working without a valid and comprehensive insurance policy against EC Act,1923 is not without risk. Should any accident happen resulting in injuries or death of the workman, huge amount of compensation will be required to pay towards compensation. The Accident may happen anytime and at any place. Hence it is important to have the policy obtained to protect, from any such liability which may arise.
So one registered organisation have an ESIC registration. Permanent employs or temp employs must covered under ESIC......or have WC policy as per minimum wages for availing max advantage in terms of any casuality.
Regards
Harvinder Remotra
From India, Calcutta
Working without a valid and comprehensive insurance policy against EC Act,1923 is not without risk. Should any accident happen resulting in injuries or death of the workman, huge amount of compensation will be required to pay towards compensation. The Accident may happen anytime and at any place. Hence it is important to have the policy obtained to protect, from any such liability which may arise.
So one registered organisation have an ESIC registration. Permanent employs or temp employs must covered under ESIC......or have WC policy as per minimum wages for availing max advantage in terms of any casuality.
Regards
Harvinder Remotra
From India, Calcutta
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