(1) In continuation of earlier Press Note dated 17/7/2015 regarding coverage of Site Construction Workers, ESIC has now issued instructions dated 31/7/2015 advising that w.e.f. 01/08/2015 all construction workers working at construction sites will be treated as covered under ESI Act, 1948 and rules/regulations framed thereunder.
http://esic.nic.in/backend/writeread...37aedb666d.pdf
(2) ESIC Hqrs. has advised its field offices accordingly. For kind information of experts and functionaries in the field of labour laws.
From India, Noida
923http://esic.nic.in/backend/writeread...37aedb666d.pdf
(2) ESIC Hqrs. has advised its field offices accordingly. For kind information of experts and functionaries in the field of labour laws.
From India, Noida
Dear Harsh Kumar ji,
Now question is how this unorganised sector is going to obey this. Till date PF scheme is not implemented by this sector fully. The Government is coming out with new new schemes, enactments etc. but how many are implemented is a BIG QUESTION.
In construction sector, every record is manipulated and therefore there is a problem every implementation such as beneficiary registration under BOCW, PF implementation, UAN activation, KYC upload etc. This sector is reluctant to implement any law. No labour is paid as per minimum wage rate. There will be a tough time to implement this scheme in construction industry.
From India, Mumbai
Now question is how this unorganised sector is going to obey this. Till date PF scheme is not implemented by this sector fully. The Government is coming out with new new schemes, enactments etc. but how many are implemented is a BIG QUESTION.
In construction sector, every record is manipulated and therefore there is a problem every implementation such as beneficiary registration under BOCW, PF implementation, UAN activation, KYC upload etc. This sector is reluctant to implement any law. No labour is paid as per minimum wage rate. There will be a tough time to implement this scheme in construction industry.
From India, Mumbai
1. Sir, you have raised a very pertinent question. So far as I understand ESIC will be required to face 2 main problems for extension of provisions of Act to site construction labour, which I have mentioned in my remarks in a thread initiated by you few days earlier.
2. First problem will be that ESIC considered in the past such employees of construction sites as separate class of establishment (unorganised sector ) for which, I think, separate notification under section 1(5) is required to be issued. I am doubtful whether the construction sites qualify as factory or not under section 1(3) of said Act. Therefore, it is doubtful whether by revising instructions only can scheme be extended to such employers without any notification under section 1(5) by the appropriate government.
3. Second most important problem will be that under BOAC, there is some cess which is collected from the employers and is spent on welfare of construction workers. The employers will, I guess, will raise objections regarding double contribution i.e. cess as well as contribution @ 4.75% under ESI Act, 1948 as ordered by ESIC.
4. Sir, you may be aware as to under present Govt. how the system is working. Problems are likely to arise for implementation of said instructions dated 31/7/2015 and I think, you are totally correct.
From India, Noida
2. First problem will be that ESIC considered in the past such employees of construction sites as separate class of establishment (unorganised sector ) for which, I think, separate notification under section 1(5) is required to be issued. I am doubtful whether the construction sites qualify as factory or not under section 1(3) of said Act. Therefore, it is doubtful whether by revising instructions only can scheme be extended to such employers without any notification under section 1(5) by the appropriate government.
3. Second most important problem will be that under BOAC, there is some cess which is collected from the employers and is spent on welfare of construction workers. The employers will, I guess, will raise objections regarding double contribution i.e. cess as well as contribution @ 4.75% under ESI Act, 1948 as ordered by ESIC.
4. Sir, you may be aware as to under present Govt. how the system is working. Problems are likely to arise for implementation of said instructions dated 31/7/2015 and I think, you are totally correct.
From India, Noida
Dear Harsh Kumar ji,
Thanks for your contribution.
Yes I read your remarks in one of the earlier threads initiated by you but I could not respond that time due to some reason.
Basically, there are two issues, I feel you have in your mind.
One is : Is construction activity is a factory or commercial establishment?
Another is : When BOCW Act is applicable to Construction activity , how ESI can be made applicable?
My views on both the issues are as under:
In regards to first one:
The construction agency / office is treated as commercial activity by the Corporation. However, due to nature of employment and nature of work place, enforcement of ESIS to construction workers was not possible and hence by instruction 4 / 99 such construction workers were kept out of coverage under ESIS but the regular employees of construction agencies were not kept out of coverage of ESIS. (Forget that, in reality the construction agencies they kept entire project site out of ESI.)
Under the circumstances separate notification under section 1(5) is not required, according to me.
In regards to second one:
ESI Act and BOCW Act are two different enactments with different objectives. Also, ESI Act can not be superseded unless the benefits provided are better than or equivalent to ESIS in all respect.
Hope you will agree with my views.
From India, Mumbai
Thanks for your contribution.
Yes I read your remarks in one of the earlier threads initiated by you but I could not respond that time due to some reason.
Basically, there are two issues, I feel you have in your mind.
One is : Is construction activity is a factory or commercial establishment?
Another is : When BOCW Act is applicable to Construction activity , how ESI can be made applicable?
My views on both the issues are as under:
In regards to first one:
The construction agency / office is treated as commercial activity by the Corporation. However, due to nature of employment and nature of work place, enforcement of ESIS to construction workers was not possible and hence by instruction 4 / 99 such construction workers were kept out of coverage under ESIS but the regular employees of construction agencies were not kept out of coverage of ESIS. (Forget that, in reality the construction agencies they kept entire project site out of ESI.)
Under the circumstances separate notification under section 1(5) is not required, according to me.
In regards to second one:
ESI Act and BOCW Act are two different enactments with different objectives. Also, ESI Act can not be superseded unless the benefits provided are better than or equivalent to ESIS in all respect.
Hope you will agree with my views.
From India, Mumbai
Dear Korgaonkar ji, thanks for above remarks. Sir, I will like to know whether Construction Sites are covered under the Factory Act ? I have some doubts and not clear on this issue.
From India, Noida
From India, Noida
Dear Harsh Kumar ji,
Thanks for your question.
Construction sites are not covered under the Factories Act unless there is an installation of RMC / Batching Plant at construction site.
ESI also was made mandatory at construction sites wherein RMC / Batching Plant are installed.
From India, Mumbai
Thanks for your question.
Construction sites are not covered under the Factories Act unless there is an installation of RMC / Batching Plant at construction site.
ESI also was made mandatory at construction sites wherein RMC / Batching Plant are installed.
From India, Mumbai
Dear Harsh Kumar ji,
In continuation to my earlier post in respond to your question, I would like to say as under:
It is a fact that construction sites are not covered under FA. But, in my view construction activity should fall under the FA. If you read the definition of manufacturing process carefully, there is a scope to interpret that the construction activity is a manufacturing process. Another thing is, it is a NIRMAN. It is a MAKING. You make building structure with the help of many raw material mixing together or otherwise. You do welding activity there. It an engineering activity. Whatever activity you do there falls under the manufacturing process and this manufacturing process is carried out with certainly more than 10 workers.
Also to be noted that, when construction, reconstructing, repairing. refitting, finishing or breaking up ship or vessels is a manufacturing process as per sub-clause v to section 2(k), why not the building construction activity falls under the scope of FA.
Some time you find authority visiting construction site and going happily.
From India, Mumbai
In continuation to my earlier post in respond to your question, I would like to say as under:
It is a fact that construction sites are not covered under FA. But, in my view construction activity should fall under the FA. If you read the definition of manufacturing process carefully, there is a scope to interpret that the construction activity is a manufacturing process. Another thing is, it is a NIRMAN. It is a MAKING. You make building structure with the help of many raw material mixing together or otherwise. You do welding activity there. It an engineering activity. Whatever activity you do there falls under the manufacturing process and this manufacturing process is carried out with certainly more than 10 workers.
Also to be noted that, when construction, reconstructing, repairing. refitting, finishing or breaking up ship or vessels is a manufacturing process as per sub-clause v to section 2(k), why not the building construction activity falls under the scope of FA.
Some time you find authority visiting construction site and going happily.
From India, Mumbai
Sorry, I am in different mood today....
Even you find the shop inspectors visiting constructions site and going happily.
When construction site is not having factory licence then it should fall under the commercial establishment. Shop inspector is very right in visiting the construction site in this case.
To my knowledge, no construction site is issued GUMASTA licence by any authority all over India.
YEH MERA INDIA!!!!! MERA BHARAT MAHAAAAAAAN!!!!
From India, Mumbai
Even you find the shop inspectors visiting constructions site and going happily.
When construction site is not having factory licence then it should fall under the commercial establishment. Shop inspector is very right in visiting the construction site in this case.
To my knowledge, no construction site is issued GUMASTA licence by any authority all over India.
YEH MERA INDIA!!!!! MERA BHARAT MAHAAAAAAAN!!!!
From India, Mumbai
My understanding is: construction workers with regular company/contract are eligible for ESI and definitely not the workers who work for short periods! If construction workers with different agencies, with different period duration and if they are members in BOCW WELFARE BOARD then BOCW benefit applies. Application is to the concerned workers only with ID card and with only one organisation. .
From India, Nellore
From India, Nellore
Dear Sirs, My worry continues as I work with a real estate developer. Although my current employee strength is below the eligibility criteria having registered employees under different companies but how about the workers under sub-contractors. A practical issue is there is high attrition in labourers hence covering them under ESIC to extend the benefits is going to be the real challenge. If corporation can introduce something like UAN in ESI too, hopefully that will help.
Regards,
Anil Richhariya
From India, Gurgaon
Regards,
Anil Richhariya
From India, Gurgaon
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