Doesn't matter if your H.O. is registered with ESIC, the ACT is however applicable to all the branches, any where in india. In your case the employer has to go with WC policy( where employees are deputed in a non-implemented area). The employers’ legal liability under the W.C.Act is to pay compensation to employees not covered under E.S.I.Act for bodily injury or disease sustained / contracted out of and in the course of employment is covered by this policy. Liability to employees under Indian Fatal Accident Act 1855 and at Common Law are also covered under the policy.
However, not many areas in india are now(except north eastern india) non-implemented, The ESIC network is growing and many companies are preferring ESIC, because WC covers only IP,not family/dependants.
The classification of implemented , non-implemented areas based on majorly demographic,geographic,population,economic/industialisation and various other major factors,which also includes the connecivity to that area and availablity medical/pharma and availability of other emergency services too.
M S V R K S
Similar case my firm is a contracting company and our office area is implemented area. WE HAVE 20 employees and out of them 17 are deployed in non implemented area. How do we get ESI code because the required employee strength is less than 10 in implemented area. Even if we get registered, do we have to subscribe for this 3 persons or the entire 29 persons? Kindly clarify.
In your case,however, the employer has to get registered with the ESIC and get a code and provide coverage to all its employees.(if all the 20 employees are working on your rolls and not contract workmen/women) and please,for some time forget about implemented or non-implemented areas.( Managements/Employers try to decieve/manage the authorities/employees to save the amount that would incur for registartion process and contributions)
ESIC Covergare should be, to all the employees,as per law point of veiw. Else, Provide the remaining with WC coverage ! Whatsoever, an employee(be it permanent,contract or apprentinceship, trainee) has to get that insurance cover.
If all the workmen/women are on contract basis, and working in non-implemented area, you can go with WC policy.
Being into IR , and i firmly believe, that a workman/woman must not be deprived of his/her rights and,whatsoever,must be gaurded/protected by the employer in all aspects possible, and that would definatly make an employer "THE BEST" employer.
Where an employee feels totally protected/safeguarded by the employer, his/her productivity increases,his/her commitment and dedication enhance, he/she becomes highly motivated, and a total positive atmosphere would prevail in that organization and that organization would lead the market..........
and the truth is, many organizations are not like that!, they just count on the money going out today,but forget about the returns they may get tomorrow! ,
i remember couple of such organizations, where excellet personnel management practices are applied.....TISCO and INFOSYS are one of the best in employee welfare practices....
( sorry for adding my own lines here, let it not deviate the actual point ;) )
M S V R K S
Yes,You need not/ cannot deduct the ESIC contribution, but have to take a WC, and you must be aware that WC is only employer responsiblity, i.e., Employer must pay the premium, not a single paise is deducted from the employee in WC policy. As mentioned earlier , not many states are under un-implemented category, except major parts of north-eastern india,..... Please follow the attachment, they may be useful... the non-implemented list is an old one, not update. :)