Dinesh Divekar
Business Mentor, Consultant And Trainer
In Hr Job
Krishan Kapoor
General Manager Hr
Hr , Ir & Admin
Hr Manager
Sr Laksminarasimman
Financial Advisor
Hr,personnel & Welfare
Hr Deptt.
+7 Others

Thread Started by #Jiwanjot.Singh

Dear All, Please find enclosed the Notification Copies.
4th August 2010 From India, Delhi

Attached Files
Membership is required for download. Create An Account First
File Type: pdf Workmen Compensation Notification.pdf (26.3 KB, 5752 views)
File Type: pdf ESI Notification.pdf (1.92 MB, 7168 views)

We are one of the Telecom service provider company engaged in Installation and Commissioning works in Andhra Pradesh. We have insured all our employees under ESIC Act.
Our customers like Ericsson, Vodafone, Nokia, Idea etc., will, on day to day basis, allot installation works at deferent sites spread over entire state of Andhra Pradesh and the work is at the Cell Phone sites. For discharging these works, our employees need to travel extensively from Hyderabad and Place (Site) to Place (Site).
We would like to request you to clarify whether the ESIC Insurance coverage will be applicable to employees when an accident occurs while they are traveling to deferent places (Sites). You are requested to note that traveling is a part of the work done by all our employees.
Kindly arrange to communicate the above clarification to us at the earliest.
4th August 2010 From India, Hyderabad
Dear Friends
I have certain questions... if i anyone can help me on this..
1) Does drivers hired for staff transportation are covered under WC Policy.
2) What is the rule under which Security Guards in the company comes under......is there any law related to this.
3) what are the Zones under which any MIDC area is divided?
4th August 2010 From India, Pune
I would like to know that if we have total employee strength of 95 nos. and out of 95nos. only 10 nos. are getting salary below 15,000/-.
Do we have to take ESI registrationfor 10 employees or we are exempted, as I was given to understand that we need to have 20 employees falling below the limit of 15,000/- we need to register.
thank you,
Krishan Kapoor
5th August 2010 From India, New Delhi
Dear Mr Bharani Kumar

Accident related benefit, by way of

Death benefit (Pension) and disability pension is available in case of any accident while on duty travel any where. When employee are send on such duty, please have some record like inernal order requiring him to go on duty, ensure he is given normal travelling and daily allowance etc as per company rule and preferably ensure that he has the identity card of his company and the order or company requiring to do this duty or any other paper such as installation report etc. In case of all serious accident file FIR in the nearest Police Station. If he is allowed to travel in his own vehicle for which Travelling allowance is paid, record this in the internal order/memo etc. In case of any accident on duty, submit accident report in form and if form is not available by a plain paper report, followed by the form 16 to nearest Branch Office of ESIC. For treatment in any hospital, including private hospital in such emergency, submit all bills and claim the expences seperately. If he has to take leave, on recommendation of any doctor in such emergency, submit such certificte seperately for leave benefit, which is higher rate for accident. Hence, in such case he will get disability pension or death benefit in case of death by way of life long pension, leave benefit during treatment, reimbursement of medical expences even in p rivate hospital in case of emergency treatment and additional the funeral benefit. Advice all employees accordingly.

O Abdul Hameed

Formerly Additional Commissioner

ESI Corporation

5th August 2010 From India, Coimbatore
Dear Mr Kapoor
Till recently only the number of employees drawing wage of prescribed limit or above was required to be counted for deciding coverage due to SC judgement in Suri Case. But the ESI act has been amended this year ( applicable from April or so) by which all employees, irrespective of the wage, need to be taken into account for deciding coverage (10 in case of manufacgturing units and 20 for Shops, transport, news papeer establisment etc.)
O. Abdul Hameed
Formerly Addl.Commissioner ESIC
5th August 2010 From India, Coimbatore
I do not under stand about workmen compensation notification please tell efffect of this notification for private ltd and ltd company and all other private sector industires
5th August 2010 From India, New Delhi
Drivers are also to be covered for WC policy. In any case in case of any accident, claim under Wokmens Compensation will have to be setteled by Employer directly if no policy is taken. If you are covered under ESI scheme, then WC act will not apply and all compensation for accident, disability, death, sickness etc will be paid by ESI Crporation. Security guards are also to be covered under all labour laws if they are working in your premises or you should ensure that the agency providing the guards are covered under EPF, ESI, etc and are paying minimum wage.
In other words you can not avoid the labour law and social security protection to employees working inside your premises mereby because they are engaged through a contractor.
O. Abdul Hameed
Formerly Addl.Commissioner ESIC

5th August 2010 From India, Coimbatore
Hello Abdul sir, Thanks a lot for your informations on ESI & WC Policy... It was very precise and had cleared lot of doubts on th above... Once again thank you very much ...Sree
5th August 2010 From India, Hyderabad
Respected friends,
Kindly advise me wheher the appropriate STATE GOVT ( in this case Govt of Tamil Nadu) or central has extended the provisions of ESI Act to certain specific classes of establishments such as shops and establishments employng 20 more persons.Kindly advise with reference to the state -Tamil Nadu. Because my friend has an office at chennai employing 20 labourers . It is not a factory.It is only an office.
I will be greatful for your advice.
sr laksminarasimman
5th August 2010 From India, Madras
Respected friends,
Kindly advise me. Whether State Government of Tamil Nadu, or Central Government has extended the provisions of ESI Act to shops, establishments and offices in TamilNadu. My friend has started office in Chennai in July 2010 employing 20persons with salary below Rs 10000 per month. If applicable, kindly give the notification no
with regards
sr laksminarasimman
5th August 2010 From India, Madras
Dear Hamid Sir

As you said, we had approached the ESI authorities at Chennai for coverage of our establishment which is onto Mobile tower supply and erection business (16 persons were drawing salaries less than 15001/- pm whereas the total strength was 76). However they said that our estt cannot be covered as the strength of the coverable employees was below 20. Also the said ammendment was applicable only to factories and not to establishments. Is this true ???

Further they state that -- even otherwise, since mobile tower erection is not confined to a particular location and it also the state that "tower erection" is analogous to civil construction work, hence only the count of office staff would be reckoned for the purpose of coverage and not the field technicians/field engineers. They have rejected the application.

I have gone through the Act its rules and regulations. However I am unable to find any such clause in support of their contention. Your clarification would be of immense help to me, Thank u

5th August 2010 From India, Madras
Dear Mr.O.Abdul Hameed Sir, Your reply is fantastic. Your reply demonstrates your knowledge. Pls. do reply all ESI doubts in future also Sir. Thanks & Regards R. Swaminathan
6th August 2010 From India, Madras
Mr Ramesh

It is true that recent amendment effective from 1.6.2010 under the gazettee notification 1084 dt 1.6.2010, dealt only with Factory. In fact years back the definition of factory covered only where "10 or more person emplyed", but a subsequent amendment, due to some oversight said "10 or more person employed for wages". Wage had a definition in the act and ceiling of wage for purpose of ESI act was fixed from to time by Govt. SC in Suris case accepted the submission of some employer that definition "10 or more employed for wage" restrict the employees for this purpose to those drawing below the ceiling lime, then at Rs 10000. This was against the stand of the department and hence to rectify this judgement the amendment was brought this year and hence now rom 1.6.2010, the original position is reverted namely all employees irrespective of wage ceiling will be counted to decide the coverage.

The stand of ESIC Tamil Nadu that this amendment apply to factory only is correct but the Suri Case of SC in any case did not apply to Establishment since the notification of State Government did not say "20 or more person employed for wage", but for the purpose of establishment (shop etc) the definition was always "Person employed " and not "Person employed for Wage". The following is the definition of established cut annd pasted from one of the web site of ESIC.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Please note that word establishment is not defined in ESI Act. Hence the notification of State Government alone to be followed. All state government notification under Sec 1 (5) talked only as "20 or more persons".

Hence no amendmnet is required for establishment and the original position of the Corporation that total number of person, irrespective of their wage need to be taken to decide coverage, but for actual registration and paymet of contribution, only those drawing within the ceiling are to be considered.

Now coming to the question whether your business is establishment/Shop, I feel that it is a Shop, and all employees within the state, irrespectivde of their frequent move or place of work (some times in non implemented area) should be considered in view of the latest SC judgements. In Souther Agency Rajamundry Case (29.11.200) SC held that Shop to be a place where any commercial activity take place. In amany judgement involving Tranport undertaking (like South easterm Tranport case, Transport Corporation case) etc, courts have ruled that employee working in different location and under control of a head office or regional office etc should be counted together to arrive at the figure of 20. In fact as per these definition even a factory is a shop, but once the manufacturing activity takes place it will be shop and if there is no manufacturing activity but only other economic or commercial activity with 20 person employed, it will be shop.

About tower erection, I do not think that to be civil work (involving bricks, cement, sand etc) but primarily a fabrication work involving steel tresses, weldng, cutting, joining etc, though a small part (platform) may have a civil component. I think ESIC has covered many such establisment.

Where there are 20 person employed, in more than one location within the same state which has issued notification under Sec 1 (5), and all of them are controlled by one single unit having controlling office (may be regional office, head office etc) and where work is taken on commercial consideration as a business activity, it has to be covered under ESI Act. Failure by you will be denial of social security benefit to your workers and failing by ESIC will be failure to provide statutory protection to a segment.

Please address ESIC appropriately.

O. Abdul Hameed
Formerly Addl.Commissiner ESIC
6th August 2010 From India, Coimbatore
State Government of Tamil Nadu has issued notification u/s 1 (5) of ESI Act several years back, may be around 1977 or so, covering Shops employing 20 or more person, in areas specified and notified. Whole of Chennai is notified. Send registration form to Regional Office at Sterling road.
O.Abdul Hameed
Formerly addl Commissioner ESIC
6th August 2010 From India, Coimbatore
Happy to be useful. I am not a regular visitor here. If your need any specific help you can contact me . By the way I am not a consultant and hence no fee involved. I am working as a CEO of a large Hospital now.
O.Abdul Hameed
6th August 2010 From India, Coimbatore
Dear Ashok,
The workmen compensation act is applicable to those sectors where ESI is not applicable or to those employees who are not covered under any medical scheme.
you can refer workman compensation act ,1923 for better understanding.
Kind regards
yogesh jalota
6th August 2010 From India, Jalandhar
I express my thanks to Mr.Hamid for his clarifications.We are very fortunate having Mr Hamid as a member of our citehr community.His clarifications on applicability and other provisions of ESI Act has enriched our professional knowledge.Like Mr.Swaminathan I also expect that Mr Hamid will continue giving his valuable guidance/clarification on matters relating to ESI Act to our community members as he is an expert on the subject.

One more thing I want to bring to the notice of all community members that there is no such Act entitled as the Workmen’s Compensation Act now.It is now replaced as ‘The Employee’s Compensation Act” due to the recent amendment made in 2009.By virtue of this amendment for words”workman/workmen” ,wherever they occur in the Principal Act the words”employee/employees” shall be substituted.This Act is applicable to all employees of factory/Mines/Shops /Industrial establishments may it be a Pvt Ltd. or Ltd. or Pvt. Sector organization as detailed under Schedule –II of the E.C.Act. provided ESI Act is not applicable to it. Further as per the newly amended Act, the minimum compensation payable to an employee/legal heir of an employee( of deceased employee) in case of accident arising out of and/or in course of employment.are as follows:-
i)In case of fatal accident-Rs.1.20 lakh
ii)In case of permanent total disablement-Rs.1.40 lakhs
However the lower the age of the injured employee.the higher the compensation amount at same monthly wage rate. Example:-
-wage rate is Rs.8000/- p.m.(this is the max monthly wage rate allowed vide Central Govt. L& E. Deptt notification dtd.31.5.2010)
-Age (a)for Min.18 years(an adult employee) at the time of accident
-Factor as per Schedule IV of the Act-226.38
-Amount of compensation payable- 8000* 60% *226.38=Rs.10,86,624.00
(b) for Max 58 years(normal retirement age)
-Factor as per Schedule IV of the Act-124.70
-Amount of Compensation payable-8000*60%*124.70=Rs.5,98,560.00

6th August 2010 From India, Calcutta
With due respect to your seniority and experience.
I would like to know how do I cross check about this. As per the notification only limit of salary has gone up 10K to 15K, the notification is silent about change in cretetia of no. of employees to be covered.
Querry is:
Whether the ESI registration is mandatory if there is a total 20 no. or more of employees in the company whose salary is below 15K.
ESI registration is mandatory in a company if total no. of employees are (for example) 50 and only 5 are getting salary below 15K.
Kindly help.
7th August 2010 From India, New Delhi

Dear Mr Kapoor

The blogs like this wll not replace original reading of the law and judgements on the subject. Please do not think that you will get fully educated on HR management and labour law compliance from these blogs.

All that you get here is limited clarification and for that if the personal clarifying on legal issues should have legal background.

The notification is only an order implementing an amendment to certain provision of the law. You need to go through the law as a whole, as amended after the notification.

Please refer to Section 1 (4), read with Sectin 2 (9) and Section 38 of ESI Act. The notification merely increased the threshold limit of wae ceiling for the purpose of "Employee" from 10000 to 15000, and changed the the terms "Person employed for wage" to just "person employed". I have replied on this issue earlier here. Hence in case of a factory (that is a unit having manufacturing activity, as definied in factory act) if the number of employee (irrespective of his wage level) is above 10 (whether with power or without power), it is compulsory to register under ESI act and it is compulsory to pay contribution and submit return and isure "employees" where the monthly wage is Rs. 15000 and below.

O.Abdul Hameed

Formerly Additional Commissioner ESIC
8th August 2010 From India, Coimbatore
Dear Mr. Hameed, Thank you very much sir, I really appreciate the way you have clarified the issue for the benefit of of me and HR community. Krishan Kapoor
10th August 2010 From India, New Delhi
Sir, I am from AP.
I have only 11 employees less than 15000 in my office...It is an ITES company... do you mean to say that I would have to register for ESI as per the SURI case judgement ?
I am extending United Insurance Health care support to them...
Please let me know what the ESI Act says...

20th August 2010 From India, Hyderabad
ESI Notification of Rs. 15000/- & Workmen Compensation Minimum Wage Amendment 8000/-
Dear All,
Ours is a Security Agency & providing Man power all over Mharashtra & operating from Kolhapur ( Head Office) , in some cases we do not have branch Office/ Office but the persons are employed. We have the ESIC code but how we can obtain the Sub code without Branch office for the benifit of the employee.
Pl guide Me
27th August 2010 From India, Bangalore
Dear Mr Patel
Since your establishment is covered, all security guards and other employees,( drawing Rs 15000 per moneh or below) whereaver they may be employed are to be registered. However, those actually working in areas where the ESI scheme is Not implemeted for more than seven months in a year will be deemed to be exempted. Several rural areas are yet to be implemented and you can get a list from ESI office. You can keep a register for such person showing the address of their work place. For rest of them nearest ESI branch office will be deemed to be their branch office. Please contact your Kolhapur ESI office, where I think an SRO may have opened or in any case there is a branch office.
Abdul Hameed
Formerly Addl Commissioner ESIC
28th August 2010 From India, Coimbatore
Respected Seniors,
I am working in a manufacturing company. My boss demand for any thing related to esi & pf & Bonus etc they demand for govt. notice.
Plz send me govt. notification regarding the round off in deduction of ESI & EPF.
29th July 2011 From India, Chandigarh
Hello Abdul sir,
Thanks a lot for your information on ESI & WC Policy...
However i need to have one clarification especially on drivers coverage. usually every vehicle is covered with comprehensive insurance where in drivers are also part to it. still do we need to take WC policy or ESI coverage for drivers.
18th April 2013 From India, Mumbai
Dear All,
Greeting of the day.
One of my employee expired in an accident happened in company premises. His gross salary was more than Rs. 15000/- during his one year working with our company. As he was not covered in ESI ,so in that case company is responsible for any kind of compensation or benefit to him or his family?
Waiting for your appropriate guidance.

26th September 2013 From India, Gurgaon
Dear Sir, Please guide regarding ESIC exemption limit in Secundarabad(Andhrapradesh) Regards, Hiten
3rd October 2015 From India, Mumbai
Dear members,
The thread is more than six years old. Few changes have taken place in ESI Act and limit is also being raised to Rs 21,000/- Therefore, to avoid the confusion, the thread is being closed.
Dinesh Divekar
2nd December 2016 From India, Bangalore
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™