Hr, Ir, Law, Disc. Matters
Agm (p&a)
+3 Others

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Respected seniors
This is Ramu working in manufacturin industry. I need some clarification on WC policy.
When we engage a contract labour for temporary works i.e 3 or 4 months miscellenous works, getting workmen compensation policy instead of register under ESIC valid or not.
Whether the WC policy is valid instead of ESI even if the industry have ESI coverage.
So many contractors are doing like this neary by our surrounding industired. It is legally valid?
Please give me valuable adivise in this regard
With regards
With regards

From India, Vijayawada
Dear Ramu,
If the premises where you employ Contract labour is covered by ESI scheme and their wages are below Rs15001/pm ,they have to be insured under ESI.If not EC Act is applicable if they are employee under schedule 11 of the Act.Note that insurance under EC Act is not mandatory.

From India, Thiruvananthapuram
Dear Ramu: Since the work is performed at ESI covered location, the fact that the work performed is for a limited period or that the contractor has a WC Policy does not absolve you of the liability under ESI Act. Whenever ESI Inspector would come for verification he can insist on payment of contribution for the past period for such contract labour as it is the Principal Employer's liability to ensure this. This particularly so, since the contractor does not have independent ESI registration

From India, Bhopal
Dear Sir,
It is absolutely correct as mentioned by Sh KK Nair that if any industry is covered by ESIC, the contractor's employee will also be required to be covered under ESIC irrespective of period of his contract . The ESIC Inspector during his inspection will certainly ask for the payment of contribution in respect of such contractor for the period inspection in spite of having their WC Policy.

From India, Gandhidham
Dear Friend,
Please note that WC Insurance is not a substitute for ESI. Where employees are to be covered under ESI they must be covered. WC insurance is only useful where employees are not covered under ESI, though not mandatory.

From India, Hyderabad
Dear friends, it is added that the Estt./ Factory covered under ESIC is absolved from compliance of Employees' Compensation Act.
From India, Gurgaon
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