APPLICABILITY OF ESIC TO CONSTRUCTION INDUSTRY IN TAMIL NADU

KINDLY CLARIFY: WHEN THE APPLICABILITY OF ESIC SCHEME EXTENDED TO CONSTRUCTION INDUSTRIES. PARTICULARLY TO ALL THE WORK SITES. ONE ESIC CIRCULAR DT.03/01/2011 ASKED THE DEPARTMENT TO CONDUCT THE SURVEY ONLY. KINDLY CLARIFY
23rd May 2013 From India, Coimbatore

Dear RV Perumal,

According to my knowledge / information, ESIC HQ New Delhi has not taken any decision on implementation of ESIS to construction site workers. The decision is pending till date.

First of all one must know that in ESI Act, there is no exclusion of construction industry or construction workers from ESIS. But there is a practice to not to cover the construction site under ESIS which is well accepted by the Corporation.

However, you are requested to read the circular by ESIC HQ New Delhi : Construction 4/99 very carefully and interpret it correctly. According to it, you have to cover the employees under ESIS other than construction workers who are engaged at site on purely temporary basis. 

Also, if it is established that there is a manufacturing activity carried out at site with the use of machine, you can not escape from ESI liability. Example, in case of installed batching plant at site. 

I came across many such cases wherein the corporation demanded ESI contribution from construction people on various parameters. There is lot of ambiguity in it.

If you decide to fight against the claim by corporation, you have pay first 25% or 50% of the claim amount as a deposit in court. 

WE ARE IN DEMOCRACY.

Members are requested to comments.

( I am sure, the members will not discuss on such issues. )
23rd May 2013 From India, Mumbai