Dear HR labor law talent sir, The Employees' Compensation Act of 1923 is applicable only to non-ESI employees or to both ESI and non-ESI employees. Kindly provide your valuable clarifications on this.
Thanks,
Chikke Gowda N
From India, Bangalore
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2Thanks,
Chikke Gowda N
From India, Bangalore
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Workmen's Compensation Policy Calculation
Please help me regarding the Workmen's Compensation (WC) policy for employees. I am working as an IR Coordinator in a telecom company. My responsibilities include checking all the IR-related documents of vendors and giving clearance to them. Two days ago, I received an email from my superior stating that any shortfall in the workmen's compensation policy would be proportionately calculated, and such an amount would be deducted from the vendor's bills, with their consent to be obtained on their letterhead.
How can I calculate the premium deposited by vendors as per the minimum wages of skilled and unskilled labor? Vendors deposit their premium on a yearly basis and provide the slip. From that, how can I calculate the same? Please suggest with an example.
I sincerely request everyone to please help me regarding this. I am also attaching one vendor's WC policy so that you can show me the calculation for the same. I sincerely request everyone, please help me regarding this.
Regards,
From India, Bhubaneswar
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Please help me regarding the Workmen's Compensation (WC) policy for employees. I am working as an IR Coordinator in a telecom company. My responsibilities include checking all the IR-related documents of vendors and giving clearance to them. Two days ago, I received an email from my superior stating that any shortfall in the workmen's compensation policy would be proportionately calculated, and such an amount would be deducted from the vendor's bills, with their consent to be obtained on their letterhead.
How can I calculate the premium deposited by vendors as per the minimum wages of skilled and unskilled labor? Vendors deposit their premium on a yearly basis and provide the slip. From that, how can I calculate the same? Please suggest with an example.
I sincerely request everyone to please help me regarding this. I am also attaching one vendor's WC policy so that you can show me the calculation for the same. I sincerely request everyone, please help me regarding this.
Regards,
From India, Bhubaneswar
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Applicable only for non-ESI employees. If an employee is covered under ESI, the provisions of the ESI Act apply. If not covered by the wage limit or by being employed in a non-notified area, they will be covered under the Employees' Compensation Act.
Regards
From India, Chennai
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Regards
From India, Chennai
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This is for your information that the ESI Act provides a host of benefits, including accidents arising out of and in the course of employment. The coverage of accident cases is limited only to the insured persons. The wage limit for coverage under the ESI Act is Rs. 15,000 only. It is, therefore, essential that accident victims should have some coverage under another scheme. It may so happen that sometimes an establishment is existing in a non-implementation area of the ESI Act. Once they are out of the purview of the ESI Act, the Employees' Compensation Act, 1923 comes into play. The accidental benefits are provided under this Act. It is, therefore, clear that the Employees' Compensation Act, 1923 is applicable for the exempted employees as defined under Section 2(11) of the ESI Act. I have also come across some cases where employers take insurance policies for the coverage of accident cases of their employees.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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The Workmen's Compensation Act of 1923, also known as the Employees' Compensation Act, has established certain provisions regarding accident compensation. An accident must arise out of and occur in the course of employment. The Act is not related to an insurance policy. By obtaining a Workmen's Compensation (WC) policy with an insurance company, the responsibility of paying compensation in case of an accident (as mentioned above) will lie with the insurance company. Vendors who are not working within your establishment do not require a WC policy. However, since superiors have requested you to address this issue, you may ask vendors to provide the WC policy of their employees. Contact the insurance company to inquire about the premium for the WC policy, which is determined based on factors such as strength, category, and salary.
I trust this information is adequate.
Regards,
SDP
From India, Kolhapur
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I trust this information is adequate.
Regards,
SDP
From India, Kolhapur
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Understanding ECA and ESI Applicability
WCA, now known as ECA, and ESI are mandatory and applicable in all circumstances, subject to their respective legal limitations. I will only comment on your doubt, which is: If the employee is working or the company is situated in a notified area under ESI, in such a case, ESI is a statutory compulsion, and there is no alternative to it. If any area is not notified to be covered under ESI, in such a case, it is the statutory liability of the employer to cover the employee under ECA.
Also, you should know that no employee can claim under both laws; they can only claim under one, even if covered under both.
From India, Chennai
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WCA, now known as ECA, and ESI are mandatory and applicable in all circumstances, subject to their respective legal limitations. I will only comment on your doubt, which is: If the employee is working or the company is situated in a notified area under ESI, in such a case, ESI is a statutory compulsion, and there is no alternative to it. If any area is not notified to be covered under ESI, in such a case, it is the statutory liability of the employer to cover the employee under ECA.
Also, you should know that no employee can claim under both laws; they can only claim under one, even if covered under both.
From India, Chennai
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ESI Act and Accident Compensation
Employees covered under the provisions of the ESI Act 1948 are barred from claiming accident compensation under section 53 of the ESI Act 1948.
Regards,
RL Dhingra
Advocate, Labour Law Consultant, Delhi
[Phone Number Removed For Privacy Reasons]
E-mail: [Email Removed For Privacy Reasons]
From India, Delhi
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Employees covered under the provisions of the ESI Act 1948 are barred from claiming accident compensation under section 53 of the ESI Act 1948.
Regards,
RL Dhingra
Advocate, Labour Law Consultant, Delhi
[Phone Number Removed For Privacy Reasons]
E-mail: [Email Removed For Privacy Reasons]
From India, Delhi
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Applicability of WC/EC in ESI and Non-ESI Areas
WC/EC is applicable in both cases, i.e., ESIC notified area and non-notified area. The only difference in the case of an ESI notified area is that if anyone is drawing gross wages of more than Rs 15,000 per month, then they will not be covered under the ESI Act. In this scenario, WC/EC is mandatory. The Workmen's Compensation Act has been renamed as the Employee Compensation Act now.
Regards,
ANAND
From India, Mumbai
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WC/EC is applicable in both cases, i.e., ESIC notified area and non-notified area. The only difference in the case of an ESI notified area is that if anyone is drawing gross wages of more than Rs 15,000 per month, then they will not be covered under the ESI Act. In this scenario, WC/EC is mandatory. The Workmen's Compensation Act has been renamed as the Employee Compensation Act now.
Regards,
ANAND
From India, Mumbai
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Can we replace ESI with WCA ? Can we have only one scheme out of above two for regular as well as contractual woekers?
From India, Jaipur
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From India, Jaipur
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[QUOTE=Bamzai;2075027]
Can We Replace ESI with WCA?
Can we have only one scheme out of the above two for regular as well as contractual workers?
Please go through this discussion before considering such possibilities. Laws are set and need to be followed as intended; you do not have the freedom to pick and choose according to your convenience. Please read the Act first if you have doubts and aim to have some basic knowledge. It will help you understand what is advised in this discussion.
From India, Chennai
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Can We Replace ESI with WCA?
Can we have only one scheme out of the above two for regular as well as contractual workers?
Please go through this discussion before considering such possibilities. Laws are set and need to be followed as intended; you do not have the freedom to pick and choose according to your convenience. Please read the Act first if you have doubts and aim to have some basic knowledge. It will help you understand what is advised in this discussion.
From India, Chennai
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No, we cannot replace ESI with WC. If any area is covered under ESI and any employee's salary is less than Rs. 15,000 per month, then ESIC is mandatory. If the salary is more than Rs. 15,000, then WC/EC will be applicable. Otherwise, WC/EC will apply.
Regards,
ANAND
From India, Mumbai
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Regards,
ANAND
From India, Mumbai
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ESI Scheme vs. WC/EC Act Coverage
The workman who is covered under the ESI scheme is not required to be covered under the WC/EC Act. In other words, the WC Act is applicable in cases where the ESI scheme does not provide coverage.
There are many areas and locations in our country where ESIC does not exist and has not been able to provide coverage. In those areas/locations, coverage must be provided under the WC Act.
Benefits of the ESIC Scheme
The ESIC Scheme provides social security benefits such as medical treatment, post-death benefits, pension for dependents, etc.
Benefits of the WC Policy
The WC policy provides cash compensation to the nominee of a deceased workman.
From India, Mumbai
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The workman who is covered under the ESI scheme is not required to be covered under the WC/EC Act. In other words, the WC Act is applicable in cases where the ESI scheme does not provide coverage.
There are many areas and locations in our country where ESIC does not exist and has not been able to provide coverage. In those areas/locations, coverage must be provided under the WC Act.
Benefits of the ESIC Scheme
The ESIC Scheme provides social security benefits such as medical treatment, post-death benefits, pension for dependents, etc.
Benefits of the WC Policy
The WC policy provides cash compensation to the nominee of a deceased workman.
From India, Mumbai
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Dear Rakesh, From the nascent point of view, let me understand the following:
a. What do you mean by the term 'Proportionately'?
b. Does the work area come under the ESI Notified area?
c. How is the Principal Employer planning to mitigate the risk? Do you have any master policy?
Anyways, do call me at [Phone Number Removed For Privacy Reasons]. I hope I can give you certain tips to move forward.
With regards,
Jayesh
From India, Bangalore
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a. What do you mean by the term 'Proportionately'?
b. Does the work area come under the ESI Notified area?
c. How is the Principal Employer planning to mitigate the risk? Do you have any master policy?
Anyways, do call me at [Phone Number Removed For Privacy Reasons]. I hope I can give you certain tips to move forward.
With regards,
Jayesh
From India, Bangalore
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Dear Seniors,
Can we opt for the Employee Compensation Policy instead of ESIC for an employee who is earning a salary of less than 15,000 in ESI notified areas? Please clarify this for me. My manager mentioned that the employee must be insured, regardless of whether it is through ESI or PF. I believe my manager might be mistaken.
Regards,
From India, Bhubaneswar
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Can we opt for the Employee Compensation Policy instead of ESIC for an employee who is earning a salary of less than 15,000 in ESI notified areas? Please clarify this for me. My manager mentioned that the employee must be insured, regardless of whether it is through ESI or PF. I believe my manager might be mistaken.
Regards,
From India, Bhubaneswar
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No If it is ESI notified area, the organization has no other option Coverage under ESI is mandatory.
From India, Chennai
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From India, Chennai
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If I am not wrong, the Employees' Compensation Act is an alternative arrangement to cover employees in lieu of ESIC where the ESIC Zone is not declared. However, the ESIC Act also provides for opting for any other insurance cum mediclaim scheme that offers better facilities and welfare benefits than what ESIC offers. One must take appropriate exemptions under the act. After approvals from the ESIC department, one can opt for any other better welfare scheme instead of ESIC.
Thanks and warm regards,
Bijay
From India, Vadodara
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Thanks and warm regards,
Bijay
From India, Vadodara
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EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf
Workmen's Compensation Act 1923.doc