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Hello members,
i am in a manufacturing company.some of the workers and employees are under ESI Act, but their are also some employees and managers who are not covered under ESI because their wages are higher than ESI ceiling limit.Now my confusion is...Are they employees covered under compensation act or excluded from both Acts?
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Dear Pankaj, who are not cover under ESIC, they are automaticaly applicable as per workmen compensation act. you need to cover them under the Mediclaim & Personal Accident policy.
Those who are not covered under ESI Act will not be automatically covered under EC Act.They will be covered under EC Act only if they falls under the definition of ' employee ' under the EC Act 1923.There is no law in India that employees outside the purview of ESI scheme should be covered under Medical/Personnel Accident insurance scheme.
Vaeghese Mathew
TVM -09961266966
Sir(s),
The definition of term "employee" as laid down in section 2(1)(dd) read with Schedule -II of the Employees' Compensation Act, 1923 is a very long list of persons who are treated as "employees" and are entitled for compensation under said Act. State Govts. have also made some additions in the list.
In my opinion, it may be safe to conclude that those employees who are neither entitled as "employee" under Employees Compensation Act, 1923, nor under ESI Act, 1948 are not entitled for any compensation even though the accident may have occurred during and in the course of employment.
Perhaps such employees in such eventualities may have to approach civil courts by way of civil suits for compensation.
Other than ESI covered employees will be covered under the workmen's Compensation Act provided if they comes under workmen
definition of the Act.
You have to cover medical insurance for the safety of employer.
Otherwise, the employer is responsible for payment of compensation in case of employment injury/death.
It is always better to cover such employees under WC/Medical insurance.
In my view, if an employee is neither covered by ESI Act nor by Emp..Comp. Act, it is advisable to cover them under accident policy of an insurance scheme, failing which the employer renders himself personally liable or the compensation, if the employee pursues the case before any Tribunal or Civil court.
B.Saikumar
In-House HR & IR Advisor

Sir(s),
I understand that the talk of providing of social security at the working place to the employees not covered either in ESI Act, 1928 or under EC Act, 1923 is actually non-existent. It entirely depends upon the discretion of the employer/management whether to pay the compensation or not. To file a case in any civil court and continue contesting the same is a difficult task and further if employer proves negligence or any short-coming at the level of injured officer/employee, he will get no compensation.
Dear all,
A employee falling under the definition of workmen under the Workmen Compensation Act, drawing wages/salary beyond ceiling limits i.e; Rs.15,000/- will definitely entitled for compensation if the injury / death caused during the course of employment.
It is the sole discretion of the management to obtain insurance cover for such employees to avoid any legal financial liability at any stage. There is a provision to obtain policy for gratuity under the payment of gratuity act.
Employyes drwing Rs 15000 or more are not eligible for ESIC. They can be covered under EC/WC Policy in case of ESIC jurdiction notified area. In case of non notified area all should be covered under WC/EC.
Thanks for your valuable replies but their is one more think which i have forgot to mention above that is...the company is also giving them medical in their salary breakups.Now are they eligible or not for compensation?
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