ESIC And WC Not Applicable - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Psmoholkar
Labour Laws
K.LOGANATHAN
Freelancing
Harkishantanwer@gmail.com
Senior Manager-hrd
+2 Others

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Our factory is covered under ESIC and few of workers involved in the manufacturing process are out of the ESIC coverage because of their wage more than 15000 PM. And under sub section 3 of section 10B of Workmen’s Compensation Act,1923 (Chapter II) whereby there is specific denial of applicability of WC to the factories to whom ESIC is applicable.
My question is if any accidental death happens inside the factory and ESIC benefit is not applicable due to wage more than Rs.15000/- PM and also Factory is outside the perview of Workmen's Compensation Act, 1923 will any other law applies for this please clarify.

1. Sir, Section 10-B of Employees' Compensation Act, 1923(ECA) is only relating to "Reports of fatal accidents and serious bodily injuries". This section does not say about exemption of employees from the purview of said EC Act where ESI Act, 1948 is applicable.
2. Kindly see section 53 of ESI Act , 1948 which specifically bars claims of employees for claiming of benefits under WCA (now ECA) "in respect of an employment injury sustained by the insured person as an employee under this Act"
3. Kindly also see the decision of Hon'ble Supreme Court in the case: A.Trehan vs. Associated Agencies AIR 1996,SC,1990. Therefore, those employees getting wages exceeding to Rs.15000/- and falling under schedule II of ECA, 1923 are entitled for compensation under said EC Act, 1923.

Dear Sir,
AS the company is covered under the ESIC, the employees covered under ESIC do not come under the purview of Workmen Compensation act. However, the employees out of the ESIC coverage automatically fall under the workman compensation act. It is better to get a group accidental policy for such employees to be on safer side.

Dear Sir
It is one thing to implement the law and another to do what is right.it is important to believe that in the event of an accident in the person the management should come forward to help the victim irrespective of the laws nd HR should ensure this.

You are confused & hence your question is confusing. No factory can be outside purview of WC Act, only employees (drawing < 15000 pm) can be out of purview of WC Act.
All the employees drawing the salary/ wages less than 15000/- per month should be covered under the provisions of the ESI Act. Anybody drawing more than Rs. 15000/- per has be covered under the WC policy. The applicability of the ESI to the area is of no consequence for the WC policy for exempted employees drawing wages/ salary of more than Rs. 15000/- PM.
Dear Concern,
if the employee is not cover under esi act (exempt from esi) in such cases there is involvement of WCA Either company is coverd under the act or not b'cos acoording to low any worksman has been injured or dead by contengency happnings then WCA act against the employer,
when i worked with bhushan steel limited at taht time one our employee was injured and got death due the fire
how ever he was exempt from esi but WCA case against the company for pay the wages and provide the insurance to dependents

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