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korgaonkar k a
2556

Dear All,

Latest and Very important news article clipping on ESI to construction workers:

Dated: 17.07.2015

Employees' State Insurance Corporation (ESIC) will cover the construction workers to enable them to avail benefits of medical care as well as a range of cash benefits in times of exigencies of injury, death, disablement, maternity and unemployment.

The construction workers are considered to be part of unorganised sector, but keeping in view, the fact that they are highly prone to accidents and sickness, the Central Government has decided to go ahead in extending the coverage of ESICs social security to them, an official statement said here today.

Construction activity has been covered by the ESIC under Sec.1(5), treating them as commercial establishment. The coverage under ESIC to a construction unit will be extended u/s 2(12) also, if, in any part of the construction unit, manufacturing process, as defined under Factory Act, is carried on.

Now, the Corporation is going ahead with coverage of construction workers.

It may also be noted that the Aam Aadmi Party(AAP) Government in Delhi, as well as Karnataka Government, have earlier requested ESIC for an extension of its coverage to construction workers.UNI VV KVV AK 1620.

From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sumitk.saxena
Service/manager-hr
Nathrao
Insolvency N Gst Professional
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Ashutosh Srivastava
Sr. Manager Hr & Complaince
+1 Other

Harsh Kumar Mehta
923

1. Sir, kindly link the copy of news item on above subject, in which it is published about proposal of ESIC to cover the construction workers.
2. So far as I understand, construction workers/employees working in already covered units/factories are already covered under section 2(12) of ESI Act, 1948. However, construction workers working purely in construction units on sites are not covered under said Act, because ESIC treat such establishments as a separate establishments i.e. neither shops, nor cinemas........ etc. as already notified in majority of States.
3. In addition, I think, Maharashtra Govt. is not showing any interest in extending scheme under section 1(5) of said Act except as already notified in the years during, I think 1975-1980. Therefore, as per delegation of powers is concerned only State Govts. are empowered to extend the scheme under section 1(5) of said Act. Central Govt. has no locus standi to extend the provisions of ESI Act to construction units u/s 1(5).

From India, Noida
Harsh Kumar Mehta
923

1. Dear Korgaonkar ji, thanks. I have also searched out the said Press Note dt. 17/7/2015 of ESIC from their website.
2. I am doubtful if the proposal to cover construction workers (on sites) under ESI Act, 1948 will be successful or accepted by the State Govts, which are appropriate Govts. under section 1(5) of said Act.
3. The reasons being the construction workers/employers (builders) are covered under Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. This Act is a complete code in itself and also provide for safety and health measures for the construction workers. In addition, the Builders are also required to pay about 1% as cess on the total cost of construction. Therefore, no Builder will like to pay both i.e. employers contribution under ESI Act as well as above cess under BOCA.
4. In addition, I think, no State Govt. will like to stop it's own source of revenue in the form of cess as mentioned above. Let us wait.

From India, Noida
sumitk.saxena
252

Dear sir, Greettings for the day, A letter in the matter is enclosing for your reference. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
Attached Files (Download Requires Membership)
File Type: pdf ESI Notification construction.pdf (180.6 KB, 333 views)

korgaonkar k a
2556

Dear Sumit ji,
May I know the reason of posting old circular 4/99 by ESI dated 14.06.1999 here in this thread?
Dear Harsh Kumar ji,
ESI Act and BOCW Act are two different enactments and object of both are different & separate. There is no substitution to ESIS or ESI Act. Hope you will agree to it.
In light this, I would like you to review your above statement. I wanted to write on it but I can not do so right now. I am undergoing some health therapy.

From India, Mumbai
nathrao
3131

ESI to cover construction workers

Extract:

Employees' State Insurance Corporation (ESIC) will cover the construction workers to enable them to avail benefits of medical care as well as a range of cash benefits in times of exigencies of injury, death, disablement, maternity and unemployment.

The construction workers are considered to be part of unorganised sector, but keeping in view, the fact that they are highly prone to accidents and sickness, the Central Government has decided to go ahead in extending the coverage of ESIC’s social security to them, an official statement said here today.

http://www.esic.nic.in/CIRCULARS/RevII-030111.pdf

The matter of extending the benefits under ESI Act, 1948 to construction site workers

have been examined at stretch and it is decided to revisit the Instruction No. 4/99 circulated

vide letter no. P-12(l1)-11127/99-Ins.IV dated 14thJune 1999.

The Construction site workers who were kept out of coverage of ESI Act till date can

now be covered with the implementation of IT Roll Out "Any time, Anywhere". ESIC services

will be available to these mobile and migratory workers with no geographical barrier.

Whether ESI Applicable to Construction Workers engaged by

This move is good as such the workers have no real protection from death and disease.

Many construction sires remain dangerous,though for name sake placards are displayed-wear helmet,use belts etc.

Children keep playing amidst the work in dust,open pits etc.

From India, Pune
vsyamprasad
84

Dear Members....
Mere Press Note will not make it a mandatory....we have to await for the Official Gazzettee extending the Scheme to the Construciton workers...........
Further the extension of the scheme to un organized sector workers under ESI Act is not as easy as one thinks.....
Since employers are supposed to maintain attendance and wage registers......and the wages component should also be matched in their
books of accounts, as it plays vital role at the time of the inspection of the respective units.... its very difficult to any construction company to main or monitor such records for such workers..........
No doubt its a good move but we have to see how far its practicable...
With regards,

From India, Hyderabad
nathrao
3131

There are and will be difficulties in extending the scheme to construction workers.
But the very fact that it is being done will be beneficial to workers who are left to mercy of contractor in case of illness etc.
We read of deaths due to slab collapse and injuries etc.
Slowly but surely the workers will start getting some sort of cover and treatment.

From India, Pune
Ashutosh Srivastava
9

Instruction No. 4/99 circulated vide letter no. P-12(l1)-11127/99-Ins.IV dated 14thJune 1999. any update on this, are construction workers eligible for ESI , any notification please share.
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf ESI Notification construction.pdf (180.6 KB, 0 views)

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