Dear Sirs
In factories, we have certain vendors coming for small time activities like welding, maintenance or some small time project work. The vendors have certain employees whose work is casual in nature & they just work for 2 to 3 days but at high daily wages like Rs 600, 700 & more. If such employees have daily wages more than Rs 577 (monthly Rs 576.92 x 26 days = Rs 15000) then will they be considered out of purview of ESIC & covered under WC policy?
Please help

From India, Aurangabad
Dear Sirs
In factories, we have certain vendors coming for small time activities like welding, maintenance or some small time project work. The vendors have certain employees whose work is casual in nature & they just work for 2 to 3 days but at high daily wages like Rs 600, 700 & more. If such employees have daily wages more than Rs 577 (monthly Rs 576.92 x 26 days = Rs 15000) then will they be considered out of purview of ESIC & covered under WC policy?
Please help

From India, Aurangabad
When such employees go out of the coverage of ESI Act by virtue of their higher rate of wages, they are covered by the provisions of the Employees Compensation Act,1923 though their employment is casual.
From India, Salem
1. Sir, your argument may be correct theoretically, but it is a common knowledge that the so called casual and temporary employees are hardly paid even minimum wages as is fixed by any appropriate state govt. This lacuna is being perhaps misused by employers to evade coverage under ESI Act, 1948 and rules/regulations framed thereunder in respect of casual and temporary employees.
2. However, if position as mentioned by you is correct, then I think, the remarks of Sh.Umakanthan53 as above appears to be correct. However, as per rule 50 of ESI (Central) Rules, 1952, the exemption limit is based on monthly basis and not on daily basis. Therefore, it can also be enquired into from said contractors as to how much amounts of wages the so called casual and temporary employees have been paid during the whole month from other sources.

From India, Noida
Once an area declared as 'revenue area' by ESIC, in that case, all establishment having manpower 20 and more of that area automatically come under purview of various provisions of ESI act. No WC is applicable in lieu of ESIC.
From India, Patna
Dear friends, I wish to add that there is no provision to calculate a Daily Limit/ ceiling. The employer has to see whether the worker has been paid Rs, 15000/ or more in a month or otherwise hence the above said workers are coverable under ESIC.
From India, Gurgaon





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