(13) â immediate employer â in relation to employees employed by or through him, means a person who has undertaken the execution on the premises of a factory or an establishment to which this Act applies or under the supervision of the principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the factory or establishment of the principal employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory or establishment and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarily lent or let on hire to the principal employer 1[and includes a contractor].
Thank You for your responses.
Could you also specifically comment on point 3 in relation to a medi claim policy. If we have a handful of contract workers on our premises who do not fall under the ESI provision as their salaries are above 15000/month, I think the next best option would be to have the Contractors take a Worker's Compensation policy. Since Worker's Comp only covers injury, death, disablement caused during the course of work, a medi claim policy would also be good as it provides cover for general day to day illness and hospitalisation. Under ESI, the coverage is wide and it covers illness, hospitalisation as well as injury, death, disablement.
However, I am wondering if it is necessary to have the contract employees have a medi claim policy. It is a value add and a good benefit but as a company (principal employer), are we liable under law to have benefits in the form of a medi claim policy. Isn't it enough if they are covered under Worker's Comp. In this way, our liability to have the employees safety while working on the premises is covered.