KK!HR
Management Consultancy
+2 Others

Hi! One of our employees wants to waive ESIC as she is holding personal health insurance policy. Is it possible to waive ESIC by a mutual agreement of employer & employee? Please provide your valuable feedback.
Regards,
Gargi Chakraborty
HR
Accompany Group
Benefits of labour law cannot be waived by contract. ESIC can only be waived by taking group policy for all enrolled with special permission from department. Kindly go through this Employee's Covered under ESI Act, 1948 | Indian Labour Laws & Shram Suvidha Simplified
Also go through Employees State Insurance or ESI Act, Rules, Forms, Returns : Simplified: Employee's Covered under ESI Act, 1948
Dear Gargi: As pointed out by LLI, by mutual agreement such legal liabilities cannot be overcome. However, the following provisions of the ESI Act could be considered, if you are genuinely interested to be exempted from the Act.
87. Exemption of a factory or establishment or class of factories or establishments
The appropriate government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.
88. Exemption of persons or class of persons
The appropriate government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any person or class of persons employed in any factory or establishment, or class of factories or establishments to which this Act applies from the operation of the Act.
91. Exemption from one or more provisions of the Act
The appropriate government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.
But in all these cases you have to establish that your establishment is providing benefits at par or better than that is provided under the Act from time to time. It is a herculean task particularly looking to the medical benefits to the whole family, sick leave payment etc.
Dear Gargi,
One need to understand the ESIC and its applicability to an establishment. Why do you want to get rid off ESI. Merely having health insurance policy can not evade the scope of applicability to any establishment. Further, is health insurance policy provides component of MB Act for the working lady ? Whether health insurance policy provide any workmen compensation incase of any accident caused to the workmen.
The proviso of ESIC is not easy to waive by a mutual agreement of employer & employee. You have to fight a long battle with the establishment and you have to prove that your workmen are availing better facility than the provisions under ESIC. In spite of your all efforts, if the appropriate Govt did not waive then you have to move to the High Court of the jurisdictional area for waival. It is not sure to get as per your wish.
In the year 1995 we got waived the ESIC for my establishment but had a long battle of 3-4 years and lot of expenditure.
Regards,
Dear Seniors, Kindly suggest...how a location comes under ESIC non implemented area...what can be the maximum distance from the nearest esic hospital/dispensary for esic implemented area? Furthermore, if esic have empannel doctors in some place but does not have a dispensary in near vicinity, will it be coming under esic implemented area. Regards
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