Dear All, We have been working as a Consultant at a PSU. Further, we have given a contract to a transporter for staff vehicle movement. The transporter having WC Policy and having 02 nos. of drivers. But even after, many arguments the client stopping our gate pass every now and then on account of the ESI of the driver, even there is a rule that below ten strength ESI is not applicable. Therefore, kindly share your experience or any decision of a court or else that whether it comes under ESI circumference or not.
It being a consultant for EPCM job, generally, we do not take Labour License.
Appreciate your early response, please. Thanks in advance for your valuable advice & if there is any query or else feel free to drop the same with reference to approaching conclusion.

From India, Jamnagar

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Dear Ritesh,

The HR of the PSU with a different understanding, they considered as your drivers are coming to the factory on regular basis and are of workmen category. The contract awards to carry out certain jobs by you, so all persons are entering into the client's premises shall be considered as your staffs. The contract you gave to a transporter for providing vehicles for staff movement has got nothing to do with the client. The WC Policy is something different than ESI, so this can not be compared. The applicability of ESI is squarely applicable to the drivers considering as your workmen having salary less than 21000 capping.

The Project department of PSU who is the controlling your project should issue letter to CISF to issue Non-CLC Gate Pass for such category of people ( This is a practice at SAIL, Rourkela). Therefore, you need to discuss the matter with the Commandant of CISF through the Project department for a solution. (refer the case as stated above)

The CL (R&A) license is not required, if the agency is doing the award job by his own employee. The license is required for employing workmen other than the employee over 20 or prescribed limit may be of EPCM job.

From India, Mumbai

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