We engaged two contract workers at the construction site for the plantation of trees. In the tender, it was mentioned for ESI /WC policy both if applicable but not clearly mentioned which policy to go for. Due to a misunderstanding in tender documents, we took ESI and our workers worked for two months under the ESI scheme.

Now on submission of bills HR department objected and told for WC/Mediclaim for workers as the site is under construction state and ESI is not applicable. After that, we took WC and Mediclaim policy for our two workers after two months. We need help with how to resolve this matter as Hr is not doing anything to resolve the issue and our bills are stuck. During the Corona period, things are getting worse. Workers got payment less than 10,000.00 per month as per minimum wages for performed duties.

From India, Lucknow
Management Consultancy

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ESI would be applicable if the construction site happens to be in ESI notified area, so first of all check whether this area falls within the ESI covered area. If it is so, then the ESI contribution is to be reimbursed, otherwise, you can apply to ESI Corporation for refund/adjustment of contribution for a later period but in all likelihood, it won't be accepted. Or else you can treat this as a business loss and bear with it.
From India, Mumbai

The HR of your principal employer is confused or lacking knowledge. The WC policy is taken where ESI is not applicable.

You take up the matter with the head of Principal employer or with the project head of your contract. You have to file a case in claim of your payment, if things not sorted out.

From India, Mumbai
Contract workers at construction site not entitled to ESI as per judgement and holdup by Supreme Court regarding ESI benefits to contract workers at construction site.
The principal employer did not mentioned that the site is under construction and contract workers are not entitled for ESI therefore WC/Mediclaim is necessary.

From India, Lucknow

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