Our company is registered in an implemented area, but the contractual employees are working in another state in a non-implemented area. Will the ESI Act be applicable to us? We have purchased a WC Policy for those employees. The ESI department has informed us that we are liable for ESI deduction, contribution, and payment under the ESI Act 87 & 88.
From India, Kolkata
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From India, Kolkata
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Normally, if the workers are working in a non-implemented area, then they will not be covered. However, to establish this, their names should not be available in the muster roll of the company that is set up in an implemented area. In short, if you have an office in that state (non-implemented area) and the names of these employees are available in the muster roll of that branch office, then they could be out of ESI. On the other hand, if their names are listed under your office, which is an implemented area, then you have to establish that they are working in a non-implemented area by providing orders that specify their place of work.
From India, Kannur
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4483From India, Kannur
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Hi Anup,
Based on the information you provided, it seems that the Employees' State Insurance (ESI) Act is applicable to your company. Here's why:
Contractual Employees:
Your company employs contractual workers; the ESI Act may be applicable, regardless of whether they are working in an implemented or non-implemented area. The Act covers both permanent and contractual employees.
Work in Non-Implemented Area:
The ESI Act is applicable pan-India. It doesn't matter if the work is being done in a non-implemented area; if your employees fall under the scope of the Act, you may be liable for ESI deductions and contributions.
ESI Deductions and Contributions:
As per the ESI Act, both the employer and the employee are required to make contributions towards the ESI scheme. The employer's contribution is higher than the employee's.
ESI Department Communication:
If the ESI department has conveyed to you that you are liable for ESI deductions, contributions, and payments, it's important to take this seriously. Ignoring their communication could lead to legal consequences.
Workmen's Compensation (WC) Policy:
While you have a Workmen's Compensation Policy, this provides coverage for accidental injuries and occupational diseases to your employees. It is separate from ESI, which is a social security and health insurance scheme.
Thanks
From India, Bangalore
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Based on the information you provided, it seems that the Employees' State Insurance (ESI) Act is applicable to your company. Here's why:
Contractual Employees:
Your company employs contractual workers; the ESI Act may be applicable, regardless of whether they are working in an implemented or non-implemented area. The Act covers both permanent and contractual employees.
Work in Non-Implemented Area:
The ESI Act is applicable pan-India. It doesn't matter if the work is being done in a non-implemented area; if your employees fall under the scope of the Act, you may be liable for ESI deductions and contributions.
ESI Deductions and Contributions:
As per the ESI Act, both the employer and the employee are required to make contributions towards the ESI scheme. The employer's contribution is higher than the employee's.
ESI Department Communication:
If the ESI department has conveyed to you that you are liable for ESI deductions, contributions, and payments, it's important to take this seriously. Ignoring their communication could lead to legal consequences.
Workmen's Compensation (WC) Policy:
While you have a Workmen's Compensation Policy, this provides coverage for accidental injuries and occupational diseases to your employees. It is separate from ESI, which is a social security and health insurance scheme.
Thanks
From India, Bangalore
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Job Work-outwork employees.docx
EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf