Esi Applicability To Construction Employees - DOC Download

Dear all,

I am herewith attaching the recent circular issued by ESIC, New Delhi which speaks that due to recent computerisation and concept of Anywhere and Anytime, ESIC is not putting any bar for coverage of Construction workers........

In view of the above circumstances, its my personal opinion that we can cover the construction workers also....but how far you maintain the records relevant to their employment and wages for the requirement of ESI Authorities inspections is important.....

I would like to comment that in case we consider the given circular in a positive side of extending the scheme to a part of unorganised sector, the construction companies better to include the site workers also in their attendance and wage registers.... but how many companies are dare enough to do such good practices......as it give new issue of extending EPF also to such employees and double their burden of contribution under EPF........

So, if you are really keen on the welfare of the construction workers you please approach the concerned Regional offices of ESIC and extend the scheme to such workers in your organisation..........

All the best.......

Dear Rahul,

Firstly, the existing wage limit for coverage under ESI Act is Rs. 15,000/- per month, which has been in effect from 01/05/2010.

Secondly, let's understand the applicability of ESI Act. As a matter of fact, ESI Act, 1948 is applicable to all the industries if they are falling within the jurisdiction of ESIC limit, no matter whether is it a construction company or a manufacturing company. You would appreciate that Under Section 2(12) the Act it also applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, ESI Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings and newspaper establishments employing 20 or more persons.

Further, under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States /UTs.

ESI Act is applicable to construction industries also. ESI is mandatory and applies to all the ESI applicable employees (Wages less than Rs.15 K per month) whether they are direct or indirect employees. Contractors cannot escape from their responsibility by telling that they have covered their employees under Group Personal Accident Policy. (GPAP is cheap, hence contractors prefer to go for this policy). Contractors can have GPAP only where ESI is not applicable or in the industries /establishments which are out of ESIC limit.

Let me caution you also that in event of any accident /mishap happening to a workman of a pety contractor particularly, he may run away or may not treat his accidented employees and under such circumstance, entire liability for his treatment will fall upon the principal employer and entire treatment expenses will have to be borne by the principal employeer. Secondly, at the time of inspection by ESI authorities even after many years, ESI sleuths will dig up huge recovery and you will have to bear those recoveries with penalty as being a principal employer (during the inspection after so many years, those contractors may not be working with the establishment, hence, chance of recovery of such recoveries may not be possible also)

Hence, it is imperative that contractors must ensure that all construction workers fill up Form No. 1 (Declaration Form). HR Department /Security Office after checking that forms are properly filled up, should allow enrty of such workmen. These duly filled up forms can be submitted to ESIC within 10 days of joining of the workmen. This is a critical activity and a HR Manager must play a strict role and force the contractors to adhere to basic requirements as required under ESI, Act, 1948.

Rgds,

Rakesh Pd Srivastav

Hello sir,
Please help me how to withdraw EDLI Charges from the company my father have with drawn provident fund and getting pension now he has expired. what are the forms to be filled to withdraw edli charges
rajesh kumar

Dear All,
Thank you for the information shared through this thread. Since I am also associated with construction industry ; the very link has provided me a lot of information of my arena.

ESI is applicable on Construction Industry, you can check it out with the ESI Dept., I have done so.

Thank you for the knowledge sharing, but it is not clear by law Construction Industries are applicable under ESIC Act or not? Can any one give constructive reply with relevant Judgement or Notification or any bodies are dare to challenge suppose any officers are trying to cover this Industry. Waiting for valuable reply
Regards

It is really a confusion that after enclosing the official circular some of our friends are not willing to accept the fact that esic is applicable on construction industry please do accept.
Thanks & Regards,
From,
Sumit Kumar Saxena

Dear All,
Now I want to confuse you more with below given link. I request you to kindly go thr' it and particularly my postings and discuss. I expect intelligent discussions.
https://www.citehr.com/454925-esi-recent-act.html

Dear Sir,
I am in construction Industry and we have covered all the staff both working in Office and Sites. But for labourers (contract employees) we have taken W.C.Policy. Kindly let us know what is the latest development on this issue i.e regarding coverage of construction workers under the provisions of ESI Act.as this information is more useful to me.If there is any latest circulars/notification in this regards may kindly please shared
With Regards
R.Pavithra

If a non esic unit is getting some construction done at its premises with 6-7 people will it be enough if they take a policy for these workers under workmen compensation act ?
or
Do they have to take excise registration. They currently have no other employees on payroll.