ESI & Workmens Compensation

Respected Seniors,
If a Company/ Establishment has more then 20 employees is it compulsary to cover it under ESI if the number of employees drawing salary less then Rs.10000/- is only one? Also is it necessary to get Workmens Compensation Policy under the Workmens Compensation Act as per law if an Accident Policy has been taken. Would appreciate if this is explained with any judgement.
Thanks and regards,
Dwipna

Dear,
ESI not required.
U have accident policy in ur org. that's good but still WC act can't be neglected in any situation.
More on this pls ask Malik/ Madhu Sir.
Regards
Vipin :icon1::icon1:

dear dwipna
if you have more than 2o employee in your organisation than legally you are required to take ESI code employee .if you see the applicablity clause ,here it is written 20 or more than 20 emloyee,no where it is written eligible employee.you have to take code and if only one employee is eligible than pay for one only.
tks
js malik

Dear Sir,
In the definition of the term factory, it is stated as "persons employed for wages". But according to the Supreme Court judgment in an appeal filed by ESIC in the case of M/s M.M.Suri & Associates Pvt.,Ltd, Delhi, only coverable employees with in the wage ceiling limits are to be counted for 10 or 20 as the case may be and not all the persons employed for wages in the Factory/Establishment. This Judgment dated 28-10-98, has been accepted by the ESIC and adopting since then. But the definition in the Act, remains unchanged. So, if the estt. is having less than 20 coverable employees, they need not register under ESI.They can bring this fact to the notice of the concerned Regional Office, for verification if necessary.
Paid Directors drawing remuneration within the wage ceiling limits are to be counted for this purpose. They are also employees under Sec. 2(9).

The concept of usage of power for manufacturing process has been deleted from the definition of Factory in Sec. 2(12)(a) under the ESI (Amendment) Act 2010, and sub-section 12(b) of Section 2 has been deleted. In effect, all factories employing 10 or more persons (coverable employees) for wages and engaged in a mfg. process in any part of it stands covered. This amendment is yet to come in to force. There is no change in coverage of an establishment, as it is governed by the State Government's notification under section 1(5) of the Act.
Ramana Murty