Navigating ESI Claims: Is Your Company Liable for Half the Salary After a Workplace Accident?

Dear Sir,

Please help me with the following situation. In my company, a worker faced an accident two months ago. Since then, he has been receiving treatment at the ESI hospital. He now claims that the company will pay half of his salary (basic + DA), and the other half will be covered by ESI due to his absence from work.

Could you please guide me on the legality of this matter?

Regards,

No, the employer is not supposed to pay anything regarding his salary. The ESI department will handle the payment, and on your attendance registers, he must be marked as on ESI leave.

Regards,

Pankaj Chandan

Dear Shekhar,

He cannot claim anything from the company. The company has already paid his contribution to ESIC. The compensation has to be paid by ESIC only.

Sangeeta

The employee, who is covered under the ESIC Act, is liable to get compensation from the ESIC only in case of any accident and leave thereafter. No liability goes to the employer for payment of leaves and expenses incurred on medical treatment.

Regards,
Sivadasan

Under the ESI Act, in case of an accident or hospitalization, all the amount would be recovered from the insurance. The company is under no obligation to pay even a single Rupee for the same. Kindly refer to the Employee State Insurance Act, 1965, for the details.

Dear Shekhar,

I too agree with the above replies, and I suggest you to go through the ESIC Act of 1965.

Jai Bakshi

Dear Shekar,

There is no need for the company to pay since we are contributing to ESI. He will be receiving the amount from ESI.

Dear Shekhar,

If your hospitalized employee is asking for salary from the employer, then he must be told to apply for leave in writing duly approved by his immediate superior. Whatever leave is available in his leave account may please be given to him (if payable); otherwise, he may be told to go on Leave without pay. You must tell him the reason that either he can avail ESI benefits or benefits through the employer (paid and unpaid leave); he is not entitled to both benefits.

Thanks,
Amit Anand Gera

The company is not bound to pay anything as they have already paid the contributions of both parties. Now it is the insurance company's liability to pay him the applicable benefits and leave as per the ESI Act.

Dear Friends,

As per the act, the ESIC has to pay the benefits. Management does not need to pay anything. However, it is left to the discretion of the management to pay or not to pay. Some management goes out of its way to help its employees.

Manjunath G.K.

An employee who works in an establishment covered under the ESI Act and is also covered is not eligible for receiving salary while on ESI leave. If salary is paid during this period, the corporation will ask the employer/employee to refund the amount, as enjoying double benefits is not allowed.

Hello dear,

I have gone through your problem. First, let me know if the company has any policies in place in case of ESI coverage employees experiencing a salary shortage, which is to be paid by the company. In certain companies, this is paid as a furlough allowance to cover the remaining amount of salary.

If you do not have such a policy, then in the event of an accident occurring during working hours, you need to ensure that any necessary payments are made and that an accident report is sent to the ESI authority.

Himanshu

Please confirm whether the employer contribution towards ESI is 4.75% of the gross salary, and the employee contribution is 1.75% of the gross salary.