Navigating Workmen Compensation and Licensing for Casual Workers: What Are the Requirements?

Dear Friends,

Please tell me if an organization providing ESI and PF to its employees is required to offer workmen compensation insurance policy as well. Additionally, I would like to know if an organization that requires casual laborers at the site for one or two days needs to have a contractor's license, even if they have fewer than 20 casual laborers, but the total permanent employees exceed 20.

Can we obtain an unnamed workmen compensation policy for casual workers considering that the casual workers change on a daily basis?

Please respond to my queries.

With regards,

Hello friend,

If your company has ESI registration, then there is no requirement of the WC Act of 1923.

Regarding casual labor, you should provide full details on whether they are contract labor or casual labor.

Ramu Rayagiri
Personnel
HAL, Maharashtra

The Workmen's Compensation Act is applicable only in cases where ESI is not applicable, as rightly pointed out by Ramu.

Secondly, if you are hiring labor through a contractor, then it will be called contract labor and not casual labor (Ramu's question mark actually means this only). Casual laborers are engaged directly by the company and not through contractors.

In the case of contract labor, the contractor will not need to get registered if the number of laborers engaged by him is less than 20.

In the case of a company, if the total number of contract laborers engaged through all contractors is less than 20, then the company also will not need to get a license irrespective of the number of permanent employees. (This issue is not linked with the number of permanent employees).

KKT

What about their insurance and which company offers flexible insurance coverage (i.e., short-term insurance).

Cheers,
Venkat

I'm a Staff Non-Member of ESI & PF Acts. Our company has registered under ESI & PF rules. My wife, who is a labor contractor - under whom the company engages 7-8 workmen on contract. Does the company require to pay ESI & PF for the said workers?

Hello everyone,

I recently joined a manufacturing company whose plant is going to start within a month. The plant is located in one of the remote village areas which does not have ESI applicability. In this case, can anyone guide me about the group insurance policies or others to adopt for statutory compliances? Which policies are applicable for manufacturing workers/employees?

I need urgent help if you can assist me.

Thanks.