Esi- Non Implemented Area - Pdf Download

What if a company's HO is situated in the implemented area but the branch office is not? Will the ESI Act be applicable on the branch office also?
Further, on what basis has a demarcation been made between exempt and non-exempt areas?

Dear Archana,

Doesn't matter if your H.O. is registered with ESIC, the ACT is however applicable to all the branches, any where in india. In your case the employer has to go with WC policy( where employees are deputed in a non-implemented area). The employers’ legal liability under the W.C.Act is to pay compensation to employees not covered under E.S.I.Act for bodily injury or disease sustained / contracted out of and in the course of employment is covered by this policy. Liability to employees under Indian Fatal Accident Act 1855 and at Common Law are also covered under the policy.



However, not many areas in india are now(except north eastern india) non-implemented, The ESIC network is growing and many companies are preferring ESIC, because WC covers only IP,not family/dependants.

The classification of implemented , non-implemented areas based on majorly demographic,geographic,population,economic/industialisation and various other major factors,which also includes the connecivity to that area and availablity medical/pharma and availability of other emergency services too.

M S V R K S

Thanks Mr. Ravikanth,
Similar case my firm is a contracting company and our office area is implemented area. WE HAVE 20 employees and out of them 17 are deployed in non implemented area. How do we get ESI code because the required employee strength is less than 10 in implemented area. Even if we get registered, do we have to subscribe for this 3 persons or the entire 29 persons? Kindly clarify.

Dear Vijay,

In your case,however, the employer has to get registered with the ESIC and get a code and provide coverage to all its employees.(if all the 20 employees are working on your rolls and not contract workmen/women) and please,for some time forget about implemented or non-implemented areas.( Managements/Employers try to decieve/manage the authorities/employees to save the amount that would incur for registartion process and contributions)

ESIC Covergare should be, to all the employees,as per law point of veiw. Else, Provide the remaining with WC coverage ! Whatsoever, an employee(be it permanent,contract or apprentinceship, trainee) has to get that insurance cover.

If all the workmen/women are on contract basis, and working in non-implemented area, you can go with WC policy.

Being into IR , and i firmly believe, that a workman/woman must not be deprived of his/her rights and,whatsoever,must be gaurded/protected by the employer in all aspects possible, and that would definatly make an employer "THE BEST" employer.

Where an employee feels totally protected/safeguarded by the employer, his/her productivity increases,his/her commitment and dedication enhance, he/she becomes highly motivated, and a total positive atmosphere would prevail in that organization and that organization would lead the market..........

and the truth is, many organizations are not like that!, they just count on the money going out today,but forget about the returns they may get tomorrow! ,

i remember couple of such organizations, where excellet personnel management practices are applied.....TISCO and INFOSYS are one of the best in employee welfare practices....

( sorry for adding my own lines here, let it not deviate the actual point ;) )

Regards,

M S V R K S

Thanks Ravi for useful information. But I still have a doubt. In my present organisation we have around 40 branches PAN India basis. Salary is processed from Mumbai. What if in some states ESIC is not applicable but WC is? We need not deduct ESIC employee contribution from the salary? Right?
Gauri

Gauri,
Yes,You need not/ cannot deduct the ESIC contribution, but have to take a WC, and you must be aware that WC is only employer responsiblity, i.e., Employer must pay the premium, not a single paise is deducted from the employee in WC policy. As mentioned earlier , not many states are under un-implemented category, except major parts of north-eastern india,..... Please follow the attachment, they may be useful... the non-implemented list is an old one, not update. :)

Lately, i came accross a case, where ESIC was deducted by the employer, and the employee was working in a non-implemented area ( the payrolling system was centralised and was managed from banagalore). The management thought he's covered with ESIC( as deductions are happening), so WC policy was not taken. On a fateful day the employee met with an accident,on working location. The employe did not get the coverage benefits of either esic or wc. The labor inspector's involvment saved him, but costed the employer Rs.8lacs (excluding the hospital chagres) as compensation to that employee( fatal accident on work site- backbone injury- >1yr bed rest ) and adding to that the esic deduction/contribution of the employee was reimbursed by the employer with 3 times as penality . So the employers have to be very cautious about these statutory compliances.

Thanks you very much Ravi for clearing my doubt and additinal information that you have given.
True employer must be very cautious and alert about statutory compliances.
Gauri

Dear All,
We are starting our new company in mangolre rorkee uttrakhand, we wants to know that is esic applicable in this area if yes then where is SRO located & if no then can we got any notification of this.

Sir can you share the details of this case, where Esic has refused benefits in non implemented area, as Esic inspectors insist on contribution of employees in non implemented area also..