Dear all,
Following are the comprehensive clarifications as regards coverage of construction workers.
1. Construction agency being in unorganised sector, due to the peculiarity of the construction industry in terms of project area, mobility and migration of workers and extending ESI scheme to far flung areas being not feasible, it was decided not to extend coverge of construction workers under ESI. (Notification dated 14-06-1999)
2. Nowithstanding the above, if the no. of employees worming in the office of the Construction agencies are 20 or more, they will be called as employees u/s 2 (9) of the ESI Act and hence will be covered under ESI entitling to contribution and benefits thereof. (Notification dated 14-06-1999)
3. However workers under construction agencies deployed by through the Pinicpal employer in a ESI covered factory, will be called as emplyees u/s 2 (9) of the ESI Act and hence will be covered under ESI entitling to contribution and benefits thereof. (Notification dated 14-06-1999).
4. Where additional building is constructed eithr directly or through contractor within the premises of the factory / establishment already covered under ESI, such workers under construction contractor will be covered. As regards liability of payment of contribution, the onus will be on the principal employer but he can recover the quantum of employer contribution or both employer and employee contribution in case of complulsion, from the immediate employer. (Notification dated 31-03-2000)
5. Where another building for the factory or establishment including residential accomodation is constructed outside the the ESI covered factory / establsiment, directly or through contractor but away from the already covered factory / establishment, the workers involved in such construction work are not coverable under ESI till the commencement of the work of the factory / establishenent even if the the work in the present premises are ancilliary or incidental to th already covered factory / estblishment. (Notification dated 31-03-2000).
A.Irudayam
Advocate - High Court of Madras
+919940686632