Is ESI Required for Contract Workers in Factory Construction? Seeking Advice from Peers

Hi to all, I am working as a consultant for a spinning mill. Construction of the factory is ongoing in our company. Is ESI payable on contract labor engaged in construction work?

The ESIC is applicable if you are doing any additional construction work on the premises of the factory. If your factory is newly set up or if an employee compensation policy is in place, for new construction, ESIC is not applicable. However, if construction activity is carried out in a factory where the workers working on the premises are covered under ESIC, then the said construction activity falls under the provisions of the ESIC Act.

Regards,
Prashant Mhatre

I totally agree with you that the ESI Act is not applicable to the construction industry. How should compliance be ensured? Is it necessary to take out a Workmen's Compensation policy from any insurance company?

Regards,
Mr. Rao

ESI Act Applicability to Construction Agencies

There is a notification no. 4/99 regarding the coverage of construction agencies/offices of builders under the ESI Act, 1948, which mentions that the ESI Act is not applicable to construction agencies. We engaged an agency for construction work. If the act is not applicable to them, then is our factory liable for ESI?

I am working at an infrastructure company. Construction of a factory is currently underway in our company. Are ESIs payable for contract laborers engaged in the construction work?