Is ESIC Mandatory for Contractor's Daily Wage Workers in Covered Units? Seeking Advice

Respected Seniors, please give suggestions on whether ESIC is compulsory for a contractor's daily wage labor in a covered unit.

Regards,
Amit

Yes, if the daily wage laborer of the contractor works on your company's premises, work spot, factory, or office.

Regards,
S. Krishnamoorthy

Yes, Mr. Krishnamurthy is right. ESIC is compulsory for contractors' daily wage labor for a covered limit.

Regards,
Sumit

It is compulsory for the worker. You can pay their contributions on their ESI code, or the contractor can pay on his own.

I need clarification on how a laborer working on daily wages can avail benefits of ESI if they have worked with us for only 4 or 5 days?

Thank you.

Dear Mr. Amit, with reference to your query, contract labour is also covered under the provisions of the ESI Act of 1948.

If any contract labor has worked for 4 or 5 days, the employer is required to pay contributions accordingly. In the unfortunate event of an accident occurring during this period leading to disability or death, the laborer is entitled to Medical Benefit, Disability Benefit, and Dependants Benefit in the case of death under the provisions of ESIC.

Regards,
V. R. RAO PULIPAKA

I need clarification on how a laborer working on daily wages can avail benefits of ESI if employed with us for only 4 or 5 days? To determine this, you need to consider the nature of his work (casual/contractor/regular). If he is on the company's payroll, you have to cover him under ESI from day one, irrespective of the number of days worked. This coverage will be beneficial in case of any unexpected incidents occurring on the company premises.

If construction work is being carried out in a covered area without factory premises, we are required to pay ESIC contributions.

Regards,
Mahadeva

Please help me understand what the SLA is for obtaining the ESIC number of a new employee.

Warm Regards,
Magan