Workers On Retainer/ Contract Basis For A Specified Time

Dear All,

We have many workers at our factory who are continuing on a contract basis or retainer basis after their retirement. Since they are no longer on our payroll, we cannot cover them under ESIC. We need to come up with a concrete proposal for their medical and accidental coverage so that in the event of any unforeseen situation, both the workers and management are protected. Can the Workers' Compensation Act apply to these individuals? What are the other alternatives? I need all your suggestions urgently.

Regards,
Debapratim Guha

Dear Debapratim Guha,

As per the ESIC Act, any person employed whose salary is less than Rs. 15,000.00 must have ESIC coverage. As the principal employer, your company is responsible for paying ESIC for such contract workforce. There is no substitute for this provision. Failure to comply could result in complications in the event of an accident.

Alternatively, you can engage these employees through a registered contractor who has ESIC registration. Nowadays, ESIC applications are to be submitted online, and we adhere to this requirement strictly.

I hope this addresses your query.

Regards,
Sudhir

Dear Mr. Sudhir,

So, what you are saying is that the workmen who are retired and then kept on a retainer basis can be covered by ESIC? The second option cannot be done as they are already under retainer ship, and changing their nature of employment and making them work under a contractor may not be a good idea.

Regards,
Debapratim