Can Employers Get ESI Act Exemptions for Offering Better Medical Benefits?

Could anybody help me out by furnishing the answer to the below-mentioned question?

Exemptions Under the ESI Act

If an employer is providing better medical facilities and benefits compared to the ESI Act, can he seek any exemptions under the ESI Act? If it is possible, please specify the section details of the ESI Act.

Regards,
Vighneshwar Hegde

Exemption from ESIC Coverage

No way to be exempt from ESIC if your establishment area is covered under ESI implementation. It will be considered an add-on benefit for your employees. You will not have any benefit, especially in terms of being exempt from ESI contributions.

Exemption from ESI Coverage

If an employer can prove to the ESI Commissioner that they provide better facilities for their workers than those offered by ESI, the Commissioner may exempt the establishment from ESI coverage. However, this is a very tricky process and not an easy task to convince the Commissioner.

Yes, what Mr. Varghese Mathew and Prashanth said is right.

Section 87

Section 87 reads as below:
"Exemption of a factory or establishment or class of factories or establishments. — The appropriate Government may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time."

"Provided that such exemptions may be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act."

Regards,
Vighneshwar

If you have better care available than what is provided under the ESI scheme, exemption is possible. An added advantage is that if the employer either operates a full-fledged hospital or has referral arrangements with hospitals offering "with or without cashless" services, employees would save ESI contribution money, and facilities would be available free of charge. Go ahead, friends.

Exemption Provision

Exemption provision is there, but it is not to provide the benefits more or equivalent as an individual firm. Therefore, it is better to be with ESI.

Regards,
Edify compliance planners
Hyderabad