According to my knowledge, ESIC HQ New Delhi has not taken any decision on the implementation of ESIS for construction site workers. The decision is pending to date.
Understanding ESIS Applicability
First of all, one must know that in the ESI Act, there is no exclusion of the construction industry or construction workers from ESIS. However, there is a practice of not covering the construction site under ESIS, which is well accepted by the Corporation.
Interpreting ESIC Circulars
You are requested to read the circular by ESIC HQ New Delhi: Construction 4/99 very carefully and interpret it correctly. According to it, you have to cover the employees under ESIS other than construction workers who are engaged at the site on a purely temporary basis.
Manufacturing Activity at Construction Sites
If it is established that there is a manufacturing activity carried out at the site with the use of machines, you cannot escape from ESI liability. For example, in the case of an installed batching plant at the site.
I have come across many such cases wherein the Corporation demanded ESI contribution from construction people on various parameters. There is a lot of ambiguity in it.
Legal Considerations
If you decide to fight against the claim by the Corporation, you have to pay first 25% or 50% of the claim amount as a deposit in court.
WE ARE IN DEMOCRACY.
Members are requested to comment.
(I am sure the members will not discuss such issues.)