ESI vs WCA - those employees who are drawing more than ₹ 15000/month covered under employee compensation act?

karun prakash
Under ESI only those employees are covered who are drawing upto ₹15000, Then are those employees who are drawing more than ₹ 15000/month covered under employee compensation act as they are not covered under ESI
Please guide.
varghesemathew
Not necessary.If those drawing salary above Rs 15000/-pm are employees as defined under the EC Act,then only they will be covered under EC Act.
VARGHESE MATHEW
09961266966
karun prakash
Then employees drawing more than Rs. 15000 are not covered under any act i.e neither under ESI nor under EC ?
karun prakash
Do they get compensation in some
other way in case of accident, death, disease?
varghesemathew
Mr Karun,
On what basis you are saying so?.If you have any authoritative reference please share.
VARGHESE MATHEW
karun prakash
I just want to know when ESI becomes applicable to a particular area/industry and EC ceases to exist, then if there is some other provision to compensate those employees who are drawing more than Rs.15000/month.
Harsh Kumar Mehta
Sir(s),

I may like to take part in this discussion and submit as follows:-

(1) Section 53 of Employees' State Insurance Act, 1948 debars only the Insured Persons or their dependants as covered under the said Act to claim compensation under Employees' Compensation Act, 1923 from the employers. It does not exclude the operation of Employees' Compensation Act, 1923 totally from any establishment/factory, which are also covered under Employees' State Insurance Act, 1948.

(2) However, the definition of "employee" as mentioned in Section 2(1)(dd) of Employees Compensation Act, 1923 alongwith Schedule-II of the same is a long list of occupations, which includes factories/establishments defined as "factories" or "mines" in respective Acts.

Therefore, in my opinion, all employees working in occupations as defined in section 2(1)dd & Schedule -II of the Employees' Compensation Act, 1923 are entitled for compensation under EC Act, as mentioned above (except insured persons and their dependants who are covered under Employees' State Insurance Act, 1948).

Further under Employees' Compensation Act, 1923, I have not found any wage ceiling restricting coverage of a particular set of employees getting wages only upto some wage ceiling. If I am not wrong, the employees getting wages exceeding to Rs. 15000/- per month ( not covered under ESI Act,1948) are coverable under Employees' Compensation Act, 1923, if otherwise defined as an "employee" under said Act.

Further the coverage under Employees' State Insurance Act, 1948 is restricted only to implemented areas and to employees getting wages upto coverable wage limit (presently Rs.15000/- per month), whereas the provisions of Employees' Compensation Act, 1923 (as mentioned above) extends to whole of India.

Perhaps, members will correct me if I am wrong in any way.

With regards;
jd2001
Hi,
Is ESI for all firms or are there any restriction with regards number of employees? for example if a firm has only 1 employee below 15k then can that firm register for ESI for 1 employee?
thanks ...JD
karun prakash
Seniors,
Please through further light on what Rohit ji said.
kishorkulkarni
I am fully in agreement with Mr. Harsh Kumar Mehta. The parental or universally applicable act is EC Act, where the employer has been put under a liability to pay compensation to his employees in case there is any employment injury and because of which the employee has lost his earning capacity.

When ESI act has been made applicable to any area and the employer has been registered under the ESI Scheme, the liability of employer is just taken by the ESI Corporation and thus all the employees drawing a salary up to Rs. 15,000 stand covered under ESI. However, in respect of those employees who are drawing more than the ESI limit, the Employer has a liability to pay compensation for the employment injury. Sec. 53 of ESI act has thus significance in this respect. This section debars a dual claim, but does not exclude application of EC act to non-covered employees.

I am therefore of a view that let ESI Scheme cover all employees irrespective of salary, but for allowing benefits and contribution a certain sum can be prescribed. However, there is no any response from the ESI Corporation.
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