Seeking Insights on ESI Act Applicability to Port Trust and Contractor Employees

korgaonkar k a
Dear Experts, I am providing below the text of the reply I gave to a query raised by one of my professional colleagues. I would appreciate your comments on it and also any notifications or documents related to this matter if you have them.

Text of my reply:

Dear Sir, To the best of my knowledge, previously, Port Trust was exempted from the ESI Act. However, I have not come across any notification or document regarding this issue, except in the case of ESIC Vs. Cochin Port Workshop Canteen, 2003 LLR 371: 2003 (97) FLR 676 (Ker HC), where it was stated that the ESI Act would not be applicable to a canteen run by a contractor since the Port Trust had been exempted from the Act.

According to section 1(4) of the Act, it does not apply to factories or establishments belonging to or under the control of the Government whose employees receive benefits that are substantially similar or superior to those provided under this Act.

Port Trust is under the control of the Government. Based on this, I believe Port Trust was exempted from the ESI Act.

However, the Government of India, Ministry of Labour and Employment, through its notification dated 20.07.2009 and subsequent corrigendum dated 24.02.2010, extended the provisions of the Act to establishments belonging to or under the control of the Central Government engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, and warehousing. The Act applies to all casual and contract employees who are coverable.

I do not have the aforementioned notification dated 20.07.2009 or the subsequent corrigendum dated 24.02.2010. I obtained this information from the ESIC revenue manual.

I trust that I have addressed your query to the fullest extent.

Thank you.
Harsh Kumar Mehta
Respected Korgaonkarji, The Notification of the Central Government dated 20/07/2009, as you have mentioned, was published in the Gazette of India No. 31, Part-II-Sub-section 3(ii) dated August 1, 2009, at pages Nos. 4525 to 4527. A copy of the said Gazette of India is enclosed herewith.

Despite my best efforts, I could not locate the Corrigendum Notification dated 24/02/2010. However, if required, you can try to search for the same in the Notification - Weekly Part II-Sec.3-Sub-section (ii) from the Gazettes published within a period of 2-3 months from 24/02/2010.

Regards
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