Confused About ESI and Its Applicability in Construction? Let's Discuss the Basics

I am confused about ESI. I am unsure about where ESI is applicable and where it is not. If it is not applicable, could you please explain why it is not applicable according to the act? I work in a Construction Company, and we do not follow ESI despite knowing that the Building and Other Construction Workers (BOCW) Act is applicable, and there is no need to follow ESI.

Understanding ESI Applicability

I am not fully aware of the definition of wages in the PF Act, as well as the differences between PF, ESI, and the Workmen's Compensation (WC) Act.

Therefore, I kindly request you to provide me with a brief explanation of the above. I would be highly grateful for your assistance.

Thank you.

Regards,
Gaurav Srivastav
[Phone Number Removed For Privacy Reasons]

Understanding Acts and Regulations

Sir, I suggest that you go through the provisions of the Acts and the rules/regulations framed under the Acts as mentioned by you in your remarks above. However, after reviewing the said Acts, if you have any doubts or inquiries about the relevant provisions, then you may raise them.

Complexity of Act Topics

The topics in the Acts, as mentioned by you, are very broad, and it is challenging to make one understand them unless the matter is examined in consultation with various provisions of the Acts as mentioned above.

Respected Senior,

Please tell me about ESI, i.e., where it is applicable and where it is not applicable as per the act. Why is it not applicable in the construction of roads?

Regards

Thank you for your response, Harsh Sir. Could you please explain why ESI is not applicable in the construction of roads and other construction industries? What are the specific reasons for this?

1. I suggest you review various laws relating to ESI or the construction industry to understand why the ESI Act has not been extended to the construction industry.

2. Briefly, under the ESI Act, the appropriate governments, under section 1(5), are empowered to extend the provisions to other classes of establishments. Construction sites may be considered a separate class of establishment, hence not covered under the said Act.

3. However, the offices of construction units located in implemented areas, qualified as a "shop," and repair and maintenance work being done in covered/coverable factories/units are also covered/coverable under the said Act.

4. For further details, you will find ample information on the website of ESIC. From this site, you can download relevant materials on the matter.