Esi Applicability For Construction Workers In India

esi applicability for construction workers on contractual projects ?
if principal employer covers under esi and given a construction work to a sub contractor then the subcontractor employees are also eligible for esi?

Construction workers working at sites are not covered by ESI whereas workers who report to the office of the construction company are covered.
Regards,
Madhu.T.K

Sir,
to correct you there is circulation recently in January 2011 from Director ESIC, Panchdeep Bhawan, Delhi to all SO and ROs that now construction site worker shall be covered under ESI Act, and they can avail medical benefit. By this circulation ESI Authorities strucked down their own circular of Year 1999.
the survey for the same is undergoing and now coverage of such site work will be started

But who is responsible to pay ESI, contractor or principal employer ?
Regards,
Avinash Pawar

Yes, the construction workers at site are also covered as per new policy of ESI.
The primary responsibility of coverage and payment of contribution is on the contractor but if the contractor does not pay it, the principal employer should pay it on behalf of contractor and can deduct the amount so paid from the amount payable to the contractor.
Regards,
Madhu.T.K

What about in case worker keep on changing, on one day Ram is there for work on next sham was there for work, in this situation how it will be manageable this. even there is no particular of the worker.

There is no practical way out but to engage a regular employee to do the work related to ESI whose primary, rather sole duty will be to call each new employee to the cabin and register him under ESI and take a printout of temporary Id card and hand it over to that employee. It is upto him to decide whether to continue in the site and if continuing to go to the ESIC with his family members to take photograph and get smart card. I do not think that these daily wagers will come with their photographs when they come for their work. If so, we are stuck. But one thing is there, that even if you do not register, we should be prepared to pay the contribution at the prescribed rate of 6.5% of wages paid. That's all.
Regards,
Madhu.T.K

Sir,
If we have EC (WC) Policy in place of ESI, then also are we mandatory liable to pay ESI Contribution.
An Early reply is awaited.
Regards,
Sandeep K. Rai

Yes, even if you have WC policy, you have to ensure coverage of employees (eligible) under ESI. In fact, in respect of employees covered by ESI you need not take any WC policy because any liability in respect of such employees will be taken care by the ESIC.
Regards,
Madhu.T.K

Dear Sanjeeb,

Sec. 53. Bar against receiving or recovery of compensation or damages under any other law.—An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen’s Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.

Therefore, Employee Compensation policy can not substitute ESIC Act, enforcement.


Regards,

A.K. Sharma
Team-HR