Dear all,
I have read that WC is applicable where there is no ESI, but I have a doubt: if the salary exceeds 15000, then the employee will be out of ESI. In that case, can an employee be a part of WC? Is it necessary for a company to have a statutory policy for either ESI or WC?
In other words, can the same company have both ESI and WC together?
Thank you.
From India, Mumbai
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6I have read that WC is applicable where there is no ESI, but I have a doubt: if the salary exceeds 15000, then the employee will be out of ESI. In that case, can an employee be a part of WC? Is it necessary for a company to have a statutory policy for either ESI or WC?
In other words, can the same company have both ESI and WC together?
Thank you.
From India, Mumbai
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Applicability of ESI and ECA
1. Sir, if in a unit the provisions of the ESI Act, 1948 are applicable, then the employees covered under ESIS will not be coverable under the provisions of the Employees' Compensation Act, 1923. ECA is a general law, and its applicability is governed by the provisions contained therein. (Please see Schedule II of the said Act.) Employees receiving wages exceeding Rs. 15,000 per month, i.e., wages exceeding the coverage limit, will be covered under ECA.
2. For more information, please refer to sections 53 and 63 of the ESI Act, 1948.
From India, Noida
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1. Sir, if in a unit the provisions of the ESI Act, 1948 are applicable, then the employees covered under ESIS will not be coverable under the provisions of the Employees' Compensation Act, 1923. ECA is a general law, and its applicability is governed by the provisions contained therein. (Please see Schedule II of the said Act.) Employees receiving wages exceeding Rs. 15,000 per month, i.e., wages exceeding the coverage limit, will be covered under ECA.
2. For more information, please refer to sections 53 and 63 of the ESI Act, 1948.
From India, Noida
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Understanding WC and ESI Applicability
It is correct that WC (Workers' Compensation) is applicable where ESI (Employees' State Insurance) is not available, or the employee's wages exceed the maximum ceiling. Now, the point is whether you should cover the employee under WC or not. That depends on the nature of the job. If the employee is working in a risk-prone area, regularly goes on fieldwork, or any other factor could cause an incident, then you should cover the employee under WC. This will cover him and his family in the Social Security System.
Moreover, in the case of death or disability of the employee, the organization will not be bound to pay any extra compensation. The same will be paid by the insurance company, depending on the situation and actual scenario. Although it is advisable to cover all ESI-excluded employees under a WC policy.
Regards
From India, Delhi
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It is correct that WC (Workers' Compensation) is applicable where ESI (Employees' State Insurance) is not available, or the employee's wages exceed the maximum ceiling. Now, the point is whether you should cover the employee under WC or not. That depends on the nature of the job. If the employee is working in a risk-prone area, regularly goes on fieldwork, or any other factor could cause an incident, then you should cover the employee under WC. This will cover him and his family in the Social Security System.
Moreover, in the case of death or disability of the employee, the organization will not be bound to pay any extra compensation. The same will be paid by the insurance company, depending on the situation and actual scenario. Although it is advisable to cover all ESI-excluded employees under a WC policy.
Regards
From India, Delhi
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Dear colleagues,
ESI Applicability and Alternatives
ESI is applicable to a notified area for employees who earn wages up to Rs. 15,000 per month. If your establishment is situated in an area that is not notified, ESI is not applicable; instead, the Employees' Compensation Act (formerly known as the Workmen Compensation Act, renamed the Employees Compensation Act in 2010) applies. Employees under the EC Act are those who receive any salary or wages. For the purpose of benefits under the EC Act, their salary will be considered as Rs. 8,000 per month or the actual wages if less than Rs. 8,000 per month.
You can include any employee, regardless of cadre, under the EC policy. If ESI is applicable, you may opt for an EC policy for those not covered under ESI; however, having an EC policy is not mandatory for employees outside the ESI coverage.
Regards,
RDS Yadav
LABOUR LAW ADVISER
DIRECTOR - FUTURE INSTT OF MANAGEMENT AND TECHNOLOGY
From India, Delhi
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ESI Applicability and Alternatives
ESI is applicable to a notified area for employees who earn wages up to Rs. 15,000 per month. If your establishment is situated in an area that is not notified, ESI is not applicable; instead, the Employees' Compensation Act (formerly known as the Workmen Compensation Act, renamed the Employees Compensation Act in 2010) applies. Employees under the EC Act are those who receive any salary or wages. For the purpose of benefits under the EC Act, their salary will be considered as Rs. 8,000 per month or the actual wages if less than Rs. 8,000 per month.
You can include any employee, regardless of cadre, under the EC policy. If ESI is applicable, you may opt for an EC policy for those not covered under ESI; however, having an EC policy is not mandatory for employees outside the ESI coverage.
Regards,
RDS Yadav
LABOUR LAW ADVISER
DIRECTOR - FUTURE INSTT OF MANAGEMENT AND TECHNOLOGY
From India, Delhi
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