As a HR I heard there is no ESI provision for construction company. Please send updated ESI Act Thanking you.
From India, Hyderabad
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1From India, Hyderabad
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We have earlier discussed the ESI applicability to a construction company. The recitation related to the connected thread is as follows:
CiteHR Attribution: https://www.citehr.com/108722-esi-ap...ml#post1954985
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From India, Visakhapatnam
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CiteHR Attribution: https://www.citehr.com/108722-esi-ap...ml#post1954985
Regards
From India, Visakhapatnam
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In addition to what Sharmila has contributed, I am sharing the link to my contribution to a query related to the ESIC & PF Act... https://www.citehr.com/258896-labour-laws.html
From India, Mumbai
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From India, Mumbai
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Dear Keerthi ji, what you heard is not 100% correct. Your office is covered under ESI if there are 10 or 20 or more employees working. Now there are only three states wherein the threshold limit of coverage of establishment is 20.
As regards to your construction sites, I will not say that your construction site is totally excluded or exempted from ESI coverage. You need to read ESI circular 4/99 dated 14.06.1999 very carefully and interpret it correctly. The wordings in the said circular say, "hence, the following actions may please be taken for coverage of construction agency/offices of the builders." If you read this circular again and again in between the lines, to my view, you cannot keep your construction site out of ESI. You can keep only construction workers (i.e., construction helpers who are not regular ones) out of ESI.
There are a lot of ambiguities on this subject.
In the ESI Act, there is no exclusion of any industries. My question to experts, can such a circular change the law? But it is a fact or a practice in the Construction Industry that construction sites are excluded from ESI coverage. This fact/practice is also accepted by the Corporation/Government.
Recently, I came across the ESI Corporation covering construction sites on the basis of the installation of a batching plant (RMC) at sites. I also came across some cases in which the Corporation is demanding ESI dues from construction workers. Now you will understand what I said above.
My view on this subject was different earlier, that I accept here. But now I am enlightened.
Thank you.
From India, Mumbai
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As regards to your construction sites, I will not say that your construction site is totally excluded or exempted from ESI coverage. You need to read ESI circular 4/99 dated 14.06.1999 very carefully and interpret it correctly. The wordings in the said circular say, "hence, the following actions may please be taken for coverage of construction agency/offices of the builders." If you read this circular again and again in between the lines, to my view, you cannot keep your construction site out of ESI. You can keep only construction workers (i.e., construction helpers who are not regular ones) out of ESI.
There are a lot of ambiguities on this subject.
In the ESI Act, there is no exclusion of any industries. My question to experts, can such a circular change the law? But it is a fact or a practice in the Construction Industry that construction sites are excluded from ESI coverage. This fact/practice is also accepted by the Corporation/Government.
Recently, I came across the ESI Corporation covering construction sites on the basis of the installation of a batching plant (RMC) at sites. I also came across some cases in which the Corporation is demanding ESI dues from construction workers. Now you will understand what I said above.
My view on this subject was different earlier, that I accept here. But now I am enlightened.
Thank you.
From India, Mumbai
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LABOUR LAWS FOR IT INDUSTRY.pdf
Coverage of Construction Labour under PF letter of 15 O-page-001.jpg