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JpDassadpj2011
1

I really thank to all my seniors who have contributed to this topic based on their knowledge and expertise. I admire for your sense of cooperation in relation to sharing your knowledge.
Thank you.
J P Das

From India, Delhi
ramachandrak62
8

Dear Mr Bhanu Kalinga,
Not to get offended please ! It was only a correction from my side; Your inputs has definitely added a clarification to the ESI applicability for workers connected with construction and helped to conclude the understanding on it.
I appreciate your participation and value your experience,
Regards
K.Ramachandra


irudayamarockiam
3

Dear all,

Following are the comprehensive clarifications as regards coverage of construction workers.

1. Construction agency being in unorganised sector, due to the peculiarity of the construction industry in terms of project area, mobility and migration of workers and extending ESI scheme to far flung areas being not feasible, it was decided not to extend coverge of construction workers under ESI. (Notification dated 14-06-1999)

2. Nowithstanding the above, if the no. of employees worming in the office of the Construction agencies are 20 or more, they will be called as employees u/s 2 (9) of the ESI Act and hence will be covered under ESI entitling to contribution and benefits thereof. (Notification dated 14-06-1999)

3. However workers under construction agencies deployed by through the Pinicpal employer in a ESI covered factory, will be called as emplyees u/s 2 (9) of the ESI Act and hence will be covered under ESI entitling to contribution and benefits thereof. (Notification dated 14-06-1999).

4. Where additional building is constructed eithr directly or through contractor within the premises of the factory / establishment already covered under ESI, such workers under construction contractor will be covered. As regards liability of payment of contribution, the onus will be on the principal employer but he can recover the quantum of employer contribution or both employer and employee contribution in case of complulsion, from the immediate employer. (Notification dated 31-03-2000)

5. Where another building for the factory or establishment including residential accomodation is constructed outside the the ESI covered factory / establsiment, directly or through contractor but away from the already covered factory / establishment, the workers involved in such construction work are not coverable under ESI till the commencement of the work of the factory / establishenent even if the the work in the present premises are ancilliary or incidental to th already covered factory / estblishment. (Notification dated 31-03-2000).

A.Irudayam

Advocate - High Court of Madras

+919940686632

From India, Madras
rajneeshb1966
Hi
My question is also based on ESI. Suppose we hire any agency to carry out any civil work or mechanical work inside our premise and work is consisting of labour plus material cost. As per law,as principal employer we are responsible for the ESI coverage of contractor employees either through their code or in case they are not covered, than we have to abide by. NOw on what percentage ESi has to eb deducted in such cases. Suppose the contract value is 50K or 150 K. what will be the ESI applicability in such cases. I hope my query is clear.

From India, Anklesvar
hemantkumarkhuntia
Dear All,
I am agree on your suggestion and satisfied, but Still I am confuse about one thing that, we very much clear that esic act is not applicable on those worker engaged in Building and other construction work, but my query if some coverable under esic establishment,factory placed some work order to some company to construct/build any other property,building whould it be aplicable such cantractor and as well as pricipal employer to pay contribution under esic Act.
Hemant .KK

From India, Gurgaon
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