Hi I am new to this forum, is it neccassary to make ESI for casual labours and trainees? if not is there any option to get medical treatment to these workers? Please clarify me
From India, Madras
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From India, Madras
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Pls find attached some material on the said subject,,, the same might be useful,,,
From India, Coimbatore
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746From India, Coimbatore
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Please find the links below, which might provide you with some information:
#84569
https://www.citehr.com/search_new.ph...;amp;submit=Go
From India, Coimbatore
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#84569
https://www.citehr.com/search_new.ph...;amp;submit=Go
From India, Coimbatore
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Dear Friend,
ESI is usually paid to permanent staff. If a trainee is on a stipend, then you need not pay ESI, the same as with a daily worker. If somebody has completed 240 days as a temporary worker, then they are entitled to all ESI coverage. The law is the same as for other staff, with the employer contributing 4.75% of the gross salary and the employee contributing 1.75% of the gross salary.
Shweta Bharti
From India, Gurgaon
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ESI is usually paid to permanent staff. If a trainee is on a stipend, then you need not pay ESI, the same as with a daily worker. If somebody has completed 240 days as a temporary worker, then they are entitled to all ESI coverage. The law is the same as for other staff, with the employer contributing 4.75% of the gross salary and the employee contributing 1.75% of the gross salary.
Shweta Bharti
From India, Gurgaon
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Hi Marimuthu,
If your industry is covered under the ESI Act, then it is mandatory for you to extend the ESI benefits to your employees receiving wages not exceeding Rs 10,000, as defined under the ESI Act, irrespective of their nature of appointment (permanent/temporary) and regardless of their service tenure. Also, note that if the worker is engaged through contractors, it is the responsibility of the principal employer to ensure that they receive the benefits as stipulated under the scheme.
I am sorry, Swetha, but I have a different perspective on this matter.
Thank you,
Abhisek Majumdar
From India, Bangalore
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If your industry is covered under the ESI Act, then it is mandatory for you to extend the ESI benefits to your employees receiving wages not exceeding Rs 10,000, as defined under the ESI Act, irrespective of their nature of appointment (permanent/temporary) and regardless of their service tenure. Also, note that if the worker is engaged through contractors, it is the responsibility of the principal employer to ensure that they receive the benefits as stipulated under the scheme.
I am sorry, Swetha, but I have a different perspective on this matter.
Thank you,
Abhisek Majumdar
From India, Bangalore
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Abhishek,
I think I am of the view of Shweta (as far as trainees are concerned). For trainees, we give a stipend, and ESI is not applicable. The only issue is that we should make sure that the training period is well within the stipulated statutory slab; it cannot be indefinite.
For casual laborers, Shweta's message is news. I would appreciate if members can share some more ideas, preferably with references.
Dinesh
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I think I am of the view of Shweta (as far as trainees are concerned). For trainees, we give a stipend, and ESI is not applicable. The only issue is that we should make sure that the training period is well within the stipulated statutory slab; it cannot be indefinite.
For casual laborers, Shweta's message is news. I would appreciate if members can share some more ideas, preferably with references.
Dinesh
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Hi Dinesh
Pls note that ...
Section 2(9) of the Act, includes apprentices in the definition of employee except those appointed either under Apprentices Act, 1961 or under standing orders.
If the apprentices were appointed by the employer for providing training under the aforesaid two Acts, they will be excluded from the definition of ‘employee’ under the Act and the apprentices, other than those above two categories, are included in the definition of ‘employee’.
However, even in respect of the above two exempted categories of Apprentices, if they are engaged in actually performing the work of the establishment and are paid wages for the same, the Court can lift the veil to ascertain their real status as trainees and if it finds that they are engaged in the activities of the establishments as regular employees, the establishment concerned may be compelled to pay the contributions.
Therefore the liability of the employer depends upon the facts of each case.
Please refer to the cases of Andhra Pradesh Pvt. Ltd. v. Employees State Insurance Act., 1996 II LLJ 359 and Bala Saraswathi Motor Works v. Employees State Insurance Act., 1970 II LLJ 504 (Mad.HC)
Thanks
Abhisek
From India, Bangalore
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Pls note that ...
Section 2(9) of the Act, includes apprentices in the definition of employee except those appointed either under Apprentices Act, 1961 or under standing orders.
If the apprentices were appointed by the employer for providing training under the aforesaid two Acts, they will be excluded from the definition of ‘employee’ under the Act and the apprentices, other than those above two categories, are included in the definition of ‘employee’.
However, even in respect of the above two exempted categories of Apprentices, if they are engaged in actually performing the work of the establishment and are paid wages for the same, the Court can lift the veil to ascertain their real status as trainees and if it finds that they are engaged in the activities of the establishments as regular employees, the establishment concerned may be compelled to pay the contributions.
Therefore the liability of the employer depends upon the facts of each case.
Please refer to the cases of Andhra Pradesh Pvt. Ltd. v. Employees State Insurance Act., 1996 II LLJ 359 and Bala Saraswathi Motor Works v. Employees State Insurance Act., 1970 II LLJ 504 (Mad.HC)
Thanks
Abhisek
From India, Bangalore
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Hi Mr. Mohamed,
You have provided really good information on ESI. I have one doubt. Could you please clarify?
I have heard that as per the Information Technology & Telecommunication Policy 2005-2010 and GO.Ms.No.11 dated 21-03-2005 of Govt. AP, IT/ITES industries are exempted from the ESI Act 1948. Is it true?
Giri
From India, Nellore
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You have provided really good information on ESI. I have one doubt. Could you please clarify?
I have heard that as per the Information Technology & Telecommunication Policy 2005-2010 and GO.Ms.No.11 dated 21-03-2005 of Govt. AP, IT/ITES industries are exempted from the ESI Act 1948. Is it true?
Giri
From India, Nellore
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Coverage of ESI to Construction workers w.e.f 1-Aug-15.pdf