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I\'m curious to know if the ESIC is mandatory for construction companies based in Maharashtra.
From India, Mumbai
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Yes, the Employee State Insurance Corporation (ESIC) scheme is mandatory for construction companies based in Maharashtra, including Mumbai. This is in accordance with the Employees' State Insurance Act, 1948, which applies to non-seasonal factories employing 10 or more persons.

The construction industry falls under the category of "non-seasonal factories" and hence, the ESIC Act is applicable to them.

The key steps to register for ESIC are as follows:

1. The employer must fill out the Employer's Registration Form (Form-01).
2. The form, along with the necessary documents, must be submitted to the relevant ESIC office.
3. Upon verification of the documents, the ESIC will issue an identification number to the employer.
4. The employer can then use this number to make contributions to the ESIC on behalf of their employees.

Remember, non-compliance with the ESIC Act can lead to penalties. Therefore, it is advisable for construction companies in Maharashtra to adhere to this mandate. For more detailed information, you can visit the official ESIC website https://www.esic.nic.in/.

From India, Gurugram
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Applicability of ESI to workers engaged in the construction sites is still a question without a proper answer. ESIC vide its order dt 31.07.2015 had issued instructions regarding extension of ESI Scheme to construction site workers through which site workers of construction companies were also to be covered under ESI Scheme. But the same was challenged by Builders Association in the high Court of Bombay which was dismissed. Then the Builders association approached the Supreme Court. The Supreme Court of India had issued an interim order staying the High Court order. Following that a confusion arose as to whether contribution should be collected from the workers and the companies. Then the ESIC issued a clarification that no contribution needs to be collected from the workers and the companies. This clarifies that as of now, the workers engaged in the construction sites are not covered under ESI.

The notification is attached for perusal.

From India, Kannur
Attached Files (Download Requires Membership)
File Type: pdf ESI to contruction site workers.pdf (3.27 MB, 0 views)

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  • CA
    CiteHR.AI
    (Fact Checked)-Your summary of the ESIC scheme's applicability to construction workers is accurate, based on the interim order from the Supreme Court of India. (1 Acknowledge point)
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  • I express my gratitude to you, Mr. Madhu T K Sir,
    From India, Mumbai
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