Workmen Compensation Act And ESI Act

Can anyone please elaborate that can a contractor working under a principal employer cover his labours under Workmen compensation Act as well as ESI act?
It means can he cover half of his employees in workmen compensation act and other half in ESI ACT ???

Those who comes under the definition of employee as per ESI Act shall be statutorily covered under ESI ,if they are working in implemented area.Others meeting the definition of employee as per Employees Compensation Act may be covered under EC policy,but it is not mandatory.
Varghese Mathew
04712542059

In normal cases, all workers in a single location will be covered under esic if the factory is in esic zone. There is no option for selective coverage.
However, if there are workers getting more than 15000 per month, they are outside esic. In these cases, the contractor should get insurance for workman compensation act. Or the factory may cover it in their public liability insurance. The former is a better option, but the later will be cheaper

WC act will apply to all employees who falls under definition of Workmen & is meant for compensation in event of Fatal or injurious accident whilst on duty. ESI coverage is basically for medical treatment not necessarily while on duty. Esi has some element of Insurance but can\'t be compared to benefit under WC Act

ESI and Workmen Compensation are two different act. ESI is applicable only in notified area whereas WC act is applicable to all the organisations and coveres the workmen defined therein. Also object of both these acts are different. It is not possible in any of these act to split the employees in parts and to cover some part in any.
Further, the principal employer is always responsible for entire compliance including sub contractor under him. Now it is upto the principal employer as to how compliance of both these acts are taken care. In case contractor is already registered under ESI and also taking the responsibility for WC act, then Principal Employer is not required to make double payment.

Sir(s),
1. The persons engaged through contractors are mostly low paid employees i.e. paid at least minimum wages, which are less than Rs.15000/- in majority cases. Therefore, in respect of those contractor employees working in implemented areas and in covered units under ESI Act, 1948, there is hardly any need to get any insurance for Employees' Compensation Act or public liability insurance. however, employer is to ensure that his regular employees who are not covered under ESI Act are at least insured for compensation under Employees Compensation Act.
2. However, in respect of those contractor employees, as well as regular employees working in non-implemented areas (not covered under ESI Act), the employer may obtain insurance policies for his liabilities under Employees' Compensation Act.