31- The query is not precise and hence there are misleading answers.
- Firstly you have to comply with the law. In case ESI Act is applicable then you have to comply with ESI Act provisions. But once ESI Act is applicable WC Act is not applicable. Hence it is not necessary to cover those employees who are registered members of ESIC to cover under WC policy.
- However, you can still take WC policy covering employees already covered under ESIC to give additional benefit or to give easy benefit to employees and no body will object to it. Obviously there will be added cost of insurance.(may be your management or accounts department may object since there is duplicity of cost and expenses for same purpose).
- Nobody will and nobody can object in case you are giving more benefits than what law prescribes. Many companies have their own Medical and Hospitalization reimbursement Schemes for employees already covered under ESIC.
From India, Pune
Dear Mr.Khola Sir,
Establishments covered with ESIC can implement the ESI scheme to the Regular/Contract staff & workers working for production. Other works like construction/fabrication which will have limited period work for two or three months, we are covering them under WC with insurance companies. Even if ESIC insist for coverage, the workers will change frequently may be working for a day or two, it is becoming to enroll them and making ESI contributions. There is very workers turnover in constructio/fabrication works.
In this context can we go for insurance under WC and use the applicability?.
Regards,
AVGN Vara Prasad.
Charoen Pokphand India Pvt Limited.,
Vizianagaram Dist. (AP)
From India, Kakinada
Establishments covered with ESIC can implement the ESI scheme to the Regular/Contract staff & workers working for production. Other works like construction/fabrication which will have limited period work for two or three months, we are covering them under WC with insurance companies. Even if ESIC insist for coverage, the workers will change frequently may be working for a day or two, it is becoming to enroll them and making ESI contributions. There is very workers turnover in constructio/fabrication works.
In this context can we go for insurance under WC and use the applicability?.
Regards,
AVGN Vara Prasad.
Charoen Pokphand India Pvt Limited.,
Vizianagaram Dist. (AP)
From India, Kakinada
Dear AVGN Vara Prasad,
This is to inform you that while working with Skylark Associates I do not deal in ESI & PF matters even then what I have learnt so far tell us that even if we take WC/EC policy for workers working with units which are covered under ESI Act we are not exempted from the implementation of ESI Act & therefore we are required to deduct ESI contribution & to do other compliance necessary under ESI Act even if the worker works only for a day.
Submitted as requested.
Regards,
R N KHOLA
From India, Delhi
This is to inform you that while working with Skylark Associates I do not deal in ESI & PF matters even then what I have learnt so far tell us that even if we take WC/EC policy for workers working with units which are covered under ESI Act we are not exempted from the implementation of ESI Act & therefore we are required to deduct ESI contribution & to do other compliance necessary under ESI Act even if the worker works only for a day.
Submitted as requested.
Regards,
R N KHOLA
From India, Delhi
Dear,
It is asked that most of the labour contractors are not having esi and PF license but engaging workers as they have less than 20 workmen, but even in more than 20 workmen condition they are doing petty specific jobs, '
thus it is ok if wc policy is taken in case of absence of ESi and PF in implemented area, what are its consequences,
also can the workmen demand permanent employement with principal company if their esi and PF is deposited on employers code later .
Is it necessary to have ESi and PF for contruction industry.
regards
ashish banka
9748094316
From India, Calcutta
It is asked that most of the labour contractors are not having esi and PF license but engaging workers as they have less than 20 workmen, but even in more than 20 workmen condition they are doing petty specific jobs, '
thus it is ok if wc policy is taken in case of absence of ESi and PF in implemented area, what are its consequences,
also can the workmen demand permanent employement with principal company if their esi and PF is deposited on employers code later .
Is it necessary to have ESi and PF for contruction industry.
regards
ashish banka
9748094316
From India, Calcutta
Dear Mr Ashish,
Thanks for your response. My querry is in fabrication/construction works risk is more. If any thing goes wrong and contractor fails to fulfil statutory obligations, Prncipal Employer will be in risk. In that circumstances, if contractor does not comply ESI, the PE can insist for WC. Is it valid or not.
Thanks
Vara Prasad AVGN
From India, Kakinada
Thanks for your response. My querry is in fabrication/construction works risk is more. If any thing goes wrong and contractor fails to fulfil statutory obligations, Prncipal Employer will be in risk. In that circumstances, if contractor does not comply ESI, the PE can insist for WC. Is it valid or not.
Thanks
Vara Prasad AVGN
From India, Kakinada
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