Consession for casual workers

Please help to advice for the raised query. Thanks for all support and views.

Firstly let me know whether these casual workers are under ESI Scheme ?

So that i can give a suitable reply

Hi M. Felix.C,

As per factory these workers are not yet under ESI scheme & they want to learn more on “what would be the criteria to get them under ESI “ even if they stay for only 3-4 days & leave after that?

What about PF & other benefits forms submission requirement?

Dear rn25sgs,

1. Who is an employee ?

Sec 2 (9) of the ESI Act , 1948, defines an employee .

In a case A.P.State Electy. Board V E.S.I.Corpn,1977 Lab IC 316 (AP) mentions that the word 'employee' as defined under Section 2(9) includes casual workers also.

2. All employees to be insured - Refer Sec 38 of the ESI Act
In Bochringer Knoll V E.S.I. Corpn , 1977 Lab IC 1116 (Bom) - The definition of Section 2(9) must be given effect to for the purpose of Section 38

3. In a case : A.P.State Electy.Board V E.S.I.Corpn, 1977 Lab IC 316 (AP)
Sec 39(4) and 42(3) establish that a casual worker is entitled to payment of contribution by the employer towards employer's contribution as well as employee's contribution , though he is employed even for a day or two or a few days in a week.

From the above three points and the cases cited, i am sure that you have understood that a casual worker should be ESI insured from the date of joining and you can cite the cases in your discussions.

Once they are insured under ESI, they have to be declared in the annual returns which is to be submitted under the Factory Act 1948.


Hope this information is useful

Dear rn25sgs

For getting the eligibility to avail ESI Benefits one must work for a minimum period of 78 days in 6 months time. That means per month at least they have to work for 13 days every month for which you must maintain the Muster Roll, Wage Register, OT Register, and other relevant documents, which will be regularly inspected by the ESI authorities, which must comprise the PF Deduction Details too.

Hope it will serve your purpose.

With warm regards

S. Bhaskar

Dear Bhaskar,

As per my knowledge, every employee employed should be under ESI coverage from day one.

Suppose , there is an accident , in such circumstances the need for ESI is vital.

Normally employers save & ignore on ESI contribution.

In most cases claims from the aggrieved, ESI will handle if the employee is insured , otherwise the employer will be liable for compensation.

To be on the safer side, every employee should be covered if he comes under coverage limit.

Dear Mr. Felix

Thanks for your sincere guidance.

In case of PF, if we prove that the workmen are engaged for temporary and emergency work purpose, then we need not to pay for 1 or 2 days work. But I am not aware about the ESI for having any exemption.

Hi Bhasker ,

Actually there is no provision in any act .Even for 01 day starts all provision like.
P.F.E.S.C. ,Cont. Labour,Payment of wages ,Mimimum wages,Compensation act ,Etc.

Rgds