Queries
A contractor employing 5 employees will be covered under ESI Act?
9th March 2012 From United States , Cambridge

PARTICIPATING IN DISCUSSION:
Boss2966
Industrial Relations
Vishalgohilmhrm
Hr Professional Of An Mnc
+2 Others

Hello Mansi,
Applicability ESI Act,
1) All factories excluding seasonal factories employing 10 or more persons and working with electric power.
2) All factories excluding seasonal factories employing 20 or more persons and working without electric power.
3) Any establishment which the Government may specifically notify as being covered.
4) Shop employing 20 or more persons.
Eligibility
1) Any person employed for wages (up to Rs. 15,000) in or in connection with the work of a factory or establishment end.
2) Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.
FIRST, CHECK APPLICABILITY OF YOUR FACTORY UNDER ESI ACT.
IF ESI IS APPLICABLE TO YOUR FACTORY, CHECK SUB-CONTRACTORS DRAWING WAGES UPTO RS.15,000/-WILL BE ELIGIBLE/COVERED UNDER THE ESI ACT.
Regards,
Vishal
15th March 2012 From India , Bharuch

Dear Mansi
Already Mr. Vishal has clearly mentioned the eligibility for registration of ESI as per the various acts.
Further if you are a Principal Employer and you are engaging contractors under you, you have to make sure that they are paying the ESI for their workers working under them if their salary/wages are less than Rs.15000/- pm.
But if your organisation is engaging only 5 employees and there is no outsourcing is done to carry out the work, then you need not to register for ESI. Simply you can take the Group Personal Accident Policy or any other policy similar to that as per Employee Compensation Act.
16th March 2012 From India, Kumbakonam

Thank you Mr. Vishal and Bhaskar for your inputs. First of all, I am a hospital and ESI Act is applicable on my hospital. The information you both shared with me is very useful. But the fact that ESI is applicable on my hospital ,can have any effect on the applicability of ESI Act on the contractor also?
16th March 2012 From United States , Cambridge

Dear Mansi,
Please refer the attachments.
As per my view, The sub-contractors engaged in your hospital is not covered under the Act. (see the highlighted parts in the word file in Zip attachment)
Now, I hope your query will be solved.
Regards,
Vishal Gohil
16th March 2012 From India , Bharuch

Attached Files
File Type: zip ESI.zip (46.7 KB, 579 views)


Dear all,
Is ES I available for NGOs specially De-addiction center like ours as we are doing Seva 24/7 for treating addicted patients moreover we are a registered NGO under West Bengal societies act.
can any one give us some knowledge on this issue
Sanjay
22nd January 2013 From India , Bangalore

Dear Boss
Pl let me know as per the law salary/wages are less than Rs 15000/- PM then employee is eligible for ESI but if salary is more than Rs15000/- PM & directly on payroll of the company then what medical benefit given by the employer or which act is for the same.
Pl guide
21st June 2013 From India , Pune

These are normally covered by the HR Policies of the company. There will be Group Personal accident policy which will cover the accidents in factories/work place and some companies are providing the Mediclaim policies for their employees which can be used even for general sickness of self and family members.
21st June 2013 From India, Kumbakonam

Dear Boss
Company is not providing any Mediclaim as well Group personal accident policy but both policies are stating on the employer web site & employee portal under employee benefit category. My self had an accident while returning from customer site. afterwords i undergone surgery process and spent Rs 1,55,000/- as a hospital bill for 15 days admission.
Now I contacted to the HR to claim the group personal accident policy but HR reply to mail that such policy does not exist. As well not paid my salary/expenses dues for medical treatment treatment which are due from Sep-12
hence requesting you Pl can take some legal action against this
21st June 2013 From India , Pune

Do you have any evidence/proof that you met with accident while on duty/on the way to duty/while return from duty.
If so, please approach some good lawyer of your area and explain him regarding this issue. Before that please send a mail stating that I was on duty on _____ (date) and after I met our customer/client while I was returning to our office I met with accident. Hence the same may be considered as accident while on duty. Please release my salary for the period of hospitalisation and rest period after considering my absence period as Sick Leave. Further I request your honourable office to reimburse the medical expenditure incurred to me during the 15 days hospitalisation amounting to Rs.155000/-. Hand over the same to your Line manager. Request him to affix his remarks and take the Xerox copy of the same and hand over the original letter to your HR. Take the acknowledgement for receipt of your letter.
After that approach the lawyer with those letters. He will take of your case.
21st June 2013 From India, Kumbakonam


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