Dear Senior,
Please clarify
ABC & CO is a running whole sale rice business, here 30 employees are working in establishments, they are cover under the ESI Act , But For transportation rice package they have engaged loaders and unloaders form outside . who are available to any one. ABC & CO Not include their name in salary register. There is no contract agreement between both of them.
My question is
Whether ESI Should be cover those employees .

From India, Coimbatore
Sir,
The persons engaged for the loading and unloading work which relate to or is in connection with the work of the establishment covered under said Act are also coverable under Employees' State Insurance Act, 1948 and rules / regulations framed thereunder.
Principal employer is required to make compliance in respect of said persons as per provisions of said Act.

From India, Noida
its a loop hool under ESI as well as PF, both acts provide that even if any employee working for single days ESI & PF shall be payable in respect of such employee.

However, in number of judgement Apex Court has clearly contend that if the identity of employees is not established meaning thereby if an employee work for hrs and left, like loader/unloader, than ESI shall not be applicable.

in case of Hassan Milk Cooperative Society V/s AD ESI the Apex court has pointed out in case employee are doing work of distribution of milk through transporters at different out lets in such a case Principle employer shall not be liable for contribution of ESIC. further if beneficiary itself is not identifiable than ESI act will not be applicable and contribution shall not be payable in respect of such employees.

Rickshaw pullers, Hathrairy pullers and Truck Operators (who bring labour with them) no contribution is payable on the amount paid by the employer if the amount paid is lumpsum amount including loading/un-loading charges and no separate wages are paid by the employer.

So its a matter of debate.


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