Dear Friends,
I m siting a example. Pls comment.
A person whose gross salary is Rs. 7500/- per month was working in a Pvt Company, Bangalore. He was working with project business of the company. This company is covered Under ESI Act and this employee was getting benefit under ESI Act.
Now company deputed, for time being, this employee to Hubli for project work where there was no ESI applicabilty. He was working there. During working period he met with an accident and declared dead in hospital.
=> Now question is,
1) In deputation period, employee ESI contribution will be deducted from his salary or not?
2) Dependant of this deceased will be benefitted under ESI Act or Workmen Compensation Act?
Pls provide ur expertise.
Regards
Sidheshwar
From India, Bangalore
32I m siting a example. Pls comment.
A person whose gross salary is Rs. 7500/- per month was working in a Pvt Company, Bangalore. He was working with project business of the company. This company is covered Under ESI Act and this employee was getting benefit under ESI Act.
Now company deputed, for time being, this employee to Hubli for project work where there was no ESI applicabilty. He was working there. During working period he met with an accident and declared dead in hospital.
=> Now question is,
1) In deputation period, employee ESI contribution will be deducted from his salary or not?
2) Dependant of this deceased will be benefitted under ESI Act or Workmen Compensation Act?
Pls provide ur expertise.
Regards
Sidheshwar
From India, Bangalore
Dear Friend,
I think you have not understood the difference between WC and Esi act. First answer of your quarries , assuming the amount spelled by you is his gross salary.
The issue of states comes for availing Medical benefits not in other benefits, therefore the deceased employee's kin are eligible for death benefits which are pension and funeral expenses reimbursements.
Wc act is applicable separately , however while awarding the benefit against WC act , by WC commissioner, he shall look at ESI applicability and award accordingly.
Only grey area under WC act is the filing process which slightly tedious.
Please feel free for any other query which you have,
Cheers
Dhole
From India, Delhi
I think you have not understood the difference between WC and Esi act. First answer of your quarries , assuming the amount spelled by you is his gross salary.
The issue of states comes for availing Medical benefits not in other benefits, therefore the deceased employee's kin are eligible for death benefits which are pension and funeral expenses reimbursements.
Wc act is applicable separately , however while awarding the benefit against WC act , by WC commissioner, he shall look at ESI applicability and award accordingly.
Only grey area under WC act is the filing process which slightly tedious.
Please feel free for any other query which you have,
Cheers
Dhole
From India, Delhi
Dear Sideshwar,
Read your query, if the place of deputation is nt coverable by ESIC then he will not be compensated by ESIC. You will organise his payment through workmens compensation act. by compensation insurance if taken or the Company will have to make payment as per the act.
Thanks & Regards
Amal shere
From India, Mumbai
Read your query, if the place of deputation is nt coverable by ESIC then he will not be compensated by ESIC. You will organise his payment through workmens compensation act. by compensation insurance if taken or the Company will have to make payment as per the act.
Thanks & Regards
Amal shere
From India, Mumbai
Hello!! As I see it, much depends on the nature of deputation. From your 2nd mail I get the impression that the accident took place on the day of deputation. Basically, ESI Act applies where it is a covered area under the Act. If a person moves from a covered area to non-covered area lock stock and barrel, then there will be no ESI liability , however if he is on a scheduled employment under the WC Act then employer has to pay compensation. But if he is on short duration assignment whereby he continues to be on the rolls of the covered unit and draws his salary there then the ESI liability cannot be avoided. However, if he comes under the beneficiary period while on deputation outside the covered area he is entitled to the benefit.
Hope my analysis is of help. Regards KK Nair
Hope my analysis is of help. Regards KK Nair
Dear Sid,
You have touched a very good area. Let me try to clear it to you.
The first question of deducting Salary:
Well, the applicability of ESI Act is to an organisation and not an individual. That is, an Organisation must at first fall under ESI coverage, and then all employees who are earning upto the stipulated limit will have to be covered under ESI. It does not matter whether the person goes to an ESI covered area or not. His benefits and Contribution will remain same. So, if the person was at Site and was under different establishment payroll then the question of coverage will rise.
For example, if say a Company has HQ at Mumbai, and it's factory is located at a place which is not covered by ESI Act, then all employees under the roll of the Factory will not be covered under ESI, but the employees under Corporate Roll will be covered, no matter where they work. This is applicable vice-versa. So, the palce of work does not matter but the establishment to which he/she is attached is important.
One more thing I would like to act, that the validity of membership of ESI continues for a period of 9 months after the last paid contribution, so the employee is a valid member upto that time.
2) As for benefits, all valid members are entitled to full benefits. The only problem is the ESI Registered Doctor must be contacted after death.
As for the WC and ESI, I personally would advise a minimum coverage of WC insurance should be taken in general. ESI coverage usually takes time (sometimes we are may delay the submittion of Declaration Form due to work pressure or some Cos, allows a certain number of forms to collect, before submitting to reduce work pressure). Just for our safety.
Revert back for futher queries.
Kind Regards,
SC
From India, Thane
You have touched a very good area. Let me try to clear it to you.
The first question of deducting Salary:
Well, the applicability of ESI Act is to an organisation and not an individual. That is, an Organisation must at first fall under ESI coverage, and then all employees who are earning upto the stipulated limit will have to be covered under ESI. It does not matter whether the person goes to an ESI covered area or not. His benefits and Contribution will remain same. So, if the person was at Site and was under different establishment payroll then the question of coverage will rise.
For example, if say a Company has HQ at Mumbai, and it's factory is located at a place which is not covered by ESI Act, then all employees under the roll of the Factory will not be covered under ESI, but the employees under Corporate Roll will be covered, no matter where they work. This is applicable vice-versa. So, the palce of work does not matter but the establishment to which he/she is attached is important.
One more thing I would like to act, that the validity of membership of ESI continues for a period of 9 months after the last paid contribution, so the employee is a valid member upto that time.
2) As for benefits, all valid members are entitled to full benefits. The only problem is the ESI Registered Doctor must be contacted after death.
As for the WC and ESI, I personally would advise a minimum coverage of WC insurance should be taken in general. ESI coverage usually takes time (sometimes we are may delay the submittion of Declaration Form due to work pressure or some Cos, allows a certain number of forms to collect, before submitting to reduce work pressure). Just for our safety.
Revert back for futher queries.
Kind Regards,
SC
From India, Thane
Hi SC,
1) Now question is if corporate person has completed 9 period and deputed where ESI is not. Now he met with an accident. what will be?
2) After completion of 9 months ESI period, he deputed where there is no ESI and continued the duty upto 2 months. Corporate HR was deducted ESI contribution and depositing employer contribution too. Now he met with an accident, now he is entitled under ESI or WC. See company has taken group insurance that uncovered area.
Now u revert mail with ur views.
Regards
Sidheshwar
From India, Bangalore
1) Now question is if corporate person has completed 9 period and deputed where ESI is not. Now he met with an accident. what will be?
2) After completion of 9 months ESI period, he deputed where there is no ESI and continued the duty upto 2 months. Corporate HR was deducted ESI contribution and depositing employer contribution too. Now he met with an accident, now he is entitled under ESI or WC. See company has taken group insurance that uncovered area.
Now u revert mail with ur views.
Regards
Sidheshwar
From India, Bangalore
Dear Sid,
The period of 9 months starts from the period when the employees name last appeared in Return of Contribution (Form 37) before the payment of contribution stopped.
For example: If an employees leaves on 1st August, 2004, his name will appear on Form 37 submitted on 30th September 2004, so his validity of membership will remain upto 30th June, 2005.
The above is applicable ONLY WHEN YOU HAVE STOPPED DEPOSITING CONTRIBUTION WITH ESI.
If your Corporate HR had deposited his contribution with ESIC, then you can claim benefits from ESI.
Regards,
SC
From India, Thane
The period of 9 months starts from the period when the employees name last appeared in Return of Contribution (Form 37) before the payment of contribution stopped.
For example: If an employees leaves on 1st August, 2004, his name will appear on Form 37 submitted on 30th September 2004, so his validity of membership will remain upto 30th June, 2005.
The above is applicable ONLY WHEN YOU HAVE STOPPED DEPOSITING CONTRIBUTION WITH ESI.
If your Corporate HR had deposited his contribution with ESIC, then you can claim benefits from ESI.
Regards,
SC
From India, Thane
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ESI Amendment Act 2010-Gazette Notification-01 -06-10.pdf
FORMS under the ESI Act.doc