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ESI Applicability
Human Resources » Industrial Law & Discipline

Chrm Message From: smitaa Total Posts: 32 Join Date: 21/08/2006
Rank: Executive Post Date: 18/10/2009 06:07:34 Points: 160 Location: United States

Dear Friends

I am working as Personnel Officer in a  Spare parts company at Bangalore. Till date we are covered under Workmen compensation act. But recently i got a letter from Inspector of Factories stated that "It is being informed that Employers Federation of Southern India has nominated your name to serve as a member in the E.S.I. Board in Bangalore" They asked us to nominate to ESI. I want to know that what will be best for our workers? ESI or WCA. What is the difference in benefit? Can I neglect this notice?



Chrm Message From: senthil.m Total Posts: 43 Join Date: 21/08/2006  
Rank: Executive Post Date: 18/10/2009 06:09:17 Points: 215 Location: United States

Certain facts are given below on the matter.

Between ESI and WC it is not optional, you can not decide on this. If the Revenue village wherein your factory is situated comes under ESI implemented area then the ESI act is applicable. If not WC is applicable to you. You can check with ESI Regional office to know whether your area is implemented area or not.

It is surprise that Inspector of Factories sending a letter that EFSI nominated you in ESI Board.

Your mail has some factual errors.


Chrm Message From: mayurr Total Posts: 20 Join Date: 21/08/2006  
Rank: Executive Post Date: 18/10/2009 06:14:12 Points: 100 Location: United States

What is the proceedure for ESI when an employee covered under ESI retires / resigns. Are the benefits continued?

Chrm Message From: guy Total Posts: 19 Join Date: 21/08/2006  
Rank: Executive Post Date: 18/10/2009 06:15:18 Points: 95 Location: United States

Hi Mayur,

I have gone through all the provisions of ESI Act 1948, sadly there is no unequivocal provision which states the benefit continues even after the retirement / resignation of the insured employee.

On the contrary, it can be concluded with confidence that the benefit does not continue beyond the retirement / resignation of the insured employee.

But, in case of Occupational Disease (Part A, Part B & Part C), there is a chance for getting the benefit, if proved that the insured employee contracted the disease during his tenure provided that the employee worked in the factory / manufacturing unit for not less than 6 months. (Sec. 52 A-ESI Act 1948)

Note : Please consult a practicing lawyer before initiating any action in order to comply with any provision of the act.

Hope you will find it helpful.



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