Coverage under the ESIC Act

• Yes, ESIC is applicable to contract workers if they meet the eligibility conditions.
  
• The Employees’ State Insurance Act, 1948, does not exclude contract workers.
  
• If they are employed in premises covered under the Act, they must be registered.
  
• Wages must be within the statutory threshold (₹21,000 per month).
  
• The nature of employment does not affect their right to ESIC benefits.
  

Responsibility of registration and compliance

• The principal employer is responsible for registering contract workers.
  
• Contractors may process registration, but the obligation lies with the main establishment.
  
• The principal employer must ensure contributions are paid on time.
  
• Failure to include contract workers may attract penalties.
  
• Compliance must be ensured even if workers are hired through third-party contractors.
  

Contribution and benefit eligibility

• Contribution rates are the same as for regular employees.
  
• Employer contributes 3.25% and employee contributes 0.75% of wages.
  
• Contract workers receive full ESIC benefits like medical care and cash benefits.
  
• Benefits include sickness, maternity, disability, and dependents’ support.
  
• Continued contribution ensures uninterrupted eligibility for benefits.
  

Documentation and verification

• Contractors must collect details like name, Aadhaar, address, and wage records.
  
• Employers must verify identity and employment status before registration.
  
• e-Pehchan cards should be generated and issued to contract workers.
  
• All records must be maintained by the principal employer.
  
• Verification helps avoid duplication and ensures legal compliance.
  

Inspections and penalties

• ESIC inspectors may check for compliance in contract labour employment.
  
• Non-registration or delayed contribution can lead to penalties.
  
• Interest and damages are applicable for delayed or missing payments.
  
• Legal action may be initiated for willful default.
  
• Maintaining proper records helps during audits and inspections.