Supreme Court stays applicability of ESI to construction site workers / labour

Supreme Court stays applicability of ESI to construction site workers/labour

ABCAUS Case Law Citation:
ABCAUS 2423 (2018) 07 SC

The Employees State Insurance Corporation had issued a Circular bearing No. P.12/11/11/60/20110-REV.II dated 31/07/2015 extending the benefit of ESI Scheme to the construction site workers, deployed in the implemented area with effect from 1st August, 2015.

The Bombay High Court had held that any person employed by or through an immediate employer or under the supervision of principal employer or his agent who is ordinarily part of the work of the establishment falls within the ambit of the Insurance Act for all purposes.  It was held that the applicability of the Insurance Act, cannot be stated to be in conflict with existing field and the other special laws.

However, the Supreme Court had issued an interim order staying the the order of the Bombay High Court and also the Circular dated 31st July, 2015 of the Employees State Insurance Corporation until further orders

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Subsequent to the order of the Hon’ble Supreme Court, the Employee State Insurance Corporation (ESIC) had issued a clarification that no ESI contribution can be collected from the construction site worker and from their employers during the period of stay and also no benefits could be extended to such workers during the corresponding benefit period.

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