Thursday, July 30, 2009

Construction workers covered by ESIC and EPF Act

On the basis of licenses obtained by various contractors of Delhi Metro Rail Corporation (DMRC) and Commonwealth Games sites, the total number of construction workers engaged for Delhi Metro and Commonwealth Games sites are 20,364 and 11,089 respectively.

As per estimates of National Sample Survey (2004-2005) about 25.71 million building and other construction workers are estimated in India. The construction workers who are employed in an establishment covered under the EPF & MP Act, 1952 and eligible for membership are covered.

The construction workers working at construction site are not covered under the ESI Act, 1948. However, construction workers working within a factory covered under the Act are eligible for cover for the limited period when they are working in that factory. The power to extend the Scheme to any other establishments (other than factories) lies with the concerned State Governments. None of the State Governments have, so far, extended the Scheme to construction workers.

The main reason for non-coverage of these workers is that they are mostly migratory and move on to some other site as the construction project is completed. One of the pre-condition for extending ESI Act to any area is provision of infrastructure for medical care and if a dispensary is set-up at an area where construction work is going on and workers move out from that area after the project is completed, the infrastructure will become unutilized and infructuous.

This information was given by the Minister of State for Labour and Employment, Shri Harish Rawat in a written reply in the Rajya Sabha today.


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