Under what circumstances the E.S.I. will be applicable to the employees engaged by a contractor? 

The employees engaged by a contractor are surely to be covered under E.S.I Act and the Scheme. A Division Bench of the Bombay High Court dealing with such a proposition has held that the employees of the contractors engaged for repairs, site clearing, construction of buildings etc. are engaged in an activity which is essentially required for the running of the factory and is ancillary or incidental to and has relevance to or link with the object of the factory, However, the Supreme Court has held that the order to determine the -relationship of employer and employee between the principal employer and the employees engaged by the contractor (immediate employer) the supervision by the principal employer or his agent is essential.

1.Kirloskar Pneumatic Company Ltd. vs. Employees State Insurance Corporation, 1987-1 LLN 906.

2.C.E.S.C. Limited etc. vs. Subash Chandra Bose 1992 Lab. IC 332; AIR1992 SC 573; 1992 (I) LLJ 475; 1992 LLR81 (Supreme Court).


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