Applicability of ESI on construction sites stayed by Hyderabad Court

The Employees’ Insurance Court at Hyderabad has granted STAY of the operation of Notice issued by the ESI Corporation, Hyderabad, wherein the Employers were directed to pay ESI Contributions in respect of the construction workers engaged by the Company as per the Notification dated 31-07-2015.

The notification about the coverage of construction site workers was challenged on various grounds and after hearing the Counsel for the ESI Corporation also, the Hon’ble Employees’ Insurance Court has stayed the notice issued to the Company by name M/s. IVRCL Limited, Hyderabad on 13-01-2016 vide I.A. No. 178 of 2015 in EI Case No. 33 of 2015.

In this connection, it is to be noted that the Hon’ble High Court of Madurai had only granted status-quo order, but there was no stay in the matter.  The copy of the stay has been applied and will be available shortly.