Hello Team
Can we provide medical insurance to the employee working with us as a CONSULTANT on a contract of 1 year?
Will there be any legal implications?
Awaiting guidance.
Regards
Nisha Patel
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Hey @NishaPatel ,
If it is an employee on a roll, as per the applicable statutory requirements, if comes under ESI coverage, can provide it. If not coming under the ESI coverage, the organization will have group medical insurance for other employees and can be covered thereunder.
If the consultant is under any independent contract for professional consultation or falls under services taken as per the Contract Labour Act?
Professional consultation is not a mandate. For a person coming under Contract Labour Regulations, the org. has to ensure the contractor who provides such employees has all the compliances in place
If the org. wants to provide medical insurance as a benefit to its professional consultant which is up to its discretion. Matter of choice.
Hope this helps.
Community Manager.
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Thank you. 
He is an independent Professional consultant.
So as mentioned it is a matter of choice, we can provide and there should not be any legal issues/complications.
Regards
Nisha Patel
1 Like
Yes @NishaPatel,
Purely up to you and should not have any legal complications.
Regards,
Community Manager.
Ok
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Hi Nisha,
It is not a statutory requirement and it is purely the employer’s decision to cover the consultant in their medical insurance scheme; the nature of work performed by the consultant and his requirement to work at the premises or travel on official duty being the deciding factors. However, if you are mentioning about this benefit in the Consultancy Letter (terms of engagement), it is suggested that you get the GST implications checked through your Finance dept…
Regards
deepa
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