iftesun Started The Discussion:
Sir, Would Some one help me to know whether a Agency/Contractor whose Registration office is at Ahmednagar, where ESIC registration is not Applicable can provide manpower on contract in areas of city like pune where ESI is applicable. whether such a agency/Contractor is Exempted to pay the ESI Contribution i.e (4.75%) of the wages of employee.
please help me to know this .
If the establishment where the workers are engaged is covered by ESI, it is mandatory to get them covered even if the Registered Office of your labour supply establishment is not covered. In such cases, the employees will have to take insurance numbers from the establishment's registration itself.
1. If the registered office is in a non implemented area and some of the employees are working in the implemented area: In such case the responsibility of coverage of such employees will not hold on such contractor. Further if he is having any branch office in the implemented area and having sufficient no. of coverable employees attached to such branch office, irrespective of the fact that the registered office is in implementd area or not, the branch office can be registered with ESI separately;
2. In case if the branch office does not qualify for individual coverage due to less no. of employees, the compliance in respect of these employees should be made by the Principle Employer in whose premises these workers are working for wages, if such Principle employer was already registered with ESIC.
Hope i clarified ur doubt........if not don't hesitate to raise the querry......or call me on 09443434313 or mail to
Sir, Thank you very much for your usefull reply,
the confusion is clear but one doubt arises in the mind that in case....... if the Principle Employer is having his permanent employees having wages more than Rs 10,000 so he himself does not require to Register for ESI. and if such a principle Employer need to hire employees on contract through labour supplier and the labour supplier office is registered in a non implemented area like Khandvi (Ahmednagar) and does not have ESI Registration in such case whether the principle employer can take Contractual Employees from such a labour supplier ...???? what is the responsibility of principle employer in such a case.
If once that unit is coverable under the Act, ultimatly he will be held responsible for the compliance in respect of all his contractor employees also......
Hope i cleared ur doubt.......
ESIS is applicable to notified area. The premises of the work, if it is a notified area under ESIS and the Principal Employer is registered under the Act, irrespective of no. of employees of Contractor, ESIS has to be paid, provided their salaries are less than Rs.15k.
If the Contractor has requisite nos of employees, he can apply for a seperate code, if he has to have long term contract and work with the Principal employer. Otherwise, the amount of ESIS can be paid in the code of principal employer.
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