Whether ESI is compulsory Area wise or Ofiice Registration Wise ??
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Whether ESI is compulsory Area wise or Ofiice Registration Wise ??

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 .

Thank you

Madhu.T.K - Member Since: Sep 2007
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.

Regards,

Madhu.T.K

iftesun - Member Since: Aug 2009
Thank you soo much for your reply , you mean to say that the employees should get their insurance number from The Principle Employeer if the labour supplier is not covered ??.
would you please explain more clearly .

vsyamprasad - Member Since: Mar 2009
Quote:
Originally Posted by iftesun View Post
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 .

Thank you
Here there are 2 issues:-

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

iftesun - Member Since: Aug 2009
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.

vsyamprasad - Member Since: Mar 2009
Quote:
Originally Posted by iftesun View Post
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.
Though the principle employer is having all his employees drawing more than 10,000=00.... Onething u should not forget that an unit is coverable under the provisions of the Act, if it is having 10 coverable employees(including the employees of the contrctors/immedite employers/temporary /casual/daily workers). In this case though the contractor has no liability but by including all the contract workers the Principle employer (that Unit) will be coverable under the provisions of the Act.

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.......

ravichaubal - Member Since: Jan 2007
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.
Ravindra Chaubal
9960735999

pinky1234 - Member Since: Dec 2008
Hi All, Can anyone please suggest the procedure for ESI registration(for the company). How does one register online. Regards, Pinky Basak

bina_daswani - Member Since: Jun 2010
Hi,
can someone help me out here..if an employee has a salary of less than 15K per month, is it mandatory for the employer to apply for the ESIC benefit of such employees? Also, are these employees eligible for PF beneifts?
need more clarification re: ESIC. Thanks.

shvetavyas - Member Since: Jul 2008
Dear Bina, Yes it is mandatory to pay ESIC benefit if the Gross is 15K or less also the number of employees isat least 20.



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