Organisations exempted from ESIC coverage

the plant existing in gujarat must not be in the municipal limit.
while the plant in uttrakhand are in the municipal limit.

Neeraj

Hello Hiten and Neeraj

Whether you engage workers under a contractor or directly, it will be your (Principle Employers) responsibility to cover all such workers. Law of course allow you to recover to recover total contribution (employers and employees) from the bill of contractor not withstanding the terms of contract. Contract employees can be covered under your own code number and insurance number series or contractor can get his own code number, provided he regularly employs 20 employees (assuming that he is only a labour supply contctor). In that case you should obtain the form 7A register from him every month, ensure that he paid the ESI dues, and obtain the six monthly return, and also ensure that his return contain names of workers actualy working in your unit. some contractors merely comply for 20 employees, though providing much more workers to various unit, and yet give the same return to all the employees. Be careful about it.
If you do not recover ESI dues from contractors bill for a particular period, you can do it from a subsequent bill, but the liability will be yours.

Abdul Hameed

Hello Hiten

Your presumption that merely because your unit is far away from the District HQ, you will not come underESI scheme is not correct. The ESI scheme is implemented in pience meal including different revenue villages at different occasion. You can take out an RTI notice to ESIC to get a list of notification under Sec 1 (3) of the act issued for different revenue villages in the district in which your unit is situated. You can also wrige a registered letter to your nearest Regional Office/Sub regional office or Divisional office for this purpose. You may visit www.esic.nic.in to know more.

Abdul Hameed
Former Addl Commissioner ESIC

Dear Sir,

I would like to clarify the misunderstanding here:

I have not presumed that we are not covered by ESIC. Infact I asked for details regarding exemption because the factory we have recently commissioned is in Uttarakhand and ESI is applicable in the region where our factory is located.

I am presently located at Valsad, Gujarat where ESIC is not applicable and I dont have much knowledge and experience regarding ESIC, hence I requested for opinions from other members.

As such my post to which you are referring is about my current location (guj) where I have to travel around 150 km to meet any ESIC official. I thank you for suggesting to correspond with ESIC authority.

However, as mentioned in my previous two posts we have decided to go for registration for ESIC and already the process for the same is initiated.

Once again I confirm the original purpose of my post:

If there is some exemption available for new manufacturing units under ESI, we would like to avail them as we would like to have some time before we achieve the break-even point and help our administration department to streamline the liaison work.

However, as there is no such exemption available, we have decided to comply to statutory requirements and apply for registration.

Hope I have cleared whatever misunderstanding was caused.

Thanks for your response and guidance again.

Regards,

Hiten

Dear Shri Hameed,
I am a retired Indian Postal Service Officer and founder-Director of a medium sized BPO in Chennai.
We induct trainees almost every month as the attrition problem is acute here. These trainees are required to undergo practical and theoritical training including hands on training for six months. However many leave in the middle.
We used to recover ESI contribution from these trainees. But a batch of trainees objected to the recovery stating they are not employees but only learners and get only training allowance and not wages. Our legal cell agreed with it and hence we stopped recovering ESI contribution from them.
Now the ESI inspector who visited our office insists that trainees arenot exempted. We pointed out to him that recently the Supreme Court has ruled in the case of EPF Mangalore and an industrial undertaking that "trainees" are not employees but are only learners and no EPF recovery can be made. In another case of TELCO vs ESI, the SC has held that apprentices/trainees are not employees and hence and no ESI contribution is to be recovered from them.
I think this is a grey area. There is no mention of the word "trainees" in any of the ESIC Act or Rules. Under the Shops & Establishment Act and Standing Orders of our Company, "trainees" are not employees.
May I solicit your considered opinion on this question.
Regards
S. Krishnamoorthy

Dear sir
you have done a great job
i realy appriciate your job
please keep up
and help jr.

thanks

prakash

dear sir (PBS KUMAR)
great job done by you
it is very useful to me
thanks a lot sir

prakash

hiten
let me know why your gujrat plan is not covered under esi act.

N.dagar

Hi
i am working in a pvt. Hospital. They provide free medical treatment to all employee subject to limit as per their salary, only in their hospital. If any treatment not available in the hospital then the employee has to pay for the treatment and hospital not reimburse any thing. Is that ok ? The organisation can do that or is there any law regarding it.