Organisations exempted from ESIC coverage

Hiten Parekh · #1 26-11-2007, 10:10 AM

Hi !

Good morning to everyone !

Can anyone please let me have some information and guidance about whether an organisation commencing production in Nov. 2007 get exemption from ESI for a certain period? (say as a newly setup organisation). Are there any provisions for the same?

If yes, what are the formalities involved in the same?

We have one plant existing in Gujarat, we are in process of setting up a plant in state of Uttarakhand. Our Gujarat plant is not covered under ESIC ACt. But in Uttarakhand, ESIC Act is applicable to our region.

Your guidance will be very much helpful to me.

Regards,

Hiten

Hiten Parekh · #2 26-11-2007, 02:36 PM

Hi !

Can anyone throw some ligth in the matter please?

I am waiting for your reply.

- Hiten

cgnanij · #3 26-11-2007, 02:43 PM

Interesting

Hiten Parekh · #4 26-11-2007, 02:45 PM

Thanks !

nilendrachand · #5 26-11-2007, 03:15 PM

Dear Hiten,
You cant really do anything i.e. you cant claim any exempetion. You will have to comply with the provisions.

Regards,
Nilendra

S. Krishnamoorthy · #6 27-11-2007, 09:39 AM

Hi
There is no exemption for any factory in which the manufacturing process is done with the aid of power when the no. of employees is 10 or more and for factories in which the manufacturing process is done without the aid of power when the no. of employees is 20 or more and for all establishments if the no. of employees is 20 or more. The ESI coverage applies from the day one of the commencement of factory or establishment.
S. Krishnamoorthy

Hiten Parekh · #7 27-11-2007, 09:52 AM

Thank you all for your replies !

- Hiten

r.shanti · #8 27-11-2007, 10:34 AM

[quote="Hiten Parekh"]Hi !

If you can prove your factory have a seasonal business this your factory can consider for exemption as defined u/s 2(19a)from applicability of the act.

With regards,

R Shanti

Hiten Parekh · #9 27-11-2007, 11:07 AM

Thanks Shanti !

But ours is not a seasonal one. Now the fact that is clear to me is that there is no exemption for this, in this condition can you please let me have some more guidance about registration and intimation about those who are above the prescribed limit of Rs. 10000/- pm.

Regards,

- Hiten

r.shanti · #10 27-11-2007, 11:25 AM

Dear Hiten,

If your factory is not registered under ESIC Act then you have to apply thru a letter addressed to Regional Director with all the details of your factory. And make sure your relevant records like attendance, wages will be maintained in a well manner. After receipt of your letter they will inspect your factory and allot you code no.

If you have already covered then simply attach a list which shows the wages limit.

with regards,

R Shanti