Dattaps_22
Labour Law Practitioner, Consultant
Roshni Joshi
Hr Executive

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Dear Senior,
Please if you can help me,ESI Applicability problem.
My company is having 3 Production unit .Registration office is at Baroda and there we have 0ne production unit wherin all workers of these unit are under ESI,another two unit is 35kms away from registration Office(Baroda),The workers working are from baroda,We have arrange Bus service for two and fro services.
THe problem is that the two unit which are organized by head of baroda ,which is 35 kms away ,there ESI application is not there.
MY confusion is if Registration office is at Baroda ,then according to me these two unit must be covered.So please guide and make me clear.so i can work for ESI benifit for two unit workers also.
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Dear Roshni,
If the other 2 units are falling under Non Implemented Area, you can not extend the benefits under the ESI Act irrespective of where the employees are residing.
Because in any undue event of accidents, the ESI authorities will inspect the causes & place of the accident. And in case they found that, the accident is occured in an Non Implemented Area, the employee will not be benefited.
Please check with local ESI authorities accordingly for the coverage.
Hope this is clear to you.
Regards,
Datta.
Dear Roshni, I am in agreement with Datt’s view. The units which you mentioned are fall under non implemented area and ESIC is not applicable to said units. Deepak
Dear Sir,
Thanks for your guidance.
But Production area where 2 unit are working there no applicability of ESI but registration address of company is of BARODA(where one production unit and corporatee office located) there ESI applicability is there.
Thanks Sir again.
Roshni Joshi
Dear Roshni,
I agree that, the ESI Act applies to your HO and one production unit which is situated in Baroda.
Whereas the ESI Act also states that, once the Head Office of any establishment is covered under the Act, all the connected branches (all over the country) which fall under the Implemented Area will also directly get covered under the ESI Act. But here as mentioned by you the 2 production units are falling in Non Implemented Area and hence there will be no coverage.
You have to prepare different salary / wages & labour charges reccords for such non implemented areas units so as to get the exclusion from the Salary Heads & compliance at the time of Inspections.
Thanks & regards,
Datta.
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