Dear All, My Company Pvt. Ltd. Company and we are in fabrication and erection bussiness. We have 12 sites all over the india and HO in Pune. My question is whether ESIC is applicable for my company? Factories covered under Factories Act then ESIC is applicable. Our company is not in manfacturing so we Factories ACT is not applicable so ESIC is also not applicable. 1) But Section 1(5) permits, extension of the provisions of the Act, to any other class of establishments, industrial, commercial or agricultural. We come under Bombay Shop and Establishment Act. 2) and as per Section 1(5) Although “shop” is not defined it has been held by judicial interpretation to cover an activity where goods or services are sold. No premises is necessary. We are service based company. according to point no. 1 and 2 ESIC Act is applicable but we are better benifits then benifits covered under ESIC ACT like Sickness Benefit- Covered under Medicalim Policy • · Medical Benefit- Yealry we are giving 15 days salary • · Maternity Benefit- YES • · Disablement Benefit-Covered under Personal Accident Policy • · Dependent’s Benefit- YES • · Rehabilitation Allowance-YES • · Funeral Expenses.-YES Hospital Facility- We are tie up with welknown Hosipital better then ESIC Hospital. We have all proofs for these covearge. So guys whole history is in fornt of you please guide me 1. whether ESIC is applicable if yes and we can take exemption then how to take exemption? 2) if yes and not exempted then what is next step? regards Khusro
From India, Pune
From India, Pune
Since you have fabrication work at one place, you are deemed to be a factory. I do not know how you came under the Shops Act. If you employ at least 10 employees with less than Rs 10000 as salary at the fabrication site, then you are covered by ESI. For employees who are working exclusively in the construction site/ installation site, ESI exemption is available. It is right that you have been providing better medical facilities to your employees than what the ESIC provides. But a careful examination has to be made to find whether the facilities provided by you to the employees and their dependents are better than the facilities given by ESIC. For example, you give 15 days salary in lieu of medical benefits. This is insufficient. There is no limit to medical benefit offered by ESIC. You have mediclaim policy by which employees (and dependents) get sickness benefit. How much? Equal to the amount spent on medicines and other hospital expenses? What about salary lost due to absence? The employee should either take CL or Sick Leave or exhaust his earned leave. But in case of employee covered by ESI, he gets treatment free of cost plus wages (from ESIC) calculated on the basis of avarege daily rate of wages. Similarly for each and every head of facility there may be some point of difference. As far as an employer is concerned, being under ESI fold is beneficial also. The maternity matters of ESI covered women employees will be taken care of by ESIC and the employer does not have any obligation towards it. The three months of leave shall be leave without pay only. Similarly, for disablement the employer has no liability under the Workmen's Compensation Act but the same will be paid by ESIC. However, if you feel that your company be exempted from ESI, please apply to the Regional Director, ESI Corporation for exemption. Exemption will be granted if they get satisfied of the schemes available in your company. In case, you do not meet the required norms, you will be covered with retrospective effect. In that case, you will have to remit the contribution (both employees' and employer's) with interest and you can not recover the contribution of employees so paid later on. If you come under Shops and Establishment Act only due to the nature of your activities as satisfied by the concerned authorities, then you should have a minimum of 20 employees to be under the fold of ESI Act. Here also employees who report directly at sites shall be exempted as if they are construction workers. There is no guarantee for such exemption since exemption is given for employees (construction employees) at building sites only. If the ESI Inspectors do not accept these employees as construction workers on the ground of their nature of work that they are doing irection of some fabricated job, then they will also be covered for the time being. The obligation to prove that they will also come within the meaning of construction workers lies on you, the employer and not the ESIC. Regards, Madhu.T.K
From India, Kannur
4193From India, Kannur
thanks for the reply, yes we are in fabrication and erection but fabrication and erection is done at site. and our sites are temparory sites not more then 9 months. so for sites we are exempted under section 88. but for the HO we are not exempted but under section 1(5) we are exempted if we prove that we provide better facilities then ESIC and we are providing. regards Khusro
From India, Pune
From India, Pune
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