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Dear Aarti,
If you are in the need of a formal legal advice on this issue to clear your confusion on the issue, please feel free to get in touch with us.
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Lex Ingress is a team of skillful knowledgeable and experienced Lawyers and Chartered Accountants and Management Graduates who through effective team work, master the art of understanding the clients’ requirements and delivering quality work.
The professionals at Lex Ingress are graduates from premier institutes within the country and have worked with leading law firms and corporate houses during their career ascent. With their diversified and fine skill pool and exposure levels, their services in terms of legal advice, drafting legal documents, legal research, documentation, outsourcing etc. are amongst the best available in the country.
We at Lex Ingress are committed to excellence in the quality of services we render, while ensuring compliance with legal and ethical norms.

Introduction:
Lex Ingress is a team of skillful knowledgeable and experienced Lawyers and Chartered Accountants and Management Graduates who through effective team work, master the art of understanding the clients’ requirements and delivering quality work.
The professionals at Lex Ingress are graduates from premier institutes within the country and have worked with leading law firms and corporate houses during their career ascent. With their diversified and fine skill pool and exposure levels, their services in terms of legal advice, drafting legal documents, legal research, documentation, outsourcing etc. are amongst the best available in the country.
We at Lex Ingress are committed to excellence in the quality of services we render, while ensuring compliance with legal and ethical norms.
Please get in touch with us at in case you are interested in a formal legal opinion on this issue.

Dear All,
Please do not turn the legal law otherwise it would turned into violation stage which is an illigal phenomina.
Aarti,
please do not think about Mr. Hameed mail and you should get registered your firm under ESI act.
ESIC is applicable for your trading firm and it does not matter that eligiblity of employees are less than 20.It is made clear in above mails that your company hiring more than 20 people.
I am also a memeber in ESIC functional committee,if ESI office ask about the fact then give mu refernce ,they will registered your company under ESI act.
If they put some remarks on your application,please let me know.
Best Regards
Sajid Ansari

Hi Regarding your above firstly please find out whether your company location is notified by ESIC or not. If so plesae follow the above procedure shared by our friends Tks & Regards Vadlamani SR
Dear All, Mine is a construction equipment manufacturing company. I want to introduce Kaizen activity on the shop floor. Please suggest me ways how can I do it. Shailja
hello friends I fully endorse the verdict of Mr. Hameed. I am attaching the judgement in the case of ESIC Versus M.M. Suri & Associates (P) Ltd. reported as 1998 LLR 1105 (SC). regards Puneet Gupta

Attached Files
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File Type: pdf MM Suri case.pdf (92.5 KB, 112 views)

dear Aarti

Please donot get your establishment registered under the ESI Act, since your organisation doesnot come under its purview. before you get yourself registered under the ESI Act, please go through the ruling in the case of M.M. Suri case. I have already uploaded the same in my last mail.

Secondly, one of my friend who says that he also belongs to ESIC and contradicts himself from Mr. Hameed's view is not justified. We should acknowledge Mr. Hameed's knowledge on the subject.

Further, some one has asked you to check whether you are using power or not e.g. if you are using computer in your office, it amounts to use of power. For him and for my other friends I must say that the ESI Act is applicable to Factories & Establishment under different situtations.

ESI Act vis -a- vis : Factories

The ESI Act applies to factories which does "manufacturing process" with the aid of power or without the aid of power. In case with the aid of power the limit is 10 or more eligible employees, otherwise the limit is 20 or more eligible employees. The criteria is "manufacturing process".

ESI Act vis-a-vis : Establishments

But in case of establishments the criteria of manufacturing process is not present. The estb. will come under the purview of the ESI Act, if

1. It is situated in the notified area; and

2. It has 20 eligible coverable employees drawing salary less than 10000 p.m.

hope I am been able to stop you from taking a wrong step on the advise/guidance of others, who doesnot suppport their answers with evidence, which is not the way and creating undue confusion.

If you have any other query or want the complete copy of the judgment, may visit me at my email:

bye

Friends

This is a general comment on the dangers of web site like this. Blogs are fine on general matters, but when it come to Legal liability, then very generalized opinion can be quite dangerous. Few days back I expressed this view, when an old friend of min, Prof. Varkey of IIM Ahmedabad, expressed his view on a post I made.

I have no problem in people disagreeing with me at all. That is what democracy and freedom of speech, which we in India cherish most, even when we starve.

Another matter is danger of these kind of free blogs becoming a place to advertise one's profession or service. I feel strongly that the Editor or who ever set this good site should see that the site is not used for free advertisement.

Let me make it very clear that I am not a consultant and my view or services are not available for a fee. I served ESIC for pretty long and worked as its State Director in four of the most important States, and Headed almost all important functional Division of the Organisation and retired raising to the No. 2 position. Now that I have a good pension and a very good private job, which keep me busy for six days, and very happy, and allow me to view the department from this side of private industry, I can contribute a bit to spreading what I know, and nothing more.

Know the law and the logic behind the law. The knowledge of the law is not a monopoly of the law enforcers. In fact the Department administering the law is Not the final authority of the law but only Supreme Court is the final arbiter. You should also remember that many who are working years in a particular department, may not know the technical aspect of the law of that organisation. Why should one think that one who worked all his life in Store, Personal administration or Accounts department of Income tax department, should know the intricacies of Income tax law, various circulars and judgments of the tribunal and courts ? That is true of ESIC also and that is true of many of the so called general Consultants. Please also remember that sorting out the problem with department "some how" (often with corrupt inducement) is quite different from sorting out the matter lawfully and professionaly.

Be Professional, know the law, be correct, be courageous and never succumb to illegal methods. Advise your management correctly. If you want to jump to a well knowingly, No problem in it, but do not fall into a well unknowingly. That is my advise.

O.Abdul Hameed

Hi Friends
I had worked in industry for more than 30 years in HR Department. I had come across different situtations. For making the act applicable the ESI authority take into consideration all the persons working in the company irrespecive of designation and status and salary or wages they earned per month for computation number of workmen 10 or 20. It is immaterial whether they are working in manufacturing units, sales, head office, sales offices located in different states etc. Some manufacturing unit engaging less than 10 employees are also covered under the Act and ESI Act is made applicable.
The courts will decide the case on the basis of the evidence brought on record by ESI inspector and the Company.For more details you may be feel free to contact me.
Avinash Kanoray
09890752690

Dear,
In my opnion you are not required to registered under ESI act. as you are not exceeding the limit of 20 employees(with out motive power)having salary less than10K.
You may refere this to your ESIC Consultant or try to register your organisation online.application itself will get rejected by ESIC authorities.
regards,
Mahendra Bhandare
9820511613


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