ESI Coverage - Esic [Thread 186476] - CiteHR
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The Act did not allow the establishments coverage if they do not fulfill the requirements laid down under Sec. 2(12)(ii). Here the total number of employees employed is not the creteria but the number of employees who are coverable under sec. 2(9) i.e. upto 10000 is the creteria after the Honbble Supreme Court Judgement in MS Suri vs ESIC . Hence the establishment which is employed only 3+2 outsourcing is not amenable under the Act.
As per the facts mentioned bu you, your establishment is not covereable under the Act. this question has earlier been rasied on this site.
Secondly Sanagapalli is absolutely correct.
If you require the copy of judgment of MM suri case visit the link below on the same subject.

Dear Friends,
We may like to overlook the provisions of the ESI Act and do some progressive thinking.
Please respond to my suggestion:
1. Get the Co. registered under ESI.
2. Comply with the required statutory obligations under the ESI Act for the eligible employees.
3. By doing so you will be doing tem a favour at a very low cost. For just 4.75% of their Gross Wages these employees will be entitled to a large suite of medical help.
The Administrative work involved would also be VERY SMALL. There are only three employees.
I feel the effort would be more than worthwhile.
Today eny kind of medical treatment is extremely expensive. Coverage under the ESI Scheme may provide a smart answer
Please respond.
Vasant Nair

Dear Darry,
Yours being ITES Company employing only 3 dirct and 2 indirct employees coverable under the definition of ESI Act,1948.The provision s of the said Act will not be applicable as per the ratio of Supreme Court Judgment in ESI Corporation V/s MM Suri reported in 1996 LLR 1106.Since you are Non Mfg Co,only after 20 coverable employees are employed either directly ot indirectly,your Company will be covered under ESI Act,1948
Shriniwas Inamati

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