Regarding ESI - Business Management - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Hr_011rajeev
Recruitment And Selection, Compensation,
+1 Other

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HI
can anyone plz suggest me that if iam into facility management business can i get my emeployees registration for ESI in non-contract business to save money ...as these day we have to pay 6 months ESI in advance ...if not than how can i save that money ...
plz suggest
subhash

Your question is not clear. Please be specific and also clarify about the advance payment of ESI for 6 months. Unfortunately, I do not have any information about payment of ESI in advance.
Regards,
Madhu.T.K

thanks for replyin ..
i have facility management company for that i want to register into ESI but due to my nature of business i fall in the catagory of contractor ...and if i register in contractor i have to pay 6 months advance ESI ..but in non contractor (business nature)one has not to pay anything in advance ...what will be the problems faced by me if i do in non contract(business nature).... my consultant is sayin he can manage to get ESI no. in non-contracts ...the only problem is that will there be any issue later ...
regards

I am not aware of any notification which demands advance payment of ESI by a contractor. If so, I feel there is some practical difficulty, that is, ESI is payable on the salary payable and as such how to determine the salary payable for the coming six months?

For an establishment which is in the Facility Management, by nature of business itself it is meant for some other clients and, therefore, there is no specific and principal business but to supply or arrange man power or other for another person, ie, the Principal Employer. Therefore, it is always advisable only to take licence under the Contract Labour (Regulation and Abolition) Act. Registration of your business is different from contract labour business. The former is taken under the State's Shops and Commercial Establishments Act by which you are getting registered as a Commercial Establishment. The licence under the Contract Labour Act, on the other hand, is the licence to undertake contract labour supply or engagement of your employees in some other units.

It is better to obtain the notification as above mentioned from the ESI so that your fear about advance payment can be removed. If you have the notification, please post it so that many of us would be benefited.

Regards,

Madhu.T.K

Dear Subhash,
You question is little bit confusing, i havent heard about payment of ESI in advance. Yes you can say that ESI Return is paid once in 6 month or Half Yearly. This is acceptable.
It is paid half Yearly and time period is 1April-------------30 september
1 October---------31 March
Please check your question and accordingly let us know.
Thanks!!
Rajeev Sharma
Executive HR
(PARAS Group)

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