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rollysrivastava
8

Hi All,
Anybody may please advise-
If suppose we are covered under ESI, will the contract labourers working with us will also be covered even if total number employed through a contractor is less than 20.
Note that the total strength with the contractor in toto is also below 20.
Rolly

From India, New Delhi
shilpa84in
2

Hi
In this case, you'll be the principal employer
If all the formalities have been completed as far as the Contract Act is concerened, your contractor is liable for ESI of his/her employees. And your company needs to save and maintain a file for half yearly ESI returns of contractor's employees.
Have a nice day!!!


rollysrivastava
8

Hi shilpa,
Thankyou for the reply.
Well I am aware about the role of principle employer. What i am asking is what if the contractor has less than 20 ppl working for him whereby he is not liable to contribute.
In that case if those workers are working under us on contract basis will they be eligible for ESI as our establishment is covered.
Rolly

From India, New Delhi
pravinkjoshi
2

hi
if pricipal employer is covered by act it's mandatory to the contractor.
also
including above, any work done under the heading of labour charges will attract esic.
for eg. even if a external carpenter worked for company will also covered for esic
Pravin

From India, Pune
rollysrivastava
8

hi pravin,
As per your reply kindly ellaborate that whose liability will it be to deposit ESI? Will it be the liability of principle employer because the contractor has no ESI code as he has less than 20 ppl working for him and they are working for us on temporary basis.
Rolly

From India, New Delhi
samvedan
315

Hi,
I suppose your establishment is covered under ESI.
In such a case, quite irrespective of the Contract Labour (R & A) Act or the concept of the "principal employer", you will be obliged to cover your contractors' employees even if the contractor deploys or employs less than 20 employees at your establishment.
The above position is crystal clear from the definition of an "employee" provide at Sec. 2(9) of the ESI Act 1948.
Your doubt will dissolve once you read this definition.
Regards
samvedan
May 7, 2007

From India, Pune
rollysrivastava
8

Hi samvedan
I went thru the defination n it says abt temporary labours that-
"iii. whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service..."
So it mentions a term contract of service.
My querry is what if the contactor himself has employed these ppl (less than 20) on casual basis i.e. no contract of service just temporary basis, and if they are working fr us will we be liable to pay ESI for the no. of days they hav worked fr us? If yes then why?
Please clarify...
rolly

From India, New Delhi
Wagh
If the establishment , in which contract labourers are employed, is under the purview of ESIC, then all contract employees drawing salary of less than Rs.10,000/- are entitled to be covered under ESIC. If the contractor does not have his own ESIC code, then ESIC deductions may be made from Principal employers ESIC code.
Regards
Wagh UA


pravinkjoshi
2

hy
u decide first r u making the things leagel or not.
if not, let them work without maintaining any records.
If yes u have to pay their contibution on the code of company.
again tell u any external person worked in company will be liable for Esic though he is havin code or not

From India, Pune
rollysrivastava
8

Hi samvedan
I went thru the defination n it says abt temporary labours that-
"iii. whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service..."
So it mentions a term contract of service.
My querry is what if the contactor himself has employed these ppl (less than 20) on casual basis i.e. no contract of service just temporary basis, and if they are working fr us will we be liable to pay ESI for the no. of days they hav worked fr us? If yes then why?
Please clarify...

From India, New Delhi
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