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Hiten Parekh
29

Seek guidance on applicability of ESIC for new unit.
Organisation I am working with had started construction of a new factory in year 2007 and number of employees reached 12 in the month of April 2007.
On 31st December 2007 we started commercial production (manufacturing process). We are complying with ESIC norms since 01.01.2008. During inspection visit by the ESIC inspector, they have recorded that we were liable to comply with ESIC norms w.e.f. 01.04.2007 and that we have to pay contribution for the period 01.04.07 to 31.12.07.
Please advise the legalities and suggest our stand.

From India, New Delhi
srikanth H.R
Hi
good day all H.R people
i need the information about
INDUSTRAL act
P.F ac
EMPLOYEE act
FACTIRY act
TRADE UNION act
which ACT ARE USE FOR HR PEOPLE THAT ACT DATA PLZ GIVE ME
REGARD
SREEKANTH H.R
MOBILE:+91 8500082912

From India, Hyderabad
Madhu.T.K
4210

As per my understanding labour engaged during the period of construction of factory buildings and before the first sale of goods produced will not be covered under ESI. Please check it with the Inspector.
Regards,
Madhu.T.K

From India, Kannur
Hiten Parekh
29

Thanks Madhu T K!
I have shared the remarks made by the inspector of the corporation who visited our site.
Can anyone please share relevant circulars / notifications / case-laws in this regard?
Thanks!
Hiten

From India, New Delhi
essykkr
87

Rightly said by Mr Madhu before production ESI may not be applicable but they will be covered under BOCW Act, And ESIC will not be applicable on site workers.
Once production starts and have more 10 employee then ESIC will be applicable.


Bala2704
If the ESI inspector has recorded the Date in the attendance, the posibility is less. You can claim with the EB power consumption increased after the production taken, and First Sales invoice, you can approach the Asst Director ESI for further guidance.
Regards
Balasundaram.E.S

From India, Madras
ms.monika
1

Dear All,
Pls help for the salary annexure:
Assume if the Salary is Rs. 12629/- P.M. then what would be the basic and wht is the total amount deduct for P.F. with ESIC (Include Bonus)
Rgds/ Monika Kaushal

From India, New Delhi
Hiten Parekh
29

Thanks everyone for response.
From the replies from all, I am feeling confident that coverage is applicable after commencement of manufacturing activities.
Can someone please help me with relevant case laws, circulars or notification in this regard?
- Hiten

From India, New Delhi
Bala2704
Seek guidance on applicability of ESIC for new unit. Regards Balasundaram.E.S
From India, Madras
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