Dear All,
As per the ESI Act, establishments with 10 or more employees will be covered under ESI. My question is whether the Directors are to be considered for the calculation of the number of employees? Please note that in our company, we have 3 Directors who are shareholders and also receive Director's remuneration but do not have any Managing Directors as such.
NB: I know that Managing Directors are generally covered, but I have doubts about whether the same applies to shareholding Directors. Please guide.
Regards,
DG
From India, Calcutta
Acknowledge(0)
Amend(0)
1As per the ESI Act, establishments with 10 or more employees will be covered under ESI. My question is whether the Directors are to be considered for the calculation of the number of employees? Please note that in our company, we have 3 Directors who are shareholders and also receive Director's remuneration but do not have any Managing Directors as such.
NB: I know that Managing Directors are generally covered, but I have doubts about whether the same applies to shareholding Directors. Please guide.
Regards,
DG
From India, Calcutta
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI Amendment Act 2010-Gazette Notification-01 -06-10.pdf