Applicability Of Esi Act In Andhra Pradesh - PDF Download - CiteHR
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Dear All
Please let me know the applicability of ESI Act.
Recently i approached to ESI corporation they said it is applicable to where 10 or more employees employed also they shown me a gazette notification issued in 2011 in that they aid that a Private Limited companies which is in service sector have to register under shop category.
But i have doubt as per AP Shops and Establishment act shop was defined also it says that shop will be excluding commercial establishment.
service sector private limited companies are registering as commercial establishment under AP Shops and Establishment
Please let me know the is SI act applicable to Pvt Ltd companies which is in service sector where employees are 12
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Hi As per my knowledge any organisation which is employed 10 & above has to enroll with ESI & PF. ESI & PF is applicable through out India and won’t change between state to state.
Dear Jeevarathnam ji, With due respect to you, I would like to correct you the PF is applicable when you have 20and more employees and not 10 and more.
Dear makthyar,

The applicability of ESI Act in AP is on 10 and above employees irrespective of salary amount.

Your another doubt whether a Private Limited companies in service sector is a commercial establishment or shop under the APS&E Act 1988.

Section 2(5) and Section 2(21) of APS&E Act 1988 define the term commercial establishment and shop respectively as under given verbatim:

Section 2(5) commercial establishment means an establishment which carries on any trade, business, profession or any work in connection with or incidental or ancilliary to any such trade, business or profession or which is a clerical department of a factory or an industrial undertaking or which is a commercial or trading or banking or insurance establishment and includes an establishment under the management and control of a co operative society, an establishment of a factory or an industrial undertaking which falls outside the scope of the Factories Act, 1948, (Central Act 63 of 1948), and such other establishment as the Government may, by notification declare to be a commercial establishment for the purposes of this Act but does not include a shop;

Section 2(21) shop means any premises where any trade or business is carried on or where services are rendered to customers and includes a shop run by a Co operative Society, an office, a store room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade or business and such other establishments as the Government may, by notification, declare to be a shop for the purposes of this Act, but does not include a commercial establishment.

I got confused on reading both the definations and failed to interprete whether a company engaged in service industry is commercial establishment or shop.

My view under general assumption is, a company engaged in service industry is commercial establishment and not shop.

Other members are requested to comment of it.
Dear Sir, The provisions of ESI Act, 1948 is applicable to any establishment where 10 or more employees are employed. -LOKANADHA BABU NARRA, MANAGER-HR
Dear The Mother, The threshold limit of coverage of 20 is not reduced to 10 by many States till date.
Dear All
Please go through this attachment and guide me the whether ESI act is applicable to commercial establishment or not.
Please refer the 3rd page of the attachment where you can find the shop it means ESI act act is applicable to shop only no to the commercial establishment where employing 10 or more
waiting for your feedback and advise on this

Attached Files
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File Type: pdf Amendment in ESI 2010.pdf (1.52 MB, 735 views)

Dear All,
Kindly suggest me that mediclaim replace ESI as per Act?
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