Harsh Kumar Mehta
Consultant In Labour Laws/hr
Ravi5554
Asst.manager -hr
Chandrakant
Provident Fund, Esic, Professional Tax, Contract
Sonu.bansal
Sr Hr Executive
+2 Others

Thread Started by #sonu.bansal

Dear All,
I have a query related to applicability of Gratuity act, PF and ESI. What are the provisions for the applicability of ACT for Companies under the same management. A Company in which approx 50 employees are working is covered under ESI, PF and Gratuity. I want to know If there is another group company in which only 5 employees are working then these Acts are applicaple to this company also although the no of employees is below the minimum no required for applicability of act.
Thanks,
19th August 2014 From India, Delhi
Hi,

1. PF applicability 20 or more than 20 employees

2. ESI applicability

According to the notification issued by the State Governments concerned under Section 1(5) of the Act, the following establishments employing

20 or more persons for wages attracts ESI coverage.

. 1. Shops;

2. Hotel or restaurants not having any manufacturing activity, but only engaged in ‘sales’.

3. Cinemas including preview theatres;

4. Road Motor Transport Establishments;

5. News paper establishments. (That is not covered as factory under Sec. 2(12)); and

6 Private Educational Institutions(those run by individuals, trustees, societies or other organizations)and Medical Institutions(including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs). However,

Medical and Educational Institutions established and run by Ramakrishna Math and Ramakrishna Mission are excluded from this coverage.

3. Gratuity Applicability

10 or more then 10 employees cover under Gratuity act.
20th August 2014 From India, Mumbai
Dear All,
I have queries gratuity is calculated on 15 days , i know the formula but can we calculate gratuity on 20 day or 30 days . i came to know that we can calculate but if the person completed at 10 or 20 years service. please help me . it is on urgent basis.
Regards, Monali
21st August 2014 From India, Pune
Sir(s),

1. With reference to issue raised by Sh. Kapil Bansal regarding applicability of certain labour laws in all companies/firms under the same management, it is submitted that there can be any number of companies/firms etc. under the same management and there is no bar. Their coverage under different labour laws will be examined and decided as per provisions of said Acts respectively. However, the condition is that the said companies/firms must be separate in actual working. Such bifurcation should not have been created artificially only to deny some workers/employees the benefits of certain labour laws or to escape some taxes.

2. However, in cases where different firms/companies are artificially created and in fact there is unit of purpose, continuity in manufacturing process, continuity in sales, unity in financial transactions etc., same electric power or unity in preparation of final accounts, then such units can be clubbed together to treat a single unit and the coverage is decided accordingly. There are number of cases where authorities have clubbed such units as one and the hon'ble courts have upheld such actions of clubbing.

3. However, such cases are decided as per facts of each case and no hard and fast conclusions can be drawn.
21st August 2014 From India, Noida
Dear Experts,
I have Query,Whether ESI Act 1948 is applicable on NGOs or not.
I request to the all members to provide their opinion
1. Is ESI applicable on NGO? If no, please provide the basis of your opinion.
2. If yes,also provide the basis of your opinion.
22nd August 2014 From India, Udaipur
Dear Experts,
I have Query,Whether ESI Act 1948 is applicable on NGOs or not.
I request to the all members to provide their opinion
1. Is ESI applicable on NGO? If no, please provide the basis of your opinion.
2. If yes,also provide the basis of your opinion.
Regards
Jyoti Sharma
Student of MHRM

22nd August 2014 From India, Udaipur
Dear sir Yes the above said acts are applicable for those 5 employees, you will have to take sub code under the respective act Regards Chandrakant vishwakarma Labour law consultant
22nd August 2014 From India, New Delhi
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