Harsh Kumar Mehta
Consultant In Labour Laws/hr
Director And Co-founder

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Dear Members,
We are a recruitment consulting firm with 10 employees in Delhi. We are a private limited company. Are we covered under ESIC act or will it cover us after we hit 20? The notification I saw (April 2011) talked about some types of firms like Medical establishments, newspapers, shops etc that were covered by ESIC at 10 employees. But it doesn't mention anything about consulting companies. Thanks in advance for your advice.

From India, Gurgaon
Sir, In my opinion, the type of firm, you have mentioned qualifies to be called as "shop" and is thus coverable under provisions of ESI Act, 1948 and rules/regulations framed thereunder. In case of any doubt, I will suggest you to get the opinion in writting of appropriate regional/sub-regional office of ESIC, in the jurisdiction of which the registered office of your firm falls so that there may not be any case of retrospective coverage and liability as a result of coverage if the said authorities detects your firm on any date lateron.
From India, Noida
Dear Mr. Mehta, thank you for your reply. I have another question for the esteemed members of the group - If we qualify to be a shop - are we liable from the first employee onwards or after we cross 10?
From India, Gurgaon
1.Sir, as and when you employ 10 or more persons, the unit is definitely coverable. Please see that there is difference between words "persons" and "employees" . Out of 10 persons, only employees will be coverable i.e. those within range of wage ceiling.
2. Hope you must have read the words used in the notification as mentioned by you in your this topic/thread.

From India, Noida
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