Harsh Kumar Mehta
Consultant In Labour Laws/hr
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
+2 Others

HI THIS IS SHAMMI can you please tell me , in an organisation(trading & distribution) if I am having 8 employees+ one account consultant (who prepares yearly accounts ) comes once a month and collect bills, one loading auto attached (we pay them rent and per kilometer diesel amount. sometimes We hire electrician for electrical fault and carpenter (2-3 times a year) and pay them amount on the basis of their job.
Do I require to be registered under esi
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Query regarding ESI
we have taken ESI registration in HYderabad head office.we have one branch office /project office in chennai.
do we need to take seperate esi registration in each state or one enough for all states in india?
1. Sir, the issue of coverage under ESI Act, 1948 depends on facts of each case and in the circumstances as narrated by you the issue can be examined and decided by the appropriate Social Security Officer, who has jurisdiction of the area in which the unit is located. Therefore, it will be more better, if the concerned SSO of ESIC is contacted on the issue.
2. Further in cases, where the Branch Office of any covered unit is located in another State, Sub-Code Number is required to be obtained from the Regional/Sub Regional Office of ESIC in which the said Branch Office/Sales Officde is situated. Therefore, it will be more better if the matter is taken up and discussed with the Regional/Sub-Regional Office concerned.
Here in I do give you the applicability of ESI ACT 1948..It seems there is no need to register under ESI ACT. Further, the accountant is not a regular employee as he is performing allotted work and not giving his hours wholly to you or organisation, the code of employee may kindly be consulted in labour act..the electrician and the other one carpenter are daily wages or doing work on piecemeal basis/availability of work so they are not employed in your organisation for your work...

(this is copy of the applicability) So you may proceed accordinlgy...


Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

best of luck ...Your really appreciated for your concern for the employee..
The ESIC registration is mandatory if you have 10 employees on roll. Regards Upasana
Counting of 10 number of employees is a very interesting thing.
Under proprietorship is 9+1 (nine in roll and 1 proprietor)
Under company is 8+2 (ie 8 in roll and two director, if director three then 7+3)
Applicability starts form 10 number completed including director /proprietor.
Sir, proprietor or the director(s) of the firm/factory/ establishment can be counted only if they are getting wages or remuneration from the said concern/unit.
Thank you so much for your suggestion. I am the proprietor but what I withdraw is not under salary/wages. I pay taxes on Income from business.one social security officer visited and he is giving pressure that he will submit report that esi is applicable here. in past five years maximum no.of employee were 8 + i partime accountant + 1 loading auto attached to my firm. In this period I got some furnishing done through freelancer carpenters , they were not my employee I paid them their amount on contract basis.
You dont fall under ESIC scheme right now.
Number of employee is 8 and the auto loader and part time accountant are not to be treated as 2 more employees bringing the total to 10.
Even your part time accountant can be made into a account book writing contract.
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