Harsh Kumar Mehta
Consultant In Labour Laws/hr
Korgaonkar K A
Abdul Quadir Awate
Hr & Admin Head
2. The Social Security Officer has full powers to visit any establishment under section 45 of the Act, verify the records of employer and recommend the coverage of the same, if the unit is found coverable. The employer can ask for copy of the said "preliminary inspection report." The same can also be obtained through RTI.
3. However, if the employer feel that his unit is not coverable under said Act, he can contest the same through a representation/letter to the authority which have issued the said code number. The employer can request for re-inspection/verification of his records, if considered suitable by furnishing all facts on form 01.
4. In case, the authorities will not be willing to re-open the coverage issue, there is no alternative, in my opinion, except to approach the Employees' Insurance Court of the area, having jurisdiction as constituted under section 74 of said Act. However, the above actions need to be taken at the earliest in order to avoid prosecution, levy of interest, damages as well as adhoc assessment under section 45-A of said Act.
26th August 2015 From India, Noida
When the ESI code number is allotted to you on the basis of Inspection report, why you did not demand the inspection report? Or, there was no such inspection?
Is your establishment not coverable under the Act? If not, you can contest the order, as suggested by our learned member Harsh Kumar, at the earliest.
You can also take a stand that the inspection report is not provided to you which amounts to violation of principles of natural justice. But ensure before taking such stand that no inspection report is provided to you.
31st August 2015 From India, Mumbai
2. However, it will be more better if the employer may evaluate his own particulars or facts to assess whether the coverage of his firm/unit is correct or not. If the employer is employing minimum/more persons as required under ESI Act, 1948 and rules/regulations framed thereunder by including all i.e. regular, temporary, casual, through contract etc. etc., I think, there is hardly any relevancy to get the copies of said order, Inspection Report etc. as suggested by various participants in their remarks as above. "Giving an opportunity to an establishment/Company to explain its stand" as mentioned by you in your thread is required only in actions stipulated under section 45-A of the said Act (determining of contribution on adhoc basis), though in said opportunity of hearing, the employer can also raise the issue that his unit was wrongly covered under said Act.
1st September 2015 From India, Noida
I beleive the above issue is not full of facts.
A. The Inspection must have been carried in Industrial Zone,therefore whole industrial zone may have been notified by them.
B. If not so then, nearby industries in the vicintiy must coming under purview of ESIC and possible you were escaping the ESIC.
Further ESIC has the full power to inspect and notifiy the area. You may ask for the copy under Right of Information. Authorities may have inspected your factories and have notified this company. The data i.e. wages, no of employees must of have shared by you department.
Hence entering into any mode check the facts and data.
1st September 2015 From India, Nagari
While on the subject, I wud like to know :
i) whether ESI falls under the Consumer Protection Act since it charges for the services provided ?
ii) whether it is appropriate to even charge a daily wage person, but not providing him benefit, since the benefit starts only after 3 months lapse of continuously paying for 6 months' contribution period (i.e. total 9 months !). In other words, if you join the organization in April, first you will have to pay till September then wait for another 3 months' period and from January of the next year you will be eligible for the ESI benefit !
iii) Whether the points raised by me in (ii) and (iii) above stand as bad in law and can be challenged ?
iv) Is the ESI Court in existence ?
- Abdul Quadir.
2nd September 2015 From India, Pune
Though the employment strength is less than 10 on any day, Now, my friend has made compliance as per the ESI notice. This he has made keeping the future expansion plans of his business. Thank you all for your views and suggestions which helped him to take the decision.
2nd September 2015 From India, Bangalore