Dear Members,
I have been a frequent visitor to the site for more than 4 years and I must say that it has been very helpful for me around the years in getting advices to downloading useful documents. The site has so much to offer and for that I reason I was compelled to stay around it.
Okay, now to the real matter. I have more than 5 years of experience in HR and through the course of time I had my ups and downs. So after all these years I thought of starting work on my own. I gave it a serious amount of thought and decided to work as a consultant HR that is. So few months back I started my work, I called up most of the firms in my district and for a fresher it was doing okay. I was into all HR works mainly focusing on works of EPF and ESIC.
Now 6 months into the consulting work I come to realize that even though there are so many companies starting business every month, less than a few is registering to the EPF and ESIC. I researched about this, mainly because if these companies are not registering, then most probably I will be out of work. It was really fascinating for me to find out that these companies doesn't need to register under the ESI corporation or the EPF, as they are not enforcing the companies to do so.
There isn't any incident which occurred to any companies that would force these company to abide the law. There are no inspection of any kind whatsoever and the employees are left with not much of an option. Now either the EPF enforcement officer and ESIC Inspectors are sitting behind a desk all day long without doing anything or these employers/organization are paying the government officials bribe to do the same. Anyways I have filed a complaint against the situation of a few companies and their negligence of law and hope for better.
I would like to know your thoughts on the subjects and also the situation in your cities and districts. Is it same everywhere or is it just my town.

From India, Kollam
The scenerio is rampant, almost everywhere and this is not due to the inspection not happening or bribe being paid.
This is majorly, because of the loop holes, that people sort to, to avoide the liability or the facality. Many employers set up more than one company, and then as the no of people that need to be covered are less than the required nos. sail out of the statutory catch. (kindly note all the companies may be operating from the same office)
Also, there are many areas, that ESIC declare as no ESIC zones, as they do not have hospitals or clinics in those areas, again a loop hole. that can be catched upon.
So, mere corrouption is not the reason for non coverage, knowing the legality, is more important. You may have complained against a few, but once the papers are shown and the fact established that yes that was legal, then almost nothing can be done.
Ashutosh Thakre

From India, Mumbai
Thank you Ashutosh for reading my post. And yes I do in fact agree to your point of having loop holes in the system. But let's face it, the rules whether it be for ESI, EPF or Labour laws are all suited for the employers. But in my case it is evident that after starting a business for 6 months or more no officials have tried to make contact or at least inform that there is departments called ESI and EPF.
From India, Kollam
Now it is not ignorance, as the organisations know that they have to register under EPF and ESIC. The reason is that, they don't find it important enough to do so. For example let's just say I am starting a company. I will enquire about all the legal formalities of starting a business. During this time nobody will tell me to register and even if ask about it, they will say that it is not important and if these departments come for an inspection and issue a notice, then we can register the company. Until that happens I don't have to bother about it. Now we all know that it is mandatory to do that. But why is the organisations refusing to obey the law.
Obviously because the chances of an inspection happening are 1 in a million or more. So the departments needs to be strict and has to make sure every new company should follow the law.

From India, Kollam
Dear Unnisasidharan,
This is only possiable when there is just one registration. The states have started moving in that direction and the final go ahead for production / commercial activites are given only on production of all the necessary licences. The problem occures when the loop holes paly the prominant part apart from the corruption or under the table money.
So the only thing we can do as responsible citizens is to keep on reporting...

From India, Mumbai

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