pankaj.403
Hello Seniors,
i am running small service centre in rented shop with 16 employee pls tell me weather i need to take ESI registration or not also clarify will section 1(5) of ESI be applicable in my case,
Regard
Pankaj

From India, Agra
Harsh Kumar Mehta
921

1. Sir, please indicate whether in the service centre electric power is being used or not ? What type of work is being done in the service centre ? Whether power including gas cylinder is being used in any process ? If so, your establishment is coverable under section 1(3) of ESI Act, 1948 as a factory since you are employing 10 or more persons. Pl. see definition of "factory" under said Act.

2. However, in case no power is being used for manufacturing process/repair/service, even then when you are employing 10 or more persons, your establishment will be qualified for coverage as a "shop" under section 1(5) of said Act. I think, State of UP had already extended the operation of said Act to such establishments employing 10 or more persons.

3. In my opinion, it will be more appropriate if you may contact the nearest office of ESIC for further clarification on the issue including coverage of your service centre under said Act. Employment of number of persons and the use of electricity/power are questions of facts which are to be verified by the concerned officials of said department provided also that the area where said unit is located is implemented area under section 1(3) of said Act..

From India, Noida
pankaj.403
sir, we do provide air conditioner repair service hence electricity is being used, my doubt is... in my case weather ESI will be applicable on having 10 employee or 20 employee
From India, Agra
Harsh Kumar Mehta
921

1. Sir, I think, for service and repair of air conditioners, you may be using electricity and gas cylinder for welding, cuttings, washing etc. etc. work and hence such work will qualify to be called as manufacturing process and hence coverable as factory. Hence on the basis of number of persons 10 or more your unit is coverable under section 1(3) of said Act.
2. At present, there is no rule/law of coverage under ESI Act on the basis of 20 or more persons. Amendment in the Act has been done in the year 2010 and coverage limit has been reduced to 10 or more persons ( Section 2(12). Even in respect of specific establishments ( shop, as mentioned by me in my earlier comments) almost all State Govts.(except few including Maharashtra, as I know), the coverage limit has been reduced to 10 or more persons under section 1(5) of the said Act.

From India, Noida
pankaj.403
sir, one of the labour law consultant has advised that if section 1(5) is applicable to your establishment then you need to registered under ESI on having employee 20 not 10
From India, Agra
Harsh Kumar Mehta
921

1. Sir, with due regards to the consultant as your have referred, I may submit that I have already suggested you to visit appropriate office of ESIC and discuss the issue of coverage of your establishment.
2. However, I understand that vide their notification dated 23.5.2013, the State Govt. of Uttar Pradesh had already reduced the criteria of coverage to ten or more persons. You can confirm the position from Regional Office, ESIC of UP.

From India, Noida
pankaj.403
Dear Mehta Sir,
many thanx for valuable input with respect to my query pertains to ESI........
but i have one more query regarding uttar pradesh shop & establishment act. can you please let me know is there any website of uttar pradesh shop & establishment act. i mean where can i study the said act its latest notification etc.

From India, Agra
Harsh Kumar Mehta
921

1. Sir, I am not aware about the relevant website of UP Govt. Amendments in the Acts, so far as Central Govt. is concerned is carried out by the Ministry of Law and Justice, Govt. of India. For labour related matters of UP Govt. , I think, you can see the website of labour department, Govt. of UP.
2. However, in my opinion, the best way will be to obtain up-date bare Act from the law book sellers/shops of your town. As and when any amendment is carried out by the State/Central Govt, the same is widely published in newspapers etc.

From India, Noida

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