Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
+1 Other

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Hello,
According to ESIC website
"
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 theaters, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
*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."
It's a small hotel business based in Maharashtra consisting of 11 employees with gross salary of 11,000.
So will ESIC will be applicable or not. Is there any time frame like Business which are 3 years or older can register for ESIC.
Or any other timeframe until which ESIC is not applicable for new business.
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1. Sir, if in the said small hotel manufacturing process is taking place viz. use of deep-freezer, cooling, packing, cleaning etc.etc., then the said place will qualify as a "factory" as defined under section 2(f) of ESI Act, 1948 and accordingly will be covered/coverable under said Act as and when it employs 10 or more persons on any day. In Maharashtra, I have heard that the State Govt. has not so far reduced threshold of coverage under section 1(5) from 20 to 10, hence the situation can be different in respect of those units/hotels where no manufacturing process is carried on.

2. There is no waiting or qualifying period for a unit for coverage under said Act. As and when scheme is implemented in any area under section 1(3), all the units will be coverable on the basis of number of persons so engaged and the nature of process which is being carried on in its premises. If the area is already implemented area under said Act, the unit will qualify for coverage on the day when it employed minimum number of persons as required under section 1(3) of said Act or as per specific notification under section 1(5) of the appropriate government.

3. In case of any doubt, I hope, you may consult and get necessary guidance from nearest appropriate office of ESIC.
See 2(12) are dealing with factories only. Section 1(5) is a separate legal component in comparison. So here if we are talking about Hotels the limit is 20 people in Maharashtra see this ESI Scheme
Now in your case there is no requirement until now. But sooner Maharashtra may change this.

Please Anybody give me information regarding ESIC Limit 21000 applicable in present w.e.f 1 Oct 2016 or not applicable thanks.
EISC has not yet implemented the increase of limit to 21000. the process is on
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