Harsh Kumar Mehta
Consultant In Labour Laws/hr
KK!HR
Management Consultancy
+2 Others

If any area before the amendment in ESI was not covered under ESI, then are we liable to pay ESI even if we have made WC policy for the same?
From India, Pune
ESI Act becomes applicable only on notification of the area in which the establishment works as covered area, consequently the contribution is payable only thereafter. So for the period before it EC Act 1923 applies and during that period ESI Act compliance is not called for.
Pl clarify with more data on whether such a notice for ESI contribution has been received, and when the notification was issued.

From India, Mumbai
1, Sir, your remarks "If any area before the amendment in ESI was not covered under ESI" appears to be vague and not clear. Hope you will intimate full details and nature of so called amendment so that the seniors may be able to follow the point correctly.
2. Extension of ESI Act to any new area is made through notification issued under section 1(3) of said Act and not by means of any amendment in the said Act.

From India, Noida
Is your query as follows?
"If a ESI non-implemented area gets covered under the act subsequently, what should we do about Employee Compensation policy."
If the above is true, then only option you have is not to renew the policy as your employees are now covered under ESI now. It is either ESI or policy, though policy is not a statutory requirement. But it covers contingent liability that may arise out of employment injury.

From India, Mumbai
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