Glidor
Hr Consultant
Pulsar180
Hr Professional
+2 Others

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Dear Sr. / Jr. Here, I need direction for the subjective concern. I have a contract based on stipend only, now I am approaching a new client with the same pattern but the HR person there is claiming that ESIC will be deducted on that stipend.
In addition to it, it's a training program not a job. Please give me ur valuable reply for this query. i will be very thankful to you.

stipend is paid to trainee, for further continuation of their education, they are not eligible to get deputed at any of client site,
if the firm depute any person on client site, then it is termed as employee, and all labor laws get applicable

Be crisp while answering. Dont try to complicate the issue by using jargon of technical words. Please reply in Yes or No
all persons who are deputed anywhere against any "payment" are employee, and all labor laws are applicable on them, including ESIC contribution
Dear Vikas,
Greetings!!
You have mentioned two things in your query :
a. Contract
b. Stipend
Now, no. 1 contract, if you are employed on contract then ESIC is applicable on the same but if you are on stipend then ESIC is not applicable to you.
Rgds

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