Madhu.T.K
Industrial Relations And Labour Laws

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Dear all, An outsourcing company, employing with 8 employees, is deploying employees at Govt office, but there is no deductions under ESI for their employees. Questions: do they contribute ESI on their employees (because does not require if below 10 employees are employed, said by ESI statutory) or that Govt office will contribute ESI for them? (Govt office may surely be getting any Insurance care for their on- roll staff).
From India, Madras
A government office is not an establishment coming under the purview of ESI Act. If you as an establishment does not have 10 workers and thereby not under ESI, the question of ESI will not arise. The coverage should first be for the organisation where the deployment is made. If the organisation where the people are deployed is not an industry covered, then your establishment should be covered. When both are not covered, contribution cannot be made.

In order to ensure medical benefits etc, normally the government departments will insist that the manpower supplier should have ESi and EPF registration. Otherwise, the department will have to take responsibility as a principal employer if something happens to the workers deployed there. In such scenario, the contractor will take registration by adding the sufficient number of employees for the time being and then exiting them from the rolls. Obviously, once registration is obtained, the same will be continued even if the number falls below the threshold limits.

From India, Kannur
Dear sir, Thanks for such a clarity given and additional details also learned. From the above points, for this case an ESI coverage is not a mandatory one. am i correct sir? Regards Gobi
From India, Madras
For deploying employees in a government service department alone, ESI is not required.
From India, Kannur
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