My question is that if my company address is in implemented area of the ESIC and my all works and employees employed in non implemented area then under which section of ESI Act, defines the no liability of deduction of ESI contribution by the employer.

From India, Bhatinda
Hr Manager
Freelancer In Hr &indirect Taxes For
Bhartiya Akhil
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Under non implemented zones, if the establishment (and/or branch) applies for ESIC registration ( or sub code) then ESIC keep it in abeyance and informs the establishment that the zone is non implemented
but if the registration or sub code is granted, then the establishment has to file contribution & payment


Esic registerstion for code in non implementated area is not possible. Instead employer can avail employees compensation policy.
From India, Vadodara

Now ESI is taking steps for coverage in all areas in all districts thereby reducing non implemented areas. Direction from ESI HQ New Delhi has already gone to States.
From India, Aizawl
Bhartiya Akhil

Dear Friends,

The question is asked where it is written in the Act on non liability of ESI Contribution by employer in non-implemented area.

My say on it, as under:

Please read section 1(3) carefully. According to this section, the provisions of ESI Act are made applicable in the first instance to the employees of the factories covered under this Act by virtue of their location of areas where the Central Government has implemented the provisions of the Act through a Gazette Notification.

Thus, once the Act is implemented in a given area through a Gazette Notification, then the provisions of the Act are applicable to all factories located in this area. Thereby the employer is liable to cover the eligible employees as IP under the Act and make deduction of contribution from their salary and remit it along with his share.

This is implied that when there is no such Notification for any area, the employer in that area is not liable to cover any employee as IP and make deduction of contribution from their salary and pay any remittance.

For applicability of the Act other than to factories, please read section 1(5).

Hope I made it clear as to the point.

From India, Mumbai

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