In fact, I searched for some case laws in this regard, Saswata, but in vain. A case law earlier I came across some time back about the question of appropriate Govt, whether Central or State, in respect of a factory being run in a different State but owned by a Limited Company registered and functioning from another State held that the appropriate Govt was the State Govt, distinguishing a factory u/s 3(a) of the PGA,1972 and the other establishments mentioned under the same section. This point compelled me to delve deep into the proposition you made as it appeared relevant to the case in point and come to the conclusion stated supra. Thank you for your mind-boggling question.
From India, Salem
Thank you for your inputs sir.
From India, Mumbai
@pharmadesigner

in the post it is mentioned that the company has another unit in baddi with 20+ employees but at present place it did not exceed 10,

assumed that the company has escaped the shop and establishment act for the branch, but how they can escape the ESIC and EPF which get applicable at 10 and 20 manpower strength? these two acts club all the units covered same management or be precise under same pan card Automatically

Now coming to working area, why the employees are denied of PF/ESI benefits when the employees know that the manpower is more than the applicable limit? was it not discussed in past years?

either there are two separate units by constitution, or the company is using some franchise unit for manufacturing activity,

Now to claim the benefits of gratuity the employee has to make it sure that his establishment is covered or cover-able under shops and establishment act and has more than 10 employees in past year(s)


Hi Gildor,
This is what happens when the Post is incomplete on details.
So it is possible that the OP has salary which is above the ESIC limit and may be an exempt employee on PF records.

I noticed that while we are having a nice discussion, the original poster has not bothered to get into the post and clarify or give us additional information.

From India, Mumbai
@Saswata

when any company have 8 employees, then nobody is below 21000 or 15000 ( respectively ceiling under ESIC/EPFO) is not possible in broad concept, as there may be maximum up to 50% of senior posts but balance would have lower profile, so if there is any common obligation between two units , it must had to be clubbed by department/s itself.

I am working with many establishments, who are PAN india based and have multiple location establishments, and they get covered under welfare schemes from day one with even a single employee on register, with primary establishment(Head office) sub code

unless the complete details are available from the side of query posting person, reply with possible legal remedies is not worth


Hiii all, and thanks for your guidance,

I m looking for another options for getting an experience/service letter
which i received yesterday, mentioned both address of Regd. office (Chd) and Mfg. Unit (Baddi)
i think it will works,

and want to to know the maximum time limit to apply for gratuity

From India, Chandigarh
@Pharmadesigner

Having an address on the letter pad does not confirm the ownership,

Many companies having registered offices in india, print their overseas address liaison office address, but it can not prove that the unit belong to the indian employer,

Also on the site of many site of many companies we get multiple addresses, almost in every state, but it also does not confirms that the people serving / working there fulfil the criteria of "employee" for the parent company

Discuss the issue with management /HR of your establishment, clear your doubts through discussion first, and if the facts match they would surely guide you to claim the benefit


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