In fact, I searched for some case laws in this regard, Saswata, but in vain. A case law I came across some time back addressed the question of the appropriate government, whether Central or State, in respect of a factory being operated in a different State but owned by a Limited Company registered and functioning from another State. The ruling held that the appropriate government was the State Government, distinguishing a factory under section 3(a) of the PGA, 1972, from other establishments mentioned under the same section. This finding prompted me to explore further the point you raised, as it seemed relevant to the case at hand, leading me to the conclusion stated above. Thank you for your thought-provoking question.
From India, Salem
Acknowledge(0)
Amend(0)
6108From India, Salem
Acknowledge(0)Amend(0)
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. It is assumed that the company has escaped the Shop and Establishment Act for the branch, but how can they escape the ESIC and EPF which become applicable at 10 and 20 manpower strength? These two acts cover all the units under the same management or, to be precise, under the same PAN card automatically.
Now, coming to the working area, why are the employees denied PF/ESI benefits when they know that the manpower is more than the applicable limit? Was this 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 sure that his establishment is covered or coverable under the Shops and Establishment Act and has had more than 10 employees in the past year(s).
Acknowledge(0)Amend(0)
Now, coming to the working area, why are the employees denied PF/ESI benefits when they know that the manpower is more than the applicable limit? Was this 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 sure that his establishment is covered or coverable under the Shops and Establishment Act and has had more than 10 employees in the past year(s).
Acknowledge(0)Amend(0)
Hi Gildor,
This is what happens when the post is incomplete on details. It is possible that the OP has a salary that 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 to clarify or give us additional information.
From India, Mumbai
Acknowledge(0)Amend(0)
This is what happens when the post is incomplete on details. It is possible that the OP has a salary that 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 to clarify or give us additional information.
From India, Mumbai
Acknowledge(0)Amend(0)
When any company has 8 employees, then nobody is below 21000 or 15000 (respectively ceiling under ESIC/EPFO) is not possible in a broad concept, as there may be a maximum of up to 50% of senior posts but the balance would have a lower profile. So, if there is any common obligation between two units, it must be clubbed by the departments themselves.
I am working with many establishments that are PAN India-based and have multiple location establishments. They get covered under welfare schemes from day one with even a single employee on the register, with the primary establishment (Head office) sub-code.
Unless the complete details are available from the side of the query posting person, a reply with possible legal remedies is not worth it.
Acknowledge(0)Amend(0)
I am working with many establishments that are PAN India-based and have multiple location establishments. They get covered under welfare schemes from day one with even a single employee on the register, with the primary establishment (Head office) sub-code.
Unless the complete details are available from the side of the query posting person, a reply with possible legal remedies is not worth it.
Acknowledge(0)Amend(0)
Hi all, and thanks for your guidance,
I'm looking for other options for obtaining an experience/service letter that I received yesterday, which mentioned both the address of the Registered office (Chandigarh) and the Manufacturing Unit (Baddi). I think it will work.
I also want to know the maximum time limit to apply for gratuity.
From India, Chandigarh
Acknowledge(0)Amend(0)
I'm looking for other options for obtaining an experience/service letter that I received yesterday, which mentioned both the address of the Registered office (Chandigarh) and the Manufacturing Unit (Baddi). I think it will work.
I also want to know the maximum time limit to apply for gratuity.
From India, Chandigarh
Acknowledge(0)Amend(0)
@Pharmadesigner
Having an address on the letterhead does not confirm ownership.
Many companies with registered offices in India print their overseas address or liaison office address, but it cannot prove that the unit belongs to the Indian employer.
Also, on the websites of many companies, we find multiple addresses, almost in every state, but this also does not confirm that the individuals serving or working there fulfill the criteria of being an "employee" for the parent company.
Discuss the issue with management/HR of your establishment, clear your doubts through discussion first, and if the facts align, they will surely guide you on how to claim the benefit.
Acknowledge(0)Amend(0)
Having an address on the letterhead does not confirm ownership.
Many companies with registered offices in India print their overseas address or liaison office address, but it cannot prove that the unit belongs to the Indian employer.
Also, on the websites of many companies, we find multiple addresses, almost in every state, but this also does not confirm that the individuals serving or working there fulfill the criteria of being an "employee" for the parent company.
Discuss the issue with management/HR of your establishment, clear your doubts through discussion first, and if the facts align, they will surely guide you on how to claim the benefit.
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F