Anonymous
Is ESIC applicable for a new entity operating in same premises where the other company already has ESIC registration. If yes please share the notification
From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
Rkn61
Hr Manager

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Madhu.T.K
3771

If the new organisation is under the same management and there exists financial integrality, then the new company will also come under the ESI and also other Acts, like EPF &MP Act, Payment of Gratuity Act, Payment of Bonus Act etc. By financial integrality is meant some fund transfer from one organisation to the other.
From India, Kannur
Anonymous
Thank you, is there any notification or provision for this
From India, Mumbai
rkn61
566

Does "new entity" mean factory, as defined under Factories Act?
From India, Aizawl
Madhu.T.K
3771

There are a lot of court verdicts which say that all employees who are working in connection with the operations of a factory should be put together for coverage of any labour law even if they are working in separate locations. Similarly, having separate licenses and even having separate financial statements, ie, Profit & Loss Account and Balance Sheet, will not make the establishments separate entities for coverage of labour laws. Here what is important is financial interdependence among the units. You may go through a Supreme Court Verdict attached.

You may also refer L N Gadodia & Sons & Anr Vs Regional Provident Fund Commissioner [(SC) 2011 LLR 1124] which is a case on clubbing establishments for coverage of EPF

From India, Kannur

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