Dear Keshav Sir,
You are absolutely right that there is no provision for voluntary coverage under ESIC.
But whenever inspection will happened then concerned E.O. will consider your exempted employees to covered your establishment under ESIC as per new definition which is mentioned below with example:
NEW DEFINITION:-
Sec 2 (12) "factory" means any premises including the precincts thereof whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 or a railway running shed;’.
On comparing the both the following implications of the amendment comes out:-
• Now the units where manufacturing activities are performed by 10 or more PERSONS has been brought under the ambit of the Act, irrespective of use of POWER and irrespective of the fact that 10 or more coverable employees are engaged or not.
• The definition of the "Factory" has been amended to bring the small units within the ambit of the Act. Earlier the ESI Act was applicable to units employing 10 or more persons manufacturing with aid of "POWER"- Now the word POWER has been ommitted. Thus, every unit manufacturing and employing 10 or more persons has been brough under the ambit of the ESI Act.
• Secondly, one hidden amendment has been made in the Act-The uncovered employees would also be counted for the purpose of applicability of the ESI Act. Earlier the unit employing 10 or more workers and doing manufacturing process, would still be out of the purview of the Act, if there are Persons drawing salary above the prescribe limit. Let me explain with an example-
Suppose in a unit there were 12 employees and using Power to manufacture. Out of the said 12 employees
3 employees were drawing salary above the prescribed limit of Rs. 10000/-(or 15000/-). The ESI Act would
not be applicable on the said unit, since the strength of the coverable employees is less than 10.
But now, the ESI Corpn. has very smartly omitted the words " for wages" in the new definition of the
"Factory", bringing all the units employing 10 or more Persons and engaged in manufacturing process
within its ambit