How Do I Write a "To Whom It May Concern" Letter for ESI Exemption?

Dear all,

I am looking for a letter to show that a particular employee of my company is exempted from ESI as his gross salary is more than 10,000 p.m. This letter needs to be provided to the client for whom this employee is working and will be marked under the heading: "TO WHOM IT MAY CONCERN." Please advise on what to include or write in the letter.

Ditti,

Your query is not clear. How do you define CLIENT here? Is it a customer? The letter which you are asking about - to whom will it be given, by whom will it be issued, and for what purpose will it be issued? After these clarifications, maybe I can answer your query.

Hi Ditti,

Please find the format -

To Whomsoever It May Concern,

This is to certify that Mr. ................. has been working with us from .......... to ................. at a salary of Rs. 15,000/- per month and has been exempted from ESI coverage as per the guidelines of the ESI Act (Chapter .., Sec - ...).

Thank you.

Authorized Signatory
For .......................

I hope this works for you.

Regards,
Akhouri Nishant

Rajeev,

This letter is to be issued by HR, which will indicate that this particular employee, who is our employee and is on our payroll, is working for our client. The labor inspector now wants to check if he falls under the ESI limit. Therefore, I have to show the inspector that because his gross salary is more than 10k, this is the reason he has been exempted. I hope this is clearer now. Please help as it is quite urgent.

Hi Ditti,

It is very strange that a Labour Inspector is asking for such kind of information because this authority is under the purview of ESI inspector, and it doesn't fall under the purview of the Labour Inspector. He has no authority to check the records for the ESI coverage purpose. Throughout my entire career, I have never come across such a thing.

Anyway, for this type of letter, there is no specific format under the Act. You have to simply make the Salary certificate of that employee. The format given by Nishant is okay. You can add one more thing to that, which is to mention the breakup of all the allowances paid on a monthly basis.

Like:
Basic:
HRA:
Attendance Allowance:
Conveyance Allowance:
Any Other:

-----------------------------------
Total: Rs.xxxxxxxxx.xx per month
----------------------------------

Also, if you like, you can enclose the Salary Slip duly acknowledged by the employee for more validity of your letter.

Let me know if you need any further assistance.

Hi Rajeev,

I need to state in writing that he is not covered under the "ESI ambit." I know it's very strange, and I have not come across anything like this before. However, that's just how it is here.

I am seeking a quick response... :)

Thank you.

Ditti,

Do one thing, ask the Labour Inspector: "Can you please provide me with the information, for my knowledge, about the section and the Act under which this falls? This will help me understand and increase my knowledge. Moreover, he can always check the payslip/salary register and verify the same. His purpose is different from what I am very sure about.

Thank you.

I presume your said employee is on deputation with one of your clients and that client wants to produce a letter to the Labour Deptt. If so, you may try the format given below.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. ……………………….., has been in the roll of this establishment since (date) Pursuant to a work arrangement, presently he is working with ……(client's name) ……

This is also to certify that he is drawing a salary of Rs…. ( Amount more than Rs 10000)…….per month excluding employer's contribution to Provident Fund or Pension Fund or contribution payable under Employees State Insurance, any traveling allowance or value of traveling concession, any special pay, Overtime pay or gratuity payable on discharge and is not covered by Employees State Insurance by virtue of clause (b) of sub section (iii) of section 9 of the Employees State Insurance Act.
Authorised Signatory
Hope the above will help you
Regards,
Madhu.T.K

Hi Madhu,

I appreciate the letter you have sent, but you need to mention the chapter as well in reference to the ESI Act.

Regards,
Akhouri Nishant

Hi Ditti,

You can provide a letter stating: "This is to certify that Mr. [Name], son/daughter of Mr. and Mrs. [Last Name], has been employed with us from [Start Date] to [Current Date], and his/her current gross salary is [Amount]. As per the Employees' State Insurance Corporation (ESIC) Act of 1948, employees earning a gross salary of 10000/- and above are exempt from contributing towards ESIC; therefore, he/she is exempt from the said act.

In addition to the above, you can also attach a copy of the salary sheet where his/her salary is mentioned, along with his/her signature, and a copy of the filed returns.

I hope the above information fulfills your requirements.

Best Regards,
Kuldeep Kalra

Dear Ditti,

For the proving of exemption of ESI, it is not mandatory to produce in front of the client, labor inspector, or any other statutory bodies because before requesting the declaration from your end, they should be aware of the same. Therefore, there is no need for submitting a letter stating exemption of ESI.

Regards,
Puttaraju.M

Dear Ditti,

I understand that you depute your employee to a client who is covered under the ESI Act. If your assignment is purely for the supply of manpower and in return, you raise a bill based on the assignment/job performed by your personnel at the client's place, then you need to furnish the extract of the salary sheet to the client for the period under the contract.

If you bill based on the number of persons supplied to the client's place, then your bill should indicate the number of persons, rate per person, supervision fees, etc. This record is to be maintained by the client to show to the ESI inspector when they come for inspection. I have my doubts that only on the basis of your letter, he will be satisfied.

Hi,

I feel you need to write a letter to this LI stating that 'Mr....ecode. has been employed under our role as ......... and his monthly remuneration is fixed at Rs....... which is more than the ESI limit (here you can mention the section name & page if necessary) and hence he is not eligible for ESI deduction. A copy of his offer letter/salary slip is attached herewith. (You can also attach the sheet from the book of ESI act which shows the section.) I hope this will help and the LI cannot ask for any ESI clarification. If possible, let your superior talk to him/her directly.

Regards,
Manikumar

The issue does not pertain to the authority of a Labour Officer but to drafting a letter for Ditti's clients for onward submission to the Labour Officer. Some drafts have also been uploaded. If satisfied, anyone can have it. That's all.

Now the discussion has taken a turn by questioning the authority of the Labour Officer. In fact, a Labour Officer is not an employee like those employed by private organizations. He has quasi-judicial powers conferred on him through various labor enactments. His roles and authorities will vary according to circumstances noted in different Acts. Therefore, we cannot specify his authorities, but they always exist. He can be a Conciliation Officer by virtue of the Industrial Disputes Act, the authority for settling gratuity issues, preside over conciliations related to Bonus, address matters connected with Payment of Wages and implementation of Minimum Wages, and so on. He can enter the premises of your work at any time without prior intimation and collect evidence from the employees. Whatever the workers disclose about your organization, wages paid to them, or facilities offered to them during his inspection shall be binding on you. We are not supposed to question the intentions of a Labour Officer who can request any employer to produce any record, books, or files for evidence in any inquiry he conducts. If the Labour Officer demands a declaration that an employee is not covered by ESI, the employer is expected to provide it. The declaration is in the form of a certificate stating that the employee is not under ESI coverage. While the Labour Officer has not requested the wage register and related documents, one member has been misled to believe that submission of pay slips, wage register, etc., is necessary only when the Officer is not satisfied with the provided declaration. Therefore, I see no issue with providing the information requested by the Labour Officer.

Regards,

Madhu.T.K

Hi Ditti,

I need some information regarding ESI. Please pass on your contact number if possible.

Regards,
Nidhi

Labour inspectors do not have the right to request this type of letter. If they ask you verbally, please request that they issue a letter with provisions so that we can provide a proper reply. Only the ESI inspector can check the details during inspections, such as the number of persons who are members of ESI and can review Form 12 and its deposit challan. In this regard, you can only request with the inspector to issue a letter in writing.

Madhukar

How to recruit in a real estate company because I do not have knowledge of real estate companies since I was in the industrial area. Please help me.

Thank you.

Dear Sir,

My office is out of a 20 km radius from the ESI office, so I'm not taking services from the ESI office. Therefore, I would like to request an exemption letter stating the 20 km radius from the ESI office.

Could you please provide guidance on how to obtain the exemption letter?

Thank you.

This kind of exemption is not possible. An establishment is exempted when the area is not under the ESI notified area. Please find out whether the office is located in an ESI notified area or not. Obviously, if your establishment is registered, it should be in the notified area only.

Madhu.T.K