ESI Coverage Confusion: How to Handle Cases Without a Subcode in Certain Areas?

I have heard that we can avoid ESI under some special cases for people who are entitled to it. I am interested to know what actions to take if we do not have a subcode in a particular territory. Please let me know.

Hello dear,

In my view, you could exempt those employees only where the ESI dispensary is not available within a radius of 10 km from the base station of that employee.

Regards,
Dhanesh

Somewhere I gathered, "Please check sections 87, 88, and 91A of the ESI Act, which deal with applications for exemption from the provisions of the Act. However, to claim any exemption, a company will have to satisfy the government that the company has arranged better medical facilities and other associated welfare measures for its employees, which are more feasible and convenient for employees than the ESI Corporation." So, what needs to be done to convince the government?

Hi,

We don't have ESI facility in our company. As per the ESI authority, our factory area is outside the range because there are no hospitals within approximately 12 kilometers from our factory.

Regards,
Rajeev Dixit

Generally, ESI does not cover establishments that are not in the "implemented area," i.e., places where ESI facilities are not available nearby. It is also possible to seek exemption from the provisions of the ESI Act if the organization is providing benefits superior to those offered by ESI. However, obtaining an exemption is a very cumbersome process and takes a long time. You need to apply to the Labour Ministry with complete details of the organization, benefits being provided, etc. The application is then sent to the ESI HQ in New Delhi, where they consider the issue on a case-by-case basis. Most requests are usually denied, and even if an exemption is granted, it is typically for no more than two years initially.

Regards,
Menon

In accordance with sections 87, 88, 89, 90, and 91, any establishment or factory can be granted an exemption of up to one year by submitting a representation citing a reasonable cause. The final decision will be based on the merits of the representation.

Thank you.

Dear Mr. [Last Name],

As per my knowledge about ESI, those who are drawing less than ₹10,000 in salary are required to be covered under ESI. However, for areas that are not covered, we need to seek exemption from the corporation. If ESI deduction and paying contributions are not done, it is mandatory.

Regards,
Sulaiman S.A
9986763529

Can anybody clarify how to get/claim Family Provident Fund (FPF) if I have left the job? After leaving the job, I received PF, but I have no idea about how to proceed for FPF.

Regards

Dear ESI is only applicable in ESIC coverage. You need not worry about ESI deduction, but even if you deduct it, it may harm you and your company. If you want to provide facilities to your employees, you can opt for WMC (Workman Compensation) or you can take private insurance like United Insurance. If there is no implemented area, please don't deduct from the salary.

Vinod Bharne

Hi, ESI is mandatory, and you cannot avoid it. You may check with the ESI Office whether the area where your factory/office is situated is covered under ESI. If the area is not covered, you may opt for Workmen Compensation/Personal Accident/Hospitalization policy.

Thanks & Regards, Sunil