Struggling with Frequent Employee Turnover? Seeking Guidance on ESI Exemption for Small Businesses

Hi,

We are engaged in Computer Embroidery Job works and normally cater to various domestic markets as well as exporters. We have 8 employees and 3 family members in the production process, and we are technically skilled enough to manage the whole operations ourselves. The employees keep changing every two to three months. We would like to know how to claim an exemption from ESI or if there is any other way to get clearance from ESI. If there is anybody who can guide us, we will be thankful.

Bye,
Ravi

Dear All,

The Employees' State Insurance (ESI) Act is applicable in establishments with up to 10 employees for power usage and up to 20 employees for non-power usage. As you have computer equipment and machinery, once you reach 10 employees, you will be subject to ESI regulations.

Thank you,

Dadhich Consultants
(PF, ESI, & Payroll Consultant in Delhi NCR)
Tel: 011-26296751, Mob: 09311966660, 09871102660

Dear Sir,

I would like to know how we can obtain an exemption from ESI if our area is not shown in the implemented areas of ESIC.

1. If the area in which your unit/establishment is located is reported as not in the implemented area, then it may not be coverable at all. However, it is often later found that the area is actually notified under Section 1(3) of the ESI Act, 1948.

2. Therefore, to avoid any doubt and discrepancy, it is appropriate to contact the nearest office of ESIC and ascertain the position before presuming whether your unit is coverable or not.

3. The procedure for exemption is mentioned in Chapter VIII of the said Act.

Regards