Understanding the Historic ESI Circular: How It Legitimized Outsourcing in India

By way of refurbishing HR knowledge, we have attached the historic ESI Circular which, in effect, recognized outsourcing as a legal practice in India.

With Regards,
Advocates, Notaries, and Legal Consultants [HR]
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

Thank you for sharing the legal aspects relating to ESI. I would like to request an update on employees who work inside the premises on AMC contracts for a few days, plumbers, contractors who work on a daily wage basis for a day or two, civil work, machinery erection, etc.

Regards,
M.V. KANNAN

Dear All,
We are highlighting the gist of the Circular:

Types of Outsourcing Contracts Recognized by ESI Circular

As per the ESI Circular, the following types of outsourcing contracts are recognized. It categorizes the outsourcing process and refers to outsourcing in simple terms as "Job work":

- (a) The job work done inside the factory/establishment premises through Contractors/Immediate Employers having independent ESIC Code Nos.
- (b) Job work done inside the factory premises through Contractors/Immediate Employers not having independent ESIC Code Nos.
- (c) Job work done outside the factory/establishment premises through factories/establishments which have independent Code Nos.
- (d) Job work done outside the factory/establishment premises through factories/establishments which do not have independent Code Nos but where supervision is exercised by the Principal Employer.
- (e) Job work done outside the factory premises through units engaging less than 10/20 employees but working exclusively for the Principal Employer.
- (f) Job work done outside the factory/establishment premises through factories/establishments engaging less than 10/20 employees which are not independently coverable, where no supervision is exercised, and who are undertaking the work for more than one employer.
- (g) Job work done outside the factory premises through Contractors/Immediate Employers who perform the work through home workers or in non-implemented areas.

With Regards,
Advocates & Notaries & Legal Consultants
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons] - [Phone Number Removed For Privacy Reasons]

The same circular issued by RPFC Chennai regarding PF was also issued in the year 2008. It is presently missing from my records, so if possible, please attach it to the site.

Regards,
Anuj