Navigating ESIC Rules: Who Pays When Contractors Have Less Than 20 Workers?

Dear Sir,

I am working as an Officer (HR & Admin) and I have a query. My establishment is covered under ESIC. We have engaged 14 contractors, but the company only pays ESIC charges for 3 contractors' workmen because each contractor has a workforce of over 20. However, the remaining 11 contractors have less than 20 contract workers each day.

My question is, is it necessary for every contractor to have an ESIC code, or can the employer pay the ESIC challan on behalf of the contractor under his ESIC code? Another question is regarding the remaining 11 contractors who have not completed their 20 contract laborers each day. Is it necessary to pay ESIC charges, and who is responsible for that, the employer or the contractor? Can the employer deduct their ESIC contribution and submit charges on behalf of the contractor whose workforce exceeds 20 employees?

Regards,
Santosh Harshe

ESIC Code Requirement for Contractors with Less Than 20 Laborers

Can a contractor get an ESIC code if their contract labor is less than 20, where the establishment is covered under ESIC? Or can the principal employer pay ESIC contributions on behalf of the contract labor? Or is it necessary if the contractor engages less than 20 contract labor?

Dear Sir,

As the principal employer, it is your duty to deduct and deposit the ESI dues concerning every contractor. If a contractor is not independently coverable under the Act, in that case, you will have to deduct and deposit the ESI dues regarding that contractor in your own ESI code No.

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Sanjeev Kwatra

I have one query. My establishment is not covered under ESIC because worker strength is less than 20. However, we have engaged 5 contractors, and the company paid ESIC charges only for 3 contractors' workmen because every contractor has a strength of over 20. But the remaining 7 contractors have less than 20 contract workers each day. So, my question is: who is responsible for that, the employer or the contractor?

Regards,
Mrs. Sushama