Navigating ESIC Registration: Do I Need It Alongside a WC Policy for Remote Employees?

I am working with a company that has its main office located in X (in ESI Zone) and employs 7 to 8 engineers/executives across India in various states, such as one in Bangalore and one in Uttar Pradesh in an area where ESI is applicable. At each location, only one employee is available, and they are eligible for ESI benefits as well. I have already implemented a WC policy and Mediclaim policy for all of them.

My Questions Are:

1. Am I required to go for ESIC registration if I already have a WC policy?
2. Am I required to obtain a sub-code for each region, or can I submit the amount at the main office?

Please help me out.

Regards,
[Phone Number Removed For Privacy Reasons]
Bhaskar

If your company has 10 or more people in any month of a year, then ESIC is applicable. You need to register under ESIC.

I agree, but at location X, there are 100 employees, among whom 25 are eligible. I am submitting the ESIC contribution for them, no doubt. However, the question arises regarding the 7-8 employees who are in various states, with only one employee in each state. In that case, what about the compliance under ESIC for those 7-8 employees?

Regards,
Bhaskar

You need to take a separate sub-code for each location to ensure proper compliance and to provide benefits to eligible employees under the ESI Scheme.

Regards,
M.S. SANKHLA

To resolve the issue, it is suggested to retrieve the online number from your main code and assign a dispensary based on the working location. This can help address the problem since nowadays ESIC services are available online, enabling individuals to access benefits from all over India.

You need to cover those engineers working in other states if you exercise supervision and control over them, such as paying their salaries, sanctioning their leave, or exercising disciplinary jurisdiction over them. They will be considered as part of the establishment located at X location but not as separate entities.

Regards,
B. Saikumar
HR & Labour Law Advisor
[Phone Number Removed For Privacy Reasons]

ESIC is applicable for all your employees at all locations. Criteria for ESIC coverage are as follows:

- Salary Limit: <15000
- Subcode: For other states to be taken
- Number of employees in the organization: 20 or more

Apart from this, we can have exemptions from ESIC registrations provided the benefits provided to employees are more than that provided by ESIC.

Thanks,
Bijay

In case of statutory requirements (your office having 20 persons drawing Rs. 15,000/- or below per month), it is necessary to obtain ESI Registration. In such a case, you can discontinue the WC Policy. If your office does not have 20 persons, ESI is not necessary, and you can continue the WC Policy.

Regards,
D. Gurumurthy
HR/IR Consultant