Applicability of the ESI Act
The ESI Act (1948) applies to the following categories of factories and establishments in the implemented areas:
- Non-seasonal factories using power and employing ten (10) or more persons.
- Non-seasonal and non-power using factories and establishments employing twenty (20) or more persons.
The "appropriate Government," whether State or Central, is empowered to extend the provisions of the ESI Act to various classes of establishments, whether industrial, commercial, agricultural, or otherwise in nature. Under these enabling provisions, most State Governments have extended the ESI Act to certain specific classes of establishments, such as shops, hotels, restaurants, cinemas, preview theatres, motor transport undertakings, and newspaper and advertising establishments, etc., employing 20 or more persons.
PF Coverage
Establishments employing 20 or more persons and engaged in any of the 180 industries or classes of businesses specified.
Co-operative Societies, employing 50 or more persons and working without the aid of power.
Establishments not coverable statutorily can come under the coverage of the Act voluntarily.
An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
Since the Act applies on its own force to the establishments, employers are required to file the particulars in the specified format for registration and allotment of a business number.