Exemptions Under ESI Act 1948

Dear All,
Could you anybody help me out by furnishing the answer to below mentioned
Question...?
If an employer is providing the better medical facilities, benefits compared to ESI act,
Whether can he seek any exemptions under ESI Act? If it is possible, please specify the
Section Details of ESI act.?
Regards,
Vighneshwar Hegde

No way to exempt from ESIC, if your establishment area is covered under ESI implementation, it will be considered as add-on benefits for your employee, you will not have any benefit out of that especially for having exemption from ESI contribution.

If employer could prove to ESI Commisioner that he had better facility for his workers than ESi then Commissioner may exempt the establishment from ESI coverage. But it is very tricky ; not an easy task to convince the commissioner.....

Yes what Mr Varghese Mathew and Prashanth is right.
Section 87 reads as below:
"Exemption of a factory or establishment or class of factories or establishments. — The appropriate Government may by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notifi¬cation renew any such exemption for periods not exceeding one year at a time."
"Provided that such exemptions may be granted only if the employees’ in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act"
Vighneshwar

If U have better care than what is available under ESI scheme exemption is possible. The added advantage is if the employer either runs a full fledged hospital or referral arrangements with hospitals "with or without cash less" service, the employees wud save ESI contribution money and facilities are available free of charge. Go ahead friends.

exemption provision is there, but it not is to provide the benefits more or equialent
as an individual firm, therefore it better to be with ESI
Edify compliance planners
Hyderabad