ESI Coverage in Remote Andhra Pradesh: What Are the Rules for Our Tile Factory?

Dear All,

Questions About ESI Applicability

1) When can ESI be applicable? Is there a specific area range from the ESI hospital or availability from the factory/organization?

2) Is ESI mandatory if there is group insurance for all employees under the factory payroll?

3) Are sick leaves a must when ESI does not cover? (for Andhra Pradesh)

Basically, we have been registered as a factory (ceramic tiles manufacturing, located in a remote area in Andhra Pradesh). We are not yet covered under ESI as this area is not covered under ESI. We do have group insurance for all employees.

Please provide some data regarding my questions.

Thanks,
Viswanadh

In the context of ESI coverage eligibility for a factory in a remote area of Andhra Pradesh, here are the key points to consider:

1. ESI Applicability: ESI coverage is applicable to factories having 10 or more employees and wages up to Rs. 21,000 per month. The proximity to an ESI hospital or availability in the area does not determine applicability. It depends on the number of employees and their wages.

2. Group Insurance vs. ESI: While having group insurance for all employees is beneficial, it does not replace the mandatory ESI coverage if the factory meets the eligibility criteria mentioned above.

3. Sick Leaves: Sick leaves are mandatory under labor laws irrespective of ESI coverage. Employees are entitled to sick leave benefits as per the Andhra Pradesh Shops and Establishments Act.

Given your factory's location and current coverage, it's essential to ensure compliance with labor laws and provide necessary benefits to employees. Consider consulting with a local HR expert or legal advisor to address specific concerns and ensure adherence to regulations.