Dear Rajeshwar,
Coverage of factory/establishment
First, this Act is applicable to all non-seasonal factories utilizing power and employing ten or more individuals, as well as is applicable to non-power using manufacturing organizations and establishments employing 20 or more persons for wages and falling under the ambit of an implemented geographical area. As of now, employees of establishments, companies or factories that fall within the ambit of coverage and earning wages not exceeding Rs. 15,000/- per month are covered under this ESIC Scheme.
Under Section 1(5) of the Act, the provisions of ESIC Act have been extended to the following classes of establishments:
Shops and Commercial establishments
Cinemas, including preview theatres
Hotels & Restaurants
Clubs
Newspaper establishments
Road Motor Transport establishments
Under Section 1(5) of the ESIC Act, the Indian Government is empowered to extend the Scheme to any other establishment or class of establishments, commercial, industrial, agricultural or otherwise, with the passage of time. A State Government may extend the provisions of this Act in consultation with the ESIC and with the prior approval of the Central Government, after submitting six months notice of its intention in the official gazette; provided that where the provisions of this Act have been brought into force or implemented in any part of State, the said provisions shall stand extended to any such establishment or class of establishments within that part, if such provisions have already been extended to similar establishments or class of establishments in another part of that same State.
Thanks
Srinivasan
Resolve Business Services