Is the ESI Act Applicable for Establishments with 10+ Employees Earning Over 15,000?

ESI Act Applicability for Establishments

If an establishment engages 10 or more employees, each drawing a salary of more than 15,000 per month, is the ESI Act applicable to such an establishment? If so, is there any case citation available? Please provide details.

As such, there is no case, but it is the act of the ESIC Act 1948.

Regards,
Srihari

The example shown by the member in the above comments indicates that the factory/establishment is coverable under the provisions of the ESI Act. However, there is no employee who can be covered since all are reported to be receiving wages higher than the coverable wage limit.

Although such situations may be rare, in my opinion, the principal employer of such a factory/establishment should obtain a code number from ESIC. The said employer can, however, submit a "NIL" return of Contribution at the close of the contribution period. The coverage of any unit under the ESI Act and the coverage of an employee of said unit are two separate aspects.

With kind regards;

Thank you, Mr. ShriHari and Harsh Kumar. What you suggested is, to some extent, acceptable; however, I have a concrete case where an establishment has more than 10 employees, but all of them are drawing salaries higher than the limit for ESI Act coverage. I need a case citation where it is mentioned that all employees, regardless of the ESI coverage limit, need to obtain an ESI Code No.

We can't find such a case because if the employees are fewer than 10 or, let's say, 15, companies are not opting for ESI. They may choose other medical policies or decide not to disclose the departments due to the small size of their unit or other reasons. Therefore, we find fewer cases in such instances.

Regards,
Srihari