Dear Friend,
Your question is if a Company is covered under ESI Act, in that case whether ESI is applicable to its Contractors' employees having less than 20 employees.
As far as legal position is concerned,my respected senior coleagues have already explained in clear terms as regards its applicability.
In a simple language for your understanding ,I would like to submit that ESI is applicable for employees engaged through Contractors in the even they employ less than 20 employees since they have been working in your Establishment/Factory.
If Contractors are registered and obtained ESI code from ESI Authorities, then liability of paying ESI on the part of Principal Employer is excluded. It is advisable, being a Principal employer, you should keep strick vigil to the effect that ESI contributions are deposited by Contractors under their respective codes.
If Contractors fail to deposit the ESI contribution for employees engaged by them in your Establishment/Factory, it will be the responsibility on the part of Principal to deposit the same.
Your question is if a Company is covered under ESI Act, in that case whether ESI is applicable to its Contractors' employees having less than 20 employees.
As far as legal position is concerned,my respected senior coleagues have already explained in clear terms as regards its applicability.
In a simple language for your understanding ,I would like to submit that ESI is applicable for employees engaged through Contractors in the even they employ less than 20 employees since they have been working in your Establishment/Factory.
If Contractors are registered and obtained ESI code from ESI Authorities, then liability of paying ESI on the part of Principal Employer is excluded. It is advisable, being a Principal employer, you should keep strick vigil to the effect that ESI contributions are deposited by Contractors under their respective codes.
If Contractors fail to deposit the ESI contribution for employees engaged by them in your Establishment/Factory, it will be the responsibility on the part of Principal to deposit the same.