Is Our 10-Employee Consulting Firm in Delhi Covered by the ESIC Act? Seeking Clarity

Dear Members,

We are a recruitment consulting firm with 10 employees in Delhi. We are a private limited company. Are we covered under ESIC act, or will it cover us after we hit 20? The notification I saw (April 2011) talked about some types of firms like medical establishments, newspapers, shops, etc., that were covered by ESIC at 10 employees. But it doesn't mention anything about consulting companies.

Thanks in advance for your advice.

In my opinion, the type of firm you have mentioned qualifies to be called a "shop" and is thus covered under the provisions of the ESI Act, 1948, and the rules/regulations framed thereunder. In case of any doubt, I suggest you get the opinion in writing from the appropriate regional/sub-regional office of ESIC, in the jurisdiction of which the registered office of your firm falls. This will help avoid any potential retrospective coverage and liability if the authorities detect your firm at a later date.

Dear Mr. Mehta,

Thank you for your reply. I have another question for the esteemed members of the group: If we qualify to be a shop, are we liable from the first employee onwards or after we cross 10?

1. Sir, as and when you employ 10 or more persons, the unit is definitely coverable. Please note that there is a difference between the words "persons" and "employees". Out of 10 persons, only employees will be coverable, i.e., those within the range of the wage ceiling.

2. Hope you have read the words used in the notification as mentioned by you in your topic/thread.