Navigating ESI Sub-Codes: Do We Need Separate Codes for Temp Staff in Different Cities?

Query Regarding ESI Sub-Code for Temp Staffing

Hi all, it was really nice to see so many suggestions in my last discussion. I have another query: we are getting an outsourcing project for temp staffing from other cities. ESI is applicable to us. We will hire employees on our rolls at our office in New Delhi, but they will be working at the client's location, which might be outside Delhi.

My query is, do we need to obtain a sub-code from ESI for each location, or can we use the existing code as an umbrella code and enroll all employees under the same code? Is there any notification regarding this from ESIC? It would be great if you could share it with me.

I look forward to your support.

Warm regards,
Abhinav Tiwari

Also, I would like to add one more point. Do we have to take a labor license as well for the work? In other words, do we need a labor license for the employees working at clients' locations?

Since ESIC is not PAN India, you do not need separate codes for each place where they are working. The ESIC card is valid all over the country, so there is no need to create more compliance issues for yourself.

You will need contract labour licenses for all locations where the number of people deployed is more than the number specified in the state rules (mostly it's 10 employees).

@ Saswat & Pan Singh, thank you for your valuable inputs. They have really cleared my thoughts. One thing that is still bothering me is the Labor License. We are in the call center, BPO business and don't hire labor. My query is, do we really need to have a labor license for our employees working at the client's place, premises as TME, or Accounts Adviser, etc.

Very interesting discussion, ESIC and EPF are both entirely driven on an IT platform. Here we can see that EPF can be complied with a single code, while ESIC cannot. Presently, the situation is such that employers need to obtain more than one code in the same city due to ESIC's demarcation of the jurisdiction of each branch office. My suggestion is that the jurisdiction of the branch office should remain for the purpose of payment of sickness benefits and administration of dispensaries.

Hey Everyone,

I have one query regarding ESI. We have an ESI sub-code for the Coimbatore location where many employees are covered under ESI. Now we have a new location in Bangalore with only 4 employees, and one employee comes under ESI coverage.

ESI Applicability in Bangalore

Firstly, for ESI applicability in Bangalore, do we need to count the overall employees in all locations or only the Bangalore location? Because if only the Bangalore location is considered, there will be no ESI applicability as the number of employees is less than 10.

Sub-code Requirement for Bangalore

Secondly, if employees in all locations are to be considered for eligibility, do we need to take a separate sub-code for Bangalore, or can we use the Coimbatore sub-code?

Kindly advise.

Rgds,
Monika