Can a Company Withdraw ESIC Registration if All Employees Earn Over 15,000?

Hi all,

Kindly let me know if an organization that was once registered under ESIC, but now has all its employees' basic pay exceeding 15,000 per month, can withdraw its registration under ESIC? Also, note that the current employee strength is less than 20.

Thank you.
Deesha

Dear member, under the circumstances mentioned by you, there is no provision for the non-coverage of your establishment/factory under the ESI Act, 1948. The ESI Code Number can be treated as closed in the situation of the permanent closure of an establishment.

You/your establishment can simply send a NIL return to the ESIC concerned office or inform the said department (SSO, Branch Manager, as well as Regional Director) through registered post that at present, your establishment has no coverable employees. When you employ persons under the coverable limit, necessary compliance will be made/resumed for those employees.

However, please also ensure that you are not engaging any casual, temporary, or contract employees up to and including the coverable limit of wages since such persons are also considered employees under the said Act.