Is an ESI Sub-code Necessary for Contractors from Different Districts?

Respected seniors,

This is Ramu working as Dy. Manager-HR in the manufacturing sector. I need clarification on ESI Sub-code. We have engaged one contractor, and he has an ESI code at his registered office, which is in another district. Is it mandatory to get an ESI sub-code? Can he enroll the manpower in the main code and select the dispensary nearer to our working area?

Kindly provide your valuable suggestions on this issue.

Ramu

Dear Mr. Ramu,

It is not mandatory to obtain ESI Sub Code #. However, for the sake of administrative convenience, it is advisable to obtain the sub code. The Contractor can cover his Employees under ESI in the existing ESI Code #. The ESI Dispensary is selected based on the Residence of the ESI Covered Employee. ESI Covered Employees can avail treatment from other dispensaries as well, since now it is online. Employers should have remitted ESI Contributions.