Organisations Exempted From Esic Coverage - XLS Download

Yes Priyanka !
We have decided to get ourselves registered for ESI and already started the process for the same.
Our intention was to have some time for our activities to regularise and achieve the break-even point first. We felt if an exemption is there we can have some time to let our administration department concentrate on in-plant activities arther than liaison with govt. agencies. After some time we can start compliances.
As our location falls under ESI covered areas, we have to comply to its requirements. Hence, we will abide by the statutory requirements.
thanks.
- Hiten

Dear All,
Our question on wether IT/ITES/BPO is exempted is not yet answered.
Your advise pl
Mani

Hi
To trainees also we need to deduct ESI act says this only, but nobody practice this.
Regards
Priyanka

Hi Hiten,
There is no such provision in ESI Act, if your factory located in covered area and having 10 employees earning less than Rs.10000/= you must get registered your factory under ESIC.
Thanks.
Ilyas Hungund.

Dear friends

I am a retired Addl Commissioner of ESI Corportion, having functined as Reginal Director in Four Large States and in various capacities in the Headquarters and hope to clarify the question.

Krishnamoorlthys reply is fairly accurate.

Many part of Uttaranchal, and other states, are not covered under ESI Act. Hence first find out whether the notification under Sec 1 (3) of ESI Act has been issued for the revenue village(s) in which your factory is situated.

If notification is issued, there is no exemption and you should submit registration form immediately. Those drawing over 10,000 per month (for this Over time wage is not to be taken) are to be covered. This should include casual , temporary and contract workers also. Better to cover all employees since accidents, death by accidents, medical treatment etc are available from day one. Though the medical care may not always be quite satisfactory, when there is serious ailment, or major accident, coverage under the scheme, can be very useful, not only for employees but for employers also, since it will avoid heavy compensation payment and other criminal actions for negligence. In case you need any further information, you are welcome to mail me at [Login to view]. I am working as a Group General Major of a group of companies, and hope to get some time to reply, if the qurey is serious.

Abdul Hameed

Group General Manager

Peekay Steel Castings

Formerly Addl. Commissioner ESIC

Dear Sir,
It is a previlege to have your views in the forum. I am grateful to you for sharing your knowledge and experience with us.
I am sure we will benefit from you in future also.
Regarding my case, we have already initiated the registration process.
As such the contractual workmen were covered under the ESIC provisions and they are administrered by the labour supply contractors.
Hope this is fine.
Earlier the Chemists and junior staff members were drawing in range of 6000 to 7000 and were exempted. But now we will cover them as per the statutory requirement.
Kindly advise in the matter of contractual labourers.
Regards,
Hiten

if there are 20 employees in an organisation and employees salary is less than Rs10000/- then esi is applicable in any case.
It is exempted in those cases where an organisation is providing more facilities than esi but prior approval of concern authority is necessary.
Regards,
Neeraj

the plant existing in gujarat must not be in the municipal limit.
while the plant in uttrakhand are in the municipal limit.
Neeraj

Hello Hiten and Neeraj

Whether you engage workers under a contractor or directly, it will be your (Principle Employers) responsibility to cover all such workers. Law of course allow you to recover to recover total contribution (employers and employees) from the bill of contractor not withstanding the terms of contract. Contract employees can be covered under your own code number and insurance number series or contractor can get his own code number, provided he regularly employs 20 employees (assuming that he is only a labour supply contctor). In that case you should obtain the form 7A register from him every month, ensure that he paid the ESI dues, and obtain the six monthly return, and also ensure that his return contain names of workers actualy working in your unit. some contractors merely comply for 20 employees, though providing much more workers to various unit, and yet give the same return to all the employees. Be careful about it.

If you do not recover ESI dues from contractors bill for a particular period, you can do it from a subsequent bill, but the liability will be yours.

Abdul Hameed

Hello Hiten
Your presumption that merely because your unit is far away from the District HQ, you will not come underESI scheme is not correct. The ESI scheme is implemented in pience meal including different revenue villages at different occasion. You can take out an RTI notice to ESIC to get a list of notification under Sec 1 (3) of the act issued for different revenue villages in the district in which your unit is situated. You can also wrige a registered letter to your nearest Regional Office/Sub regional office or Divisional office for this purpose. You may visit www.esic.nic.in to know more.
Abdul Hameed
Former Addl Commissioner ESIC