ESIC Coverage Confusion: Can My Contractor Cover Employees Across Different Areas?

Please give me a clear idea about ESIC registration. If my contractor's office is in an ESIC coverage area and my factory is in a non-coverage area under ESIC, can the contractor cover his employees in ESIC?

Applicability of the ESI Act 1948

The applicability of the ESI Act 1948 depends on the location of the establishment where the workers are deployed. If it is in a non-covered area, then there will be no applicability, even if the contractor has its registered office in an ESI-covered area. There is no point in applying ESI to them as they will not be in a position to avail ESI benefits, such as being at a distant place from an ESI-covered area.

ESI Coverage Clarification

If the contractor employs his workers in your factory, which is situated in a non-coverage area under ESI, they need not be covered under ESI by the contractor. Hope the matter is clarified to you.

ESI Corporation's Initiatives

ESI Corporation, under the Government of India, has already initiated action to cover the Act in various districts in the country. Hence, when the area where your factory is situated falls under ESI coverage, you can apply for ESI registration.