ESIC applicable for a new entity operating in same premises

Is ESIC applicable for a new entity operating in the same premises where the other company already has ESIC registration? If yes, please share the notification.

If the new organization is under the same management and there exists financial integrity, then the new company will also come under the ESI and other Acts, like EPF & MP Act, Payment of Gratuity Act, Payment of Bonus Act, etc. Financial integrity refers to some fund transfer from one organization to the other.

Thank you, is there any notification or provision for this.

Thank you. Is there any notification or provision for this?

Does "new entity" mean factory, as defined under the Factories Act?

There are a lot of court verdicts that state that all employees working in connection with the operations of a factory should be considered together for coverage of any labor law, even if they are working in separate locations. Similarly, having separate licenses and maintaining separate financial statements, i.e., Profit & Loss Account and Balance Sheet, will not establish the establishments as separate entities for labor law coverage. What is crucial here is the financial interdependence among the units. For further reference, you can review a Supreme Court Verdict attached.

You may also refer to L N Gadodia & Sons & Anr Vs Regional Provident Fund Commissioner [(SC) 2011 LLR 1124], a case regarding the consolidation of establishments for EPF coverage.