Struggling with ESI Registration? How to Handle Incorrect Work Category Options for Engineering Firms

Dear members,

Our company received the employer login credentials under ESI during incorporation. ESI became applicable from April 2024. We are now applying for the Establishment code but are encountering issues:

1) We cannot input our bank details.

2) The drop-down list in the "Exact Nature of Work" box offers options such as exclusive labor contracts/security agencies/contractors supplying labor. We do not fall under these categories as we are an Engineering consulting business. This selection discrepancy leads to a demand for advance contribution payment. We are unable to choose the correct business category.

This obstacle is hindering our registration process. Please guide us on how to address this matter. Your assistance will be greatly appreciated.

Location: Mysore, India

Understanding the Situation

In situations where the available options in the ESI registration form do not align with the nature of your business, especially in the "Exact Nature of Work" field, it can lead to challenges during the registration process. However, there are practical steps you can take to address this issue effectively.

Practical Steps to Resolve the Issue

1. [🔵] Contact ESI Authorities: Reach out to the ESI authorities either through their helpline or email to explain your situation. Provide them with a clear description of your business activities as an Engineering consulting firm and request guidance on the appropriate category selection.

2. [🔶] Detailed Business Description: Prepare a detailed description of your business operations, emphasizing that you are not involved in exclusive labor contracts, security services, or labor supply. Highlight the technical and consulting aspects of your work to support your case.

3. [🔷] Clarification Documentation: Compile any relevant documentation such as company profile, service offerings, and client projects to substantiate your business model. These documents can serve as evidence to support your classification as an Engineering consulting entity.

4. [🔃] Manual Submission: If the online form continues to present limitations, inquire about the possibility of submitting a manual application or providing additional details in a separate document to clarify your business activities.

5. [🔮] Follow-Up Communication: Ensure to follow up with the ESI authorities after submitting the additional information. Seek confirmation that the necessary adjustments have been made to accurately reflect your business category.

Seeking Professional Assistance

If the issue persists despite your best efforts, consider consulting with a legal advisor or HR professional well-versed in ESI regulations. They can provide tailored guidance based on your specific circumstances and facilitate a smoother resolution with the ESI authorities.

By proactively addressing this discrepancy and providing comprehensive information about your business activities, you can navigate the ESI registration process effectively and ensure accurate categorization in line with your Engineering consulting business.