Our unit is not falling under ESIC, although we are running a small hospital and have more than 50 employees. We are employing three to four agencies/labour contractors to carry out various activities on our premises such as security, housekeeping, etc. Will ESIC be applicable to them, and as a principal, do we need to reimburse the contractor? All agencies/contractors are employing more than 20 workers on my premises. My main question is, when the principal is not liable for ESIC, is the contractor liable?
From India, Mumbai
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From India, Mumbai
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Sir, our company is a manufacturing company and we are registered under ESIC. We undertake job work from outside parties, some of which are not registered under ESIC. Additionally, there is job work conducted within the factory premises by parties who also do not have an ESIC code. Are we liable for any ESIC obligations in these scenarios? What are the rates for ESIC and how is it calculated?
Furthermore, if the job work is carried out by parties, both inside and outside, who are registered with ESIC, who is responsible for paying ESIC contributions? Please provide clarification promptly.
From India, Gurgaon
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Furthermore, if the job work is carried out by parties, both inside and outside, who are registered with ESIC, who is responsible for paying ESIC contributions? Please provide clarification promptly.
From India, Gurgaon
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Aparajitha, being an end-to-end Labour Compliance solution company with extensive experience in labor law, has not provided any solution to Ketan's query.
Dear Ketan,
Each of your contractors is expected to have separate ESI registration. If not, as the principal employer, it becomes your duty to enroll the workers engaged by the contractor(s) under your own ESI rolls and contribute both the employer's share as well as the employees' shares. After that, you can deduct the amount contributed by you from the contractor.
Regarding job work done outside the premises of your factory, ESI will not apply provided the job is not supervised by you, and the job contractor is not exclusively working for you. If the job worker is solely working for you and not taking on any other work, it will be considered a "notional extension" of the factory, and the workers employed there will come under ESI. If the outside job contractor has a separate ESI registration, then it is their responsibility to handle the contributions.
If the job work is done within your factory premises, you are required to pay the contribution.
Regards,
Madhu.T.K
From India, Kannur
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4526Dear Ketan,
Each of your contractors is expected to have separate ESI registration. If not, as the principal employer, it becomes your duty to enroll the workers engaged by the contractor(s) under your own ESI rolls and contribute both the employer's share as well as the employees' shares. After that, you can deduct the amount contributed by you from the contractor.
Regarding job work done outside the premises of your factory, ESI will not apply provided the job is not supervised by you, and the job contractor is not exclusively working for you. If the job worker is solely working for you and not taking on any other work, it will be considered a "notional extension" of the factory, and the workers employed there will come under ESI. If the outside job contractor has a separate ESI registration, then it is their responsibility to handle the contributions.
If the job work is done within your factory premises, you are required to pay the contribution.
Regards,
Madhu.T.K
From India, Kannur
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Principal employer liable if contractor fails to pay wages to workers Delhi High Court Judgement.pdf