Hi, How many employees are covered to applicable ESI Act in IT company,location is noida ,is that 10 or 20 ? Please help me Thank Ravi
From India, Delhi
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1From India, Delhi
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Dear,
As you are an IT company covered under the Shops and Establishments Act, you require 20 eligible employees to get ESI coverage. Eligible employees are those whose salary is less than 15k. Mr. Ompal Yadav has informed about the latest amendment, which applies to factories. If it is a factory, then 10 eligible employees are required to be covered under this act.
Ompal Singh Yadav
9891440111
From India, Delhi
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As you are an IT company covered under the Shops and Establishments Act, you require 20 eligible employees to get ESI coverage. Eligible employees are those whose salary is less than 15k. Mr. Ompal Yadav has informed about the latest amendment, which applies to factories. If it is a factory, then 10 eligible employees are required to be covered under this act.
Ompal Singh Yadav
9891440111
From India, Delhi
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Dear Ravi,
According to ESIC's new amendment circular, the coverage is now applicable for your employment if you have 10 employees with a gross salary of up to INR 15,000/- effective from 01/04/2011. Attached herewith is the required document for your reference.
For further details, you can contact KUMAR's SOLUTION in the Noida area via email at
.
Thank you.
From India, Calcutta
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According to ESIC's new amendment circular, the coverage is now applicable for your employment if you have 10 employees with a gross salary of up to INR 15,000/- effective from 01/04/2011. Attached herewith is the required document for your reference.
For further details, you can contact KUMAR's SOLUTION in the Noida area via email at
Thank you.
From India, Calcutta
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Dear Ravi,
Sub- Coverage of ESI
The issue needs to be approached as under.
The ESI Act, in the first instance, is applicable on its own to all factories employing ten or more employees. If an establishment is not a factory, then it can be covered only by a notification issued by the appropriate government, namely either the central or state government.
I understand that yours is an IT company. The status of an IT company as a factory is still in dispute. Thus, your company falls under the category of establishments other than a factory. In that event, you will stand covered by ESI only if there is a notification to that effect issued by the appropriate government for your establishment.
If NOIDA is located in the National Capital Region (NCR) of Delhi, then the Central Government is the appropriate government as per the notification provided by Dr. Kumar, who deserves to be thanked for it.
As per the said notification, ESI covers 'Shops' employing ten employees. Going by the plethora of legal decisions, an IT company qualifies within the meaning of 'Shop'.
If NOIDA does not fall under NCR but under any State, then you have to refer to the notification of the state in which your company is located.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
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Sub- Coverage of ESI
The issue needs to be approached as under.
The ESI Act, in the first instance, is applicable on its own to all factories employing ten or more employees. If an establishment is not a factory, then it can be covered only by a notification issued by the appropriate government, namely either the central or state government.
I understand that yours is an IT company. The status of an IT company as a factory is still in dispute. Thus, your company falls under the category of establishments other than a factory. In that event, you will stand covered by ESI only if there is a notification to that effect issued by the appropriate government for your establishment.
If NOIDA is located in the National Capital Region (NCR) of Delhi, then the Central Government is the appropriate government as per the notification provided by Dr. Kumar, who deserves to be thanked for it.
As per the said notification, ESI covers 'Shops' employing ten employees. Going by the plethora of legal decisions, an IT company qualifies within the meaning of 'Shop'.
If NOIDA does not fall under NCR but under any State, then you have to refer to the notification of the state in which your company is located.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
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Dear HR professional, According to my information ESI applicable only municipal Area. Is it right? Thanks in advance. Thanks & regards, Shyam Kaldoke 7709424693
From India, Pune
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From India, Pune
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf