Dear Folks, If the Company is covered under ESI Act, whether ESI is applicable to its contractors who are having employees less than 20? Can clarify? MK Kilaru
From Germany, Zell
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13From Germany, Zell
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Clarification on ESI Act Coverage
The ESI Act of 1948 and the rules/regulations framed thereunder do not make any distinction between regular, casual, or employees engaged through a contractor (immediate employer).
The minimum number of employees required for coverage under the said Act is 10 for a factory and 20 for certain notified establishments.
Regards
From India, Noida
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The ESI Act of 1948 and the rules/regulations framed thereunder do not make any distinction between regular, casual, or employees engaged through a contractor (immediate employer).
The minimum number of employees required for coverage under the said Act is 10 for a factory and 20 for certain notified establishments.
Regards
From India, Noida
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Dear Harsha Even though contractor is having less than 20 emp[loyees, they are eligible for esi code because now the rulle is 10 employees are enough V.Subbarao
From India, Madras
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From India, Madras
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If any Social Security Enactment is applicable to a factory or establishment, all employees, including contract laborers, are covered under such enactment. This includes counting the number of employees for coverage under these enactments, where all employees, including contract laborers, are considered.
Accordingly, if a company is covered under PF/ESI, contractors' laborers are also coverable under PF/ESI. Even if a contractor has only one employee, they must be covered.
Regards,
From India, Mumbai
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Accordingly, if a company is covered under PF/ESI, contractors' laborers are also coverable under PF/ESI. Even if a contractor has only one employee, they must be covered.
Regards,
From India, Mumbai
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Thanks to all. If we give consultancy rather than maintenance or deploying of manpower for gardening in your work order, even though statutory obligations will be applicable? Regards MK Kilaru
From Germany, Zell
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From Germany, Zell
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Dear all, The ESI ACT has since been amended and the ESI Scheme is now uniformly applicable to a Factory or Estt who is employing/has employed 10 or more persons on any day in last 12 months.
From India, Gurgaon
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From India, Gurgaon
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The threshold limit of the number of employees for coverage of ESI has been well discussed in this forum several times. However, to correct you, this threshold number is not uniformly applied throughout our country. Except in Maharashtra, Assam, and HP, there is a lack of uniformity. Please find some of the discussions on this topic:
- [ESI Registration Gross Salary](https://www.citehr.com/463346-esic-registration-gross-salary.html)
- [Civil Contractor PF Registration](https://www.citehr.com/470754-civil-contractor-pf-registration.html)
- [Information Regarding ESIC, PF](https://www.citehr.com/474562-want-some-information-regarding-esic-pf-pg2.html)
Thank you.
From India, Mumbai
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- [ESI Registration Gross Salary](https://www.citehr.com/463346-esic-registration-gross-salary.html)
- [Civil Contractor PF Registration](https://www.citehr.com/470754-civil-contractor-pf-registration.html)
- [Information Regarding ESIC, PF](https://www.citehr.com/474562-want-some-information-regarding-esic-pf-pg2.html)
Thank you.
From India, Mumbai
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I would like to point out to Sh. Mahabir Dhaiyaji that the provisions of Section 1(5) of the ESI Act, 1948 were not amended to align with the provisions of Section 1(3). Implementing the ESI Scheme in selected establishments falls well within the powers of the appropriate State Government under Section 1(5). However, there are still some State Governments, such as Maharashtra, that have not issued fresh notifications under the above provisions to bring the coverage of certain establishments in line with Section 1(3). There may be a few more states facing similar situations.
I would also like to correct Sh. Korgaonkarji that the State Government of Assam possibly issued a notification under Section 1(5) in 2012, reducing the coverage threshold of certain establishments to 10. If needed, I can conduct further research on this matter. It is worth mentioning that to the best of my knowledge, there are certain states, such as Gujarat and Pondicherry, that have not issued notifications under Section 1(5) covering medical or educational institutions. Hence, in my view, there is a lack of uniformity concerning the coverage of medical and educational institutions. The accuracy of this information needs to be verified with the relevant Regional/Sub/Divisional Office of ESIC.
Thank you.
From India, Noida
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I would also like to correct Sh. Korgaonkarji that the State Government of Assam possibly issued a notification under Section 1(5) in 2012, reducing the coverage threshold of certain establishments to 10. If needed, I can conduct further research on this matter. It is worth mentioning that to the best of my knowledge, there are certain states, such as Gujarat and Pondicherry, that have not issued notifications under Section 1(5) covering medical or educational institutions. Hence, in my view, there is a lack of uniformity concerning the coverage of medical and educational institutions. The accuracy of this information needs to be verified with the relevant Regional/Sub/Divisional Office of ESIC.
Thank you.
From India, Noida
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ESI Applicability for Contract Employees
The contract employees are applicable for ESI because the factory is already covered. As such, it is immaterial that the contractor has workers below 10. The ESI authorities will consider the factory workers and contract workers for the purpose of ESI coverage. The employer has to cover them in his code number if the contractor does not have the ESI Code.
From India, Hyderabad
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The contract employees are applicable for ESI because the factory is already covered. As such, it is immaterial that the contractor has workers below 10. The ESI authorities will consider the factory workers and contract workers for the purpose of ESI coverage. The employer has to cover them in his code number if the contractor does not have the ESI Code.
From India, Hyderabad
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Your question is if a company is covered under the ESI Act, in that case, whether ESI is applicable to its contractors' employees having less than 20 employees. As far as the legal position is concerned, my respected senior colleagues have already explained in clear terms regarding its applicability.
In simple language for your understanding, I would like to submit that ESI is applicable for employees engaged through contractors even if they employ less than 20 employees since they have been working in your establishment/factory.
If contractors are registered and have obtained an ESI code from ESI authorities, then the liability of paying ESI on the part of the principal employer is excluded. It is advisable, as a principal employer, that you should keep strict vigil to ensure that ESI contributions are deposited by contractors under their respective codes.
If contractors fail to deposit the ESI contribution for employees engaged by them in your establishment/factory, it will be the responsibility of the principal to deposit the same.
From India, Calcutta
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In simple language for your understanding, I would like to submit that ESI is applicable for employees engaged through contractors even if they employ less than 20 employees since they have been working in your establishment/factory.
If contractors are registered and have obtained an ESI code from ESI authorities, then the liability of paying ESI on the part of the principal employer is excluded. It is advisable, as a principal employer, that you should keep strict vigil to ensure that ESI contributions are deposited by contractors under their respective codes.
If contractors fail to deposit the ESI contribution for employees engaged by them in your establishment/factory, it will be the responsibility of the principal to deposit the same.
From India, Calcutta
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A company covered under the ESI Act is liable to cover all the eligible employees working under it, including contractors' employees. The company should ensure that no eligible employee, including those of contractors, enters its premises without being covered under the ESI Scheme.
From India, Mumbai
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From India, Mumbai
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Dear seniors i have doubt about as under contractor there are workers more than 50 employees. Can we cover some of the workers under esi only without PF.Please suggest me .can we cover....
From Kuwait, Kuwait
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From Kuwait, Kuwait
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Dear Sir, if company is covered under PF / ESI etc., contractor’s labours are coverable under PF / ESI etc. Even any contractor is having only one employee, he is to be covered.
From India, Vadodara
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From India, Vadodara
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
ESI coverage - Rajasthan 2016.jpg