Dear all,
In light of the recent judgment by the Honorable Madras High Court on the above subject, the ESI Corporation has issued a circular regarding the payment of ESI contributions for outsourced jobs.
A soft copy of the circular is enclosed for your reference.
Guidelines have been issued by the ESI Corporation to determine the level of supervision involved in outsourced jobs. Employers must ensure two things to avoid litigation:
a) The agency to which the jobs are outsourced should have separate ESI codes and comply with the provisions of the ESI Act, including timely payment of contributions.
b) There should be no direct supervision or control over the contract laborers by the Principal Employer.
Thanks & Regards,
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai
Mobile: 9840942232
From India, Madras
Acknowledge(0)
Amend(0)
13In light of the recent judgment by the Honorable Madras High Court on the above subject, the ESI Corporation has issued a circular regarding the payment of ESI contributions for outsourced jobs.
A soft copy of the circular is enclosed for your reference.
Guidelines have been issued by the ESI Corporation to determine the level of supervision involved in outsourced jobs. Employers must ensure two things to avoid litigation:
a) The agency to which the jobs are outsourced should have separate ESI codes and comply with the provisions of the ESI Act, including timely payment of contributions.
b) There should be no direct supervision or control over the contract laborers by the Principal Employer.
Thanks & Regards,
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai
Mobile: 9840942232
From India, Madras
Acknowledge(0)Amend(0)
Dear Kalyan Thanks for the precise summation.At last Outsourcing is now codified by this Circular.The Industry as well as Contractors can go forward frm this. With Regards V.Sounder Rajan
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Kalyan Greetings Kudos to you. Your piece of information is very useful to us. With regards Trisha HR Professional
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Thank you very much, Mr. Kalyan,
The information shared by you is very practical to us because we have practiced with 2-3 outsourcing companies for job works. It is very useful to our concern. Once again, thankful to you.
K. Nagaraj HR Manager Salzer Electronics Ltd Coimbatore - 19. 98946-68788
From India, Madras
Acknowledge(0)Amend(0)
The information shared by you is very practical to us because we have practiced with 2-3 outsourcing companies for job works. It is very useful to our concern. Once again, thankful to you.
K. Nagaraj HR Manager Salzer Electronics Ltd Coimbatore - 19. 98946-68788
From India, Madras
Acknowledge(0)Amend(0)
Hi I need help in preparing questionaries for an interview and also how do I introduce new joinee via e-mail.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear All,
Here is an interesting update on this. We had a recent ESI inspection, and the inspectors directed us to pay 6.50% of the labor component of all outsourced work. I showed them the circular. The inspectors were actually unaware of this and maintained that they have not been instructed about this! Further, they said that we should produce proof of returns filed by the contractor which shows the names of the employees of the contractor who actually did the work at our premises.
Regards,
Mahesh T Nair
From India, Coimbatore
Acknowledge(0)Amend(0)
Here is an interesting update on this. We had a recent ESI inspection, and the inspectors directed us to pay 6.50% of the labor component of all outsourced work. I showed them the circular. The inspectors were actually unaware of this and maintained that they have not been instructed about this! Further, they said that we should produce proof of returns filed by the contractor which shows the names of the employees of the contractor who actually did the work at our premises.
Regards,
Mahesh T Nair
From India, Coimbatore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI Circular.docx
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf