Dear All,
We have 20 workers in our factory at chennai who were working through the payroll of 3rd Party. All are adhered to ESI since the contractor is doing in pan India level .
In that factory all workers in our pay roll are getting above15 k and exempted from ESI.So we have not registered this organization under ESI.Now we have absorbed 3 persons among contract workers to our payroll.
My query is, do we have to deduct ESI for these three workers since they are also doing the same nature of work like other contract workers and getting less than 15 k. But our workers in our pay roll eligible for esi is just only this new three persons who had been enjoying the ESI before absorption.
Please advice me what to do
With Regards
Carmel

From India, Mumbai
Dear Shyam,

Try to have patience in the life....U posted ur first querry @ 8.40 am and showing some not advisable words such as "NO ONE CAPABLE TO GIVE A WORD OVER THIS POST"...... Try to give respect to our beloved members........who might been busy in other works tooooo.

O.K. now come to the point..

I will clarify ur doubt.... In any of the factory having the employees whether they are directly employed by the factory or THROUGH IMMEDIATE EMPLOYER, ie. like contractors......totally touch 10, then that unit is coverable under the provisions of the Act....

In simply i can say that if all your employees are drawing morethan 15k and ur contract employees are drawing less than 15k.... and total strength comes to 10 or more.....automatically ur unit is coverable under the ESI Act.....

Finally u can conclude that U HAVE TO COMPLY IN RESPECT OF THOSE 3 CONTRACT EMPLOYEES......

All the best,,,,,,,,,,in future if u have any querry, don't hesitate to call me on 09443434313 or mail to ....

From India, Hyderabad
Dear VSP, Really nice piece of advice and guidance. can you spent some more time in briefing the procedures to register our company under ESI Act? Regards Shyam
From India, Mumbai
Dear Shyam,
First please down load the form of registratration form attached below and fill all the columns and submit the same to the concerned Regional Office along with necessary documentary evidence (wherever required) for allotment of the ESI 17 digit code no. to your unit.
After getting the ESI Code to your unit, U have to start to comply for ESI in respect of all your regular/casual/daily/contract employee who are drawing wages less than 15k per month...
all the best...

From India, Hyderabad
Attached Files (Download Requires Membership)
File Type: pdf Form-01 Employer'sRegistration Form.pdf (14.7 KB, 197 views)

The reply given by Mr Shyam is correct but in this regard I want to add some thing more.
As per your querry you are employing contract labour through an agency and all those employees are covered under the ESI Act but your company regular employees are not amenable under the Act by virtue of drawing more salary prescribed under the Act. In that case also your factory is amenable under the Act though you are not having any coverable employee by virtue of your contract employees under Sec 2(9)(ii) prior to the date of taking over the 3 contract labour on your pay rolls.
If once your factory is amenable under the Act, all the residuary/temporary employees such as employees engaged on cleaning, reparing, gardening even on piece rate basis also are coverable under the Act and you are liable to comply irrespective of their periodicity of work with you.
After taking over the 3 contract employees on your pay roll the advise given by Mr Shyam is correct.
All the best

From India, Hyderabad
Dear All,
Let me clarify one more doubt
It is said if we have employed (any type ) more than 10 workers company has pay the ESI or they are eligible for esi.
Definition for NO 10 Workers:
1. 10 Workers who are falling in bracket of esi ceiling. 15 or below 15
2. 10 Workers means the total strength of the factory consisting above 15 and below fifteen as groll
Please let me know the correct defining 1 or 2
Regards
MT.Carmel

From India, Mumbai
Don’t confuse ur self too much, definition 2 is correct, the same can be interpreted based on the latest amendments of the ESI Act at Section 2(12) ........
From India, Hyderabad
Dear VSP,
We are having one factory at Silvassa , Union Territory and where we employed around 25 staffs. Nearby area there is no Local Offices or Hospitals where our factory is put up. Do we have register or obeserve workman compensation.
Regards
Mt.Carmel

From India, Mumbai
Dear Shyam, In case ur area is in non implemented area, u have to comply under workman compensation only, no need to comply under ESI..........
From India, Hyderabad
Dear Mr Carmel.
Total number of employees employed for wages directly and through immediate employers on the date of application,(whether manual/clerical/supervision, connected with the administration or purchase of raw materials or distribution or sale of product/service, whether permanent or temporary).
Also go through Form 01(Code number Application) Query No : 16
Head count 10 includes all the Employees in a Particular premise including the Security Guards.
I totally agree with Mr. Syamprasad with one correction" U HAVE TO COMPLY IN RESPECT OF THOSE 3 DIRECT EMPLOYEES"
Since you have absorbed that 3 persons, they will become your "DIRECT EMPLOYEES".

From India, Madras
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