Respected members,
I take care of an organization having approx 50 employees. Back in 2011, we crosssed 20 employees and registered for EPF and since then following all epf rules.
Since beginning, we left our HR deptt to external contractor for all labour laws related formalities since we were vastly unaware of the complications.
However, we just realized that we have not registered for ESIC even though our 3 employees who are still working in the organization should have been covered under the same since their gross is less than 15000 p.m.
It looks like we have done a grave mistake by completely being dependent on external consultant.
Now, what can we do to rectify this mistake? What panelty will be imposed on such a case? or Shall we ourself approach labour office?
Thanks
From India, Delhi
2I take care of an organization having approx 50 employees. Back in 2011, we crosssed 20 employees and registered for EPF and since then following all epf rules.
Since beginning, we left our HR deptt to external contractor for all labour laws related formalities since we were vastly unaware of the complications.
However, we just realized that we have not registered for ESIC even though our 3 employees who are still working in the organization should have been covered under the same since their gross is less than 15000 p.m.
It looks like we have done a grave mistake by completely being dependent on external consultant.
Now, what can we do to rectify this mistake? What panelty will be imposed on such a case? or Shall we ourself approach labour office?
Thanks
From India, Delhi
1. Sir, why you should approach "Labour Office" as you have mentioned ?. ESIC has no relevance or connection with any of offices of labour department.
2. If you have any issue, you can visit the nearest office of ESIC and discuss the same. Address of nearest office of ESIC can be found on website of ESIC. I hope, ESIC authorities will extend their cooperation in the matter especially in the matters of coverage of new units.
3. Ignorance of law is no excuse. You can get your unit covered under ESI Act, 1948, get your records inspected from competent authority i.e. SSO of the area. Interest and damages are leviable on delayed payments of contributions and rates of the same are available in the ESI (Central) Rules, 1950.
From India, Noida
2. If you have any issue, you can visit the nearest office of ESIC and discuss the same. Address of nearest office of ESIC can be found on website of ESIC. I hope, ESIC authorities will extend their cooperation in the matter especially in the matters of coverage of new units.
3. Ignorance of law is no excuse. You can get your unit covered under ESI Act, 1948, get your records inspected from competent authority i.e. SSO of the area. Interest and damages are leviable on delayed payments of contributions and rates of the same are available in the ESI (Central) Rules, 1950.
From India, Noida
Also wanted to ask whether IT companies are covered under ESIC act ?
Because the broad defination says ESIC is applicable to
APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of Indian Union.
So can someone clarify on my query....
Regards,
Shreyansh
From India, Mumbai
Because the broad defination says ESIC is applicable to
APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of Indian Union.
So can someone clarify on my query....
Regards,
Shreyansh
From India, Mumbai
Sir, the term "IT company" has no special provisions under ESI Act, 1948 and are treated at par with other units. Such companies/firms are covered/coverable under provisions of said Act (provided the unit/company is located in implemented area) and if you have any doubt, I have already suggested you to approach the nearest office of ESIC for getting the records of your unit inspected/verified with a view to confirm the coverage of the unit under said Act.
From India, Noida
From India, Noida
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REGISTRATION & LICENSING UNDER DELHI S&E ACT.pdf
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