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1. Foreign company (incorporated in another county) having Branch office in two states are Manadtory to do registration of Shop and Establishments? What ifs not yet done.

2. West Bengal office employee strength is 10 person but 2 people are above 65 so is it mandatory to have ESI ? in other state Branch employee strength is 3 person so can we face any ESI issue?

3. All employees' total salary is 21k above but basic is divided by 4 so is it mandatory for us to do ESI or PF.

Please help.

Thank you.

From India, Kolkata
Dear Colleague,

From the given information:
1. Shops Act Registration and Opening Intimation under Gratuity Act are must for all companies operating in India as per the Labour Laws. Do the compliances only when you reach the required numbers under each legislation separately. Kindly read the FAQ attached and then have a discussion with the respective Government Authorities and then proceed.

2. The ESI scheme is applicable to all factories and other establishments as defined in the ESI Act with 10 or more persons employed in such establishment and the beneficiaries' monthly wage does not exceed Rs 21,000 are covered under the scheme. For arriving the number 10 you need to add all employees irrespective of age/ salary level etc. But you need to cover only those employees who are within the salary limit mentioned in the ESI Act.


3. In case of State governed Laws like Shops Act you may see the number of employees separately for each Branch.

4. But in case of Central Act like PF / ESI there may be a need to take into account the number of employees employed in both branches together as the branches belongs to one company and one employer.

Hence have an internal stock taking of number of employees in each branch separately for State Legislation and combined for Central Laws like PF/ ESI etc and then discussion with respective Government Authorities, then proceed. Some Acts are applicable for 10 or more employees and few are 20 or more employees. Hence this caution.

From India, Chennai
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