Sir,
I work in fabrication, civil, and other works as a labor contractor in a big company. Currently, I am involved in some civil works with more than 10 employees at Munjal Autoltc in the Waghodiya GIDC, Vadodara. This GIDC falls under the ESI area. We have applied for an ESI code in the ESI office, but our application was rejected. The reason cited was that in civil works, if 10 or more employees work in the office rather than the site area, the application can be rejected. Please guide us on whether we are covered under the ESI Act or not.
Thank you.
From India, Vadodara
I work in fabrication, civil, and other works as a labor contractor in a big company. Currently, I am involved in some civil works with more than 10 employees at Munjal Autoltc in the Waghodiya GIDC, Vadodara. This GIDC falls under the ESI area. We have applied for an ESI code in the ESI office, but our application was rejected. The reason cited was that in civil works, if 10 or more employees work in the office rather than the site area, the application can be rejected. Please guide us on whether we are covered under the ESI Act or not.
Thank you.
From India, Vadodara
Dear Sir(s),
Your employees will be covered under the ESI Act only in those factories/units which are already covered under the ESI Act and fall in implemented areas. This applies specifically to projects/units where you undertake repair, maintenance, extension of premises work, etc.
In the case of Construction Companies/Firms, separate code numbers may not have been issued by the ESIC. However, making compliance on Code Numbers of principal employers(s) where you undertake work will not be detrimental. The primary concern lies in ensuring compliance with the provisions of the ESI Act and the rules/regulations framed thereunder.
If your firm/establishment is working for multiple units, some of which may be in non-implemented areas or not covered under the said Act, you can maintain records of your establishment/unit separately on a unit-wise basis. These records can be produced for verification by the authorities of ESIC or the principal employer as and when required.
With regards,
Harsh Kumar Mehta
From India, Noida
Your employees will be covered under the ESI Act only in those factories/units which are already covered under the ESI Act and fall in implemented areas. This applies specifically to projects/units where you undertake repair, maintenance, extension of premises work, etc.
In the case of Construction Companies/Firms, separate code numbers may not have been issued by the ESIC. However, making compliance on Code Numbers of principal employers(s) where you undertake work will not be detrimental. The primary concern lies in ensuring compliance with the provisions of the ESI Act and the rules/regulations framed thereunder.
If your firm/establishment is working for multiple units, some of which may be in non-implemented areas or not covered under the said Act, you can maintain records of your establishment/unit separately on a unit-wise basis. These records can be produced for verification by the authorities of ESIC or the principal employer as and when required.
With regards,
Harsh Kumar Mehta
From India, Noida
Sir,
I work not only in civil work but also in fabrication, damor road, HDPE pipeline, and other areas. Currently, I am working in Wagho Diya, GIDC, which is covered in the ESI coverage area. The company insists on us having a separate code number, so we have applied for one. At the Wagho Diya site, there are more than 10 employees, but the ESIC office states that there are only 10 employees in our company office, not on the site. In reality, all the employees work on the site, so this situation is confusing.
I hope this helps clarify the situation.
From India, Vadodara
I work not only in civil work but also in fabrication, damor road, HDPE pipeline, and other areas. Currently, I am working in Wagho Diya, GIDC, which is covered in the ESI coverage area. The company insists on us having a separate code number, so we have applied for one. At the Wagho Diya site, there are more than 10 employees, but the ESIC office states that there are only 10 employees in our company office, not on the site. In reality, all the employees work on the site, so this situation is confusing.
I hope this helps clarify the situation.
From India, Vadodara
Dear Sir(s),
Perhaps, as per the facts mentioned by you, your unit neither falls under the category of a "factory" nor a "shop," and hence, ESIC has correctly rejected your application for a separate ESI Code.
You can inform the employers where you are performing job work (contract work) that you do not have a separate ESI Code Number and request them to deduct ESI contributions based on your records. They should submit the returns of contributions, etc., using their ESI Code Number.
To qualify as a separate "factory," one must have specific premises/precincts and engage in some manufacturing work. Similarly, there should be office premises or precincts and a minimum number of employees (ten) to qualify for coverage as a "shop."
If there is any confusion, you may visit the ESIC website to study the information available on the site and review the ESI Act, 1948, along with the rules and regulations framed thereunder.
The primary question is how to ensure compliance with the provisions of the said Act. I believe the principal employer will not object if either you or the principal employer ensures compliance using his ESI Code.
With regards;
[Your Name]
From India, Noida
Perhaps, as per the facts mentioned by you, your unit neither falls under the category of a "factory" nor a "shop," and hence, ESIC has correctly rejected your application for a separate ESI Code.
You can inform the employers where you are performing job work (contract work) that you do not have a separate ESI Code Number and request them to deduct ESI contributions based on your records. They should submit the returns of contributions, etc., using their ESI Code Number.
To qualify as a separate "factory," one must have specific premises/precincts and engage in some manufacturing work. Similarly, there should be office premises or precincts and a minimum number of employees (ten) to qualify for coverage as a "shop."
If there is any confusion, you may visit the ESIC website to study the information available on the site and review the ESI Act, 1948, along with the rules and regulations framed thereunder.
The primary question is how to ensure compliance with the provisions of the said Act. I believe the principal employer will not object if either you or the principal employer ensures compliance using his ESI Code.
With regards;
[Your Name]
From India, Noida
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