Dear All,
I have a query related to the applicability of the Gratuity Act, PF, and ESI. What are the provisions for the applicability of the act for companies under the same management? A company in which approximately 50 employees are working is covered under ESI, PF, and Gratuity. I want to know if there is another group company in which only 5 employees are working, then are these Acts applicable to this company as well, even though the number of employees is below the minimum required for the applicability of the act.
Thanks,
From India, Delhi
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I have a query related to the applicability of the Gratuity Act, PF, and ESI. What are the provisions for the applicability of the act for companies under the same management? A company in which approximately 50 employees are working is covered under ESI, PF, and Gratuity. I want to know if there is another group company in which only 5 employees are working, then are these Acts applicable to this company as well, even though the number of employees is below the minimum required for the applicability of the act.
Thanks,
From India, Delhi
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Hi,
1. PF applicability 20 or more than 20 employees
2. ESI applicability
According to the notification issued by the State Governments concerned under Section 1(5) of the Act, the following establishments employing
20 or more persons for wages attracts ESI coverage.
. 1. Shops;
2. Hotel or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
3. Cinemas including preview theatres;
4. Road Motor Transport Establishments;
5. News paper establishments. (That is not covered as factory under Sec. 2(12)); and
6 Private Educational Institutions(those run by individuals, trustees, societies or other organizations)and Medical Institutions(including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs). However,
Medical and Educational Institutions established and run by Ramakrishna Math and Ramakrishna Mission are excluded from this coverage.
3. Gratuity Applicability
10 or more then 10 employees cover under Gratuity act.
From India, Mumbai
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4291. PF applicability 20 or more than 20 employees
2. ESI applicability
According to the notification issued by the State Governments concerned under Section 1(5) of the Act, the following establishments employing
20 or more persons for wages attracts ESI coverage.
. 1. Shops;
2. Hotel or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
3. Cinemas including preview theatres;
4. Road Motor Transport Establishments;
5. News paper establishments. (That is not covered as factory under Sec. 2(12)); and
6 Private Educational Institutions(those run by individuals, trustees, societies or other organizations)and Medical Institutions(including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs). However,
Medical and Educational Institutions established and run by Ramakrishna Math and Ramakrishna Mission are excluded from this coverage.
3. Gratuity Applicability
10 or more then 10 employees cover under Gratuity act.
From India, Mumbai
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Dear All,
I have queries regarding how gratuity is calculated on 15 days. I know the formula, but can we calculate gratuity based on 20 days or 30 days? I have heard that it is possible, but only if the person has completed 10 or 20 years of service. Please help me with this as it is urgent.
Regards,
Monali
From India, Pune
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I have queries regarding how gratuity is calculated on 15 days. I know the formula, but can we calculate gratuity based on 20 days or 30 days? I have heard that it is possible, but only if the person has completed 10 or 20 years of service. Please help me with this as it is urgent.
Regards,
Monali
From India, Pune
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Dear Sir(s),
With reference to the issue raised by Sh. Kapil Bansal regarding the applicability of certain labor laws in all companies/firms under the same management, it is submitted that there can be any number of companies/firms, etc., under the same management, and there is no bar. Their coverage under different labor laws will be examined and decided as per the provisions of the said Acts respectively. However, the condition is that the said companies/firms must be separate in actual working. Such bifurcation should not have been created artificially only to deny some workers/employees the benefits of certain labor laws or to escape some taxes.
However, in cases where different firms/companies are artificially created, and in fact, there is a unit of purpose, continuity in the manufacturing process, continuity in sales, unity in financial transactions, etc., the same electric power or unity in the preparation of final accounts, then such units can be clubbed together to treat a single unit, and the coverage is decided accordingly. There are a number of cases where authorities have clubbed such units as one, and the honorable courts have upheld such actions of clubbing.
However, such cases are decided as per the facts of each case, and no hard and fast conclusions can be drawn.
From India, Noida
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With reference to the issue raised by Sh. Kapil Bansal regarding the applicability of certain labor laws in all companies/firms under the same management, it is submitted that there can be any number of companies/firms, etc., under the same management, and there is no bar. Their coverage under different labor laws will be examined and decided as per the provisions of the said Acts respectively. However, the condition is that the said companies/firms must be separate in actual working. Such bifurcation should not have been created artificially only to deny some workers/employees the benefits of certain labor laws or to escape some taxes.
However, in cases where different firms/companies are artificially created, and in fact, there is a unit of purpose, continuity in the manufacturing process, continuity in sales, unity in financial transactions, etc., the same electric power or unity in the preparation of final accounts, then such units can be clubbed together to treat a single unit, and the coverage is decided accordingly. There are a number of cases where authorities have clubbed such units as one, and the honorable courts have upheld such actions of clubbing.
However, such cases are decided as per the facts of each case, and no hard and fast conclusions can be drawn.
From India, Noida
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Dear Experts,
I have a query - whether the ESI Act of 1948 is applicable to NGOs or not. I request all members to provide their opinions:
1. Is ESI applicable to NGOs? If not, please provide the basis for your opinion.
2. If yes, please also provide the basis for your opinion.
From India, Udaipur
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I have a query - whether the ESI Act of 1948 is applicable to NGOs or not. I request all members to provide their opinions:
1. Is ESI applicable to NGOs? If not, please provide the basis for your opinion.
2. If yes, please also provide the basis for your opinion.
From India, Udaipur
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Dear Experts,
I have a query: Is the ESI Act 1948 applicable to NGOs or not? I request all members to provide their opinions on the following:
1. Is ESI applicable to NGOs? If not, please provide the basis for your opinion.
2. If yes, also provide the basis for your opinion.
Regards,
Jyoti Sharma
Student of MHRM
Email: sharma.jyoti130@yahoo.com
From India, Udaipur
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I have a query: Is the ESI Act 1948 applicable to NGOs or not? I request all members to provide their opinions on the following:
1. Is ESI applicable to NGOs? If not, please provide the basis for your opinion.
2. If yes, also provide the basis for your opinion.
Regards,
Jyoti Sharma
Student of MHRM
Email: sharma.jyoti130@yahoo.com
From India, Udaipur
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ESI-PF-Gratuity .xls