Seek guidance on the applicability of ESIC for a new unit. The organization I am working with started construction of a new factory in the year 2007, and the number of employees reached 12 in the month of April 2007. On 31st December 2007, we commenced commercial production (manufacturing process). We have been complying with ESIC norms since 01.01.2008.

During an inspection visit by the ESIC inspector, they noted that we were liable to comply with ESIC norms from 01.04.2007 and that we must pay contributions for the period 01.04.07 to 31.12.07.

Please advise on the legalities and suggest our stance.

From India, New Delhi

Hi all HR professionals,

I need information about the following acts that are relevant to HR:

1. Industrial Act
2. PF Act
3. Employee Act
4. Factory Act
5. Trade Union Act

Which acts are used for HR data? Please provide me with that information.

Regards,
Sreekanth H.R
Mobile: +91 8500082912

From India, Hyderabad

As per my understanding, labor engaged during the period of construction of factory buildings and before the first sale of goods produced will not be covered under ESI. Please check it with the Inspector.

Regards, Madhu.T.K

From India, Kannur

Hi Madhu T K!

I have shared the remarks made by the inspector of the corporation who visited our site. Can anyone please share relevant circulars/notifications/case laws in this regard?

Thanks!
Hiten

From India, New Delhi

Rightly said by Mr. Madhu, before production, ESI may not be applicable, but the workers will be covered under the BOCW Act. ESIC will not be applicable to on-site workers. Once production starts and there are more than 10 employees, ESIC will be applicable.
From India, Delhi


From India, Madras

Dear All,

Please help with the salary annexure. If the salary is Rs. 12,629/- per month, could you please provide details on the basic salary amount and the total deductions for P.F. with ESIC (including Bonus)?

Regards,
Monika Kaushal

From India, New Delhi

Thank you, everyone, for the response. From all the replies, I am feeling confident that coverage is applicable after the commencement of manufacturing activities. Can someone please help me with relevant case laws, circulars, or notifications in this regard?

- Hiten

From India, New Delhi

Seek guidance on applicability of ESIC for new unit. Regards Balasundaram.E.S
From India, Madras

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