In this case, the canteen is in no way connected with the hospital, and the hospital has no control over the operations of the hotel/canteen. Moreover, it is not a statutory canteen since the hospital will not come under the purview of the Factories Act and under no state's Shops and Commercial Establishments Act. The setting up of a canteen has been incorporated as an obligation of the employer, i.e., the hospital in this case. However, Kerala state has made it mandatory to provide hostel facilities to employees in shops and commercial establishments employing more than 50 employees by inserting a new section into the Kerala Shops and Commercial Establishments Act. Therefore, there is no need for the coverage of the canteen as an establishment under ESI or EPF.
Madhu.T.K
From India, Kannur
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4769Madhu.T.K
From India, Kannur
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Thanks so much for your quick reply. Is there any proof or reference points that I can show to the hospital management to explain this issue, or can you guide me on where to search for qualified information on this matter? Thanks.
From India, Chennai
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From India, Chennai
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Dear Mr. Ganesh,
We are professional outsourcing service providers for many big group companies in South India. We can help you in complying with EPF and ESI for all the canteen employees through our PF/ESI code numbers. Please contact us for any further details or clarification.
Regards,
N. Nataraajhan
Sakthi Management Services
Mobile: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
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We are professional outsourcing service providers for many big group companies in South India. We can help you in complying with EPF and ESI for all the canteen employees through our PF/ESI code numbers. Please contact us for any further details or clarification.
Regards,
N. Nataraajhan
Sakthi Management Services
Mobile: +91 94835 17402
Email: natraj@sakthimanagement.com
From India, Bangalore
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Dear Jganesh,
There are a lot of verdicts and contradictory statements in favor and against the concepts of Contract FOR Service and Contract OF service. I don't know which statement would satisfy your need for 'qualified information'. If you are not okay with the posts above referred to decide where you stand, you can search the relevant sites, labour law reporter, labour law journals, or similar other journals and make yourself confirmed that your case will not come under Contract Labour and your employees will not come under the purview of PF/ESI.
Please remember that there are verdicts which say that workers of a statutory canteen should be covered by ESI/EPF as if they are contract workers. This will not apply to you because the canteen you run is not a statutory canteen or a facility which is provided as per statute but a canteen in a factory employing a certain number of workers (250 workers) is a statutory canteen and the work the workers perform in such canteen is something incidental or something required for the main operation of the factory.
Regards,
Madhu.T.K
From India, Kannur
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There are a lot of verdicts and contradictory statements in favor and against the concepts of Contract FOR Service and Contract OF service. I don't know which statement would satisfy your need for 'qualified information'. If you are not okay with the posts above referred to decide where you stand, you can search the relevant sites, labour law reporter, labour law journals, or similar other journals and make yourself confirmed that your case will not come under Contract Labour and your employees will not come under the purview of PF/ESI.
Please remember that there are verdicts which say that workers of a statutory canteen should be covered by ESI/EPF as if they are contract workers. This will not apply to you because the canteen you run is not a statutory canteen or a facility which is provided as per statute but a canteen in a factory employing a certain number of workers (250 workers) is a statutory canteen and the work the workers perform in such canteen is something incidental or something required for the main operation of the factory.
Regards,
Madhu.T.K
From India, Kannur
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Dear Ganesh,
What is required is that you should buy copies of relevant BARE ACTs of ESI & EPF Act and discuss with the hospital authorities about the applicability of ESI & EPF to your employees. A person with a minimum knowledge of these acts and proper understanding will easily come to terms about the applicability. Therefore, this should not pose a big problem to you. For your immediate requirement, you may as well obtain a legal opinion from a well-known advocate who is practicing in labor laws in your place, which should suffice and satisfy the hospital authorities. For your ready reference, some relevant portions are extracted and attached.
The hitch in your contract with the hospital is a clause to provide "sharing of your 10% of daily revenue" with them. In my opinion, in effect, it could be interpreted as 'the hospital coming into your shoes as a co-owner of the canteen or a restaurant. Try to modify this clause and make it all-inclusive as "rent". I don't think you'll have any problem thereafter.
From India, Bangalore
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What is required is that you should buy copies of relevant BARE ACTs of ESI & EPF Act and discuss with the hospital authorities about the applicability of ESI & EPF to your employees. A person with a minimum knowledge of these acts and proper understanding will easily come to terms about the applicability. Therefore, this should not pose a big problem to you. For your immediate requirement, you may as well obtain a legal opinion from a well-known advocate who is practicing in labor laws in your place, which should suffice and satisfy the hospital authorities. For your ready reference, some relevant portions are extracted and attached.
The hitch in your contract with the hospital is a clause to provide "sharing of your 10% of daily revenue" with them. In my opinion, in effect, it could be interpreted as 'the hospital coming into your shoes as a co-owner of the canteen or a restaurant. Try to modify this clause and make it all-inclusive as "rent". I don't think you'll have any problem thereafter.
From India, Bangalore
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