When a builder is hired to repair a building, he employs his labor for work. Later, he gives an invoice of, say, 1 lac. He is not registered under ESI law. Are we liable under ESI for that labor? And how will the liability be determined and paid? Please guide.
Thank you,
Manish Kumar
From India, Noida
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Thank you,
Manish Kumar
From India, Noida
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Dear Mr Manish Kumar
In the absence of separate ESI code for the Contractor, as Principal employer - you will have to recover 6.5% on 25% of the Bill amount and remit the same to the ESI authorities. (some case laws mentioned below for your reference).
• When the employer fails to give break up of the amount spent, construction, repair etc., 25% of it will be treated as 'wages' for ESI's contribution purposes.
Shree Sivakami Mills Ltd" Madurai (represented through Managing Director) v ESI Corporation, Madras (through its Regional Director) Madras, 2001 LLR 370 (Mad HC)
• Employees engaged by the contractor in an establishment are liable to be covered under ESI Act.
Employees' State Insurance Corporation v. Vijayamohini Mills, (1990) II LLJ 464: 1990 LLR 305: 1990 (1) LLN 902 (Ker HC).
• The principal employer will be liable to pay the ESI's contributions of the employees employed through contractor.
Standard Fabricators India) (Pvt.) Ltd. v Regional Director, ESI Corporation, Bombay, (1994) 69 FLR 785: 1994 LLR 869 (Bom HC).
• Respondent-company is liable to make contribution at 25 per cent in respect of labour charges of the total cost of the buildings.
Madras High Court - Regional Director, Employees' ... vs Sundaram Clayton Ltd. And Ors. on 10 December, 2003 Equivalent citations: (2004) IILLJ 30 Mad.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ;
)
From India, Bangalore
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205In the absence of separate ESI code for the Contractor, as Principal employer - you will have to recover 6.5% on 25% of the Bill amount and remit the same to the ESI authorities. (some case laws mentioned below for your reference).
• When the employer fails to give break up of the amount spent, construction, repair etc., 25% of it will be treated as 'wages' for ESI's contribution purposes.
Shree Sivakami Mills Ltd" Madurai (represented through Managing Director) v ESI Corporation, Madras (through its Regional Director) Madras, 2001 LLR 370 (Mad HC)
• Employees engaged by the contractor in an establishment are liable to be covered under ESI Act.
Employees' State Insurance Corporation v. Vijayamohini Mills, (1990) II LLJ 464: 1990 LLR 305: 1990 (1) LLN 902 (Ker HC).
• The principal employer will be liable to pay the ESI's contributions of the employees employed through contractor.
Standard Fabricators India) (Pvt.) Ltd. v Regional Director, ESI Corporation, Bombay, (1994) 69 FLR 785: 1994 LLR 869 (Bom HC).
• Respondent-company is liable to make contribution at 25 per cent in respect of labour charges of the total cost of the buildings.
Madras High Court - Regional Director, Employees' ... vs Sundaram Clayton Ltd. And Ors. on 10 December, 2003 Equivalent citations: (2004) IILLJ 30 Mad.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ;
From India, Bangalore
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What is the process of payment for these labours on ESI portal?
From India, Noida
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From India, Noida
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In the absence of individual coverage for the workers, you will have to remit the contribution to ESI under the 'Misc' heading in lump sum.
Regards,
N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
From India, Bangalore
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Regards,
N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
From India, Bangalore
Acknowledge(0)Amend(0)
Thank you for your prompt reply. So on online portal of ESIC, it should be paid using "Omitted Wages Challan". Right!?
From India, Noida
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From India, Noida
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ESI contribution rates lowering.pdf
WORK PLACE STANDARDS - Blank.doc