Dear Sir,
My question is, if my company's address is in an implemented area of the ESIC, but all our work and employees are located in a non-implemented area, under which section of the ESI Act is the employer not liable to deduct ESI contributions?
Thank you.
From India, Bhatinda
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My question is, if my company's address is in an implemented area of the ESIC, but all our work and employees are located in a non-implemented area, under which section of the ESI Act is the employer not liable to deduct ESI contributions?
Thank you.
From India, Bhatinda
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Under non-implemented zones, if the establishment (and/or branch) applies for ESIC registration (or subcode), then ESIC keeps it in abeyance and informs the establishment that the zone is non-implemented. However, if the registration or subcode is granted, then the establishment has to file contributions and payments.
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Esic registerstion for code in non implementated area is not possible. Instead employer can avail employees compensation policy.
From India, Vadodara
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From India, Vadodara
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Now ESI is taking steps for coverage in all areas in all districts thereby reducing non implemented areas. Direction from ESI HQ New Delhi has already gone to States.
From India, Aizawl
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From India, Aizawl
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Dear Friends,
The question is asked where it is written in the Act on the non-liability of ESI Contribution by the employer in a non-implemented area.
My take on it is as follows:
Please read section 1(3) carefully. According to this section, the provisions of the ESI Act are made applicable, in the first instance, to the employees of the factories covered under this Act by virtue of their location in areas where the Central Government has implemented the provisions of the Act through a Gazette Notification.
Thus, once the Act is implemented in a given area through a Gazette Notification, the provisions of the Act are applicable to all factories located in this area. Therefore, the employer is liable to cover the eligible employees as IP under the Act and make deductions of contributions from their salary and remit it along with his share.
It is implied that when there is no such Notification for any area, the employer in that area is not liable to cover any employee as IP, make deductions of contributions from their salary, or pay any remittances.
For the applicability of the Act to entities other than factories, please refer to section 1(5).
I hope I have clarified the point.
Please let me know if you need any further assistance.
From India, Mumbai
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The question is asked where it is written in the Act on the non-liability of ESI Contribution by the employer in a non-implemented area.
My take on it is as follows:
Please read section 1(3) carefully. According to this section, the provisions of the ESI Act are made applicable, in the first instance, to the employees of the factories covered under this Act by virtue of their location in areas where the Central Government has implemented the provisions of the Act through a Gazette Notification.
Thus, once the Act is implemented in a given area through a Gazette Notification, the provisions of the Act are applicable to all factories located in this area. Therefore, the employer is liable to cover the eligible employees as IP under the Act and make deductions of contributions from their salary and remit it along with his share.
It is implied that when there is no such Notification for any area, the employer in that area is not liable to cover any employee as IP, make deductions of contributions from their salary, or pay any remittances.
For the applicability of the Act to entities other than factories, please refer to section 1(5).
I hope I have clarified the point.
Please let me know if you need any further assistance.
From India, Mumbai
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