Please advise that in case our company which is in WB gives a job contract to a company which is from other state say Bangalore. That contractor has deployed few workmen at our Kolkata factory for a temporary period i.e. 30-45days to execute the job. The contractor have got Pf and Esi code registration against their registered address of Bangalore office and do not possess any sub code. For PF as now sub code is not required so no problem arises but as per my knowledge for availing Esi benefits, sub code is required. Which means that those workers who have been deployed at Kolkata (they have got esi registration under head office code at Bangalore) will not be able to get Esi benefit unless a sub code is created and they are transferred under the sub code. However while advising such the contractor is arguing that they are working in different other states and not faced any problem in this regard and that as those labours are covered by esi under the head office code so in case of any problem they will be able to get the benefits from any Esi hospital of other states and sub code is not required as Esi cards like Pf is acceptable centrally.
Your advice please.
Rgds,
DG
From India, Delhi
4Your advice please.
Rgds,
DG
From India, Delhi
There is a difference between PF and ESI with regard to offering of benefits. Under EPF there is no scope for employees frequently approaching EPFO for benefits but under ESI, it is there.
Theoretically, with the entry of online facilities, there is no need of separate sub codes for each local office. But practically and since all the local offices and dispensaries are not connected with the online system, we have to take sub codes for each location. That means, the contractor (business house) in Bangalore has to take sub code in Calcutta and remit the amounts in this account so as to make the employees engaged by him at Calcutta to get ESI benefits at Calcutta. This can be done online from Bangalore office itself. Once sub code is generated they can register the employees deployed at Calcutta under it and start paying contributions. While they are in Calcutta they can pay contributions in Calcutta account and once they are called back, they can stop paying in Calcutta sub code and resume paying the contributions in Bangalore itself. This is not a huge task. Moreover, insisting the contractor to pay contributions in Calcutta by creating a sub code for Calcutta is good for you as Principal employer because it will give a separate account unique for the employees deployed for you exclusively.
Regards,
Madhu.T.K
From India, Kannur
Theoretically, with the entry of online facilities, there is no need of separate sub codes for each local office. But practically and since all the local offices and dispensaries are not connected with the online system, we have to take sub codes for each location. That means, the contractor (business house) in Bangalore has to take sub code in Calcutta and remit the amounts in this account so as to make the employees engaged by him at Calcutta to get ESI benefits at Calcutta. This can be done online from Bangalore office itself. Once sub code is generated they can register the employees deployed at Calcutta under it and start paying contributions. While they are in Calcutta they can pay contributions in Calcutta account and once they are called back, they can stop paying in Calcutta sub code and resume paying the contributions in Bangalore itself. This is not a huge task. Moreover, insisting the contractor to pay contributions in Calcutta by creating a sub code for Calcutta is good for you as Principal employer because it will give a separate account unique for the employees deployed for you exclusively.
Regards,
Madhu.T.K
From India, Kannur
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DOCS 4 SUB CODE ESI.doc