Hi..I am working in private sector agricultural industry who is having several branches in all states including State of Tamilnadu. Recently we got a notice from ESIC Inspector, Trichy who insisted us to pay the ESI contribution of the employees. According to my knowledge minimum 10 employees are required for applicability of this Act.

We are having total 14 employee strength at Trichy location out of 5 employees are worked in other Districts (Mkt. executives) but their muster rolls are maintained at Trichy location and secondly 02 staffs are on voucher payments but their muster is also maintained in common staff attendance register.

Secondly, we are having 10+ casual labours also on this plant for running our plant activities & seed processing work and they are paid weekly wages & their seperate attendance register is maintained under the provisions of FActories Act.

My query is as under :-

1. Whether the provisions of ESIC are attracted to our establishment ?

2. Whether can we take a stand that the employee strength is less than 10 considering the 5 employees are worked in out of district.

3. Whether the casual labours who are paid weekly wages are also covered under ESIC ?

4. Whether can we take a stand that our unit is a seasonal unit ? (pl. inform me the definition of seasonal unit & also confirm whether any certificate is required from the Labour Department for seasonal industry).

5. What kind of reply should I give to the ESI Department. If any one give me the draft, would be so grateful.

Kindly attend this issue and guide me immediately..Anticipating your favorable feedbacks..

Thanking you
Manoj Pallod

From India, Pune
dear
the coverage os ESIC will not onlytake the strength of your location only.the total strengthof all locations will be taken into consideration while deciding applicablity of act.your marketing ezxecutive,casual labour all will be inculed to decided the applicablity of act.seasonal industry does not have anym relaxation from taking ESIC code.
so ESIC act is applicable to your establishment and you should obtain code.
tks
j s malik

From India, Delhi
THE ESIC Inspector is right. Many companies in the north with branches in the south are erring with the same mistake. It is very difficult to make them understand that ESI /PF contribuion is not an expense but a tax rebate to employer. I came across a Finance Director in Mumbai saying 'Why should we remit before the 20th? Arraey ESI is for chota company and why should we follow?'
My ESIC Inspector friend used to lament on such unwillingness exercised by many companies. in the north.
Oops, things will not change if employers keep the eyes closed. Gone with the wind and wipe the droppings away...!!!!
Regards,
Chandru

From India, Madras
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