Dear All
I am presently working with One of the Franchisee. We are associate of One of the leading Construction Machinery in India. We have around 50 employees working in the office all are on Payroll of Franchisee name.
Here, I want to know whether ESIC Act is applicable for us or not? So far from the law I have understood and think that yes it is applicable for us as we are 10+ employees, and our organisation is power using (Section 2(12) The ESIC Act ).
Also, please let me know whether our firm can become Private Limited or not?am not much aware of it.
Regards,
Vrushali
From India, Mumbai
I am presently working with One of the Franchisee. We are associate of One of the leading Construction Machinery in India. We have around 50 employees working in the office all are on Payroll of Franchisee name.
Here, I want to know whether ESIC Act is applicable for us or not? So far from the law I have understood and think that yes it is applicable for us as we are 10+ employees, and our organisation is power using (Section 2(12) The ESIC Act ).
Also, please let me know whether our firm can become Private Limited or not?am not much aware of it.
Regards,
Vrushali
From India, Mumbai
Dear Vrushali
the details from you are not adequate. What is the nature of activity of this franchisee and where it is located and whether the franchisor is covered by ESIC and whether teh franchisee is independent of franchisor in terms of administrative nad finanacial control etc.these details may be required to examine the issue.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
54the details from you are not adequate. What is the nature of activity of this franchisee and where it is located and whether the franchisor is covered by ESIC and whether teh franchisee is independent of franchisor in terms of administrative nad finanacial control etc.these details may be required to examine the issue.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
Dear Sir
Thank you so much for replying to my query. I have recently joined this firm and the information I know is as follows :
1) Nature Of Work : Selling of Machinery ( We purchase machinery of HO and sale it to the customer.
2) Franchisor : Yes thats a manufacturing firm and yes it is covered under ESIC.
3) Franchisee is very much independent as such administrative and financial control is completely on freanchisee owner.
4) We are having offices in Mumbai ( Borivali), Gujarat
Is it the sufficient information? or anything else is required?
I will wait for your reply.
Thanks once again.
Regards,
Vrushali
From India, Mumbai
Thank you so much for replying to my query. I have recently joined this firm and the information I know is as follows :
1) Nature Of Work : Selling of Machinery ( We purchase machinery of HO and sale it to the customer.
2) Franchisor : Yes thats a manufacturing firm and yes it is covered under ESIC.
3) Franchisee is very much independent as such administrative and financial control is completely on freanchisee owner.
4) We are having offices in Mumbai ( Borivali), Gujarat
Is it the sufficient information? or anything else is required?
I will wait for your reply.
Thanks once again.
Regards,
Vrushali
From India, Mumbai
Dear Vrushali
The Governemnt of Maharastra has issued a notification dated 18th september 1978 under ESI Act whereby it covered "Shops" under ESI. A shop for the purpose of ESI Act does include not only the palce where trading of goods takes place but it's scope is so widened by various case laws as to include any commercial opearation.Since your franchisee is indulging in commercial opearations, it does definitely fall within the definition of "Shop". However the said notification covers only those "shops" under ESI Act which employ twenty or more employees. Since your franchisee appears to employ less than twenty employees and is also independent of the franchsor in respect of control or ownership, in my view the ESI Act is not applicable to your franchisee.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
The Governemnt of Maharastra has issued a notification dated 18th september 1978 under ESI Act whereby it covered "Shops" under ESI. A shop for the purpose of ESI Act does include not only the palce where trading of goods takes place but it's scope is so widened by various case laws as to include any commercial opearation.Since your franchisee is indulging in commercial opearations, it does definitely fall within the definition of "Shop". However the said notification covers only those "shops" under ESI Act which employ twenty or more employees. Since your franchisee appears to employ less than twenty employees and is also independent of the franchsor in respect of control or ownership, in my view the ESI Act is not applicable to your franchisee.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 09930532927
From India, Mumbai
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