Kindly advise ESI coverage of a new company - what is the Statute for coverage. We are a start up Company with 15 associates of which 7 are retired persons, working as part time advisors (subject matter experts). Only 3 employees are drawing a monthly salary of less than 15k i.e. one driver and 2 tele callers. Whether this establishment should be covered under ESI.
From India, Bangalore
From India, Bangalore
Hi Buddy,
As per ESI Act-1948, The scheme is applicable to all factories, shops and establishment where 10 or more persons are employed. Thus, This act applicable to your organization.
With Regards
Mr.Thumbs Up
From India, Chennai
104As per ESI Act-1948, The scheme is applicable to all factories, shops and establishment where 10 or more persons are employed. Thus, This act applicable to your organization.
With Regards
Mr.Thumbs Up
From India, Chennai
Please go through the ESIC act and check the definition of employee / worker. Then you need to see whether the 15 persons working come under the decision. Associate is a vague term and it's unclear what they do,,their employment status, etc. So you will need to check the definition and take a call.
From India, Mumbai
From India, Mumbai
Dear Radima,
Though u can't escaped from law, but from my point of view the total scenerio, as on now, depends upon your approach. You have not shared location and legal status of your com.
If the work done by employees is in accident prone area or hazardous nature, u must go for ESI.
But if not like that you can avoid. As stated by u, 7 are retired persons/s. If u exclude them the strength will b only 8 (Less than prescribed limit).
You can hire them on Contract basis (Being Professional). For that you have to engaged them thru a Legal Agreement. Their employment nature should be mentioned as Expert. They will raise monthly bill as Fees for their Service and you will pay them after TDS deduction.
Pls be noted don't allow them any other benefit like, Leave, Bonus, Mobile Re-imbursement etc. Else they can claim all employee benefits.
But this is a temporary solution, if your company grow, you have to go for ESI, EPF etc. If your budget allows go for that immediately.
For better controlling & regulating, seek some expert/s services.
From India, Delhi
Though u can't escaped from law, but from my point of view the total scenerio, as on now, depends upon your approach. You have not shared location and legal status of your com.
If the work done by employees is in accident prone area or hazardous nature, u must go for ESI.
But if not like that you can avoid. As stated by u, 7 are retired persons/s. If u exclude them the strength will b only 8 (Less than prescribed limit).
You can hire them on Contract basis (Being Professional). For that you have to engaged them thru a Legal Agreement. Their employment nature should be mentioned as Expert. They will raise monthly bill as Fees for their Service and you will pay them after TDS deduction.
Pls be noted don't allow them any other benefit like, Leave, Bonus, Mobile Re-imbursement etc. Else they can claim all employee benefits.
But this is a temporary solution, if your company grow, you have to go for ESI, EPF etc. If your budget allows go for that immediately.
For better controlling & regulating, seek some expert/s services.
From India, Delhi
1. Dear member, the said so called 7 retired persons are "persons" and will be counted for coverage of your establishment under ESI Act, 1948. Since, your establishment is employing 10 or more persons, the same is, in my opinion, definitely coovered/coverable under said Act.
2. The issue and plea that only 3 persons will be getting wages/salary less than Rs.15000/- and hence the unit is not covered under said Act is meaningless and not correct. After coverage of unit, only those persons will be coverable and contribution is required to be paid only in respect of those employees whose wages is upto and including Rs.15000/- per month.
3. Further "7 retired persons, working as part time advisors (subject matter experts)" are also coverable and contribution required to be paid under said Act if their monthly salary or wages or honorarium or fee as you or your organisation may write/mention, is upto and incuding Rs.15000/- per month. The said Act do not exempt any so called "experts". If this is so, as suggested by one of expert in above remarks, then a majority of employers will engage "experts" instead of employees in order to avoid coverage under said Act and rules/regulations framed thereunder.
From India, Noida
2. The issue and plea that only 3 persons will be getting wages/salary less than Rs.15000/- and hence the unit is not covered under said Act is meaningless and not correct. After coverage of unit, only those persons will be coverable and contribution is required to be paid only in respect of those employees whose wages is upto and including Rs.15000/- per month.
3. Further "7 retired persons, working as part time advisors (subject matter experts)" are also coverable and contribution required to be paid under said Act if their monthly salary or wages or honorarium or fee as you or your organisation may write/mention, is upto and incuding Rs.15000/- per month. The said Act do not exempt any so called "experts". If this is so, as suggested by one of expert in above remarks, then a majority of employers will engage "experts" instead of employees in order to avoid coverage under said Act and rules/regulations framed thereunder.
From India, Noida
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
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