Dear all,
In the light of recent judgment by the Hon'ble Madras High Court on the above subject, ESI Corporation has issued a circular regarding payment of ESI contributions for the jobs outsourced.
Soft copy of the circular is enclosed for your ready reference.
As guidelines were issued by the ESI Corporation for ascertaining the element of supervision involved in the jobs outsourced, we (employers) must ensure two things to avoid litigations:
a) The Agency to which the jobs outsourced should have separate ESI codes and they must comply with the provisions of ESI Act including payment of contributions on time.
b) There should not be any direct supervision and control over the contract labourers by the Principal Employer.
Thanks & Regards
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai
Mobile: 9840942232
From India, Madras
13In the light of recent judgment by the Hon'ble Madras High Court on the above subject, ESI Corporation has issued a circular regarding payment of ESI contributions for the jobs outsourced.
Soft copy of the circular is enclosed for your ready reference.
As guidelines were issued by the ESI Corporation for ascertaining the element of supervision involved in the jobs outsourced, we (employers) must ensure two things to avoid litigations:
a) The Agency to which the jobs outsourced should have separate ESI codes and they must comply with the provisions of ESI Act including payment of contributions on time.
b) There should not be any direct supervision and control over the contract labourers by the Principal Employer.
Thanks & Regards
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai
Mobile: 9840942232
From India, Madras
Dear Kalyan Thanks for the precise summation.At last Outsourcing is now codified by this Circular.The Industry as well as Contractors can go forward frm this. With Regards V.Sounder Rajan
From India, Bangalore
From India, Bangalore
Thank you very much Mr.Kalyan,
The information shared by you is very practical to us, because we have practiced 2,3 outsourcing company for jobworks to us, really it is very much useful to our concern once again thankful to you.
K.Nagaraj
HR Manager
Salzer Electronics Ltd
Coimbatore - 19.
98946-68788
From India, Madras
The information shared by you is very practical to us, because we have practiced 2,3 outsourcing company for jobworks to us, really it is very much useful to our concern once again thankful to you.
K.Nagaraj
HR Manager
Salzer Electronics Ltd
Coimbatore - 19.
98946-68788
From India, Madras
Hi I need help in preparing questionaries for an interview and also how do I introduce new joinee via e-mail.
From India, Mumbai
From India, Mumbai
Dear All,
Here is an interesting update on this. We had a recent ESI inspection and the inspectors directed us to pay 6.50% of the labor compnent of all outsourced work. I showed them the circular.
1. The inspectors were actually unaware of this and maintained that they have not been instructed about this!
2. Further they said that we should produce proof of returns filed by the contractor which shows the names of the employees of the contractor who actually did the work at our premises
Regards
Mahesh T Nair
From India, Coimbatore
Here is an interesting update on this. We had a recent ESI inspection and the inspectors directed us to pay 6.50% of the labor compnent of all outsourced work. I showed them the circular.
1. The inspectors were actually unaware of this and maintained that they have not been instructed about this!
2. Further they said that we should produce proof of returns filed by the contractor which shows the names of the employees of the contractor who actually did the work at our premises
Regards
Mahesh T Nair
From India, Coimbatore
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ESI Circular.docx
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf