Can a factory or establishment once covered go out of coverage if the number of persons employed therein goes down to the minimum limit prescribed?
From India, Mumbai
Each and every organisation have its life and the life changes with the phase of product and service, man power and injecting new talents of developments, paving way to the new blood and development are important. In the present case you can give the benefits to existing staff as the number of persons may come down due to various reasons, yet, the authorities should be informed for the variations. Also, the reason for downsizing should be on record in case of permanent employees for the contract workers you actually going to reduce the size and period of contract where the contractor would reflect the same in the records. Find out ways for better progress rather than downsizing...
better prospect always give more progress...

From India, Arcot
NO If you covered once you can not go out.
From India, Pune
Dear Aarambh Consultancy, Please note that Factories coming under the purview of Factories Act & Establishments come under the Purview of Shops & Commercial Establishments Act.After coverage under relevant act, irrespective of reduction in Strength, the act continues to apply till functioning.But necessary amendment with regard to changes taking place to be done.
From India, New Delhi
As far as ESI,EPF,Gratuity and Bonus Acts are concerned they will apply to establishments even if the member of employees falls below the threshold.
From India, Thiruvananthapuram
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