Dear Friend,
Your question is if a Company is covered under ESI Act, in that case whether ESI is applicable to its Contractors' employees having less than 20 employees.
As far as legal position is concerned,my respected senior coleagues have already explained in clear terms as regards its applicability.
In a simple language for your understanding ,I would like to submit that ESI is applicable for employees engaged through Contractors in the even they employ less than 20 employees since they have been working in your Establishment/Factory.
If Contractors are registered and obtained ESI code from ESI Authorities, then liability of paying ESI on the part of Principal Employer is excluded. It is advisable, being a Principal employer, you should keep strick vigil to the effect that ESI contributions are deposited by Contractors under their respective codes.
If Contractors fail to deposit the ESI contribution for employees engaged by them in your Establishment/Factory, it will be the responsibility on the part of Principal to deposit the same.
From India, Calcutta
80Your question is if a Company is covered under ESI Act, in that case whether ESI is applicable to its Contractors' employees having less than 20 employees.
As far as legal position is concerned,my respected senior coleagues have already explained in clear terms as regards its applicability.
In a simple language for your understanding ,I would like to submit that ESI is applicable for employees engaged through Contractors in the even they employ less than 20 employees since they have been working in your Establishment/Factory.
If Contractors are registered and obtained ESI code from ESI Authorities, then liability of paying ESI on the part of Principal Employer is excluded. It is advisable, being a Principal employer, you should keep strick vigil to the effect that ESI contributions are deposited by Contractors under their respective codes.
If Contractors fail to deposit the ESI contribution for employees engaged by them in your Establishment/Factory, it will be the responsibility on the part of Principal to deposit the same.
From India, Calcutta
Dear Friends,
Additions with still in simple words:
A company covered under ESI Act is liable to cover all the coverable employees working under it including contractor's employees.
Company should ensure that no coverable employee including contractors' should enter its premises with out covering him under ESI Scheme.
From India, Mumbai
Additions with still in simple words:
A company covered under ESI Act is liable to cover all the coverable employees working under it including contractor's employees.
Company should ensure that no coverable employee including contractors' should enter its premises with out covering him under ESI Scheme.
From India, Mumbai
Dear seniors i have doubt about as under contractor there are workers more than 50 employees. Can we cover some of the workers under esi only without PF.Please suggest me .can we cover....
From Kuwait, Kuwait
From Kuwait, Kuwait
Dear 
You need to take a session first on basics of PF & ESI, then only you will get an answer to your query.
If you try to search in this forum, will will get number of posts on PF and ESI but I have a doubt whether you will get correct answer yourself reading it.
From India, Mumbai
You need to take a session first on basics of PF & ESI, then only you will get an answer to your query.
If you try to search in this forum, will will get number of posts on PF and ESI but I have a doubt whether you will get correct answer yourself reading it.
From India, Mumbai
Dear Sir, if company is covered under PF / ESI etc., contractor’s labours are coverable under PF / ESI etc. Even any contractor is having only one employee, he is to be covered.
From India, Vadodara
From India, Vadodara
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ESI contribution rates lowering.pdf