Dear Sir,
I would like to clarify the misunderstanding here:
I have not presumed that we are not covered by ESIC. Infact I asked for details regarding exemption because the factory we have recently commissioned is in Uttarakhand and ESI is applicable in the region where our factory is located.
I am presently located at Valsad, Gujarat where ESIC is not applicable and I dont have much knowledge and experience regarding ESIC, hence I requested for opinions from other members.
As such my post to which you are referring is about my current location (guj) where I have to travel around 150 km to meet any ESIC official. I thank you for suggesting to correspond with ESIC authority.
However, as mentioned in my previous two posts we have decided to go for registration for ESIC and already the process for the same is initiated.
Once again I confirm the original purpose of my post:
If there is some exemption available for new manufacturing units under ESI, we would like to avail them as we would like to have some time before we achieve the break-even point and help our administration department to streamline the liaison work.
However, as there is no such exemption available, we have decided to comply to statutory requirements and apply for registration.
Hope I have cleared whatever misunderstanding was caused.
Thanks for your response and guidance again.
Regards,
Hiten
From India, New Delhi
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32I would like to clarify the misunderstanding here:
I have not presumed that we are not covered by ESIC. Infact I asked for details regarding exemption because the factory we have recently commissioned is in Uttarakhand and ESI is applicable in the region where our factory is located.
I am presently located at Valsad, Gujarat where ESIC is not applicable and I dont have much knowledge and experience regarding ESIC, hence I requested for opinions from other members.
As such my post to which you are referring is about my current location (guj) where I have to travel around 150 km to meet any ESIC official. I thank you for suggesting to correspond with ESIC authority.
However, as mentioned in my previous two posts we have decided to go for registration for ESIC and already the process for the same is initiated.
Once again I confirm the original purpose of my post:
If there is some exemption available for new manufacturing units under ESI, we would like to avail them as we would like to have some time before we achieve the break-even point and help our administration department to streamline the liaison work.
However, as there is no such exemption available, we have decided to comply to statutory requirements and apply for registration.
Hope I have cleared whatever misunderstanding was caused.
Thanks for your response and guidance again.
Regards,
Hiten
From India, New Delhi
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Dear Shri Hameed,
I am a retired Indian Postal Service Officer and founder-Director of a medium sized BPO in Chennai.
We induct trainees almost every month as the attrition problem is acute here. These trainees are required to undergo practical and theoritical training including hands on training for six months. However many leave in the middle.
We used to recover ESI contribution from these trainees. But a batch of trainees objected to the recovery stating they are not employees but only learners and get only training allowance and not wages. Our legal cell agreed with it and hence we stopped recovering ESI contribution from them.
Now the ESI inspector who visited our office insists that trainees arenot exempted. We pointed out to him that recently the Supreme Court has ruled in the case of EPF Mangalore and an industrial undertaking that "trainees" are not employees but are only learners and no EPF recovery can be made. In another case of TELCO vs ESI, the SC has held that apprentices/trainees are not employees and hence and no ESI contribution is to be recovered from them.
I think this is a grey area. There is no mention of the word "trainees" in any of the ESIC Act or Rules. Under the Shops & Establishment Act and Standing Orders of our Company, "trainees" are not employees.
May I solicit your considered opinion on this question.
Regards
S. Krishnamoorthy
From United States, Roslindale
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I am a retired Indian Postal Service Officer and founder-Director of a medium sized BPO in Chennai.
We induct trainees almost every month as the attrition problem is acute here. These trainees are required to undergo practical and theoritical training including hands on training for six months. However many leave in the middle.
We used to recover ESI contribution from these trainees. But a batch of trainees objected to the recovery stating they are not employees but only learners and get only training allowance and not wages. Our legal cell agreed with it and hence we stopped recovering ESI contribution from them.
Now the ESI inspector who visited our office insists that trainees arenot exempted. We pointed out to him that recently the Supreme Court has ruled in the case of EPF Mangalore and an industrial undertaking that "trainees" are not employees but are only learners and no EPF recovery can be made. In another case of TELCO vs ESI, the SC has held that apprentices/trainees are not employees and hence and no ESI contribution is to be recovered from them.
I think this is a grey area. There is no mention of the word "trainees" in any of the ESIC Act or Rules. Under the Shops & Establishment Act and Standing Orders of our Company, "trainees" are not employees.
May I solicit your considered opinion on this question.
Regards
S. Krishnamoorthy
From United States, Roslindale
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Hi, I am working in a private hospital. They provide free medical treatment to all employees subject to limits based on their salary, but only within their hospital. If a particular treatment is not available in the hospital, the employee is required to pay for the treatment, and the hospital does not reimburse anything. Is that acceptable? Can the organization do that, or are there any laws regarding this?
From India, New Delhi
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From India, New Delhi
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Dear Sir,
I am a manager (accounts) of a Nursing Home where we provide OPD and IPD services. The Director has asked me why a nursing home employee is not covered under the ESI scheme. I have received the registration code/number from the ESI department.
Please clarify whether a Medical Unit like a Nursing Home employee is fully exempted under the ESI scheme.
From India, Gurgaon
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I am a manager (accounts) of a Nursing Home where we provide OPD and IPD services. The Director has asked me why a nursing home employee is not covered under the ESI scheme. I have received the registration code/number from the ESI department.
Please clarify whether a Medical Unit like a Nursing Home employee is fully exempted under the ESI scheme.
From India, Gurgaon
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Dear Sir,
Our employee is working at Magdalla/Kandla/Pipavav/Navlakhi/Bhavnagar/Dharamtar in Gujarat/Maharashtra port and jetty. I know that but I am not sure if it is exempted under the ESIC Act or not, and also exempted. So, how many places are exempted in the above jetty/port?
Kindly confirm, please.
Thank you,
Mani Soni
From India, Mumbai
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Our employee is working at Magdalla/Kandla/Pipavav/Navlakhi/Bhavnagar/Dharamtar in Gujarat/Maharashtra port and jetty. I know that but I am not sure if it is exempted under the ESIC Act or not, and also exempted. So, how many places are exempted in the above jetty/port?
Kindly confirm, please.
Thank you,
Mani Soni
From India, Mumbai
Acknowledge(0)Amend(0)Hi,
As per the ESI Act, I doubt there is a provision to get an exemption on the following components when considering gross pay for ESI eligibility:
1. Transport allowance
2. Washing allowance
3. Contributed EPF/pension fund
Can experts clarify with clear evidence how far we can go legally while synchronizing with minimum wages as well as ESI exemption on the above components?
Is there a way to get complete ESI exemption? What is the procedure? Ours is a hospital.
From India, Visakhapatnam
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