Kaur_Daily
2

Hello,
this is my first post here and i hope to learn a lot from this site. My boss ordered me to hire the Company Car driver on a contract of 11 months. that is all fine and dandy but the only problem is that if he still counts as an employee of the Company, then his ESI filings need to be made as we are a factory setup. Please do let me know he will be considered an employee even though on contract. Also, do people on probationary period count as employees as well?

From India, Greater Noida
loginmiraclelogistics
1073

Hello Kaur_D,
ESI is a compulsory for entities employing 10 or more persons, (earlier it was 20 revised to 10). ESI contribution is required for all the employees earning wages less than Rs. 21,000/- per month. However, while counting workers only permanent employees count, not hourly/daily wage contract workers.
Though he is on 11 month contract job (FTC) he still be considered as your own employee only as he can only be considered as 'temporary employee'. Therefore he also shall be covered for ESI scheme and proper contribution be remitted.
However, on the contrary, if he was to be employed thru' a labour contractor, then its a different question.

From India, Bangalore
Madhu.T.K
4238

For counting the number of employees for the coverage of ESI, all employees, whether directly employed or employed through a contractor, will be counted as employees of the establishment. For coverage of establishments, employees with salary of more than Rs 21000 will also be counted though you need to register only those employees whose salary does not exceed Rs 21000.
The same thing applies to EPF coverage also.

From India, Kannur
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