Dear Sir,
I would like to understand if I have a manufacturing facility and currently employ 9 people with a wage/salary of over 15,000 per person, and apart from the above, if there is a security agency that I am in contract with for security manpower, will I need to get registered with ESIC? Also, note that the number of directors are 5. The office is located in another district of the same state. So, will the office staff also be covered under ESIC?
Furthermore, if a part-time worker is required in the factory and is being paid Rs 9,000 for a 15-day job, and then he is not on the rolls of the company after 15 days, this happens for each month or for a few months as it's a seasonal product, will he come under the purview of ESIC, or will we need to take a registration?
Thanks and Regards,
Deepak
From India, Hyderabad
I would like to understand if I have a manufacturing facility and currently employ 9 people with a wage/salary of over 15,000 per person, and apart from the above, if there is a security agency that I am in contract with for security manpower, will I need to get registered with ESIC? Also, note that the number of directors are 5. The office is located in another district of the same state. So, will the office staff also be covered under ESIC?
Furthermore, if a part-time worker is required in the factory and is being paid Rs 9,000 for a 15-day job, and then he is not on the rolls of the company after 15 days, this happens for each month or for a few months as it's a seasonal product, will he come under the purview of ESIC, or will we need to take a registration?
Thanks and Regards,
Deepak
From India, Hyderabad
1. Sir, coverage under the ESI Act, 1948, is based on the number of persons engaged in any unit. It does not discriminate between coverable or non-coverable units, or manufacturing or non-manufacturing units, or security manpower or regular manpower.
2. How do you define a part-time worker? If a person is employed for 15 days, in my opinion, he can be called a casual, temporary, or work-charged employee, but not a "part-time worker." Such workers are also to be counted to reach the threshold of 10 for coverage of a factory under section 1(3) or section 1(5) of the said Act.
3. It will be even better if you contact the nearest office of ESIC or the authorized area Social Security Officer (SSO) to arrange for a preliminary inspection of your unit to officially assess the coverage under the said Act. Coverage with a retrospective date in the future will subject the employer to penalties of damages and interest, as well as requiring the employer to pay the employees' contributions.
From India, Noida
2. How do you define a part-time worker? If a person is employed for 15 days, in my opinion, he can be called a casual, temporary, or work-charged employee, but not a "part-time worker." Such workers are also to be counted to reach the threshold of 10 for coverage of a factory under section 1(3) or section 1(5) of the said Act.
3. It will be even better if you contact the nearest office of ESIC or the authorized area Social Security Officer (SSO) to arrange for a preliminary inspection of your unit to officially assess the coverage under the said Act. Coverage with a retrospective date in the future will subject the employer to penalties of damages and interest, as well as requiring the employer to pay the employees' contributions.
From India, Noida
Manufacturing units come under the category of factories. If a manufacturing unit uses power for production, only 10 persons are required to be covered under the Employees' State Insurance Act if it is located in an implemented area. Contract workers, casual employees, and directors employed for wages are also included in the count for coverage.
Varghese Mathew
From India, Thiruvananthapuram
Varghese Mathew
From India, Thiruvananthapuram
In my opinion, any establishment that employs 20 or more workers/staff without the use of power or 10 with the use of electricity needs to get registered in ESIC. This includes all workers/staff, whether on contract, part-time, or directors employed for salaries/remuneration. They should obtain an ESIC code, file periodic returns, complete assessments, and, if a liability arises, make the necessary payments.
From India, New Delhi
From India, New Delhi
So we are saying that if a company has 6 directors and who are 5 employees all of them getting above 15000 per month salary still the company needs to get registered with esic
From India, Hyderabad
From India, Hyderabad
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