Dear all,
An outsourcing company, employing 8 employees, is deploying its staff at a government office. However, there are no deductions under the Employee State Insurance (ESI) for their employees. The question is: should the company contribute to ESI for its employees (as it is not required if fewer than 10 employees are employed, as per ESI statutory regulations), or will the government office contribute to ESI for them? It is possible that the government office provides insurance coverage for its own staff.
Thank you.
From India, Madras
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An outsourcing company, employing 8 employees, is deploying its staff at a government office. However, there are no deductions under the Employee State Insurance (ESI) for their employees. The question is: should the company contribute to ESI for its employees (as it is not required if fewer than 10 employees are employed, as per ESI statutory regulations), or will the government office contribute to ESI for them? It is possible that the government office provides insurance coverage for its own staff.
Thank you.
From India, Madras
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A government office is not an establishment coming under the purview of the ESI Act. If your establishment does not have 10 workers and thereby is not under ESI, the question of ESI will not arise. The coverage should first be for the organization where the deployment is made. If the organization where the people are deployed is not an industry covered, then your establishment should be covered. When both are not covered, contributions cannot be made.
In order to ensure medical benefits, etc., government departments typically insist that the manpower supplier should have ESI and EPF registration. Otherwise, the department will have to take responsibility as a principal employer if something happens to the workers deployed there. In such a scenario, the contractor will take registration by adding a sufficient number of employees for the time being and then removing them from the rolls. Obviously, once registration is obtained, it will be continued even if the number falls below the threshold limits.
From India, Kannur
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4771In order to ensure medical benefits, etc., government departments typically insist that the manpower supplier should have ESI and EPF registration. Otherwise, the department will have to take responsibility as a principal employer if something happens to the workers deployed there. In such a scenario, the contractor will take registration by adding a sufficient number of employees for the time being and then removing them from the rolls. Obviously, once registration is obtained, it will be continued even if the number falls below the threshold limits.
From India, Kannur
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