Respected members,
Our company is going to expand its business to other states. Do I need to apply for separate EPF & ESIC Codes? Also, will the bonus liability be counted after 5 years or as per the current liability in the state where we have completed more than 5 years and bonus is being paid?
Thank you
From India, Ahmadabad
Our company is going to expand its business to other states. Do I need to apply for separate EPF & ESIC Codes? Also, will the bonus liability be counted after 5 years or as per the current liability in the state where we have completed more than 5 years and bonus is being paid?
Thank you
From India, Ahmadabad
When you start operations in other places, you need not take separate ESI and EPF codes but shall have to take only sub-codes of ESI and EPF. EPF can be managed without a sub-code if the salary payment is centralized. You can register the employees of the new branch/locations under the main code itself. ESI can also cover all employees through the main code, but if any employee takes ESI leave, the concerned employee will have to send the sickness report to the branch office attached to your main office. It is not practical if an employee has to present before the Medical Board following any employment injury. Therefore, it is always good to have a separate sub-code for ESI under which the branch employees can be registered.
For coverage of all labor enactments, the date of commencement of establishment means the date on which the principal business was started. Therefore, your establishment, including the new branches, will come under the Payment of Bonus Act in five years from the year in which the principal office started its business. If you have already completed 5 years in this state, then the establishment is said to be under the scope of the Payment of Bonus Act, and the employees in the new branches proposed to be opened in other states will get a bonus subject to their eligibility from the date of their employment.
From India, Kannur
For coverage of all labor enactments, the date of commencement of establishment means the date on which the principal business was started. Therefore, your establishment, including the new branches, will come under the Payment of Bonus Act in five years from the year in which the principal office started its business. If you have already completed 5 years in this state, then the establishment is said to be under the scope of the Payment of Bonus Act, and the employees in the new branches proposed to be opened in other states will get a bonus subject to their eligibility from the date of their employment.
From India, Kannur
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