Esic applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2016 Hi,

Please suggest me on ESIC applicability in Company wise.

I am working in a management consultancy company and one month ago ESIC person visited our office and inform to us to open ESIC account.

I want to know is there any law on industry wise to accept ESIC.

Sathish M

Sathish M (Expert)
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13 June 2016 APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of Indian Union.
STATES
All the States except Manipur, Sikkim, Arunachal Pradesh and Mizoram.
UNION TERRITORIES
Delhi and Chandigarh

Details regarding Centre wise Implemented Areas as on 31.03.2013 as per Actuarial Branch (.xls format)

Applicability of ESI Scheme:-

The scheme is applicable to all factories [Section 1(4)]. The Appropriate Government can also make it applicable to any other industrial, commercial, agricultural or other establishments, by issuing notification and giving 6 month notice. [Section 1(5)].

ESI Act can be made applicable to ‘shops’ also. However, since Government has to provide for hospitals and medical facilities, the Act can be made applicable to different parts of state at different dates.

Thus, if a factory is at a place where ESIC is unable to provide medical facilities, ESI Act may not be made applicable to the area.

Government can exempt a factory or establishment or persons or class of persons from provisions of ESI Act, if the employees are getting better medical facilities [e.g. if Government is convinced that the factory itself is providing very good medical facilities e.g. like TISCO].

Sathish M

Sathish M (Expert)
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13 June 2016 For further details you may visit the esic website : http://www.esic.nic.in/page.php?pid=NjU=