24 May 2013
if a X Pvt Ltd company have 5 employees (including Contract Employees) at the year end. during the year 4 employees has resigned. company is paying Gross salary Rs.30,000 to all and basic is Rs.18,000. whether company comes under purview of PF and ESIC.
The ESI Act, 1948 in the first instance, applies to: *Factories using power in the manufacturing process and employing 10 or more persons.
*Non-power using factories or establishments employing 20 or more persons for wages.
and in our case company is in the business of Manpower Agency. so they will be in category of Non power using factory. so minimum employees will be 20.