ESI applicability for new companies
This query is : Resolved
11 June 2020
Hi everyone,
We have incorporated a company recently and we have received an email from ESIC along with login credentials, wherein it is mentioned that status has to be updated in ESIC website within 4 weeks. In the website, there is a message stating “New companies registered through MCA portal w.e.f.15.02.2020 need not comply with provisions of ESI act till they reach threshold of ESI coverage or initial 6 months whichever is earlier”. Is a company required to comply with ESI provisions despite the fact that the number of employees has not crossed 10? Can anyone provide clarity on this?
We have incorporated a company recently and we have received an email from ESIC along with login credentials, wherein it is mentioned that status has to be updated in ESIC website within 4 weeks. In the website, there is a message stating “New companies registered through MCA portal w.e.f.15.02.2020 need not comply with provisions of ESI act till they reach threshold of ESI coverage or initial 6 months whichever is earlier”. Is a company required to comply with ESI provisions despite the fact that the number of employees has not crossed 10? Can anyone provide clarity on this?
11 June 2020
ESI provisions not applicable in case of companies where number of employees not crossed 10.
11 June 2020
Thanks for your reply. But, when we login and update that the company has not yet reached threshold limit, it is asking us to enter the grace period which should be within 6 months from the date of registration and it is a compulsory field. Therefore, it is indirectly implying that the company has to comply with ESIC provisions atleast within 6 months whether or not threshold limit is exceeded. Please throw some light on this.
11 June 2020
You have to comply with ESI provisions only when threshold limit exceeded.
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