Hi,
We are registered under ESIC and have work force of 500 plus. Recently engaged a contactor who is not registered under ESIC as the number of employees employed by him is less than 10. We obtained a declaration from him regarding the non-applicability. One of the stat auditor challenged that as the work performed in the factory premises which was registered under ESIC, it is applicable ?? Is it correct??Can anyone help me with a ref to the ESIC Act..
Yes, Either you hire a individual sweeper/ electrician/ Labour for 2-3 Hours of work in your entity, It's your liability to pay ESIC for them.
Definition of employee as per esi act includes person employed by contractor.So,esi needs to be deducted.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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