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The Gujarat High Court has made a significant ruling, categorizing Chartered Accountancy (CA) firms as professional establishments rather than commercial entities, leading to the ineligibility of their employees for the Employees State Insurance (ESI) benefit scheme. This decision brings an end to a
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FAQ :
The Gujarat High Court ruled that CA firms are professional establishments and not commercial entities, making their employees ineligible for ESI benefits.
The court observed that the activities of a CA, such as accounting, auditing, and advisory services, are not confined to office premises and are performed at various locations for clients, distinguishing them from a 'shop' or 'commercial establishment'.
The dispute began in 2016 when the Employees' State Insurance Corporation (ESIC) issued a recovery notice to Deloitte Haskins & Sells, a CA firm, after an ESI court initially determined that CA firms were not covered by the ESIC Act.
The High Court quashed the ESI Corporation's previous order and directed them to refund any deposited amount with accrued interest to the CA firm.
The ruling specifically addresses Chartered Accountancy (CA) firms and their classification as professional establishments, setting a precedent for such entities regarding ESI benefits.
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