Is it a registered company? What was the total number of employees in company? If the number was 20 or more company should have registered for PF, ESIC.
ESIC is a statutory requirement.
ESIC is also good for getting relived from the burden of workmen's compensation in particular and employee welfare in general.
ESIC Act has provisions to grant exemption to employers who can provide superior or similar benefits to its employees and not for any other reasons.
Coverage under the ESI Act,1948
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).
If the MNC has a contract with Vendor, then MNC can be treated as principal employer.
All good companies ensure their contractors have valid PF, ESIC registration.
Has the vendor issued termination letter, if yes what is the reason mentioned in the termination letter issued by vendor e.g. less revenue/business? Or the vendor has collected resignation letter?
How is the conduct of vendor rude, coercing, and does he flaunt bond to subdue the employees?
The training provided by vendor was related to products of MNC or generic training? Was it a specialized training from some certified institution adding to qualification or skill of employees? The company can proceed to recover the amounts spent on training and shall have to prove the amounts spent.
What was the criteria attached to hike in salary e.g. appraisal/ performance etc?
You can register your concern as you are feeling perturbed since group insurance is cancelled and who shall bear the cost in case of some medical exigency?
If employee faces medical exigency while to workplace, at workplace, from workplace it is liability of principle employer, vendor. Are you covered by WC policy?
It shall be appropriate to submit your contentions in a gentle tone in writing under acknowledgment, to the appointing authority and cover all points so as to build record for future. The idea is to establish that employer has defaulted and does not remain worthy to be employed with.
How can vendor express in writing to get its employees absorbed in MNC
(Principle employer?) until or unless there is some explicit contract? And how can MNC fire employees of vendor?
Another option is that you might be having some leave balance and you may proceed on long sick leave supported by Rx of doctor, lab reports, medical certificate.
