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ESI Act

(Querist) 06 September 2009 This query is : Resolved 
Sirs,

I am a principal employer and all the employees working in our firm are drawing more than Rs. 10,000/- as wages. As such we are not covered under E.S.I. Act.

Kindly clarify to what extent I am responsible for:

a) Payment of ESI by the Contractors working under me in respect of their employees.

b) Returns to be submitted by the Contractors under ESI Act.

Thanking you.
Prakash Yedhula (Expert) 06 September 2009
If the contracted activity is taking place within the factory premises, then you become responsible for the ESI and PF regulations as a Principal Employer. If the activities are done at the contractor's place or outside the factory premises, then you, as a principal employer is not responsible for ESI and PF.
H. S. Thukral (Expert) 07 September 2009
Mr Prakash is right. I may be permitted to add that the employee employed through immediate employer though out side the establishment premises, yet under the control and supervision of principal employer, shall deemed to be an employee for the purposes of ESI Act. There might be instances where the coverage of an employee can be pleaded. A cement factory having to load cement in wagons at railway station under the supervisions of the principal employer though through immediate employer, then the employee engaged in loading /unloading under the control of supervisor of principal employer is entitled to be covered under ESI in my opinion.riven
V V SATYANARAYANA (Querist) 18 September 2009
Thank you sirs.

Is there any limitation. Can the ESI agency ask to provide the details of the contractors for the past 20 years ? So that after receiving the information they can lodge some sundry claim ?riven


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