ESI Applicability Branch wise or company wise
kamal Jangid
(Querist) 28 April 2009
This query is : Resolved
During review of accounts of one of our clients i find that they did not paid ESI.
As per their HRD as they are not having more than 20 person at one place they are did not cover.
However they have 6 branches in different states and total no of employees including branches is more than 50.
MY quaery is:-
1) IS they covered ?
2) If they covered than they did not paid yet any amount so they have to paid arrears with interest or there is any other alternatives ?
Thnaks in advance
Kamal
Kamal_jangir96@yahoo.com
A V Vishal
(Expert) 28 April 2009
Dear Kamal,
ESI coverage is for the company as a whole even in case there are less number of employees branchwise, the number of employees over all exceed the number of employees for which otherwise the company would had been exempted
Manish Singh
(Expert) 30 April 2009
they are covered under the ESI Act and liable to pay the same. they are mistaking it not to comply with the sme as consequences could get worse.
