Registration with esic
SK Sharma
(Querist) 17 November 2011
This query is : Resolved
Ours is a Central Govt. office. Apart from the regular Govt. staff, we have hired some staff which is outsourced from a placement agency. The number of staff is 18 and their salary is below Rs. 15,000 p.m. The registration matter was taken up with the agency who informed that since the number of employees is less than 20, registration with ESI is not required. Is it mandatory for the placement agency to have ESIC registration. How we can ensure that?
Kirti Kar Tripathi
(Expert) 17 November 2011
It depend on employer, who requires your services. If an establishment have less then 20 employees, no requirement of having code from esic. ESI is not applicable in Government offices.
Sankaranarayanan
(Expert) 17 November 2011
well if it bellow the norms of minimum employee, then either opt voluntary coverage or take car policy insurance. If any accident or loss the insurance company give the amount
Rajeev Kumar
(Expert) 17 November 2011
I do agree with above experts
Jai Karan Nagwan
(Expert) 18 November 2011
Now threshold limit for ESIC coverage is brought down to ten. secondly this is fact that ESI not applicable to Govt., But applicable to contractual employee hired through agency. you are carrying serious risk, ESIC will proceed against the Principal employer in case of default by contractor. Secondly agency can not take stand that they deploy only 18 employees with you, but they must have deployed with may others as well and wherever agency deployed the employee, they are all agency employee.
SK Sharma
(Querist) 23 November 2011
I appreciate the response. However, first three experts viz. Mr. Kirti Kar Tripathi, Mr. Sankar Narayanan and Mr. Rajeev kumar does not appear to have understood my query in the right perspective.
I am thankful to Mr. Jai Karan Nagwan who has clarified my query properly. Many thanks.
Guest
(Expert) 23 November 2011
Dear Sharma,
It is a fact that ESI does not apply to any Government establishment. Moreover, your office is also not responsible for enrolling workers hired for some contract through contractor. Only contractor is responsible to enroll his workers for ESI etc. Your office, as a principal employer, has only to ensure that the contractor fulfills the legal formality. So, make sure to check his record of monthly remittances to the ESI as contributions for his workers.
SK Sharma
(Querist) 23 November 2011
I am very thankful to Mr. PS Dhingra for his valuable guidance.
Guest
(Expert) 23 November 2011
You are welcome Sharma ji.
K.S.Srinivas
(Expert) 28 November 2011
I do agree with experts Jai Karan Nagwan and Dhingra.
Jai Karan Nagwan
(Expert) 24 December 2011
Dear Srinivas, dont know on what basis you are disagree to me, however i wish yo read the judgement as :- LIABILITY IN CASE OF CONTRACTUAL EMPLOYEES:- In case of employees of contractor, liability is of Principal Employer. In Britannia Industries v. ESIC (2001) 98 FJR 520 (Mad HC), it was held that Principal Employer will be liable to penalty and damages also if contribution is not paid on due date. – same view in Padmini Products v. ESIC 2000(2) Kar LJ 369 (Karn HC).
However, principal Employer have liberty to recover the same from the contractor.
hope after reading these judgement your opinion may change.
Jai Karan Nagwan
(Expert) 08 January 2012
Dear Srinivas, excuse me for above revert, I could read the word "do agree" as disagree and given further explanation. However thanks for supporting views.
