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Apprentices Appointed Under Standing Orders, Not Covered by The ESI Act – Judgement by The Honourable Mrs. Justice N. Mala

Contents News/Article Date: 23th March 2023 

Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948          

Penalty under the Act: Section 85(a):  Penalty for failure to pay contribution

Non-payment of this contribution is a serious offense because it directly affects insurable employees. Hence, the maximum imprisonment for this offense is 3 years and the minimum is 6 months with Rs. 5,000 as fine.

Applicable to which State: All the States and Establishments covered by the ESI Act

Type: The Honourable Mrs. Justice N. Mala C.M.A(MD)No.861 Of 2022 Judgement On Apprentices Appointed Under Standing Orders, Not Covered by ESI Act 

Pertains to: All apprentices appointed under Standing Orders

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Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 778 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding post graduate medical seats.

And in this instance : I am afraid that the contention of the appellants is untenable and is squarely covered by the judgment of the Division Bench of this Court in the case of Regional Provident Fund Commissioner, Employees Provident Fund Organisation, Madurai Vs Employees Provident Funds Appellant Tribunal, New Delhi reported in 2015 LLR 1253, wherein, the Division Bench held that the number of apprentice being more than the regular employee would not be a ground to accept the apprentice as regular employees.

In the light of the categorical finding on facts given by the labour Court and in view of the settled legal position that apprentice appointed under the standing orders are not covered by the Act. I find no illegality or impropriator in the order of the Labour Court and hence the same is confirmed. The appeal is therefore dismissed. There shall be no order as to costs.

Subject: Apprentices Appointed Under Standing Orders, Not Covered by The ESI Act –  Judgement by The Honourable Mrs. Justice N. Mala


Attached is the judgement



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