SOME ESI ACT-RELATED PROBLEMS & THEIR SOLUTIONS
- Ours is a coaching center and is covered under ESI Act also. We have branches all over India. My query pertains as to whether the establishments where we have a few employees will be clubbed with our establishment in sub and substance my query is as to what are the facts for clubbing the establishments.
- The ESI Act will apply to all branches of an establishment when the total number exceeds 20. 1Different sales and service outlets will be clubbed for applicability of ESI Act even when none employs 10 or more employees. 2 ESI Act will be applicable upon the employees working in sales depots and offices of Bata India since its factory is covered under the Act. Two units will be clubbed together for coverage under the Act when there are common partners and interdependence of one unit upon the other. 3
- Due to Diwali season, we have to engage some casual employees for about 2 weeks whereas our regular employees are only 6 but the casuals were over 6 whose services have been dispensed with after the season. I seek clarification as to whether Act will be applicable inter alia providing that even if there are 10 or more employees for a day in any year, the Act will be applicable?
- Yes, even if the total strength of employees exceeds the limit even for a day in a year and once the unit is covered, the same will remain covered under the scheme even if the strength decreases at a subsequent date.
Credit: Association of Industries and Institutions