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ESI Applicability Queries - Urgent - CiteHR

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kiranikumari
Dear all,
Our site is in construction and I have 12 employees on role and as per ESI applicability if any organization having more than 10 employees and power using construction site then esi is applicable but when i approached ESI office they have denied for registration stating the following reasons. Please clarify if they are correct or not.
1. Our plant has not come into production and our plant is still in construction. Is it necessary to get trial production/ production for ESI registration.
2. Also he explains that unless 10 employees are ESI applicable then only ESI registration can be done. If so, if I have 2 to 3 employees applicable for ESI then the registration is possible or not.
Please clarify the two doubts at the earliest.
Regards,
dev

From India, Bangalore
ritedarong
5

Dear Dev,
when you met the officer of the department he cannot be wrong. It is in fact that you must be using power and must have 10 employees minimum drawing salary of Rs.10000/- and less to be eligible for ESI coverage in your factory. So if you have not started your factory you are not liable for coverage. What you should do is to opt for Workmen's compensation coverage insurance policy for the period you are employing people in your construction site till such time you are eligible for ESI coverage and safeguard yourself.

From India, Bangalore
sundaramr
1

Hi,
For your question no:1 = yes. trial production to be carried out to get normal esi registeration. You can opt for workmen compensation cover.Alternatively, You can volunderially get register under ESI.Pls.meet senior officials of the department.
For your question no.2 = once you crossed the number of 10, you should get esi reisteration number and when 11th person joins with less than 10000/=,the regular returns to be activated.Till then nil returns to be fillied.But getting ESI registeration number is must.Hope some one department confused about this.meet senior peoples. Or get it writing from them.

From India, Madras
esiramesh
1

dear sundaramr/kirankumari
in ur para 1, you had mentioned of voluntary coverage, but under ESI no voluntary coverage is given to any establishment. Only under EPF volutary coverage is given under Sec 1(4) of the PF act.
with reference to kirankumari's question, usage of power for lighting, fan, AC, etc does not means "usage of power" as defined in the Act. The actual definition states that "manufacturing with the aid of power" alone constitutes a factory and thereby coverable under Sec 2(12) of the ESI act. So the power should aid the manufacturing process. The manufacturing process in your case can only begin after the factory is constructed and the machinery is installed. Until then even if u employ 1000 construction employees your unit is not coverable under the Sec2(12) of the ESI Act.
Workmen compensation is the best and it is based on the altitude of the project--the higher the altitude the higher the premiums.
Also the respective state governments have "construction workers welfare board", and a cess is charged with every building plan approval with town planning department. This cess goes towards the insurance premium for coverage of of construction workers exclusively.

From India, Madras
kiranikumari
Dear Mr.Ramesh, Thanks for clearly defining what is the usage of power means and as well said I have paid the 1% of the civil construction under BOCW act. regards, Kiran
From India, Bangalore
govarthan1976
1

Dear Sir,
We have employed sew casual Construction workers, for the construction of our additional factory building. Whether it attracts the ESI. Please clarify ASAP.
With warm regards,
N.Govarthanan.

From India, Madras
korgaonkar k a
2555

Dear N. Govarthanan,
Answer is YES if the additional factory building is in the same premises including precincts thereof. You should include this activity and labour strength in the factory licence.
Also note that the provisions of BOCW Act will not be applicable to your construction activity under given circumstances.
Thanks and regards.
Keshav Korgaonkar
http://www.shantadurgaent.com,Welcome To Shantadurga Enterprises

From India, Mumbai
govarthan1976
1

Dear Mr. Korgaonkar, The additional factory building is not in the same premises including the precincts thereof. In this case whether ESI is applicable or not ? With warm regards, N.Govarthanan.
From India, Madras
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