ESI - Recent Circular On Contributions For Jobs Outsourced

Dear all,

In the light of recent judgment by the Hon'ble Madras High Court on the above subject, ESI Corporation has issued a circular regarding payment of ESI contributions for the jobs outsourced.

Soft copy of the circular is enclosed for your ready reference.

As guidelines were issued by the ESI Corporation for ascertaining the element of supervision involved in the jobs outsourced, we (employers) must ensure two things to avoid litigations:

a) The Agency to which the jobs outsourced should have separate ESI codes and they must comply with the provisions of ESI Act including payment of contributions on time.

b) There should not be any direct supervision and control over the contract labourers by the Principal Employer.

Thanks & Regards
Kalyan R
Manager - Personnel
Sundaram-Clayton Ltd
Brakes Division
Chennai

Mobile: 9840942232
13th November 2007 From India, Madras

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esi_circular_on_outsourcing_722.doc (86.0 KB, 1362 views)

Dear Kalyan Thanks for the precise summation.At last Outsourcing is now codified by this Circular.The Industry as well as Contractors can go forward frm this. With Regards V.Sounder Rajan
13th November 2007 From India, Bangalore

Dear Kalyan Greetings Kudos to you. Your piece of information is very useful to us. With regards Trisha HR Professional
13th November 2007 From India, New Delhi

Thank you very much Mr.Kalyan,
The information shared by you is very practical to us, because we have practiced 2,3 outsourcing company for jobworks to us, really it is very much useful to our concern once again thankful to you.
K.Nagaraj
HR Manager
Salzer Electronics Ltd
Coimbatore - 19.
98946-68788
14th November 2007 From India, Madras

Hi I need help in preparing questionaries for an interview and also how do I introduce new joinee via e-mail.
6th September 2008 From India, Mumbai

Dear All,
Here is an interesting update on this. We had a recent ESI inspection and the inspectors directed us to pay 6.50% of the labor compnent of all outsourced work. I showed them the circular.
1. The inspectors were actually unaware of this and maintained that they have not been instructed about this!
2. Further they said that we should produce proof of returns filed by the contractor which shows the names of the employees of the contractor who actually did the work at our premises
Regards
Mahesh T Nair

27th July 2009 From India, Coimbatore