ESI Coverage Applicability To Principal Employer On 10 Or More Employees Or 20 ?

Dear all,

Recently, I came to know that the applicability of the ESI Act to establishments/shops is now on 10 or more employees (earlier it was 20 or more for most states).

Today, I found a notification about the applicability of ESI in Delhi to 10 or more employees (http://esic.nic.in/CIRCULARS/PnD30-310311reductionofcoveragelimit.pdf).

Is this change applicable only to Delhi or all Union Territories and other states?

Hi Priju,

I think it's applicable to all states since the same rule applies in Kerala as well.

Dear Priju,

It is the new circular released by the ESI department in all states. You can see the following link, which I have posted when the Tamil Nadu ESI department made an advertisement in a leading newspaper: https://www.citehr.com/381992-esic-c...decisions.html. Hopefully, soon the same will be applied in PF as well for the benefit of employees.

The amendment is applicable in union territories where the central government is the appropriate authority. Concerning establishments for which the State government is the appropriate authority, it becomes applicable if the concerned state also enacts such an amendment.

B. Saikumar
HR & Labour Law Advisor
Mumbai