I am working in a software company of 13 employees & want to start PF & ESIC in our organization. pls suggest me weather we are eligible or not & if yes than what are the rules and guidelines for that and also how to registered our org for such facilities. waiting for your valuable response.
Regards, Mona
From India, Bhopal
Regards, Mona
From India, Bhopal
Hi, ESI is not applicable to you but PF will be applicable . approach to the PF office in your area they will guide you in this regard. Regards Rajeev Dixit
From India, Bangalore
111From India, Bangalore
Hello Monica
P.F is applicable o an establsihment if it employs 20 or more persons and hence P.F is not applicable to you. ESI is applicable to establishments employing 10 or more persons. Previously establishments employing 20 or more were only used to be covered by Sttaes. Howver many States have issue notifications bringing establishmenst employing ten or more unde r the purview of ESI. So just check whether M.P State has issued any such notification.
B.Saikumar
HR & Labour Law Adviosr
From India, Mumbai
P.F is applicable o an establsihment if it employs 20 or more persons and hence P.F is not applicable to you. ESI is applicable to establishments employing 10 or more persons. Previously establishments employing 20 or more were only used to be covered by Sttaes. Howver many States have issue notifications bringing establishmenst employing ten or more unde r the purview of ESI. So just check whether M.P State has issued any such notification.
B.Saikumar
HR & Labour Law Adviosr
From India, Mumbai
Sir(s),
All units doing any manufacturing process in its premises are "factories" and coverable if employing 10 or more persons under section 1(4) of ESI Act, 1948 read with section 2(12) of said Act.
Therefore, a software company doing manufacturing process in its premises is coverable under ESI Act, 1948 if it employ 10 or more persons.
With kind regards;
Harsh Kumar Mehta
From India, Noida
All units doing any manufacturing process in its premises are "factories" and coverable if employing 10 or more persons under section 1(4) of ESI Act, 1948 read with section 2(12) of said Act.
Therefore, a software company doing manufacturing process in its premises is coverable under ESI Act, 1948 if it employ 10 or more persons.
With kind regards;
Harsh Kumar Mehta
From India, Noida
Dear Harsh
Is a software company considered to be engaging in manufacturing process to be a factory? Did ESIC issue any such notification? if so please provide a soft copy of it for my information.
B.Saikumar
From India, Mumbai
Is a software company considered to be engaging in manufacturing process to be a factory? Did ESIC issue any such notification? if so please provide a soft copy of it for my information.
B.Saikumar
From India, Mumbai
Dear Harsh
in addition to my above post, i would like to add that so far as ESI is concerned, it s now immaterail whether it is a factory or establsihment in so far as coverage is concerned, since the threshold limit for coverage has been brought down from 20 employees to 10 in all most all states even for establsihments other than factories as consequence of which both factories and other establishments employing ten or more persons are covered under ESI.
In so far as P.F Act is concerned, I would like to refer to caluse (a) of Sub-sec.(3) of Sec.(1) of the P.F.Act 1952 which deals with the application of the Act to factories. it states that the P.F act applies to every establsishment which is a factory specified under Schedule (1) appended to the Act in which twenty or more persons are employed.
Clause(b) of Sub.sec.(1)of sec.(1) deals with application of P.F Act to establsihmenst other than factories and states that P.F Act is applicable to establsihments employing twenty or more persons.
Besides, the Government of India in it's notification dated 27th July 2006 extended the application of P.F Act to establishments which are software comapnies provided they employ 20 or more persons.
Thus position that emerges out of the above discussion is asunder :
1)So far as coverage of ESI is concerned, whether a unit is a factory or establsihment (other than factory) it shall employe 10 or more persons.
2) so fra as coverage of P.f is concerned, a unit whether it is a factory or establsihment it shall emply 20 or more persons to be covered under P.F Act.
B.Saikumar
HR & Labour Law advisor
.
From India, Mumbai
in addition to my above post, i would like to add that so far as ESI is concerned, it s now immaterail whether it is a factory or establsihment in so far as coverage is concerned, since the threshold limit for coverage has been brought down from 20 employees to 10 in all most all states even for establsihments other than factories as consequence of which both factories and other establishments employing ten or more persons are covered under ESI.
In so far as P.F Act is concerned, I would like to refer to caluse (a) of Sub-sec.(3) of Sec.(1) of the P.F.Act 1952 which deals with the application of the Act to factories. it states that the P.F act applies to every establsishment which is a factory specified under Schedule (1) appended to the Act in which twenty or more persons are employed.
Clause(b) of Sub.sec.(1)of sec.(1) deals with application of P.F Act to establsihmenst other than factories and states that P.F Act is applicable to establsihments employing twenty or more persons.
Besides, the Government of India in it's notification dated 27th July 2006 extended the application of P.F Act to establishments which are software comapnies provided they employ 20 or more persons.
Thus position that emerges out of the above discussion is asunder :
1)So far as coverage of ESI is concerned, whether a unit is a factory or establsihment (other than factory) it shall employe 10 or more persons.
2) so fra as coverage of P.f is concerned, a unit whether it is a factory or establsihment it shall emply 20 or more persons to be covered under P.F Act.
B.Saikumar
HR & Labour Law advisor
.
From India, Mumbai
PF is not applicable at present as pe pf at-52 and for ESI - Not Applicable at present, but better to approach near by regional office or branch ofiice
From India, Varanasi
From India, Varanasi
Respected Shri Saikumarji,
Thanks for showing interest in remarks expressed by me. I may, however, submit that the remarks as mentioned by me earlier are correct on account of following reasons:-
(1) Coverage/non-coverage of a factory/establishment depends upon particular facts of that unit. If there is manufacturing process (including in IT software Unit) and 10 persons are employed for wages, then it is definitely a "factory".
(2 Only those establishments are coverable under ESI Act which either fall u/s 1(4) of ESI Act (as factory) or for which notification under section 1(5) is issued by the appropriate Govt.
It is always better for the employer to furnish correct facts to the appropriate Regional Office of ESIC and seek clarification on such issues.
I hope your goodself will continue to correct or guide me in respect of my remarks in these columns.
With regards;
Harsh Kumar Mehta.
From India, Noida
Thanks for showing interest in remarks expressed by me. I may, however, submit that the remarks as mentioned by me earlier are correct on account of following reasons:-
(1) Coverage/non-coverage of a factory/establishment depends upon particular facts of that unit. If there is manufacturing process (including in IT software Unit) and 10 persons are employed for wages, then it is definitely a "factory".
(2 Only those establishments are coverable under ESI Act which either fall u/s 1(4) of ESI Act (as factory) or for which notification under section 1(5) is issued by the appropriate Govt.
It is always better for the employer to furnish correct facts to the appropriate Regional Office of ESIC and seek clarification on such issues.
I hope your goodself will continue to correct or guide me in respect of my remarks in these columns.
With regards;
Harsh Kumar Mehta.
From India, Noida
Dear Harsh
What I want to simply convey is that in view of the amendment of the definition of factory under ESI Act. and the notifications issued by all most all the State Governments under Sec.(1)(5)of the ESI Act bringing other establishments(specified in the notification) employing 10 or more persons under coverage, a unit whether a factory or establishment now comes to be covered under ESI if it employs 10 or more persons.We speak the same thing probably in a different way. There is no difference of opinion. Thanks for sharing your response..
B.Saikumar
From India, Mumbai
What I want to simply convey is that in view of the amendment of the definition of factory under ESI Act. and the notifications issued by all most all the State Governments under Sec.(1)(5)of the ESI Act bringing other establishments(specified in the notification) employing 10 or more persons under coverage, a unit whether a factory or establishment now comes to be covered under ESI if it employs 10 or more persons.We speak the same thing probably in a different way. There is no difference of opinion. Thanks for sharing your response..
B.Saikumar
From India, Mumbai
Hi All,
I have come across a querry abt esic, that if an establish has 15 employees and out which if 14 employess have gross above 15000 and only one is below than 15000,then is it necessary for that establishment to get registered at this stage?
Also would like to know the registration process of esic with details of fees etc applicable.?
Thanks
Bijay.
From India, Vadodara
I have come across a querry abt esic, that if an establish has 15 employees and out which if 14 employess have gross above 15000 and only one is below than 15000,then is it necessary for that establishment to get registered at this stage?
Also would like to know the registration process of esic with details of fees etc applicable.?
Thanks
Bijay.
From India, Vadodara
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