In today’s competitive world employers engaging services of contractors is very common. However, ESIC acts as recovery agents in sending the employers notice u/s 45A of the ESI Act to recover the ESI contributions. ESIC targets outsourcing of service and attempts to recover the ESI Contributions from the principal employer without impleading contractors as a party. Many a times, ESIC contributions are paid by the principal employer, but the record may not be available with…
Read MoreESI / Benefits
Heat allowance for workers during the summer months
In the midst of soaring temperatures, the union representative’s of factory workers at Renault Nissan, Chennai are demanding for heat allowance to deal with the hotter months of the summer. What is a heat allowance? Similar to a hardship allowance that people working in hostile conditions are entitled, Section 2(22) of the Employee State Insurance Act defines ‘wages’ as meaning: “All remuneration paid or payable in cash to an employee, if the terms of the…
Read MoreWill the Employee State Insurance Act continue to be applicable, if number of employees fall below requisite number mandated by the law?
Section 1(6) of ESI Act has specific provision regarding number of persons falling below the limit specified under this Act. The provision reads as under- “A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the…
Read MoreAs per employment laws in India what are the compliances under ESI Act 1948?
It is imperative that thorough compliance of all applicable Indian employment laws be carried out by every employer to avoid prosecution or Industrial relations problems. An employer, under the Employees Provident fund Act, 1952 has to ensure compliance with the following requirements – Form 01 and 01A, under Regulation 10B(a) of The Employee’s State Insurance (General) Regulations, 1950 – A declaration of registration to be submitted in writing by the employer to the Regional Office,…
Read MoreEmployee Insurance Courts (EIC) under the Employee State Insurance Act (ESAI)
As per S.75(1)(g) EIC is empowered to decide matters which are in dispute between the employer and employee or the employer and Employees State Insurance Corporation, set up under this Act. The nature of the disputes which come under S.75 would be related to contribution, benefits, dues, remuneration etc. which are payable and or recoverable under the Act. OR any other matter required to be decided by EIC under the provisions of the Act. The…
Read More