ESI COVERAGE

D.Kumar (Querist) 25 June 2008 This query is : Resolved
Dear Sir

Greetings.

Our company is a ITES Company located in Chennai employing 50 employees out of which only 15 employees draws less than 10,000/- salary and rest of the employees draws more than 10000/- salary.Kindly give your suggestion for the following.

1. Whether our company has to be registered under the ESI Act?

2. If the ESI act is applicable, from what date on wards to cover our
employees?

With best regards

D.Kumar
HR Manager
Chennai

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Manish Singh (Expert) 26 June 2008
it all depends on the first date in a year when ur 20 or more employees were drawing wages equal or less than the limit prescribed by the ESI Act.
that means that at one point of time you had emploed 20 or more such employees but now its been reduced, you will still be liable.
it shall be the date when you became first liable under the ESI.