Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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ESI Registration

(Querist) 17 February 2010 This query is : Resolved 
Dear Lawyers,
I want to understand the point of time from which ESI enactment applies to a private company.
At present there is only one employee joined in a private company who comes within the purview of ESI.
As per one of the ESI official, ESI application will be accepted only when there are more than 20 employees for whom ESI is deductible. As of now, the company has only one employee coming with in ESI slab. Should ESI be deducted from the employee’s salary even though the company is not coming within the scope of ESI enactment?
If deductible from the employee, when should be remitted? (Since the application for registration will not be accepted, how can the same be remitted with the department?
If not deductible, what are the provisions of the Act which excludes the company from not deducting?
Thanks in Advance.
Venkat.
Raj Kumar Makkad (Expert) 17 February 2010
The applicability of the ESI Act in your case shall commence from the date when it employs 20 employees so the company legally is not bound to deduct such deduction and as the deduction cannot be made so question of its remitting or subsequent questions do not arise.
Venkat Rao Marella (Querist) 17 February 2010
Thanks Raj.

Also, once the act becomes applicable, the deductions should be made from the date of applicablity or retrospectively?
A V Vishal (Expert) 17 February 2010
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Should ESI be deducted from the employee’s salary even though the company is not coming within the scope of ESI enactment?

Ans.NO

If deductible from the employee, when should be remitted? (Since the application for registration will not be accepted, how can the same be remitted with the department?

Ans.Not applicable

If not deductible, what are the provisions of the Act which excludes the company from not deducting?

Ans. Refer 1st reply above.

Further you have not stated the type of establishment and the number of employees working, Clarify for more clear reply of your query.
A V Vishal (Expert) 17 February 2010
Also, once the act becomes applicable, the deductions should be made from the date of applicablity or retrospectively?

Ans. From date of applicability.


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