ESI Coverage

If these three shops are different legal entities and sole prop. businesses run by respective owners, the Acts are not applicable.  It is your responsibility to prove that they are different legal entities.  If the lease hold of these properties are in different names, different balance sheets are there, different sales tax and income tax returns are filled, they are not inter-dependent and employees are not transferred from one place to another place and finally the concerns have got different and distinct names, you provide them to ESI and PF authorities to prove your point.

Based on the facts given the three shops are genuiely independant and can not be treated as One single Shop.  I also presume that the employees are not interchangeable, there is seperate door no, electrical and water connection  and there is no stock transfer without consideration.   I also assume that the first unit having 10 is not manufacturing concerned but only a commercial shop.

It is not the inspector/enforcemennt officer who will issue a final order or code No/Business no, but the concerned Regional Office only.  If there is a formal letter from inspector/enforcement officer give the above information and also the ownership or tenancy document in individual name and copies of other documents mentioned above to show that they are independant.  If and when there is an order or shaw cause notice from Regional ask for personal hearing.  There is no way these three shops can be clubbed as one.  In case of ESI Act, there is no voluntarily coverage but in case of EPF there is voluntary coverate.

O. Abdul Hameed

Formerly Regional Director of ESIC, W.Bengal, Andhra Pradesh, Karnataka and Keral and Additional Commissioner ESI Corporation New Delhi - Presently CEO of Santhi H ospital

oaamid@yahoo.com