Esic act

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himanshu goyal (Querist)
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15 October 2013 I have a petrol pump. I got a notice from ESIC. I have following queries- 1. is esic applicable on me as I don't work through "FACTORY" and I m not involving in any "MANUFACTURING PROCESS". 2. for calculating limit of 10/20 employees , which employees should be considered? - employees having salary less than 15000 - or all employees. thanks for help.. Himanshu

@VaibhavJ

@VaibhavJ (Expert)
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15 October 2013 Hi

Pl refer : https://www.caclubindia.com/articles/esic-in-detail-16236.asp

Thanks//VaibhavJ

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 October 2013 The ESI Act applies to non-seasonal factories or manufacturing units, shops & establishments, Private Medical & Educational Institutionsemploying 10 or more persons. Under the enabling provisions of the Act, a factory or establishment, located in a geographical area, notified for implementation of the scheme falls in the purview in the Act. Employees of the aforesaid categories of factories and establishments and drawing wages o upto Rs.15,000/- a month are entitled to health Insurance cover under the ESI Act. The wage ceiling for purpose of coverage is revised from time to time to keep pace with rising cost living and subsequent wage hikes. The present ceiling of Rs.15,000/- has been effective from 1.5.2010.

noted also
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A petrol pump engaged in pumping oil, washing and servicing vehicles would be covered by the expression 'manufacturing process' as defined by section 2(12) of the ESI Act. Petrol Pump and service station are work places where persons are employed and power is used in the process of its activities. There is no material difference from the other activities of a manufacturing place strictly so-called. A very narrow construction Lo· the definition of 'manufacturing process' so as to restrict its application only to a work place where by virtue of the manufacturing process a commercially different article is produced, would be unjustified. In the .case of ~ service station, washing, cleaning or oiling a car brings about a particular result in either as a lubricated or cleaned vehicle. That result itself shall be treated as enough to bring the process within the meaning of the Act.

I. E.S.I.C. vs. Bhag Singh, 1988 LIC 1170; 1989(2) LLJ 126 (P&H) F.B. 2. Baranager Service Station vs. E.S.I. Corporation, 1988 Lab. IC 302.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 October 2013 THANKS EXPERT VAIBHAV JI

RAMESH VERMA
FTP CONSULTANT

@VaibhavJ

@VaibhavJ (Expert)
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15 October 2013 Dear RameshJi

Its our pleasure to have your quick & clear insights always.

Thank You.