According to ESI Act 1948, applicability of the Act & Scheme is extended to those factories and establishment using power and employing 10 or more persons and non power using manufacturing units and establishments employing 20 or more persons drawing upto Rs. 7500/- per month.

An organization (who has been covered under ESI) engages many contractor who has been already cover under the ESI Act and Scheme But from these contractors list only two contractor employ less than 10 number of employees under them whose salary is not more than Rs. 7500/-.

Now, My question is whether these two contractor employees has to be covered under
ESI or not?

Please help me out, looking for your comments and reference please.

Regards,
Jhanvi

Dear jhanvi,

YES! contractor employees irrespective of the number , would be covered under ESI since ur establishment is covered and contractor employees are working for ur unit.

regds

Subramani

From whatever I have known over the years, once an organisation is covered under ESI Act, no further distinctions like the one you have sought to explain( contractor employing <10 persons; employeees drawing less than Rs.7500/- p.m, etc.,)can be made to lawfully avoid scope of coverage under the Act. In other words all contractual employees engaged by an organisation (otherwise having regular employees covered by the ESI Act) will automatically get to be covered irrespective of their monthly wages & nature of employment. Anyway get it checked once again for clarity & let me know.

Regards,
NC

Yes, The contractor employees has to be covered under ESIC . If any organisation is coming under ESIC zone then irrespective of the number of contract employees has to covered.

Moreover , if you have engaged anybody for any special work(painting of your office wall for example) for say 1 hour , you have to ensure that he must be covered under ESIC by that contractor.

Hope i answer your queries.

srini