The most widely asked question is what organisations are covered under ESI. The following points cover the answer too this question.
Application
and Extent of ESI Act, 1948:-
1.
It extends to the whole of India.
2.
It shall apply, in the first instance, to all factories including factories belonging to the
Government other than seasonal
factories.
3.
Provided that nothing contained in this sub-section shall apply to a factory or
establishment belonging to or under
the control of the Government whose employees are otherwise in receipt of
benefits substantially similar or superior to the benefits provided under
this Act.
4.
The appropriate Government may,
in consultation with the Corporation and where the appropriate Government is a
State Government, with the approval of the Central Government, after giving Six months’ notice of its
intention of so doing by notification in the Official Gazette, extend the provisions of this Act or
any of them, to any other establishment,
or class of establishments, industrial, commercial, agricultural or otherwise.
5.
Provided that where the
provisions of this Act have been brought into force in any part of a State, the
said provisions shall stand extended to any such establishment or class of
establishments within that part if the provisions have already been extended to
similar establishment or class of establishments in another part of that State.
6.
A factory or an establishment to which this
Act applies shall continue to be governed by this Act notwithstanding that the
number of persons employed therein at any time falls below the limit specified
by or under this Act or the manufacturing process therein ceases to be carried
on with the aid of power.
EXEMPTION:
1.
The appropriate government may,
by notification in the Official Gazette and subject to such conditions as may
be specified in the notification.
2.
Exempt any factory or
establishment or class of factories or establishments in any specified area
from the operation of this Act for a period not exceeding one year and may from
time to time by like notification renew any such exemption for periods not
exceeding one year at a time or
3.
Exempt any person or class of
persons, employed in any factory or establishment, or class of factories or
establishments to which this Act applies from the operation of the Act.
4.
No exemption shall be granted
or renewed under above section 87 or section 88, unless a reasonable
opportunity has been given to the Corporation to make any representation it may
wish to make in regard to the proposal and such representation has been
considered by the appropriate government.
5.
Under Section 90, The
appropriate government may, after consultation with the Corporation, by
notification in the Official Gazette and subject to such conditions as may be
specified in the notification, exempt any factory or establishment belonging
to any local authority, from the
operation of the Act, if the employees in any such factory or establishment are
otherwise in receipt of benefits substantially similar or superior to the
Benefits provided under this Act.
6.
Under Section 91, The
appropriate government may, with the consent of the Corporation, by
notification in the Official Gazette, exempt any employees or class of
employees in any factory or establishment or class of factories or
establishments from one or more of the provisions relating to the benefits
provided under this Act.
7.
Also the act does not apply to
the following:-
a.
Under Section 1(4), Seasonal Factories are not
covered under ESIC. They are defined under 2 (19A) as
i.
a factory which is exclusively
engaged in one or more of the following manufacturing processes, namely
ii.
cotton ginning, cotton or jute
pressing, decortication of ground-nuts, the manufacture of coffee, indigo, lac,
rubber, sugar (including gur) or tea or any manufacturing process which is
incidental to or connected with any of the aforesaid processes and
iii.
includes a factory which is
engaged for a period not exceeding seven months in a year (a) in any process of
blending, packing or repacking of tea or coffee or (b) in such other
manufacturing process as the Central Government may, by notification in the
Official Gazette, specify.
b.
Under
Section 2(9), the following are not covered here
i.
any member of the Indian naval,
military or air forces ; or
ii.
any person so employed whose
wages (excluding remuneration for overtime work) exceed such wages as may be
prescribed by the Central Government.
c.
Under Section 2(12) the
following are also not covered
i.
A mine subject to the operation
of the Mines Act, 1952 (35 of 1952), or
ii.
A railway running shed
iii.
Whereon in a factory less than
ten persons are employed or were employed on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on or
is ordinarily so carried on.
Pl put us wise , if ESI act is applicable to an NGO engaged in welfare activities of poor people ,the NGO employs 12 regular workers and 7 workers who are outsourced through a contractor for cleaning and housekeeping jobs,the salary of no worker worker exceeds 14000/per month.Also the establishment does not use power machine except for cloth washing mashine !!
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