ESIC Applicablity

Can a factory once covered go out of coverage if the number of persons employed therein goes down to the minimum limit ?

Once an act is applicable to your organisation, irrespective of number of employees going below the min required still it will be applicable.

Hi Sagar,

Once company covered under the ESI Act then you cannot out of coverage just because temporarily you don’t have min employees as per the act.

Even if you don’t have min number of employee mentioned in act , don’t forget to file nil returns.

Regards
Arpana

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