Code No.:
Registration of a factory / establishment with the Employees’ State Insurance Corporation is a statutory responsibility of the employer under Section 2-A of the Act read with Regulation 10-B. The employer, in respect of a factory / establishment to which the Act applies for the first time, is liable to furnish to the appropriate Regional Office within 15 days after the Act becomes applicable, a declaration of registration in Form 01 (Employers’ Registration Form). This is obligatory on the part of the Employer. In addition to this, the employer will have to indicate, in a separate sheet, the name and address of the factory / establishment, number of employees, nature of duty and name, designation and address of the Manager, controlling such persons in respect of any other office(s) situated outside the premises of the Factory / Establishment.
a) On receipt of the Employer’s Registration Form (Form 01) and Survey report submitted by the Insurance Inspector, the Regional Office examines the coverage and if it is satisfied that the Act applies to the factory / establishment,it will allot a Code Number to the employer. Only one Code Number is allotted to a factory / establishment even though functionally it may have more than one unit/sub-unit within the same premises/precinct /station. The Code Number so allotted is required to be indicated by the employer in all his correspondence with the Corporation, Regional Office and Local Office.
Sub-Code No.
b) There may be a case where an employer is having the main factory/establishment at one station and sub-unit, branch office, or registered office at another implemented station, either within the same State or outside that State. In all such cases, Principal Employer is required to furnish necessary details to the Regional Director concerned for allotment of Sub-Code Number to each sub-unit, branch office, sales office and registered office etc.
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The term ‘employees’ as defined in Section 2(9) of the ESI Act, means any person employed for wages in connection with the work of a factory or an establishment to which the Act applies, The term ‘employees’ includes all those persons employed in clerical, manual, skilled, semi-skilled supervisory and unskilled work. The Act does not make any distinction between casual and temporary employee or technical and non-technical employee or time rated and piece rated employee. As per the definition, “employees” fall into the following categories :
i)Those directly employed by the Principal Employer either to work in factory, establishment or elsewhere;ii)Those employed by or through an Immediate Employer (contractor) in the premises of the factory and those employed outside the factory premises under the supervision of the principal employer;
iii)Those, whose services are temporarily lent or let on hire to the Principal Employer or his agent by the direct employer of the person;
iv) Those employed for any work connected with the administration of factory or establishment, department or branch thereof, for purchase of raw material, distribution or sale of the product of factory/establishment etc.;
v)Part time employee of ‘contract of service’.
vi)Employees employed in sales office, depot, head office, administrative office, branch office or any other office dealing with purchase of raw material, distribution or sale of products of manufacturing units or dealing with such matters which ultimately result in sale/purchase, even if situated outside the premises of the factory.
vii)Employees employed for construction/repair, maintenance of building, extension of factory building, repair, whitewashing, machinery repair, loading, unloading, movement of raw material and packing of finished products etc.
While deciding the coverage of an employee falling in category (v) above, a distinction has to be drawn between ‘contract of service’ and “contract for service’. The salient feature of the term ‘contract of service’ are :
a) Master’s power of selection of his servant;
b)The payment of wages and other remuneration;
c)Master’s right to control and supervise the work done by the servant;
d) Master’s right for suspension or dismissal. |
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