Saturday, November 17, 2007

No ESI Liability on outside Jobs

No ESI Liability on outside Jobs

The principal employer is not laible to pay ESI on outside jobs executed through contract labour. This clarification has come from the highest court of the land, the Hon'ble Supreme Court.

In the case of ESIC Bangalore V/s JMD Fashions (No. MFA 1089/2001), the Karnataka High Court held that outside establishments are not immediate employers under Section 2(13) of the ESI Act. The ESIC decided to go on appeal against this verdict, before the Supreme Court. The SC in its judgment dated 12.03.2007 dismissed the petition of the ESIC and upheld the decision of the HC.

Recently the MP High Court had also given a similar judgment, stating that in case of job works done by contract labour, there is no element of supervision by the principal employer, and therefore the principal employer will not be responsible for payment of ESI contributions in respect of such contract labour.

Earlier, the ESI authorities had been demanding and in many cases, even recovered the ESI contributions from the employers for outside jobs done by contracted vendors.

ESI contribution on outside job works

Recent judgments in this regard provide relief to employers who outsource work to outside establishments.

As per guidelines prescribed in circulars dated 26.08.2005 and 17.08.2006 by ESI Corporation, New Delhi, the Corporation's inspectors made huge demands of ESI contributions on the employers at the time of periodical inspection, causing undue hardship to the employers.

As mentioned above, the Supreme Court has upheld a verdict of the Karnataka High Court in the ESIC v/s JMD Fashions - MFA 1089/2001 case, that outside establishments are not immediate employers under Section 2(13) of the ESI Act, and so, if jobs are done outside by contract labour, and where there is no element of supervision by the principal employers on such contract labour, the principal labour will not be liable for ESI contribution on job work charges paid to such contract labour.

In a similar case, the Madhya Pradesh High Court has also upheld this view, and has further held that checking of works executed by such outside contractors is a normal activity, for the purpose of finally accepting or rejecting the work done, on the touchstone of job specifications, which cannot be termed as supervision or control.

These decisions have finally set to rest the controversy caused by the decision of a Bench of the Madras High Court in the case of Khaleel Corporation v/s ESIC.

In the light of this, all Associations and Industry Chambers should urge the ESIC, New Delhi to withdraw its circulars dated 26.08.2005 and 17.08.2006.

ESI Contribution on Casual Contractors

The Bombay High Court, relying on Supreme Court judgments, has held that casual contractors like plumbers, electricians, air conditioner repairers, computer repairers, TV repairers, etc who are engaged for temporary repair work will not be coverable under the ESI Act (ESIC vs RK Furniture & Another - 2007 LLR 14).

This should come as a great relief to employers who have for a number of years faced the ordeal of meeting demands for contributions on casual contract works, after every ESI inspection. Apart from the monetary aspect, it was a time consuming and expensive task to cull out from accounting records, payments made for such sporadic engagement of technicians and contractors, and pay ESI contributions.

All Associations and Industry Chambers should urge the ESIC, New Delhi to issue appropriate instructions to its ROs and Inspection staff and reverse the practice of demanding contributions on such casual, stray contracts. Otherwise, the employers will be left with no remedy other than to approach the appellate forum for redressal, every time.

- KASSIA News; August 2007

Courtesy_
http://www.gsia.in

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Search our Blog here

Google
 

Compiled by

முதன்மை நாட்கள்

Disclaimer


This Blog Spot is meant for publishing landmark judgments pronounced by the Court of law as we collected from the renowned Dailies, Magazines, etc., so as to create an awareness to the general public and also to keep it as a ready reckoner by them. As such the readers may extend their gratitude towards the Original Author as we quoted at the bottom of each Post under the title "Courtesy". Furthermore, the Blog Authors are no way responsible for the correctness of the materials published herein and the readers may verify the concerned valuable sources.



Followers

Dinamalar | Court News Feed

Dinakaran | Crime News Feed

Labels

Madras High Court (195) Supreme Court (144) Madurai Bench (52) High Court (44) tamil nadu (42) Advocate (38) Delhi High Court (36) Indian Kanoon (32) Education (30) Divorce (28) Pondicherry (27) Husband (26) Wife (26) consumer forum (23) Lawyers (21) police (20) Cr.P.C. (19) Consumer (18) 2013 (16) Judges (15) Matrimonial case (15) Maintenance (14) Cruelty (13) AIADMK (12) Bank (12) IPC (12) article (12) dmk (12) Criminal cases (11) Hindu Marriage Act (11) Jayalalithaa (11) School (11) Woman (11) election (11) karnataka high court (11) the hindu (11) Bar Council of India (10) Child (10) Compensation (10) Kerala High Court (10) election commission (10) medical (10) Labour cases (9) Madurai (9) Marriage (9) Mobile Phone (9) dinamani (9) evidence (9) pil (9) tamil nadu bar council (9) tax (9) CJI (8) Cell Phone (8) Loans (8) MV ACT CASES (8) Magistrate (8) Rent Control Act (8) State Consumer Disputes Redressal Commission (8) doctors (8) insurance (8) taxation (8) Accident cases (7) Bar Council (7) Constitution (7) Examination (7) Frontline (7) Gujarat High Court (7) Negligence (7) Tenant Landlord (7) court (7) 2012 (6) Allahabad high court (6) Andhra Pradesh High Court (6) Civil Judge (6) Complaint (6) Consumer National Commission (6) Domestic Violence Act (6) Dowry (6) Employee (6) Justice G. Rajasuria (6) Muslims (6) Notification (6) Railway (6) Reservation Quota (6) USA (6) arbitration (6) madras (6) rape (6) rulings (6) sex (6) Airlines (5) College (5) Employer (5) FIR (5) Labour Court (5) Mumbai High Court (5) President (5) Rajiv Gandhi (5) Recruitment (5) Sethusamudram ship canal (5) Student (5) TRAI (5) advertisement (5) appointment (5) bombay high court (5) compassionate (5) deficiency of service (5) fined (5) new delhi (5) Andhra Pradesh (4) BSNL (4) Commissioner of Police (4) Corruption (4) Daughter (4) Death penalty (4) Delay (4) Father (4) Fees (4) Foreigners Act (4) Hindu (4) Hospitals (4) Judgment (4) Judiciary (4) Justice G.Rajasuria (4) Karunanidhi (4) Life Imprisonment (4) Matrimonial House (4) Ministry of Law (4) Private Schools (4) Ram Sethu project (4) Sexual exploitation (4) Suspension (4) Tenant (4) Transfer (4) contempt (4) delhi (4) editorial (4) hindustan times (4) karnataka (4) times of india (4) us (4) Adoption (3) Aircraft (3) Assassination (3) Ban (3) Bank Cases (3) Bigamy (3) CJ (3) Calcutta High Court (3) Cheque (3) Chief Minister of Pondicherry (3) Chief Minister of Tamil Nadu (3) Civil Matters (3) Computer (3) Dinakaran (3) Electricity (3) Encroachers (3) Eviction (3) Gazette (3) Hindu Adoption and Maintenance Act (3) Human Rights (3) Human Rights Commission (3) Income Tax (3) Justice Ashok Kumar (3) Landlord (3) Law Firms (3) Limitation Act (3) Medicos (3) Murder case (3) Muslim (3) NDNC (3) Negotiable Instruments Act (3) Panchayats Act (3) Parents (3) Patent (3) Prisoner (3) Proterty Act (3) Punishment (3) RTE Act (3) Ragging (3) Salaries (3) Selection (3) Smoking (3) Strikes (3) Subramanian Swamy (3) Teachers (3) Telephone (3) Theft (3) Villupuram (3) Witness (3) Woman Lawyers (3) Workman (3) Youtube (3) parliament (3) pmk (3) registration department (3) software (3) stamp act (3) 2007 (2) Aadhaar Card (2) Abortion (2) Absence (2) Acquittal (2) Actor (2) Airport (2) Airtel (2) Amendments (2) Apple (2) Arrest (2) Assault (2) BCCI (2) BCI (2) Britain (2) CBI (2) CBSE (2) CNN IBN (2) Chenai Corporation (2) Child Witness (2) Cigarette (2) Citizenship (2) Coimbatore (2) Collector (2) Companies Act (2) Complainant (2) Congress (2) Copyright (2) Court Fees (2) Date of Birth (2) Dayanidhi Maran (2) Disqualification (2) Driving Licence (2) Drugs (2) EVMs (2) Enrolment (2) Evening Court (2) Eye-witness (2) Family (2) Family Court (2) Foreign Law Firms (2) Freedom Fighters (2) Fundamental Rights (2) Google (2) Grave crimes (2) Habeas Corpus (2) Haldiram (2) Health Ministry (2) Himachal Pradesh High Court (2) ID Act (2) IT Act (2) Impeachment (2) Inter-caste (2) Interest (2) Interim Injunction (2) International Arbitration (2) International Court of Justice (2) Internet (2) Job (2) Justice (2) Justice A.K.Ganguly (2) Justice Dinakaran (2) LPG (2) LTTE (2) Law Commission (2) Law Department (2) Lok Adalat (2) MPs (2) Madhya Pradesh High Court (2) Maharashtra (2) Mark Sheets (2) Medi-claim (2) Men (2) Microsoft (2) Minor Child (2) Municipal Post (2) Municipal Waste (2) Nagapattinam (2) Nalini (2) Nuke Deal (2) PTI (2) Patient (2) Penalty (2) Pension (2) Police Reforms Committee (2) Poll freebies (2) Pregnant (2) Prevention of Corruption Act (2) Prime Minister (2) Property (2) Public Meetings (2) Public Property (2) Punjab High Court (2) RBI (2) RTI Act (2) Registrar (2) Release (2) Reserve Bank of India (2) Retired benefits (2) Review (2) Road (2) SBI (2) SHRC (2) Samacheer Kalvi (2) Sanjay Dutt (2) Self-defence (2) Sikkim (2) Sonia Gandhi (2) State Bar Concil (2) TADA (2) TNEB (2) Tamil New Year Act (2) Tobacco firms (2) Trafficking (2) University (2) Video (2) Vigilance (2) Vodafone (2) Wages (2) Water (2) Websites (2) West Bengal (2) Wikipedia (2) Woman Judges (2) backlog of cases (2) bail (2) customs duty (2) girl (2) laptops (2) legislature (2) service (2) service tax (2) sessions judge (2) tiruchi (2) 100 RUPEE (1) 2001 (1) 2006 (1) 2009 (1) 2014 (1) 6th Pay Scale (1) AIIMS (1) Aadal Paadal (1) Aadhar Card (1) Abuse (1) Accountable (1) Act (1) Adjournments (1) Adverse possession (1) Advocate Cyril Mathias Vincent (1) Advocate M.Kumaran (1) Advocate M.S.Maruthupandiyan (1) Agitating (1) Agreement (1) Agriculture (1) Air India (1) Alien Species (1) Allahabad (1) Allergy (1) Allopathy (1) Amusement parks (1) Answer Sheets (1) Apartments (1) Appearance (1) Arguments (1) Arrears (1) Arunachal Pradesh (1) Ashok Kumar (1) Assembly Speaker (1) Assets case (1) Association (1) Attendance (1) Attention Please (1) Auditors (1) Australia (1) Autopsy (1) Ayodhya (1) BJP (1) Babri Masjid (1) Baby (1) Baggage missing (1) Bank Account (1) Bar Association (1) Batco Roadways' case (1) Bhavani Singh (1) Bhopal gas tragedy (1) Bhullar's mercy plea (1) Big TV (1) Bihar (1) Bill (1) Biscuits (1) Black Sea (1) Bofors case (1) Bonus (1) Boycott (1) Brain-mapping (1) Brothers (1) Burqa (1) Buses (1) Business Line (1) Bye-laws (1) CAT (1) CEC (1) CIC (1) CITY CIVIL COURT (1) CPC (1) CTC (1) CTV (1) Calcutta (1) Cambodian (1) Camera (1) Canada (1) Cargo Ship (1) Caste (1) Cauvery (1) Cauvery Tribunal Award (1) Central Crime Branch (1) Certificates (1) Chennai (South) Forum (1) Chhattisgarh State Bar Council (1) Chief Judicial Magistrate (1) Child Marriage Act (1) Christian (1) Civic Election (1) Civic Elections (1) Code of Civil procedure (1) Commonwealth Games Panel (1) Communal harmony (1) Compounding Offences (1) Condoms (1) Constitution Bench (1) Contract labour (1) Conversion Formula (1) Cooperative Societies (1) Copying (1) Corporation (1) Cosmetic (1) Costumes (1) Court Buildings (1) Cr.P.C (1) Creche (1) Credit Card (1) Cricket (1) Culcutta High Court (1) Current Tamil Nadu Cases (1) Custodial death (1) DGP (1) DK (1) DMDK (1) DNA Test (1) DRT (1) Dalits (1) Damages (1) Dasavatharam (1) Daughter-in-law (1) Death (1) Debarring (1) Deccan (1) Defaulters (1) Degree (1) Departmental Enquiry (1) Derogatory remarks (1) Desertion (1) Designation (1) Destruction (1) Detergent Soap (1) Dharmapuri (1) Directory (1) Disconnection (1) District Judges (1) Don Bosco Matriculation School (1) Don Bosco School (1) Download Links (1) Dozing (1) Dr.Ramadoss (1) Dress Code (1) Driver (1) Drunk driving (1) Dying Declaration (1) EPIC (1) ESI Act (1) EU (1) Education Department (1) Education Loan (1) Elevation (1) Emergency (1) Engineering College (1) Enquiry (1) Entertainment tax (1) Environment (1) European Court (1) Exam Cheaters (1) Exam Marks (1) Exit Polls (1) Experts Committee (1) Expulsion (1) Facebook (1) Fair Criticism (1) False (1) Father-in-law (1) Film (1) Fire (1) Flats (1) Food (1) France (1) French Civil Code (1) French Regime (1) Fringe Benefit Tax (1) Frivolous Petition (1) Garments (1) Gauhati HC (1) Gender Bias (1) Girlfriend (1) Goa (1) Gondas (1) Goods (1) Goons (1) Government Offices (1) Government Officials (1) Governors (1) Govt. sites (1) Grandchildren (1) Gratuity (1) Green Card (1) Gubernatorial (1) Gudalur Janmam Estates (1) Guidelines (1) Guilty (1) HIV Patient (1) HRCE Act (1) Hamam Soap (1) Handcuff (1) Haryana (1) Hawkers (1) Heroin (1) Hewlett Packard (1) Highways (1) Hindu Religious and Charitable Endowment (1) Hindus (1) Hindustan Lever Limited (1) Hindustan Unilever Limited (1) Hoardings (1) Holiday Court (1) Holidays (1) Hostel (1) Hutchison Essar (1) Hyderabad (1) ICICI (1) ICJ (1) ICSE (1) IMDT Act (1) IPL (1) IT Tax Tribunal (1) Identity Cards (1) Illegitimate (1) Images (1) Immoral (1) Impotent (1) Imprisonment (1) Incest (1) Infiltrators (1) Interest rates (1) Interim Orders (1) Interview (1) Invalid (1) Investigation (1) Jammu and Kashmir (1) Jharkhand (1) Journal Section (1) Judicial Officers (1) Judicial Staffs (1) Junction (1) Justice A.P.Shah (1) Justice F.M.Ibrahim Kalifulla (1) Justice G Rajasuriya (1) Justice Rajasuriya (1) Juvenile Justice Board (1) K.R.Narayanan (1) K.Veeramani (1) KFC (1) Kabil Sibal (1) Kachatheevu (1) Karaikal (1) Kerla (1) Khushboo (1) Kidney (1) Kingfisher (1) Kodak (1) Lakes (1) Land Owners (1) Larger Bench (1) Laundry (1) Law College (1) Lawyer Notice (1) Legal Practitioners Act 2010 (1) Leprosy Patient (1) License Fees (1) Lift (1) Links (1) Local Bodies (1) Lok Sabha (1) MCOCA (1) MLAs (1) MNC (1) Malaria (1) Malaysian Airlines (1) Malpractice (1) Mangalore Express (1) Married (1) Mediation (1) Meghalaya (1) Mercy Petition (1) Mizoram (1) Mobile Court (1) Mosquito Bite (1) Mother (1) Motor Vehicle (1) Municipality (1) Mutual Consent (1) NDPS Act (1) NDTV (1) NH 31A (1) NOTA (1) NPT (1) NRI (1) NSA Act (1) Nagaland (1) Nallathambi (1) Narco Analysis (1) National Highways (1) Natural Justice (1) Navarasu murder case (1) Negative Voting (1) Nepal (1) News Today (1) No-confidence motion (1) Non-signatory (1) None of the Above (1) Norms (1) North Carolina (1) Notary Public (1) Notifications (1) Nursing College (1) Obscenity (1) Office Bearers (1) Official Language (1) Oil Companies (1) Online (1) Oral (1) Ordinance (1) Orissa High Court (1) PBA (1) PF (1) PHCs (1) PIB (1) PNDT Act (1) Panorama view (1) Parle Marie (1) Partnership (1) Paternity (1) Patna High Court (1) Patta (1) Pending case (1) Pondicherry Code (1) Pondicherry University (1) Port (1) Possession (1) Postmortem (1) Power (1) Prabha Sridevan (1) Preamble (1) Premarital sex (1) Press Trust of India (1) Prestige (1) Private (1) Private Defence (1) Prize Draw Contest (1) Profession (1) Profile (1) Promotion (1) Prosecution (1) Protest (1) Provident Fund (1) Public Prosecutor (1) Puducherry Code (1) Punjab and Haryana High Court (1) Quash (1) Quattrocchi (1) Quick Links (1) RCOP (1) RDBFI Act (1) RIM (1) RPF (1) Railway Budget (1) Rajasthan High Court (1) Rajasuria (1) Rajya Sabha (1) Re-name (1) Recovery (1) Refund (1) Regional SC Bench (1) Regulations (1) Reinstatement (1) Relatives (1) Reliance (1) Religion (1) Religious Functions (1) Remanding (1) Removal (1) Repeal of Local Laws (1) Respondent (1) Revaluation (1) Rexona Soap (1) Right to Information Act (1) Right to Sleep (1) Rigorous imprisonment (1) Rin (1) Romania (1) Rural (1) SC/ST (1) SMS (1) SPP (1) Sachar Commission (1) Sale (1) Sanction (1) Saree (1) Scam (1) Secretary (1) Section 125(3) (1) Security (1) Senior Advocate (1) Serials (1) Service matters (1) Settlement (1) Shankaracharya case (1) Sheristadar (1) Ship (1) Sivaji Ganesan Statue (1) Sleeping (1) Soap (1) Son (1) Special Marriages Act (1) Sri Lanka (1) Sri Meenakshi Sundareswarar Temple (1) State Govts. (1) Suicide (1) Sukanya (1) Surgery (1) TNPSC (1) TV (1) Tamil Links (1) Telecom (1) Telegraph Act (1) Temples (1) Thanthai Periyar (1) Third Party (1) Thirunelveli (1) Ticket Bookings (1) Ticket less Journey (1) Tide (1) Time-barred matters (1) Title suit (1) Toronto (1) Trademarks (1) Traffic (1) Transfer Certificate (1) Transport Authority (1) Travels Agent (1) Trees (1) Tripurar (1) Turban law (1) USE Act (1) Ukraine (1) Union Carbide Corporation (1) Union Minister (1) Universities (1) Uttarakhand (1) Uttaranchal (1) VAO (1) VRS (1) Vacuum Cleaner (1) Vakalat (1) Vaseline (1) Verbal (1) Video Poker (1) Video-conferencing (1) Vijayakant (1) Visa (1) Voters (1) Voting (1) Wakf (1) Watchman (1) Who's Who (1) Word (1) Workmen Compensation Act (1) Wrong Provision (1) Yahoo (1) architects (1) azhagiri (1) british airways (1) churidar (1) deccan herald (1) delh (1) double taxation (1) e-Library (1) eBay (1) eCourt (1) ebc (1) farmers loan waiver (1) germany citizen (1) guideline value (1) guruvayur devaswom (1) hMatrimonial case (1) helmet (1) india (1) law and order (1) nawaz sharif (1) pakistan (1) pakistan supreme court (1) practical lawyer (1) practitioners (1) pratiba (1) promise (1) rules (1) sand mining (1) southern districts (1) uk (1) warrants for cash scam (1) தூக்கம் (1)