ESI applicability when total number of employees fall below the agreed limit, as prescribed for ESI coverage

This query has easy explanation. To explain this we need to take reference of an amendment of the ESI Act in Section 1(6) of the Act with effect from 20-10-1989.

It has been mentioned in said amendment of the year 1989 that a factory or an establishment shall continue to be governed by ESI Act notwithstanding that the number of employees 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.

Hope this small write up will give insight about pertained subject.

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