Legal Question in Employment Law in India

I have a automobile job work and establishment.in mumbai since past 35 years. I never had 10 employees. I was having 8 employees and 2 freelancers and currently have only three employees. But I am paying esic for employees and have been paying for 10 years. Although because I never had 10 employees, I was not even suppose to pay esic. Now I am closing my establishment and my workers have approached union and esic to seek gratuity. The union leader and esic officers are seeking bribe from me and threatening me everyday. Please tell me what to do?


Asked on 5/11/14, 12:16 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

11.05.2014

Dear Sir / Madam,

If your employees were loyal to you and worked for you for 35 years, they are bound to expect that you adequately financially reward then at their time of retirement, in recognition of their hard work and efforts in your business. The ESIC and other Government authorities may construe that you were having 10 employees, taking into consideration the two freelancers as deemed employees. Refrain from paying any bribes as it is a criminal offense liable to punishment, both for the giver and the receiver. You should draw up a feasible reward scheme for employees in the 5-10 years, 11-15 years, 16-20 years, 21-25 years, 26-30 years and above 30 years service bracket, so as to benefit them at the time of their retirement from service.

Regards,

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Answered on 5/11/14, 3:33 am


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