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With effect from 1.6.2010, section 2(12) of the ESI Act was amended to cover all factories whereon 10 or more employees are employed on any day of the preceding twelve months and in any part of which manufacturing process is being carried on or is ordinarily so carried on.

Further, Section 2(9) of the ESI Act has also been amended from 01-06-2010. In view of the amendment:: ALL APPRENTICES and TRAINEES appointed under the Standing Orders of the Factories/Establishments are covered under the provisions of the ESI Act.

What are the implications of the amendment to Sec. 2 (12) ?

Possible implications of amendment to Section 2(9) are::

In some establishments, trainees are inducted even without any stipend on "no charge no payment" basis -What is their status ?

In some establishements, trainees are charged for imparting training to them. What is their status ?

can you provide the go

My interpretation of the amendment is given below, with a request that members may like to add further to the interpretation.
Para-1/Section 2(12) of the ESI Act,1948- The details mentioned pertain to Sec 2(12)-(a).
Sec.2(12)(b) which reads as under IS DELETED. (sEC 2(12) ( QUOTE:whereon 20 or more persons are employed or were employed for wages on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on, but does not include a mine, subject to the operation of the Mines Act,1952 or a railway running shed. UNQUOTE

In other words, the ESI Act is applicable to the Factories whereon 10 or more employees are employed (and not 20 employees), w.e.f 01-06-2010.

Further, only those Apprentices and Trainees appointed under the Standing Orders of the Factories/Establishments are covered under the provisions of the ESI Act.

All other Trainees. inducted on ' no-charge-no payment' basis or charging the trainees for imparting training, are not normally appointed under the Standing Orders of the Factory/Establishment. Hence THEY ARE NOT COVERED UNDER THE ESI ACT.
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Members may like to add further to what has been mentioned above.