New Definition Of Factory as per ESI Amendment Act, 2010

New Definition of Factory

ESI Act has been amended by way of Gazette notification dated 25th May 2010 with effect from 1st June 2010.

"Factory" means any premises including the precincts thereof - whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on but does not include a mine subject to the operation of the Mines Act, 1952 or a railway running shed;



Old Definition of Factory

“Factory” means any premises including the precincts thereof-
(a) whereon ten or more persons are employed or were employed FOR WAGES on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or
(b) whereon twenty or more persons are employed or were employed FOR WAGES on any day of the preceding twelve 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;

Omitted Words
FOR WAGES
with the aid of power
without the aid of power

Amendment In ESI Act wage ceiling

Employees' State Insurance (Central) Amendment Rules, 2010.

Government of India has approved to enhance wage ceiling from Rs.10,000/- P.M. to Rs.15,000/- P.M. Now employees drawing salary up to Rs.15000/ P.M. will get this Act coverage.
Revised wage ceiling shall come into force from the l " day of May, 2010, as published notification by Government of India dated 20th April 2010.