Question

An establishment in Pune has 15 employees and is engaged in manufacturing with the aid of power. Which of the following statements about ESI coverage is correct?

1.
It is covered only if its wage bill exceeds a prescribed limit
2.
It is covered under ESI because it employs 10 or more persons
3.
It is not covered because ESI applies only to 20 or more employees
4.
It is covered only after it completes five years of operation
Answer (Detailed Solution Below)

Option 2 : It is covered under ESI because it employs 10 or more persons

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Detailed Solution

सही उत्तर It is covered under ESI because it employs 10 or more persons है।

Key Points

ESI applies to factories and establishments employing 10 or more persons, so an establishment with 15 employees is covered.

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More Domain-Specific Questions

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Question:

An establishment in Pune has 15 employees and is engaged in manufacturing with the aid of power. Which of the following statements about ESI coverage is correct?

1.
It is covered only if its wage bill exceeds a prescribed limit
2.
It is covered under ESI because it employs 10 or more persons
3.
It is not covered because ESI applies only to 20 or more employees
4.
It is covered only after it completes five years of operation

Correct Answer: It is covered under ESI because it employs 10 or more persons

ESI applies to factories and establishments employing 10 or more persons, so an establishment with 15 employees is covered.

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