Section 41 of ESI Act : Section 41: Recovery Of Contribution From Immediate Employer
ESI Act
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Explanation using Example
Imagine a construction company (the principal employer) hires a subcontracting firm (the immediate employer) to provide labor for a project. The construction company pays the Employees State Insurance (ESI) contributions for these workers, which includes both the employer's and the employees' shares. According to Section 41(1) of the Employees State Insurance Act, 1948, the construction company can recover the ESI contributions it paid for the subcontracted workers from the subcontracting firm. This cou...
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