CA firm staff not covered by ESI: Gujarat High Court

Oct 29, 2023

The Gujarat high court ruled that a chartered accountancy (CA) firm cannot be considered a shop or commercial establishment but is a professional establishment and its employees are thus not covered under the Employees' State Insurance (ESI) benefit scheme.

The dispute over the inclusion of employees of CA firms has been on for 8 years, when the Employees' State Insurance Corporation (ESIC) issued a recovery notice after assessment to an international professional services network, Deloitte Haskins & Sells.

The firm challenged this before an ESI court, which in 2016 held that a CA firm is not covered under the ESIC Act. It remanded the issue back to the regional director and the dispute was not settled. It finally landed in the HC with Deloitte.

[The Times of India]