Type:Trigger Frequency: Quarterly

Action to be taken:
On transfer of an establishment from one employer to another through sale, gift, lease or license or in any other manner, the old and the new employer will be jointly and severally be liable to pay all contributions due under the act for periods before the transfer. The liability of the transferee is limited to the assets obtained by him under the transfer

Audit Requirement:
Where an establishment has been transferred from another employer, has the liability for all dues under the ESI Act been assumed jointly with the old employer >

Supporting Documents:
Written Confirmation of Compliance

Related Triggers:
Transfer Of Establishment/Undertaking
Transfer of Factory Licence

Related Keywords:
ESI (Employee State Insurance)
Transfer of Undertaking

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Related Sections:
Employee State Insurance Act, 1948
Chapter:Miscellaneous| 93-A:Liability in case of transfer of establishment:
Where an employer, in relation to a factory or establishment, transfers that factory or establishment in whole or in part, by sale, gift, lease or license or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer:]
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.