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Question

Establishments like hotels, restaurant, clubs, road motor transport undertakings, cinemas, shops and newspaper establishment employing ______ or _____ persons are bound by the ESI Act.

A
10 or more
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B
20 or more
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C
20 or less
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D
10 or less
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Solution

The correct option is B 20 or more
According to the notification issued by the appropriate Government concerned under Section 1(5) of the Act, the following establishments employing 10 or more persons attracts ESI coverage.
(i) Shops
(ii) Hotels or restaurants not having any manufacturing activity, but only engaged in 'sales'.
(iii) Cinemas including preview theatres;
(iv)Road Motor Transport Establishments;
(v) News paper establishments.(that is not covered as factory under Sec.2(12)); (vi)Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions. In some states coverage is for 20 or more employees for wages. A few State Governments have not extended scheme to Medical & Educational Institutions.

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