General Rule of Applicability

• ESIC is generally applicable to employees earning wages up to ₹21,000 per month.
  
• Interns may or may not be considered employees based on their engagement terms.
  
• The key factor is whether the intern receives regular wages or stipends.
  
• If the intern qualifies as an employee under the ESIC Act, coverage may apply.
  
• Nature of duties, duration, and wage structure influence applicability.
  

Stipendiary Interns vs. Contractual Trainees

• Interns receiving academic training or educational exposure are usually not covered.
  
• Medical or engineering interns under university guidelines may be exempt.
  
• Contractual trainees or apprentices under direct employer control may be covered.
  
• If interns perform regular work and earn wages, they may fall under the Act.
  
• The classification depends on the terms of appointment and ESIC guidelines.
  

Criteria That May Trigger Coverage

• The intern works under the supervision and control of the employer.
  
• The intern receives a fixed monthly payment considered as wages.
  
• The engagement does not fall under the Apprentices Act, 1961.
  
• The intern’s work and pay resemble regular employees.
  
• There is no mention of “training only” or educational linkage in documentation.
  

Exemptions from Applicability

• Interns engaged solely for academic credit or professional qualification are exempt.
  
• Those covered under any specific training scheme or central apprenticeship act are excluded.
  
• Casual or unpaid interns with no formal employment contract are not covered.
  
• Interns engaged for observation without payment are not liable for ESIC.
  
• Interns with stipend paid by institutions and not by the company are also exempt.
  

Best Practices for Employers

• Clearly define the status of interns in appointment letters or internship agreements.
  
• Avoid treating interns as employees unless they are hired in that capacity.
  
• Consult ESIC or a legal advisor when in doubt about intern coverage.
  
• Maintain separate records for interns and full-time employees.
  
• Ensure proper classification during ESIC audits or inspections.