The Gujarat High Court recently made a decision stating that a chartered accountancy (CA) firm should be classified as a professional establishment rather than a shop or commercial establishment. Consequently, the employees of the CA firm are not eligible for the benefits provided under the Employees' State Insurance (ESI) scheme.

The debate regarding the eligibility of employees from CA firms has persisted for eight years. It began when the Employees' State Insurance Corporation (ESIC) issued a recovery notice to Deloitte Haskins & Sells, an international professional services network, following an assessment.

The firm contested this decision by taking the matter to an ESI court, which, in 2016, determined that a CA firm does not fall under the coverage of the ESIC Act. Subsequently, the matter was referred back to the regional director, and the dispute remained unresolved. It ultimately reached the High Court with Deloitte as the involved party.