Duties Of Employers



Duties Of Employers


An employer will apply in Form-01for coverage under the ESI Act, within 15 days after the Act becomes applicable to a factory or establishment.

The employer will submit Declaration Form in respect of all coverable employees in the unit.

The employer will collect temporary identity cards from the Branch Office concerned followed by permanent photo identity cards and pass them on to the employees concerned.

The employer will deposit both employee's and employer's contribution as per specified rates within 21 days of the following month.

The Employer will maintain an Accident Book and submit accident reports to the Branch Office, involving insured worker(s) on the job, within 24 hours of an accident.

The Employer will maintain all such records and registers as are required under the Act and produce them for verification/inspection before the authorized officers of the Corporation.

The employer will facilitate proper inspection of records/registers and the premises by visiting officers of ESIC as and when so required.

The employer shall submit half-yearly return of Contribution (RC) by 12 th May/11 th November every year with all columns properly filled.

The Employee shall indicate insurance number of IPs in chronological order in the return of contribution and his own code number in all correspondence

The employer will not make any false declaration or misrepresentation of facts, concerning the applicability of the act, or, admissibility of benefits to employees—regular, hired or contractual.

The employers will ensure that contribution is paid in respect of all contract labour , badli and casual workers drawing wages upto Rs . 10,000/- a month (excluding remuneration for overtime).

The employer will promptly report the date of closure of a factory/establishment to the ESIC Branch Office/ Regional Office, preferably within seven days of such closure and clear ESI liabilities.

The employer will report any change in business activity, address, ownership or the management to ESIC authorities forth with.

An employer will also ascertain the liability towards ESI dues, while taking over the ownership of a factory/ establishment through purchase , gift, lease, licence or otherwise as the new owner is liable to discharge past liabilities.

The employer will submit Form 01A in respect of its unit/establishment every year.

An employer will apply in Form-01for coverage under the ESI Act, within 15 days after the Act becomes applicable to a factory or establishment.

The employer will submit Declaration Form in respect of all coverable employees in the unit.

The employer will collect temporary identity cards from the Branch Office concerned followed by permanent photo identity cards and pass them on to the employees concerned.

The employer will deposit both employee's and employer's contribution as per specified rates within 21 days of the following month.

The Employer will maintain an Accident Book and submit accident reports to the Branch Office, involving insured worker(s) on the job, within 24 hours of an accident.

The Employer will maintain all such records and registers as are required under the Act and produce them for verification/inspection before the authorized officers of the Corporation.

The employer will facilitate proper inspection of records/registers and the premises by visiting officers of ESIC as and when so required.

The employer shall submit half-yearly return of Contribution (RC) by 12 th May/11 th November every year with all columns properly filled.

The Employee shall indicate insurance number of IPs in chronological order in the return of contribution and his own code number in all correspondence

The employer will not make any false declaration or misrepresentation of facts, concerning the applicability of the act, or, admissibility of benefits to employees—regular, hired or contractual.

The employers will ensure that contribution is paid in respect of all contract labour , badli and casual workers drawing wages upto Rs . 10,000/- a month (excluding remuneration for overtime).

The employer will promptly report the date of closure of a factory/establishment to the ESIC Branch Office/ Regional Office, preferably within seven days of such closure and clear ESI liabilities.

The employer will report any change in business activity, address, ownership or the management to ESIC authorities forth with.

An employer will also ascertain the liability towards ESI dues, while taking over the ownership of a factory/ establishment through purchase , gift, lease, licence or otherwise as the new owner is liable to discharge past liabilities.

The employer will submit Form 01A in respect of its unit/establishment every year.


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APPLICABILITY OF THE ACT & SCHEME:

 Is extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.15,000/- per month w.e.f. 01.04.10. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals.

COVERAGE OF EMPLOYEES:

 Drawing wages Upto Rs.15,000/- per month Engaged either directly or thru’ contractor

RATE OF CONTRIBUTION OF THE WAGES:

 Employers’ 4.75%

 Employees’ 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION:

 The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due.

BENEFITS TO THE EMPLOYEES UNDER THE ACT:

 Medical Benefit
 Sickness Benefit(SB)
 Maternity Benefit(MB)
 Disablement Benefit
 Dependants’ Benefit(DB)
 Funeral Expenses

 In addition, the scheme also provides some other need based benefits to insured workers.

WAGES FOR ESI CONTRIBUTIONS:

 Registers/files to be maintained by the employers

CONTRIBUTION PERIOD:

 If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

TO BE DEEMED AS WAGES:

• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)

NOT TO BE DEEMED AS WAGES:

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation
• Benefits paid under the ESI Scheme.
• Encashment of leave
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance for livery
• Conveyance Amount towards reimbursement for duty related journey

PENALTIES :

 Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

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