INSPECTIONS




Employers will facilitate Inspecting Officers the lawful discharge of their duties and provide full co-operation in collection of all essential information related to coverage, payment of contributions, maintenance of ESI records etc.

The ESI Inspector or any other authorized officer normally sends advance intimation regarding the inspection of records of a factory or an establishment in his area of operation. On such occasions, the essential records and documents are to be kept ready for inspection and produced on demand before the inspecting authority.

If any labour is engaged either directly or through contractor for carrying out the construction work/ repair and maintenance of the premises/ machinery etc. within the covered premises, the record thereof is also required to be produced before the Inspector as contributions are payable on the labour component. The responsibility for payment of contributions rests with the Principal Employer.

Inspections records to be produced

  • Attendance Registers(s)/Muster Roll(s) in respect of all employees including those employed through contractors

  • Wages register

  • Cash Book /Bank Book

  • Accounts Books including Ledgers with profit and loss account, balance sheet, bills & vouchers

  • Employees' Register (Form 7)

  • Accident Book

  • Returns of contribution (Form 6)

  • Returns of declaration forms (Form 3)

  • Copies of challan

  • Inspection book

If any labour is engaged either directly or through contractor for carrying out the construction work/repair and maintenance of the premises/machinery etc. within the covered premises, the record thereof is also required to be produced before the Inspector as contribution are payable on the labour component. The responsibility for payment of contributions rests with the Principal Employer.



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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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