OBLIGATIONS



OBLIGATIONS
  1. Obligation of the Employers under the ESI Act and Rules and Regulations made there under are summarized as under:-

  1. Get your Factory/establishment registered within 15 days after the Act becomes applicable. Submit Form01 to the Regional Office for this purpose. Obtain Employers code No. for use in all ESI Forms/documents and correspondence with the offices of the ESI Corporation.
     

  1. Fill up Declaration Forms in respect of all coverable employees and submit the same to the Regional Office/Local Office of the Corporation well before the Appointed day and obtain Insurance Number from the concerned Local Office/Regional Office. In respect of newly appointed employees, fill up the Declaration Form soon after appointment of such employees and submit the same to the local office concerned.
     

  1. Pending receipt of identity cards/identity certificates you may issue Certificate of employment in Form 86 to the covered employees enabling them to avail cash/medical benefits.
     

  1. Pay ESI contributions (Employers share @ 4.75% of the wages and the employees share @1.75% of the wages) within 21 days of the month following, in which the wages fall due.
     

  1. Maintain an Accident Book as prescribed under the factory Act/ESI Act.
     

  1. Submit an Accident Report to the Local Office/ESI dispensary concerned immediately in respect of accidents that could result in death or disablement and within 24 hours of its Occurrence otherwise. Minor accidents which do not cause absence from work need not be reported.
     

  1. Grant leave to insured employees on the basis of sickness certificates issued by any authorized ESI doctor.

  1. Record Maintenance

    1. Attendance Register in respect of all the employees including employees engaged through immediate employer/contractor
    2. Wage Register
    3. Register under Regulation-32
    4. Accident Book
    5. Cash Book/Books of Account, Ledgers, petty cash book including bills and vouchers
    6. Other relevant records to show the labour charges paid to the labour engaged in construction, repair & maintenance etc
    7. Inspection Book
       

  1. Submit return of contribution within 42 days of the expiry of contribution period.

  1. Furnish any requisite information promptly as and when asked for by the Regional Office/Local Office/any other office of the Corporation/Scheme.

  1. Facilitate proper inspection of factory/establishment by any authorized officer of the Corporation and produce before him all relevant records on demand.

  1. Intimate the date of closure or shifting (temporary or permanent) of the factory/establishment to the Regional Office/Local Office within seven days of its closure or shifting.

  1. Promptly report any change in the business activity, ownership of the concern or its management.

  1. Ascertain the liability towards ESI dues, while taking over the ownership of any factory/establishment by purchase, gift, lease or license or in any other manner whatsoever as new owner is liable to discharge the past liabilities if any.

  1. Maintain proper sanitation for a hygienic and healthy environment within the workplace and in residential quarters if allotted to the insured persons.




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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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