TIPS FOR EMPLOYERS



TIPS FOR EMPLOYERS




  • Declaration Forms in Form-1 to be filled in properly for registration of employees. The Form should contain all relevant information asked for in respect of each coverable employee and submitted to the Branch Office concerned within ten days of entry into insurable employment. Before filling Declaration Form it should be ensured that the worker was not insured under the ESI Scheme in the past. If so, the old Insurance No. should be indicated in the Form.



  • All fresh entrants into the insurable employment should be advised to furnish two post card size family photographs (of IP and dependants only) with the Declaration Form to the appropriate Branch Office. In case of online submission of Declaration Form Photographs of IP, Family, IPs Signature can be uploaded through Employer's Login.
 



  • Temporary Identification Certificate annexed to the Declaration Form may be obtained from the Branch Office Manager with his seal and signature and issued to the insured employee forthwith. In case of online submission, TIC can be permitted to print at Employer's end,subject to complete data and photographs uploaded.
     



  • On receipt of Permanent Identity Cards from the Local Office the same should be passed on to the insured employees without delay.
     



  • In order to facilitate a newly insured person to avail medical benefit under the Scheme in absence of an identity certificate!' identity card, a 'Certificate of Employment' may be issued to the insured person in Form 86. This certificate, issued by the employer, remains valid for three months but can be revalidated for a further period not exceeding 3 months.
     



  • 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.
     



  • Whenever events, such as, marriage birth or death entails any additions or deletions in the family particulars of an insured person, the requisite information has to be conveyed by the employer in 'Form 1-B to the Branch Office within 15 days from the occurrence of such a change.
     



  • On re-entry of a person into insurable employment or, where an insured person had been disentitled to medical benefit due to non submission of Return of Contribution, the employer may issue a 'Certificate of re-employment' or 'continuing employment' to such person in Form ESIC 37. This certificate will enable the Insured Person to avail medical benefit from the date of issuance.




  • If an insured employee needs a change of dispensary due to any valid reasons an application may be mad in Form 'ESIC53'.




  • Accident Report in respect of an insured employee may be submitted immediately in case of death or serious injury and in other cases within 24 hours of an accident. For this Form 16 be filled up in triplicate and one copy each forwarded to the Branch Office and Dispensary: Form-32 may also be submitted along with the accident report in case an accident has occurred prior to the commencement of the first Benefit Period of the IP to enable the Branch Office determine the rate of Disablement Benefit.




  • Whenever an Insured Person goes out of station on duty or leave he may be issued a certificate in Form ESIC 105. This will enable him and his family to avail medical treatment in ESI Dispensaries/hospitals elsewhere, if available at such outstation.




  • If any insured person is in need of a duplicate identity care, an application may be made to the Branch Office Manager in Form ESIC 72.




  • Return of Contribution may be submitted in time with all relevant particulars neatly filled up against all insured persons with Insurance Numbers in ascending order. Remember, any inadvertent deletion may debar an Insured Person from availing benefit due to him/her.



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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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