Harsh Kumar Mehta
Consultant In Labour Laws/hr
Pf & Esic Consultant
Prasad P K
Persuing Mba Degree In Hr
Jr. Hr Manager
If any factory or specified establishment is coverable under ESI Act, 1948, but not covered, following penalties etc. will be payable on coverage of the unit lateron as and when detected and found to be coverable:
1. The unit will be covered retrospectively from the very date from which the same qualifies for coverage.
2. The employer will not be able to deduct the employees' share of contributions from the wages of the employees for the past period, but will be required to deposit the same.
3. interest will be liable to be recovered from employer for such late deposit of contributions.
Similar type of provisions exist in EPF & Misc. Provisions Act also.
19th March 2014 From India, Noida
The employer is liable to pay simple interest @12% with effect from 01.10.05 from each day of default.
If any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due for payment, he shall be liable to pay simple interest at the rate of 12% per month or such higher rate as may be specified in the regulations till the date of its actual payment.
RATE OF INTEREST:
Up to 19.10.1989- 6%
20.10.1989 to 31.08.1994 12%
01.09.1994 to 30.09.2005 15%
01.10.2005 onwards 12%
19th March 2014 From India, New Delhi
i dont know how employer is manipulating things. can anybody help us out?
19th March 2014 From India, Ludhiana
The employees getting wages Rs. 30000/- per month (as mentioned by the member in above remarks) are neither coverable under ESI Act, nor under EPF & Misc. Provisions Act. The member has not mentioned as to in what way the employer is manipulating the things.
20th March 2014 From India, Noida
You have to pay both the shares as an employer for the back period.
You cannot recover from the employees for the back period. This will be a big expenditure/burden to the company.
Besides this, you are liable for penal consequences as per acts i.e. you are liable for fine, interest, damages and for imprisonment also.
Please implement soon and try to avoid the same
21st March 2014 From India, Hyderabad
I may mention that the penalties and imprisonment under provisions of Act are not imposed by the Inspectors. On filing prosecution cases by ESIC under relevant provisions of the ESI Act, 1948 the Hon'ble Courts having jurisdiction decide such matters and impose penalties and imprisonments as they consider appropriate in the case. Only under damages provisions, damages are imposed by the concerned Department and that too at senior level after affording opportunity of hearing to the principal employer.
I will request the member, who recorded remarks as above to kindly indicate the provisions of Act/Rules/Regulations which provide for award of penalties and imprisonment by Inspectors.
21st March 2014 From India, Noida
I newly joint in fmcg mfg company and total no. of worker are 350+.
all employee on daily wages and its not more than 250.
and our most of employee are not want to cut his/her PF from his/her salary.
So, I want to know that any kind of policy or rules regarding PF is not deduct form salary.
If any than guide me.
26th March 2014 From India, Ahmedabad
IF the contractor has not contributed PF and ESI contribution then hold his bill (employee contribution 12%+employer contribution 12%+ admin charges1.61%)=25.61% to be hold. This amount will only be released if he shows the PF challans with the ECR copies, else deposit the amt to the PF office). Same applies for ESI also. For ESI (emp's Contri=1.75% and Emp'r contr=4.75, total =6.5% to be hold and will only be released only after showing the ESI challans along with contribution history).
P K Prasad
26th March 2014 From India