preizin
Hi all,
We are IT Company, at present we have 8 employees and ESI is not applicable on any of the employees.
But in 2013 we had 2 employees coverable under ESI which is unpaid till date ? How do we settle this matter.?
Further we had also appointed from 2013, Housekeeping which was coverable under ESI through an agency...the agency is not willing to pay the ESI and has denied of registering itself.
Being a principal employer, we are now liable for their ESI contribution, How do we settle this matter and how do pay the amount for the housekeeping?

From India, Kolkata
riteshmaity
243

Currently you have 8 employees.
What was the total number of employees in 2013?
ESI Act becomes applicable when there is 10 or more employee. Was your organisation covered in 2013? If yes, once covered under this Act, you will remain covered forever even if the total strength of employees go below 10.
And if the contract does not pay the statutory dues, then the liability is on the principle employer to pay the dues.
Have you got any notice like c-11 and c-18 or order u/s 45A of the Act. If yes, please contact a lawyer immediately with all your documents and give proper reply. Otherwise, the quantum of demand from the ESI Corporation will keep on rising and there is no way to escape it.

From India, Kolkata
preizin
Our employee strength in 2013 was above and it was applicable.
We have no intentions of evading any dues. We want to clear it as soon as possible.
No such demand has been raised. However we have been inspected by an ESI inspector.
What's the best was to end this matter ?

From India, Kolkata
Harsh Kumar Mehta
923

1.Sir, whether code number was issued to your factory/unit/establishment ? If so, from which date your unit was covered under ESI Act, 1948 and rules/regulations framed thereunder ?
2. If your unit has been inspected by the Social Security Officer of ESIC of your area, then it is expected that he must have submitted his report. If so, what are the contents of his report and whether any demands have been raised by the said department ?
3. Hope, in case of any doubt you should have furnished the complete facts on which you require any opinion of seniors and experts.

From India, Noida
preizin
1.Sir, whether code number was issued to your factory/unit/establishment ? If so, from which date your unit was covered under ESI Act, 1948 and rules/regulations framed thereunder ?
2. If your unit has been inspected by the Social Security Officer of ESIC of your area, then it is expected that he must have submitted his report. If so, what are the contents of his report and whether any demands have been raised by the said department ?
3. Hope, in case of any doubt you should have furnished the complete facts on which you require any opinion of seniors and experts.
1) Yes, Code has been generated. w.e.f. 01.01.2013
2) Yes he has, coverable person 2 and 2 security guards from contractor who has not paid ESI. No such demands has been raised till yet.
The contractor has straightaway denied making the payment. We have deducted the money and have to pay it on his behalf. How do settle this matter?

From India, Kolkata
Harsh Kumar Mehta
923

1. Sir, you have not replied to para 2. What were the observations of ESI Inspector (Social Security Officer) after he completed his inspection. Whether he has issued any MEMO OF OBSERVATIONS after completion of his inspection ? Whether he has entered the facts of his inspection in the INSECTION BOOK maintained by the principal employer.

2. When your unit is covered w.e.f. 1/1/2013, you were required to make compliance from said date. Even if contractor denies or refuses to make compliance, ultimately principal employer is responsible for such default. The provisions of ESI Act, 1948 are not optional. This fact must be well known to your contractor. A period of 3 years have elapsed and therefore, the said department has all the powers to assess contributions on adhoc basis under section 45A, and also levy of interest @ 12% as well as Damages under section 85-B of said Act.

3. House Keeping employees are also employees of the unit within the meaning of said Act. The said Act does not differentiate between regular, contract, casual, temporary or work - charged etc. etc. employees and coverage of the unit is decided by including all such persons engaged and accordingly principal employer is required to make compliance accordingly in respect of coverable employees. Under above circumstances, I can only suggest to kindly contact the concerned officer of ESIC, produce the complete records (if not already produced) for inspection and make compliance immediately.

From India, Noida
preizin
After he completed the inspection he gave a copy of his report which mentioned the number of cover-able persons which was quoted as two and two security guards.
Thank you Harsh, your reply helped a great deal.

From India, Kolkata
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.