vishaldudhate
53

Dear All,
I work for a company which has PAN india presence. due to oversight ESIC of some employees has not been deducted for the past 10 months.
please advise what should i do now?whether to recover from employee or should i start deducting from this month?
what will be the impact in case of Esic inspection?

From India, Mumbai
Aniket Pathak
94

Start deducting from this month. wait for inspection you may have to amount with interest and damages.
From India, Pune
Aniket Pathak
94

Start deducting from this month. employees wont welcome the deduction for the period passed. wait for inspection you may have to pay the amount with interest and damages. Also, you can hide those employees and show their joining from this month. Although, ITS NOT ADVISABLE NEITHER EASY as its unethical.
From India, Pune
maniish1311
49

Dear Vishal,
With all due respect to Mr. Aniket, I will differ from him. You have to pay the arrear for all the months by creating supplementary challans for pending employees. Regarding whether to recover it from employees or not, that decision has to be taken by your management. As a HR, you should bring this to the notice of management and discuss the issue with them. Ignorance is not an excuse. If you're not paying the arrear then in future it will lead to higher interest and damages in inspection.
Regards,
Manish

From India, Ahmedabad
247HRM
5

You can deduct and pay all the pending months. But you will be penalized for the same.
From India, Hyderabad
Harsh Kumar Mehta
923

1. Sir, I feel that the question you raised is doubtful or has not been fully explained.
2. Kindly intimate whether such employees were working in any of implemented areas or in non-implemented areas. Coverage of each and every employee is to be examined based on coverage under section 1(3) or under section 1(5) of ESI Act, 1948. The term "pan India" appears to be vague so far as compliance under said Act is concerned.

From India, Noida
PRABHAT RANJAN MOHANTY
581

Dear Vishal,
This is gross negiligence or implied action which simply can not be told oversight. Whatever the reason may be you start deposit the ESIC contribution of current month along with the past period. You write a letter to your ESIC local offices a copy mark to RO office that X amount is for the left-out period for Y number employees. If you do so the penalty & interest amount would be up to the date of your remitance or otherwise will be calculated on the date on which ESIC would conduct audit. You need to discuss first with the local manager of ESIC taking him in confidence. The deduction from employee would create problem as against the contribution they can not be considered contributor for that period, since time elapsed. You are lucky, within this 8 months nothing has happened to these left-out employees or otherwise you all would have in soup.

From India, Mumbai
Venkata Vamsi Krishna Patnaik
199

Dear Vishal,
I could not understand one thing here. How can some employees be excluded while others are paid?
Is there any pay roll system for your implementation?
How did the finance team and Senior Management allow? It is a total system lapse.
Please check out the provisions and make immediate payment from now to all also in arrears.
Inform your Management about the mistake and prepare them for the penal amounts on arrears.

From India, Hyderabad
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