How Do I Handle New Employees Refusing ESIC Registration Without Breaking Rules?

Dear All,

I am new in my company and I am handling all ESIC and PF related tasks for our organization. Currently, two new employees are not willing to register themselves or contribute any amount, despite being informed about the benefits. I am certain that they will not agree.

What should I do to ensure that ESIC does not charge us for violating the rules? Please provide me with guidance.

Achinta
9973787433
akt_aaa@yahoo.com
achinta.aaa@gmail.com

Hi Achinta,

No way it can be. It is mandatory to deduct the ESI contribution and pay it to ESIC; failing to do so will lead to the ESIC suing the company. If the management agrees, you can pay both the employee and employer contributions from the management side, but you cannot avoid the payment to ESIC.

To avoid this type of critical situation, you have to communicate with the employee at the time of issuing the offer letter. They cannot avoid the statutory deductions. If you agree to this, tomorrow some people may ask you not to deduct professional tax and even income tax. Hence, it is better to comply.

Regards,
Kameswarao

Thanks for your kind help. But we are deducting and paid ESIC and EPF on time for other employees. These two are not agreed for ESIC but want EPF registration. They have medical insurance for themselves and so don't want it. Any other way?