Facing ESI Recovery for Job Workers Without Codes: Should We Pay Up?

Hi Seniors, we had an ESI Audit last year. The ESI Inspector ordered us to deposit ESI shares for both employees and employers on the job work amount. Job workers do not have an ESI code because they have only 3-8 workers. Now, the ESI Inspector has issued a recovery letter for Rs 42,000.00 on the total job work amount.

Seeking Advice on ESI Recovery

Please advise if we should submit the recovery amount if we obtain an undertaking from the job workers stating that they do not have an ESI code.

This is very urgent, please suggest.

Regards, Shalu

Understanding ESI Contribution for Job Work

The ESI department has very clear guidelines on where ESI contribution is applicable and where it is not applicable in the case of job work. If you go through those guidelines and find that ESI contribution is applicable in your case, then you have no other option but to pay the contribution amount. However, if ESI contribution is not applicable, then you must write a letter to the concerned authority citing the relevant guidelines and presenting your point of view.

Regards,
Kamal