Can Employers Use Another Company's ESIC Code for Employee Deductions? Seeking Advice

Dear seniors, is it possible for an employer without an ESIC code to deduct the ESIC contribution from employees and make the payment using the code of another employer, other than the principal employer?

Absolutely wrong way. Every company has a different account and a different balance sheet. So, where should expenses be shown and where should they raise bills? Please advise them to choose a correct and separate way. Don't make "khichri."

Dear Kumar Sir, the establishment has decided to shut down the business. To generate a new code, they have to deposit 6 months' advance contribution, but they only have a liability of 2 months. So, isn't it possible that they show that they have outsourced the business to a third party onto which they deposit the ESIC contribution?

This is simply not possible. Ask them to have their own code, and without a proper ESIC code, they cannot do this because nowadays ESIC is online. How do they file monthly contributions? It's simply unethical.

Regards,
Pampa

Can anyone tell me if the ESIC card is mandatory for employees who are covered under ESIC? What is the duration to receive an ESIC card? Despite reminders, my payroll company has not provided ESIC cards to any employees. What should I do?

Regards,
Maitry

Clarification on ESIC Code Application

Okay, let me be the one to clarify. Do not apply for the ESIC code; instead, inform your local office manager or inspector to assess your company. This way, you will not have to make the 6-month advance payment because the contribution will be given after the generation of the ESIC Code. If your company is considering shutting down, then apply for the surrender of the ESIC Code.

On the other hand, as mentioned above, your contribution will be refunded if the company shuts down. In other words, any excess payment will be given back to the employer or the company.

Stay cool,
Atom

It is not a good method. In case of any untoward incident, it will be a great problem. Please ensure to take the ESI Code and remit it to your account only.

Regards,
D. Gurumurthy
HR/IR Consultant

Even if the job is outsourced through proper documentation and a contract is awarded, changing the roles of workmen onto the new contract with an ESIC code remains the responsibility of the principal employer to obtain the ESIC code. It is advisable to obtain the code yourself.

Dear seniors, is it possible that if an employer does not have the ESIC code and deducts the ESIC contribution from employees, they can make the payment using the code of another employer, not being the principal employer?

Possible Solution for ESIC Code Issue

Yes, it is possible if you introduce yourself as a subcontractor of the contractor to whom you want to submit ESIC.

Regards,
Raj Kumar Sharma