Transferring ESI-Covered Employees: How to Handle Reporting and Documentation?

Please suggest in the below-mentioned case:

Mr. X is an employee of XYZ Company working in the branch office in Chennai, and he is an ESI-covered employee. XYZ Company is paying ESI contributions to the Chennai ESI Authorities.

Now, the person is transferred from Chennai to the Mumbai location, and XYZ Company also has an ESI Sub Code in Mumbai. Could you please advise on how XYZ Company should show the employee in the Mumbai location? Additionally, what should be reported to the Chennai ESI authority, and what kind of documentation will be involved in this process?

An early reply will be highly appreciated.

Regards,
Gurgaon HR

Surprised to see 26 views but no reply... Even I am also seeking the answer to this issue for a long time. As you know, all the compliances of ESIC are being done online.

Employee Transfer Process in ESIC

In the case of the transfer of an employee from one subcode to another subcode, for example, Mr. A was transferred on 5th July 2012 from X branch to Y branch. At the time of filing contributions for the month of July, what you need to ensure is to log in to the ESIC ID of the Y branch and insert the employee's name by entering his/her ESIC number and save it. Now, the employee belongs to the Y subcode, and his name will appear in the employee list of the Y branch.

Steps for Uploading Contributions

The second step: When uploading the contributions of the X branch for July, mention the Last Working Day (LWD) of the employee when he transferred to the Y branch.

This is the process I follow in transfer cases from one subcode to another subcode, but I am not sure whether it is the correct process or not. I request experts/seniors to guide us on this issue.

Best Regards,
Amod

ESI Number Consistency During Transfers

The ESI number remains the same even if an employee transfers from one branch to another. Once your ESI number is generated, it will remain unchanged even if you change companies. You can use the online option "Insert IP Details" to enter his/her ESI number and press enter; the other details will automatically appear.

Just try it and let me know if possible.

Regards

You have put a very nice question on Citehr.com. I have discussed this with the branch office and found that whenever you transfer an employee to another state, you need to upload the monthly contribution and show that the employee has left using code no. 2. Alternatively, you may also use the 'Doesn't Belong To This Employer' code no. 12 in the Excel sheet.

In the new subcode, you have to insert the IP details along with the new date of joining, and you may allot a dispensary as per the location because ESIC will only consider the payment of the contribution of the IP. If you use the previous date of joining, you will face problems during the ESIC inspection.

In the above situation, the IP will not face any problems availing of the ESIC benefits. The ESIC subcode will also treat a separate establishment in any state to avail of cash benefits.

In your case, you have to follow the same process. If you still have any doubts, you can share them with me.

Regards,
Sunil Sharma

Chennai branch will submit the #Left service with the last working day in the following month contribution submission (zero salary zero contribution).

Mumbai branch will enroll the IP on the date of joining with the same IP number (issued in Chennai) and would start paying contribution.