Confused About ESI Contribution Notice: How Do I Handle This HR Challenge?

I am working as an HR manager for a construction company. I am new to this field and joined this company just 2 months ago. There was no HR person before me, so most of the work related to ESI and PF was done through a consultancy firm. The company was enrolled for ESI/PF in October 2011. Just a few days ago, we received a notice for nonpayment of contribution for the month of September 2011 and a delayed payment receipt for October 2011 to May 2012. The company has been remitting the contribution on time. When I called and asked the consultancy firm why we received a delayed payment receipt, they said the company was registered in January, but we have to pay from October. I did not understand anything. Kindly tell me how the procedure works.

Regards,
Mimosa

I hope you are aware that registration will be done under the EPF/ESIC when the eligible number of employees (20 or more) is reached in any establishment. Since you mentioned that your establishment was registered in October '11, please verify the number of eligible employees and their "Date of Joining" based on the September attendance. If 20 or more eligible employees joined in September '11 or before, then contributions need to be paid for September '11.

Regarding the delayed payment, it may be the fault of the consultant. Please pay the penalty and resolve the issue amicably. Ensure that moving forward, contributions are paid before the 21st of every month.

Thank you.

Thank you for the post. I spoke to the consultants, and they mentioned that the project was initiated in September. However, there have been delays in the procedures, resulting in us having to pay a fine. Nevertheless, as you mentioned, we will need to pay the penalty.

Regards,
Mimosa

Handling EPF and ESI Issues

There are two different issues: one is related to EPF and the other to ESI. You have to deal with each case separately, each being related to EPFO and ESI respectively. First, check the Coverage Letter issued by these authorities, where the date of coverage must be shown. If the date is October, they cannot ask for payment and penalty for September unless they shift back the date of coverage. For this, they will have to give you the opportunity to hear your views before shifting the date.

For any further queries, kindly contact me.

Regards,
A.K. CHANDOK RPFC (Retd.)
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