Can an Employee Be Promoted During ESI Leave Without Legal Issues?

Promotion During ESI Leave

Kindly advise whether an employee can be promoted during ESI leaves. What if, after that, his salary exceeds ESI limits? Can he continue to avail of ESI leaves? Kindly advise whether there could be any legal ramifications for the same.

Thanks & Regards,
C.M. Mohla

There is nothing wrong in promoting an employee while on leave. In the case of accelerated pay scales, the increment comes automatically and is given to persons on leave also unless otherwise agreed upon at the time of granting leave. In the case of ESI leave, there will not be any condition for granting leave, and therefore, there should not be any confusion regarding granting an increment. However, in other cases, where the increment or promotion is declared following a procedure of appraisal, etc., then the management can hold it until he resumes work.

If, due to the increment, his salary exceeds the limit (15,000 as of now), then he will still be under coverage until the end of the contribution period. That means if you are giving a hike now, he will remain under ESI coverage until 31st March 2014. From April 2014 onwards, he will be out of coverage subject to the salary limit at that time. An employee who becomes out of coverage is eligible to receive medical benefits until the end of the next benefit period. Similarly, an employee who is receiving medical treatment for a particular disease will continue to receive the benefit until the ailment exists.

Regards,
Madhu.T.K

Greetings Mohla, In my opinion, Mr. Madhu has given a comprehensive reply. ESI leave is an unforeseen development, and you will appreciate that increments/promotions are given for past performance. However, a word of caution: some employees misuse ESI leave. In such cases, you may have to ascertain his past records and then arrive at a decision.

ESI Coverage and Benefits

As regards ESI coverage and benefits, Mr. Madhu's reply is self-explanatory.

Regards,

Kindly advise whether he will continue to avail ESI leaves on the basis of his ailment even after the end of the contribution period, i.e., even after April (in case his salary increases above 15k gross as per the current assigned limit).

Thanks & Regards,
C.M. Mohla

Thanks for your earnest responses. Based on your responses, it is clear that he will continue to enjoy ESI benefits and leaves until the end of the current contribution period. I would just like to know one last thing here: in case the employee comes out of the ESI ceiling, will his ailment continue to be treated by ESI, i.e., can he continue to enjoy ESI benefits, including ESI leave and medical benefits even after the completion of the current contribution period as long as his ailment exists? Kindly advise.

Thanks & Regards,
Chander Mohan Mohla