Navigating ESIC Enrollment: How to Handle Employees Opting Out in a Small Company

Dear Seniors,

I want to know about ESIC rules. If a company is new and has 30-40 employees, and also has ESIC, but there are only 10 employees who have ESIC, and the rest don't want to enroll in ESIC, what should I do for the employees? Kindly suggest a better option for the betterment of the employees.

Thanks and Best regards,
Gaurav S. Rathore

There is no question of employees' willingness. ESIC is statutory for all employees whose salary is less than 15K. There cannot be a better option than this. You need to cover all the employees under ESIC and remit contributions monthly without fail.

Sir, the provisions of the ESI Act, 1948, and the rules/regulations framed thereunder are statutory in nature, compulsory, and there is no option.

As an HR or a responsible officer for compliance with labor laws, including the aforementioned Act, one has no choice. In case of default, the consequences include the levy of interest, damages, and even prosecution of the principal employer as stipulated under the said Act.

Hi, ESIC is mandatory for all employees having a salary below 15k/month. Importantly, it remains the employer's responsibility to enroll all employees under this scheme. However, the only alternative I know is to give people contractual joining rather than full-time, where ESIC and PF are not mandatory.

Thanks,
Balkrishna Dadhich
Conscious Foundation

Sir, employees working on a contract basis are also covered under the said Act, and compliance in respect of these contractual employees is also required to be met.

As per Act No. contractual workman cannot be deployed for work inside the factory premises without registration under ESI. Even the company needs to deposit contributions of daily wage workers as and when required for construction/civil work.

Regards,

Rajender Singh