Employees Transferred Out of ESI: Do We Need to Notify the ESI Office?

Hi,

In our company, all the employees have moved out of ESI with effect from this month, and we are no longer contributing to ESI. We do not have any plans to hire new employees as we have decided to transfer all the employees to the sister concern. I would like to know if we need to inform the ESI office about this. If so, please guide me on the necessary steps.

Thank you.

Hi,

If you are moving your employee to a sister concern, you have to inform the ESI office because your sister concern will have a separate establishment code, PF, and ESI code. Therefore, it is necessary to inform the ESI office.

Hi Buddy,

If your employees are transferred to your sister concern, then ask your sister concern to register them under their ESI establishment code. That is enough, and your sister concern can contribute to ESI without any problem.

With Regards,
Mr. Thumbs Up

Sir, you have not intimated whether your present company has been closed permanently. If so, you may inform ESIC accordingly. Otherwise, if there are no coverable employees at present, you can ensure to submit a NIL return at the end of each contribution period so that your case may not fall under the defaulter category.

Hi,

We have to pay for the period up to March '16. The current wages and benefits will also be available to employees until September '16. There is no need to inform in such cases, and there is no clause for the middle drop of IPs in this cycle until the individual leaves the job or duties from the employer. Otherwise, if you drop now without paying ESI from the current earnings, it will be non-compliant.

Regards,
Venkat