Facing a Surprise ESI Compliance Issue: How Should I Handle This Legal Summons?

I have a beauty salon with an employee strength of 6 to 7 persons. An ESIC inspector visited and asked us to register for compliance. I mentioned that we were not eligible, so I requested an excuse. However, upon scrutinizing all documents, the inspector found that in one particular month, there were 9 employees listed in the attendance register due to a transition/change in staff.

The inspector has now filed a case alleging that we had 11 employees, comprising 9 employees and 2 directors. A summons has been sent for Rs. 266,000.00 for payment of dues and arrears with penalties since May 2013.

Please advise...

Dear Biswajit,

It appears from your presentation that your organization may be covered under ESIC. Without going through the detailed papers, it is difficult to conclude whether your organization will be covered under ESIC or not, and if at all covered under ESIC, what will be the liability. You may contact me if you would like to further discuss.

Thanks & Regards,

S. K. Bandyopadhyay
+9198310 81531
Email: skb@usdhrs.in
Website: www.usdhrs.in