Can ESIC Demand Payment for Employee Contributions from Five Years Ago? Seeking Advice on Legal Grounds

ESIC Corporation Notice: Payment Demand for Old Contributions

I have received a notice from the ESIC Corporation asking me to pay the employee contribution, which is five years old. As I am unaware of this and my company doesn't have any record related to that notice, I just want to know, can ESIC Corporation demand such an old payment that was due five years ago, or can it be discarded if it is five years old?

If I pay, they will also charge our organization with 12% interest per annum and 25% damages per annum, although they have not given any reminder notice in these five years.

Please let me know if there is any ESIC law stating that the Corporation cannot demand payment due over five years.

Regards, Pratish Biniwale

Dear Pratish,

The liability for making ESI contributions lies with the employer, not the employee. Therefore, please scan the notice and attach it to this discussion. Section 77(1)(b) of the ESI Act 1948 sets a limitation of five years for the recovery of contributions from the employer. There is no mention of recovery from the employee.