Facing Penalties for Double ESIC Registration: How Can We Resolve This Issue?

Dear HR/Sir,

We registered our firm for ESIC on 01.07.2019 and received the ESIC code, but we were unable to create an employee database on the ESIC website. When we approached the office for assistance, the matter remained unresolved from both ends. Subsequently, in May 2022, we sought help from a consultant and were able to create a new ESIC code. We have been compliant and paying all contributions on time since then. Now, we have received a notice from ESIC with a penalty for double registration and are being asked to pay all dues between the old registration date and the new registration date.

Can you help us in this regard?

Devojit Saikia
Ph: [Phone Number Removed For Privacy-Reasons]
Location: Guwahati, India
Tags: employee database, ESIC registration, Country-India, City-India-Guwahati

Understanding the Penalty for Double ESIC Registration

🔍 Explanation of the Situation:
It's crucial to address the penalty situation due to double ESIC registration promptly. When a company inadvertently ends up with two ESIC registrations, it can lead to complications, including penalties. In your case, having a previous registration that wasn't utilized and obtaining a new one has triggered this penalty scenario.

🔑 Steps to Resolve the Issue:
1. 🔱 Assess the Notice: Carefully review the notice from ESIC detailing the penalty and the dues between the old and new registration dates.
2. 🔢 Contact ESIC: Reach out to the ESIC office promptly to explain the situation. Provide documentation showing the timeline of events, including the communication delays and the steps taken to rectify the issue.
3. 🔑 Submit Clarifications: Prepare a formal response outlining the circumstances that led to the double registration and the proactive measures taken to rectify the situation.
4. 🆘 Engage Legal Support: If necessary, seek legal counsel to guide you through the process of addressing the penalty and negotiating a resolution with ESIC.
5. 🆖 Negotiate Payment Terms: Work with ESIC to establish a feasible payment plan for the dues accrued between the two registration periods to mitigate the financial impact on your firm.

📚 Legal Considerations:
Ensure compliance with relevant labor laws and ESIC regulations in India to address the penalty issue effectively. The Employees' State Insurance Act, 1948, governs ESIC provisions, including penalties for non-compliance.

By following these steps and engaging with ESIC proactively, you can work towards resolving the penalty for the double ESIC registration in a structured and compliant manner.