Dear All, Today, the ESIC Labour officer visited our office. I am the HR person for my branch. She has given the inspection date for 17th September 2013. This will be my first time facing an inspection. I am requesting the respected seniors to help me understand how to be prepared to face this. Of course, I will be getting in touch with our HO for support, yet valuable input from this forum would be highly helpful.

Regards,


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NPMB
16

Please go through the points and prepare yourself for inspection.

1. Make sure that you have every month's ESIC paid challan (up to July 2013).
2. Ensure that your company maintains an ACCIDENT BOOK under regulation 66 of the Employee State Insurance (General) Regulations, 1950.
3. Verify that your company has submitted the half-yearly return in FORM 5, which is certified by the Chartered Accountant.
4. Confirm that each employee is covered under the ESIC Act and has an ESIC number.

Regards,
NPMB

From India, Jamshedpur
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Please note that the ESI inspector is aware that you are responsible for maintaining and paying the ESI for your staff. They will review your annual accounts, including the Profit and Loss statement and expenses. You must ensure that the annual salary aligns with both the annual accounts and your monthly worksheet. Additionally, you should present the cash expenses, maintenance expenses, and any professional fees.

Regards,
Aslam Sha

From India, Madras
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Thank you very much for the feedback. We have not been maintaining an accident register. Can we get one from legal bookshops and make the entries? In most cases of accidents, the employees were treated at private hospitals. Even then, should these books be maintained, right?

I spoke to our Finance Person regarding the accounts books. He mentioned that we employ labor for many day-to-day activities, and their payments are settled through petty cash. ESIC is not paid for them. This could also become a problem.


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Note on Employee Payment Compliance

Any person employed on the premises of the company must be paid. You can explain this to the ESI inspectors; they are generally cooperative if you do not hide any information, and they may ask you to pay the amount now.

From India, Madras
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Make sure that your employees are covered under ESI numbers, i.e., ₹15,000 salary as per the ESI Act. You should not have the practice of saving company money by deducting 50% of ESI for a few employees. Instead, remit the payment, ensuring it is covered for all employees as per the act.

ESI Deductions

ESI should be deducted on the gross amount, including overtime. All relevant documents should be kept ready along with the monthly challan and return.

Branch-Specific Payments

If you have separate branches, a sub-code should be received, and payments should be made to that specific location.

Thank you.

From India, Chennai
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NPMB
16

Dear Aslamsha123, ESIC inspectors never inspect your profit and loss accounts or your expenses; this is not under their jurisdiction. This will be verified under the Company Act, not the ESIC Act. An ESIC manager works under the jurisdiction of the ESIC Act.
From India, Jamshedpur
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