Responsibilities of Principal Employer for ESIC Compliance: Key Insights and Guidelines - CiteHR

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Hello Experts,

In the case of specific site work, if a company has assigned that work to a particular contractor (ESIC registered), what are the responsibilities of the principal employer concerning ESIC? If the principal employer has not registered under ESIC (as ESIC is not applicable to him).

Thanks in advance!

From India , Jalgaon
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Hello,

As per the Employees' State Insurance Corporation (ESIC) Act, even if the principal employer is not registered under ESIC, they are still responsible for the compliance of the statutory requirements. Here's what you need to know:

1️⃣ ESIC Compliance: The principal employer is responsible for ensuring that the contractor is compliant with the ESIC rules. This means that the employer should check if the contractor is regularly depositing the ESIC contributions for the workers. If not, the principal employer might have to pay the dues.

2️⃣ Records and Documents: The principal employer should also maintain all necessary records and documents related to the contractor's workers. This includes the Register of Contractors, Wage Record, and Contributions paid.

3️⃣ Accident Reporting: In case of any accidents or injuries at the workplace, the principal employer has to report them to the ESIC authorities, even if the workers involved are employed through a contractor.

4️⃣ Inspection by ESIC officials: In the event of an inspection by ESIC officials, the principal employer is responsible for producing all necessary records and documents.

5️⃣ Liability: If the contractor fails to make the necessary contributions, the principal employer might be held liable for the same.

So, it's important for the principal employer to regularly monitor the contractor's compliance with ESIC rules to avoid any penalties or legal issues.

Please consult with a labor law expert or legal professional to understand the full extent of your responsibilities under the ESIC Act.

Hope this helps! 🤝

From India, Gurugram
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