Hello, everyone.
My query is, one of my friend's companies deducts their ESIC contribution from their salary, but does not submit it to ESIC. This has been happening for the last 6 months. Now, the ESIC hospital or dispensary refuses to attend the case and tells your employer that the contribution has not been submitted from your side.
What is the solution for this? Please suggest the right path.
From India, Fatehgarh
Acknowledge(0)
Amend(0)
My query is, one of my friend's companies deducts their ESIC contribution from their salary, but does not submit it to ESIC. This has been happening for the last 6 months. Now, the ESIC hospital or dispensary refuses to attend the case and tells your employer that the contribution has not been submitted from your side.
What is the solution for this? Please suggest the right path.
From India, Fatehgarh
Acknowledge(0)Amend(0)
Lodging a Complaint with the Commissioner ESIC
You need to lodge a complaint with the Commissioner of ESIC. Read more here: https://www.citehr.com/444048-how-co...ng-pf-esi.html.
Relevant Clauses of the ESI Act
Chapter - IV: Contributions
38. All employees to be insured. — Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act.
39. Contributions. — (1) The contribution payable under this Act in respect of an employee shall comprise the contribution payable by the employer (hereinafter referred to as the employer’s contribution) and the contribution payable by the employee (hereinafter referred to as the employee’s contribution) and shall be paid to the Corporation.
(2) The contributions shall be paid at such rates as may be prescribed by the Central Government: Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees’ State Insurance (Amendment) Act, 1989 (29 of 1989).
(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.
(4) The contributions payable in respect of each wage period shall ordinarily be due on the last day of the wage period, and where an employee is employed for part of the wage period or is employed under two or more employers during the same wage period, the contribution shall fall due on such days as may be specified in the regulations.
(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve percent per annum or at such higher rate as may be specified in the regulation till the date of its actual payment: Provided that the higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45C to section 45-I.
Supreme Court Ruling on ESIC Damages
The Supreme Court has ruled that the Employees State Insurance Corporation (ESIC) cannot levy damages for employers’ failure to deposit contributions of employees and establishments. The existence of mens rea (guilty mind) to contravene a statutory provision must also be held to be a necessary ingredient for the levy of damages and/or the quantum upon the employer, said the apex court. Read more at: http:////economictimes.indiatimes.co...campaign=cppst
From India, Bangalore
Acknowledge(0)Amend(0)
1159You need to lodge a complaint with the Commissioner of ESIC. Read more here: https://www.citehr.com/444048-how-co...ng-pf-esi.html.
Relevant Clauses of the ESI Act
Chapter - IV: Contributions
38. All employees to be insured. — Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act.
39. Contributions. — (1) The contribution payable under this Act in respect of an employee shall comprise the contribution payable by the employer (hereinafter referred to as the employer’s contribution) and the contribution payable by the employee (hereinafter referred to as the employee’s contribution) and shall be paid to the Corporation.
(2) The contributions shall be paid at such rates as may be prescribed by the Central Government: Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees’ State Insurance (Amendment) Act, 1989 (29 of 1989).
(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.
(4) The contributions payable in respect of each wage period shall ordinarily be due on the last day of the wage period, and where an employee is employed for part of the wage period or is employed under two or more employers during the same wage period, the contribution shall fall due on such days as may be specified in the regulations.
(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve percent per annum or at such higher rate as may be specified in the regulation till the date of its actual payment: Provided that the higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45C to section 45-I.
Supreme Court Ruling on ESIC Damages
The Supreme Court has ruled that the Employees State Insurance Corporation (ESIC) cannot levy damages for employers’ failure to deposit contributions of employees and establishments. The existence of mens rea (guilty mind) to contravene a statutory provision must also be held to be a necessary ingredient for the levy of damages and/or the quantum upon the employer, said the apex court. Read more at: http:////economictimes.indiatimes.co...campaign=cppst
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESIC-Contributi on-Transfer-For m.pdf