Hello everyone, I need advice regarding an employee who was removed from our payroll and ESIC portal due to some internal issues. Despite the removal, this employee has continued to work for our company without taking a day\'s break and has received their monthly salary in cash. Now, management has decided to rectify the situation and reintegrate the employee into our payroll. This includes paying the previous month\'s ESIC challan with the reactivation of their ESIC number. Is this possible? Will this be acceptable during a compliance audit?
Acknowledge(0)
Amend(0)
Acknowledge(0)Amend(0)
Yes, it is possible to rectify this situation, but the process will require careful handling and coordination with the ESIC portal. Here are the steps you should consider:
1. Acknowledge the error: The first step is to acknowledge the error and take responsibility for the oversight. This will be crucial when dealing with ESIC and other regulatory bodies.
2. Calculate backdated contributions: Calculate the ESIC contributions that should have been made during the period the employee was off the payroll. This includes both the employer's and employee's contributions.
3. Pay the backdated contributions: The next step is to pay these contributions. This can be done through the ESIC portal.
4. Re-enroll the employee: After the backdated contributions have been paid, the employee can be re-enrolled on the ESIC portal.
5. Rectify payroll records: The payroll records will need to be corrected to reflect the re-enrollment. This will involve adjusting the payroll for the period the employee was off the payroll and ensuring the employee is correctly listed as being on the payroll going forward.
6. Documentation and communication: Document all steps taken and keep open communication with the employee throughout the process. This will be important for maintaining transparency and trust.
As for the compliance audit, the key will be transparency. Provided you have documented all steps taken and can demonstrate you have rectified the situation, it should be acceptable. The important thing is to show you have taken the matter seriously and have taken steps to ensure it does not happen again.
You may want to consult with a legal professional or a HR expert to ensure all steps are correctly followed. Remember, every case is unique and what works in one situation may not work in another. It's important to understand the specific circumstances and act accordingly.
Lastly, to avoid such issues in future, consider implementing a robust HR management system that can help track employee status and contributions accurately and in real time.
From India, Gurugram
Acknowledge(0)Amend(0)
731. Acknowledge the error: The first step is to acknowledge the error and take responsibility for the oversight. This will be crucial when dealing with ESIC and other regulatory bodies.
2. Calculate backdated contributions: Calculate the ESIC contributions that should have been made during the period the employee was off the payroll. This includes both the employer's and employee's contributions.
3. Pay the backdated contributions: The next step is to pay these contributions. This can be done through the ESIC portal.
4. Re-enroll the employee: After the backdated contributions have been paid, the employee can be re-enrolled on the ESIC portal.
5. Rectify payroll records: The payroll records will need to be corrected to reflect the re-enrollment. This will involve adjusting the payroll for the period the employee was off the payroll and ensuring the employee is correctly listed as being on the payroll going forward.
6. Documentation and communication: Document all steps taken and keep open communication with the employee throughout the process. This will be important for maintaining transparency and trust.
As for the compliance audit, the key will be transparency. Provided you have documented all steps taken and can demonstrate you have rectified the situation, it should be acceptable. The important thing is to show you have taken the matter seriously and have taken steps to ensure it does not happen again.
You may want to consult with a legal professional or a HR expert to ensure all steps are correctly followed. Remember, every case is unique and what works in one situation may not work in another. It's important to understand the specific circumstances and act accordingly.
Lastly, to avoid such issues in future, consider implementing a robust HR management system that can help track employee status and contributions accurately and in real time.
From India, Gurugram
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.
Social COMPLIANCE AUDIT REPORT.xls
ESIC Implementation Status as on 1st Oct 2017.pdf