ESI law in India is a welfare measure adopted by the Government to provide social security to the workers of a certain class through the ESI law in India. The Employees State Insurance Scheme is a self financing and self regulating social security scheme of the Central Government of India which is controlled by the Standing Committee at the National level and by the Regional Boards and Local Committees at the local level. ESI law in India requires the mandatory registration of a factory, establishment to which the Act applies. Under the ESI law in India, the employers are bound under Section 2A of the ESI Act to get them registered with the ESIC within a period of 15 days of the applicability of the Act on them. The registration form for coverage of an establishment under the ESI law in India is filed at the concerned Regional Office which issues a code to the employer after proper verification of the establishment, with the opening of further branches the sub codes are allotted to them. The employer has to deposit his share of 4.75% of the wages of the employee and also to deduct and deposit 1.75% from the share of the employee. The control over the entire mechanism is through the Regional Offices, Sub Regional Offices, and Sub Offices. The Inspectors of ESI visit the various establishments and conduct the inspection of ESI for seeking compliance of the ESIC Act. Esi law in India thus makes the obligations of the employer to comply with the provisions of the ESI law in India.
The establishments employing more than 20 employees is under obligation to get the code under ESIC, almost all kinds of establishments are covered under the ESI Act and are bound to get themselves registered however a distinction of the establishments which are not to be covered is also made, there are notifications issued for exempting the establishments which are not covered under the ESI. The following types of establishments are covered under the ESI law in India:
• Shops employing more than 20 employees who are getting wage less than 15,000/- Per month.
• Hotels or restaurants not having any manufacturing activity, but only engaged in sales.
• Cinemas including theaters.
• Road Motor Transport Establishments.
• News paper establishments.
• Private Educational Institutions including medical institutes.
The following categories of employees are exempted from coverage under the ESIC scheme under the ESI law in India:
i) All employees working under the establishment are covered under the ESI, irrespective of the fact whether they are employees of the contractors or the direct employees, the overall responsibility of the coverage is on the principal employer.
ii) The employees who are getting the wages more than Rs 15,000/- Per Month are not entitled to the benefits of ESIC.
iii) The employees with disability getting more than Rs 25,000/- PM wages are exempted.
The present rate of contribution is 4.75% of the wages payable to an employee, rounded off to the next higher rupee as the share of the employer whereas the share of the employee is 1.75% of the wages. The deduction and not deposit of the contribution of the employees is also treated as criminal breach of trust which is punishable under Section 406 of IPC. There is a provision of the penal interest on the delayed deposits of the ESI contribution by the employers under the ESI law in India.
The individual employee is also granted registration under the ESI scheme and he is issued an I Card which is now termed as Smart Card, he can avail all the benefits from the ESIC on the said card. The employees are entitled to various kinds of medical benefits, sickness benefits, extended sickness benefits, enhanced sickness benefits, disablement benefits, employment injury benefits, occupational diseases benefits, temporary disablement benefits, permanent disablement benefits, dependents benefits, maternity benefits, funeral benefits. It is clear that the ESI law in India is mandatory and obligatory for a certain class of the employers and casts a legal obligation to deposit the contributions and comply with the returns under the ESI law in India.
OUR SERVICES UNDER THE ESI LAW IN INDIA:
- Legal advice on issue and planning and compliance for coverage of the workers under the ESI law in India.
- Legal services pertaining to filing and obtaining ESI coverage for establishments under the ESI law in India.
- Services for filing of ESI contributions, ESI returns and other related and ESI compliance services.
- Services related to facilitation of inspections of establishments by ESI authorities.
- On call legal services for any contingent and urgent matter related to ESI law in India.
- Challenging the orders of assessment passed by ESI authorities against the establishments.
- Retainership services for ESI law in India.
- Contesting prosecution proceedings launched under the ESI law in India.