ESIC Latest Updates : ESIC Payroll Updates

ESIC Employee Enrollment within 10 days

Dear All,

Attention provisions of Section 11 of THE EMPLOYEES’ STATE INSURANCE (GENERAL) REGULATIONS, 1950 which deals with Declaration by person in employment on appointment day in Form 1. This section implies that employees who are entitled to be enrolled under ESIC shall submit correct particulars with his/her photograph and that of his/her family] required for the purpose of Form-1 which is declaration Form) either before or on the appointed day. We should read appointed date as date of joining of employee for the purpose of this communication.

Section 14 deals with declaration forms to be sent to jurisdictional ESIC Office, where the employees are covered, in return form 3 within ten days of the date on which the particulars for the Declaration Forms were furnished. This implies that all Form 1 collected should be submitted to the Office of ESIC from the date of joining of the employee.

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Submission of return form 3 physically was a process to be followed in pre-digitization era. Post digitization submission of form 3 were no more required and all information collected have to be feeded at ESIC Portal.

Very quietly and calmly ESIC Office has implemented the provision of section 14 which is w.r.t submission of information to ESIC Office within ten days of joining of employees.

Enforcing implementation of provision of section 14 implies that enrollment of employees at ESIC portal post 10 days of joining will not be allowed. We are also sharing a screen, while employees are enrolled, which reflects the implementation of the same.

Also while submitting the declaration employee has to give shall submit correct particulars with his/her photograph and that of his/her family. In present practice because of inefficiency of data employers have been enrolling employees with mandatory information and are neither capturing family details and photograph as detailed in Section 11. ESIC system may going forward make this mandatory that any submitted at the time of enrollment w.r.t family shall be final, and you cannot add any new member who existed at the time of joining like the way private insurance companies presently. Changes can be done only for members who have joined/left the family post the date of joining of employee. We also have an apprehension that photograph with family would also become necessary to be uploaded for enrollment.

From ESIC Act perspective the only difference is that in pre-digitization era FORM 1 collected has to be submitted along with return form 3 to ESIC Office and post digitization Form 1 has to be kept by the employer and information collected in form 1 has to be submitted online at ESIC Portal (which is Form 3)

Everyone needs to gear up to ensure that all eligible employees get enrolled at ESIC portal with correct information within 10 days of joining.

Also, If in case process not followed, it will count as noncompliance and non-deposition of ESI dues.

Thanks!

Anupam Mittal