The Employees State Insurance Corporation (“ESIC”) has, in an office letter dated 3rd December, 2019, informed that employers will be allowed to register employees with the ESIC the system of online registration (“System”), even where the difference between the date of appointment and the date of registration is more than 10 days, subject to the following conditions:
While registration of employees, where the difference between the date of appointment and the date of registration is more than 10 days, on the System, a pop-up message will be displayed requiring the employer to either accept or reject the conditions of registration of the employee.
In case of:
- Acceptance by the employer: The insurance number will be allotted to the employee and a Show Cause Notice (“Notice”) will be issued to the employer on the registered mail ID.
The Employer will be then required to submit the relevant reply or records, within 15 days of issue of the Notice, to the concerned Regional Office or Sub-Regional Office in the prescribed format. [Please refer to the attached document for the format]
- If the employer fails to submit such relevant records within the stipulated time, the date of registration of the employee will be considered as the date of appointment.
- If the records are submitted by the employer within the stipulated time, the Regional Director or the Authorized Officer will verify the same and either
(i) accept the date of appointment as declared by the employer, allowing him to file contribution of the employees from the date of such appointment, or
(ii) reject the date of appointment as declared by the employer and consider the date of registration as the date of appointment.
2. Rejection by the employer: The System will re-direct the employer to change the date of appointment.
The ESIC has informed that the Regional Director or the Authorized Officer will issue an order of acceptance or rejection of the date of appointment of each employee being registered.
The ESIC has also clarified that, in any case, the date of appointment of an employee cannot be prior to the 1st day of the previous contribution period.
Background:
In light of the office letter dated 21st November, 2019, as reported in the trail mail, by which the ESIC had imposed restriction on employers from registering their employees on the System beyond 10 days of their appointment, the ESIC had received many representations indicating inconveniences arising out of the restriction introduced.
Hence, the ESIC issued this office letter.
Source: Employees State Insurance Corporation
