In a recent clarification Circular dated 28th January 2020, addressing Regional Directors/Directors/Regional Offices and Sub-Regional Offices, the Employee State Insurance Corporation (“ESIC”) has informed that the Authorised Officers will not be permitted to ask for any records, relating to the contributions made by the employer to the ESIC, beyond five years from employers for conducting test inspection/inspection.
This is in sync with the Proviso to Section 45-A(1) of the Employees’ State Insurance Act, 1948 which states that the time limit of five years must be strictly followed in determining the contributions and issue of speaking orders by the authorised officers. It has reasoned that since contribution cannot be determined for the period beyond five years, the Social Security Officer cannot ask for any records beyond 5 years from the employer for inspection.
What led to this clarification?
The ESIC had received several representations from employers regarding the demand of records beyond five years period by ESIC officials for conducting test inspection/inspection. Hence, this Circular was issued.
Source: Employee State Insurance Corporation
