The Employees' State Insurance Corporation ("ESIC") issued a notice dated December 3, 2019 in relation to the requirement of registration of employee with ESIC within ten days from the date of appointment by the employer, in accordance with Regulation 10B read with Regulation 11 and Regulation 12 of the Employees' State Insurance (General) Regulations, 1950. As per the said notice, several representations were made by the employers to ESIC indicating inconvenience arising due to the restriction in the system not allowing online registration of employees where date of appointment is more than ten days before from the date of registration. In this regard, ESIC approved the following:
- That the system will allow registration of employees where difference between the date of appointment and the date of registration is displayed more than 10 days.
- That the employer will be required to submit relevant reply or records within 15 days of issue of show cause notice to the concerned regional office/sub regional office in the proforma as prescribed under the notice:
- If the employer fails to provide the relevant records to the concerned regional office/sub regional office within stipulated time, the date of registration will be deemed as date of appointment;
- If employer provides relevant records within stipulated time, regional director/ authorised officer shall verify the records and will either:
- accept the date of appointment as declared by employer and the employer shall be able to file the contribution of the employees from the date of appointment; or
- reject the date of appointment as declared by the employer, and the date of registration will be deemed as date of appointment.
- The regional director /authorised officer shall issue an order regarding acceptance or rejection of the date of appointment of each employee.
- In any case the date of appointment shall not be prior to 1st day of previous contribution period.
DSK Legal's Observation: Prior to the issuance of the notice by ESIC, employers had to register the new employees with ESIC within 10 days of their appointment. Thereafter, registration of new employees with ESIC was not possible as the online system did not accept the new registration post 10 days. The restriction to get the 9 new employees registered with ESIC within 10 days from their appointment caused a lot of inconvenience to the employers. With the issuance of the notice, ESIC has provided a longer duration to the employers to register new employees with ESIC.
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