ESIC issued a circular regarding the filing of contributions in respect of employees who are on ESI leave

Jan 25, 2023 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Employees' State Insurance Corporation (ESIC) on January 24, 2023, issued a circular regarding the filing of contributions in respect of employees on ESI leave.

It is stated that the audit party regularly observes that contribution is being filed by the employers in respect of the period, during which the employees are on ESI leave. The issue is that the audit recommends recovery of payment given by the ESI Corporation to compensate for the loss of wages on the ground that the employer has already paid the wages to the employees during the ESI leave period. It is understood that in most cases, it happens due to negligence on the part of the employers when the contribution is filed in respect of their employees. In this regard, please note that once you file a contribution in respect of any employee by entering a certain number of days and a certain amount of wages, against their names in any month, it clearly speaks that these employees have been paid the amount of salary for the corresponding number of days in that month, which you have furnished against their names while filing monthly contribution, which you cannot deny at a later stage.

Therefore, it is requested to be careful while filing contributions and please don't file contributions for those days, during which period your employees are on ESI leave. It is hereby warned that if such incidents are repeated in future the leave amount paid by the ESI Corporation for such days will be recovered from the employees and further action as per provisions of the ESI Act will be taken against the employer for wrong filing of contribution. Please take it as a collective responsibility of employees and employers.

[Circular No. 48.S.11.13.04.2018/INSPN.SROK/Vol III]


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