E ploy o er e r O b O lig i atio i n

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1 A Presentation on Employees State Insurance Act, Employers obligation & Amnesty Scheme 2010 Complied by Surendra Kumar R. Suri Advisor welcomes you

2 Employer Obligation 1. Submission of Form 01 within 15 days from the day Establishment /Factory become coverable under ESIC Act Employer have to Apply for Sub-code Nos. for different Branches in India and within the cites 3. Every Year in January the Employer have to Submit details of Factory/Establishment employment position /Ownership in Form 01-A 4. Payment of contribution are to be ensured on or before 21 st of the following Month 5. To Maintain Employees Register under Form 6 6. Half Yearly Return is to be submitted on or before 12 th May and 11 th November Digit Insurance No. In form 5 and 6 are to be recorded

3 All employee drawing salary Up to Rs.15000/- p.m. are covered under the act Person drawing up to Rs 70 Per day no Employees Contribution is to be deducted technical or non-technical regular or casual permanent or temporary daily rated or weekly/monthly rated time-rated or piece-rated male or female willing or unwilling

4 Register all employees by submitting declarations filling Form 1 to the respective Branch office along with Form no 3 in triplicate within 10 days under Regulation 12 & 14 For Physically Handicapped Employees gross salary up to Rs 25000/ the Employer has to submit separate Form No 3 in Triplicate. & Employer Contribution will be paid by the central govt for first Three Year after 1 st Apr 2008

5 Obtain Temporary Identity Certificates / Permanent photo Identity cards of your employees on registration then and there Regulation 17

6 Do not fail to hand over the TIC or the photo identity card to the respective employee as soon as received from the Branch office of the ESIC Remember, the photo identity card is the property of your employee and should be with him. Employer has no right or business to detain them

7 Employers are identified by their individual employer s code number and employees by their individual insurance number Always quote them in your reference/ correspondence.

8 Issue certificate of continuing employment in Form ESIC-37 on demand, to enable your employee to get medical treatment in the absence of entitlement confirmation. ESIC-37 is a must for medical treatment if you are yet to submit RC for the relevant contribution period

9 ESIC 37 is not required, if the live list and the wanted Ins no. in the list, are very much available. ESIC 37 is required, if you have submitted your RC already in time and still the ESI Dispensary has not received the relevant live list

10 Indiscriminate demand and issue of ESIC-37 is cumbersome and refer to ESI Dispensary concerned or to us for remedy.

11 Issue certificate of employment in ESIC-105 to your employees while on tour or authorised leave at outstation localities to enable your employees to take medical treatment (valid for 3 months)

12 ESIC 105 is not required for family of an employee if the family resides in a different place(either in or out of the State) A separate photo identity card for family (ESIC-4A) can be obtained on application from the Branch Office

13 Submit Accident Report to Branch Office / IMO (in Form 12) within 24 hours in ordinary cases and immediately in the event of death of employee under regulation 68. Accident are covered which occurs during the course of employment and out of employment this also covers accident happened when transport provided by Employer. Post Amendment the accident taken place while coming from Residence to Factor/Establishment or vice versa will be treated as an Employment Injury In fatal Accident the Employer has to ensure for providing Police Panchnama and postmortem report and details of dependants of insured person Render first aid to the injured person and take him to the nearest ESI Dispensary/ Hospital immediately

14 Contribution In respect of Immediate Employer 1.If already registered under ESIC act 1948 obtain Copy of Form 6, Attendance,Wage Sheet & Copy of Form no 5 of Such Employee Who work for you 2.If Not registered recover contribution and take following documents i.e. Wage sheet & Attendance under Regulation 32 (1 A)

15 Notices From ESIC Office 1.Please Don t Ignore any Notices received from ESIC office. 2.Submit the necessary reply and invariably 3.Don t Miss any Personal hearing if afforarded by the ESIC Authority

16 Penal Provision under ESIC 1.Section 84 Punishment for false statement the corporation can prosecute any person /Insured Person for obtaining any benefit under ESIC Act for false Statement /False representation 2.Section 85 ( a to g) Punishment for failure to pay contribution & also breach of any provision under ESIC Act the Employer can be prosecuted and pay offence provided will result in fine or imprisonment or both 3.Section 85(A) Enhance Punishment after previous conviction under this provision the punishment result in Fine and Imprisonment

17 Interest and Damages 1. Under Regulation 31 A Interest on contribution due but not paid in time would attract 12 % P.A. for each day of default or in delay in payment of contribution 2. Under Regulation 31-C Damages on contributions not paid in time may attract 5 % to 25 % damages on contribution due

18 Inspections 1. ESIC Inspector appointed under Sec. 45 under ESIC act will send a proper intimation in advance for conducting inspection once in two years. 2. First Inspection the employer has to produce all the records for formation / commencing of factory/ Establishment to decide the final date of coverage.

19 Sickness benefit Payment of contribution for atleast 78 days in the relevant contribution period 91 days in any two consecutive benefit periods Standard benefit rate (not less than 60% of daily wages)

20 Extended Sickness benefit Continuous employme nt for a period of 2 years and payment of contributio n for at least 156 days in 4 contribu tion periods. up to 2 years in deserving cases 140% of the standard benefit rate (not less than 70% of daily wages

21 Enhanced Sickness benefit Payment for atleast 78 days in the relevant contribution period 7 days for vasectomy and 14 days for tubectomy extendable in case of post operative complication etc. Twice the standard benefit rate.

22 Permanent disablement benefit No contributory condition For life Up to 70% of the Standard Sickness Benefit rate.

23 Temporary disablement benefit No contributory condition Till Injury heals Up to 75% of the Standard Sickness Benefit rate.

24 Dependant s benefit No contributory condition To widow/widows for life or until remarriage. To legitimate or adopted son/ unmarried daughter till age of 18 years. To legitimate infirm son. To legitimate adopted son/unmarried infirm daughter till infirmity lasts. To widowed mother Upto 70% of the Standard Sickness Benefit rate (not less than 70% of daily wages to be divided among the dependants in the prescribed ratio.

25 Maternity Benefit Payment of contribution for 70 days in immediately preceding two consecutive periods. 12 weeks of which not more than six can precede the expected date of confinement; 6 weeks for mis- carriage and additional one month for sickness arising out of confinement, premature birth of child or miscarriage Double the Standard Benefit rate (Not less than full wages)

26 Medical Bonus Insured Women or Insured Person in respect of His wife are entitled for medical bonus for Rs 2500/- provided the confinement occurs at a place where necessary medical facilities are not available under ESIC institutions

27 Medical benefit No condition. IP and his family is eligible from the day one of his insurable employment. To start with for a period of 3 months or till the spell of treatment lasts whichever is later and thereafter based on payment of contribution Full medical care. Facilities including hospitalisatio n for insured person and family.

28 Funeral Expenses No condition. Diseased IP should be an IP or if the Person is in receipt of PDB on the date of death. One time payment Actual expenditure on funeral not exceeding Rs. 5000/-

29 Rehabilitation allowance No contributory condition For each day on which insured person remains admitted in Artificial limb centre for fixation / repair or replacement of artificial limb. Double the standard sickness benefit rate but not less than full wages

30 Vocational Rehabilitation Insurable employment Upto 40% permanent disablement and below 45 years age. Till such training lasts at a recognized centre / institute

31 Medical Benefit to disabled insured persons On payment of Rs. 10 per month in lump sum for one year in advance The Person in receipt of PDB is entitle for Medical Benefit till the date of Superannuatio n Full medical care for self and spouse only.

32 Medical Benefit to retired persons On payment of Rs. 10 per month in lumpsum for one year in advance (who leave insurable employment o n attaining the age of superannuation after being insured for not less than five years) Period for which contribution is paid Full medical care for self and spouse only.

33 Rajiv Gandhi Shramik Kalyan Yojna 1. Rajiv Gandhi Shramik Kalyan Yojna came into effect from 1 st of April The insured person should have contributed under the ESI Scheme for a minimum period of three years prior to loss of employment 3. The insured person should have been entitled for sickness benefit during the last four contribution periods immediately proceeding the date of unemployment 4. The maximum period for which an insured person shall be entitled to draw unemployment allowance during his entire insurable employment, One year. The allowance can be availed in one spell or in different spells of not less than one month

34 New Amendment passed by parliament on 6 th May 2010 The age limit of the dependants has been enhanced from 18 to 25 for the purpose of dependants benefit. It will benefit large number of workers. It extended social security benefits to those apprentices who are covered by Standing Orders and also to those trainees whose training is extended to misuse exemption granted to apprentice from provisions of the ESI Act. The definition of Factory under Section 2(12) has been amended to facilitate coverage of smaller factories and cover all factories which employ 10 or more persons whether these are run by power or without power. DG-ESIC is being made Chairman of Medical Benefit Council to improve quality of medical benefits. It has added the benefit for workers for the accidents happening while commuting to the place of work and vice versa; The exemptions shall be granted only prospectively as the ESIC already has made provision of infrastructure to provide service to the IPs for the past period The procedure for determination of contribution has been streamlined to avoid harassment of employers as the Inspectors now no more to inspect the books of accounts of the establishment beyond five years as under present system of unlimited period. It extended medical treatment to those who retire under Voluntary Retirement Scheme or take premature retirement

35 New Amnesty Scheme will commence from 1 st Mar 2010 till 28 th Feb 2011 Scheme to withdraw court cases filed U/s 84,8 5&8 5-AO F ESI Act Settlement of case filed U/S 75 of the ESI Act 1948 The employer pay interest in full No Damages will be levied. New Amnesty Scheme If records are not available the rate of Monthly contribution paid for the Month prior to the month from which default started Monthly wages declared in Form No O1 OR Monthy wage report repoerted by Insurance inspector in the survey report OR Minimum wages applicable in the state/region

36 Project Pechan ( Biometric Cards) All Insured Persons will be issued with two magnetic cards, one for the Insured persons & the other for family members Central database will be created with demographic and biometric details of Insured persons and their families. Insured Persons and their family members can avail treatment in any ESI Hospital or dispensary across India. Biometric details (finger prints) to verify and authenticate Insured Persons and their families through card swipe. Employers can submit their Return of Contribution online Employers can collect information on employees benefit availed by respective employees online. One time registration. Employees will carry forward with same set of cards every time they change employment. Duplication of enrolment can be avoided ESI Corporation has tied up with several Private Hospital in various state/region for Super Speciality treatment Thank You For a patient hearing S. R. SURI