SPREE- Scheme to promote registration of employees/employers

1 Jan 2017

The ESI Scheme under 2nd Generation Reforms, titled as ESIC 2.0 has been striving hard to evolve itself to serve India's workforce with utmost efficiency, keeping pace with time and technology, tying to narrow down digital divide and bringing in reform initiatives. The Scheme is being implemented to entire district in 393 partially implemented districts and to district HQs in non-implemented districts, thus extending social security benefits. A new Rule 51B is also inserted for the newly implemented areas to pay contribution @4% (3% being Employers contribution & 1% Employees contribution).

The Employers are required to register Factory/Establishment under ESI Act within 15 days (under Regulation 10B) after the Act becomes applicable to the unit and also required their employees immediately. The Principal player shall pay the Employees" and Employer's contribution (section 40) Damages are recoverable for non-payment for non-payment of any dues in time (Regulation 31C).

Provisions for punishment for failure to pay contribution are defined under Sec 85(a) to (g) of the Act Sec 85B provide power to recover damages as an arrear of land revenue.

A one-time drive is being initiated, which intends to extend the social security benefits to all-eligible under the Act, who have till now been kept out of the ESI coverage and open for the period wef 20th Dec ' 16 to 31st March ' 17, according to a communiqué released recently.

Salient features of the Scheme are:

The Employers registering during the period will be treated as covered from the date of regiatration or as declared by them.

The newly registered employees shall be treated as covered from the date of the registration.

This will not have any bearing on actions taken/required under ESI Act if any prior to 20th Dec ' 16.

All employees/employers are informed to avail this opportunity & ensure that all units/employees coverable under ESI Act are registered availing this onetime benefit of the Scheme.