Definition and purpose

• ESIC compliance refers to the employer’s legal responsibility to adhere to the provisions of the Employees’ State Insurance Act, 1948.
  
• It ensures that eligible employees are covered under the ESIC scheme.
  
• The goal is to provide social security and healthcare to workers.
  
• Compliance is mandatory for establishments meeting coverage criteria.
  
• It protects both employers and employees under a regulated framework.
  

Coverage criteria for employers

• Applies to establishments employing 10 or more workers in most states.
  
• Wage limit for employee eligibility is ₹21,000 per month.
  
• Establishments like factories, shops, hotels, and clinics are covered.
  
• Even contract and temporary workers must be included if eligible.
  
• Once applicable, continued compliance is required regardless of employee count fluctuation.
  

Key responsibilities under compliance

• Timely registration of the establishment and eligible employees.
  
• Monthly deposit of employer and employee contributions before the due date.
  
• Maintenance of employee records and payroll documentation.
  
• Filing periodic returns and submission of contribution details.
  
• Displaying mandatory ESIC notices at the workplace premises.
  

Due dates and penalties

• Contributions must be deposited by the 15th of the following month.
  
• Late payment attracts interest and penal damages under the Act.
  
• Non-compliance can result in prosecution and recovery actions.
  
• Accurate recordkeeping helps avoid penalties during inspections.
  
• ESIC authorities may conduct audits to check adherence.
  

Records and inspections

• Employers must maintain registers of employees and contributions.
  
• Records should include attendance, wages, and employee identification.
  
• Inspections may be carried out by ESIC officers without prior notice.
  
• All documents must be made available for verification during audits.
  
• Regular updates and corrections must be reflected in official records.