ESI rules and obligations for employers

In this post, we have covered about the obligations the employer has with respect to ESI.

This covers the general guidelines on ESI for the employer.

The first step is recognizing if your company or establishment is applicable under the ESI scheme. The ESI Act states that it is mandatory for any establishment employing 10 or more people to be registered under the ESI Act.

If your establishment or organization does fall under this criterion, then get your establishment registered within 15 days after the Act becomes applicable.

For registration, submit Form 01 to the regional ESI office. The declaration forms of all coverable employees have to be filled and submitted to the regional office as well. The declaration form is called as Form 1.

In the case of newly appointed employees, he/she has to fill and submit the declaration form to the concerned local office soon after the appointment of such employees.

Note: Employees whose gross earnings are less than Rs. 21, 000 is applicable for ESI.

Once registered under this act, you will be provided with the Employer’s code or number. This number is to be used for all ESI related forms or documents and correspondence with the ESI Corporation.

In case of a new joining employee who does not have an identity card or identity certificate, a certificate of employment as Form 86 can be issued. It enables them to avail cash / medical benefits.