Compliance Checklist under the ESI Act

Compliance Checklist under the ESI Act

Section – 84: This section deals with penalties for making wrong / false statements made by the Insured Persons to take any benefit which is not admissible to him under the Act. Under Act with imprisonment for a term which may extend to six months or with fine which may extend to Two thousand rupees or with both.

Section – 85: This section deals with penalties for non – compliance with the various provisions of the ESI Act and Regulations made. Such non-compliance with any of the provisions of the Act constitutes an offence committed by the employer of a covered Factory / Establishment which is punishable under Section 85(a) to 85(g) of the Act

Penal Action u/s 405/406/409 of I.P.C: If an employer deducts employees’ share of contribution from their wages but does not pay the said contribution, he thereby commits an offence of criminal Breach of Trust which is punishable under this section with imprisonment which may extend to 3 years or with fine or with both

In case of delay of ESI Challan payment, the following penalties are applicable:

Interest for late payment: an interest of 12% per annum, is levied on the employer every day in case of failure to deposit the ESI contribution before the deadline.

Penalty for late payment: The Corporation may levy and recover damages under Reg. 31C at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.

Period of delay	Rate of damages in % p.a.
Less than 2 months	5 %
2 to 4 months	10 %
4 to 6 months	15 %
6 months and above	25 %

The employer is liable for prosecution under Section 85(a) for the first time, Whoever, having been convicted by a court of an offence punishable under the Act, commits the same offence shall, for every such subsequent offence, be liable for enhanced punishment under section 85 A of the Act.

Our team will act as Authorized Representative and solve the compliance-related notices in a timely and efficient manner

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The Union government has suggested stringent penalties for violation of Provident Fund rules, including non-payment of contribution to the Fund despite deducting it from employees.

While the proposed Act will retain the condition of imprisonment of at least one year, it has enhanced the penalty limit on the establishment to be paid along with serving the jail term.

Our team will act as Authorized Representative and solve the compliance-related notices in a timely and efficient manner

Documents Required

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