Employees State Insurance

“Any premises including the precincts thereof were of ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which, a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of Mines Act 1952 (35 of 1952), or a railway running shed.”

-Definition of Factory as per The Employees’ State Insurance Act

Employees State Insurance, commonly known as ESI is a social security scheme which regulates according to The Employees State Insurance Act, 1948. This scheme was introduced for the betterment of the employees. Under this scheme, an employee who is registered under this scheme is entitled to medical benefits, disablement benefits, funeral expenses and financial assistance at the time of sickness, injury or marriage. This scheme even includes the immediate family of the registered employees. ESIC, the Employees’ State Insurance Corporation regulates the proper working of the scheme. The scheme covers factories and establishments like shops, hotels, cinemas, private educational institutes, Newspaper establishments and transport establishment employing ten or more persons at a time. The registration for ESI is mandatory for all the factories and establishments mentioned above. Discussed below is the procedure as to how you can register for Employees’ State Insurance.

The registration is to be done under fifteen days of the establishment of the factory. This registration is done in the regional ESIC office. Form 1, which is Employer’s Registration form, is filed to make the registration. Online filing can also be done at the web portal of ESIC. Copies of documents like Identity proof, the list of employees, business registration certificate, tax returns and address proof will also be submitted along with this form and prescribed fees.

A seventeen digit unique code number will be issued to you after the ESI registration. The employer will then need to file return twice every year. Also, in the case of any change in the working, nature or condition of the business, it is the duty of the employer to notify ESIC.  An inspection book and accident register (Form 11) is to also to be maintained by the employer.

Consultation before registration is recommended. The correct regional office, the proper documentation, the benefits covered in the scheme all will be covered in the consultation. This will help you register for ESI with more awareness.

It is the duty of an employer to make sure that his employees are getting help in times of need. The ESI scheme ensures the same and hence it’s the duty of an employer to register under this scheme. All the benefits are extended to the immediate family of the employees. We, at LegalRaasta, can help you with the documentation and registration.