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2. What is the procedure for registration of Establishment ?

The employer should get the shop/establishment registered with the ESI Corporation (at its appropriate Regional Office) within 15 days of the applicability of ESI Act. The declaration of registration is to be filed in form 01, along with a separate sheet containing the name and address of the establishment, number of employees, nature of duty and name, designation and address of the manager controlling such persons, in respect of offices situated outside. After having been satisfied about the application, the Regional Office will allot a code number to the employer which must be quoted on all documents and correspondence.

3. What is the procedure for registration of Employees ?

The employer should determine the employees who are covered under the scheme and then obtain a declaration from each of them in Form 1 (which includes the Temporary Identification Certification). The declaration form of female employees should be rubber stamped "FEMALE". All the declaration forms shall be countersigned by the employer. The employer shall then send a return of declaration forms in Form 3, in duplicate, within 10 days from the date on which the Declaration forms are submitted, along with the declaration forms, to the Regional Office, the return in Form 3 is prepared separately for male and female employees. Every such employee shall be allotted an Insurance Number. The Temporary Identification Certificate (TIC) with the Insurance number marked thereon shall be detached and returned to the employer, along with a copy of form 3. The employer should deliver the TIC to the respective employee and the enter the Insurance Number in the Register of Employees.

4. What are Identify Cards?

Every member employee shall be provided Permanent Identify Card. The employer shall hand over the Identify Cards to those employees who have been in employment for at least 3 months and obtain his signature/thumb impression on the Identify Card and in a register in token of receipt of the card. If any employee leaves service before 3 months, his Identify Card and Temporary Identification Certificate should be returned to the Regional Office.

5. What is the concept of Contribution Period and Benefit Period?

The period during which an employee is entitled to, or avails of a benefit, is called the benefit period. The amount of benefit is calculated with respect to the contributions paid during the corresponding contribution period, which are as follows:

Contribution period 

1. 1st April to 30th September 2. 1st October to 31st March of the following year.

Benefit period

1. 1st January of the following year to 30th June 2. 1st July to 31st December

Contributions : The employee's contribution is 1.75% of the wages while the employer's contribution is 4.75% of the wages paid/payable in respect of every wage period. Wage period may be daily, weekly, fortnightly or monthly. However, no employee's contribution shall be payable in respect of a person whose average daily wages are below Rs. 25 per day in a wage period.

Note: - The employer and employee's contribution should be rounded off to the nearest 5 paise.

It is the employer's responsibility to deposit his own as well as employee's contribution into the ESI Account. The employer may, however, deduct the employee's contribution from his wages or in case of contract labour, from the bills of the contractor.

6. What do we mean by Average Daily Wages ?

Average daily wages during a wage period means -

i) In case of monthly rated employee, amount of wages payable for all the working days in a month / 26 ii) In case of fortnightly rated employee, amount of wages payable for all the working days in a fortnight / 13 iii) In case of weekly rated employee, amount of wages payable for all the working days in a week / 6 iv) In case of daily rated employee, amount of wages payable for a working day v) n case of an employee not employed on time rate basis, amount of wages earned during the complete wage period / No. of days in full or part for which he has worked during that wage period.

7. What is the time and Mode of Deposit ?

The amount of contribution should be paid into the ESI Account with an authorized branch of State Bank of India, through an ESI Challan in quadruplicate, on or before the 21st of the month following the calendar month in which the wages fall due. The aggregate amount should be rounded off to the next higher rupee. Interest shall be payable @ 15% p.a. in respect of each day of default or delay in payment of contributions.

8. What is the procedure for return of Contributions ?

The employer should prepare a 'Return of Contribution' in form 6, in quadruplicate (4 copies), by entering details in the ascending order of insurance numbers and draw the totals. This return of contributions along with the receipted copies of Challans of monthly payments, should be submitted to the Regional Office, within 42 days of the end of contribution period.

Note: In the remarks column of the return the date of appointment and the date of leaving service should be duly filled in.

9. Define the concept of Certificate of Contribution Payable ?

The Employees' State Insurance Corporation have observed that due to late submission/ non-submission of the Return of Contribution by some employers, inconvenience is caused to the insured persons in availing medical and cash benefit.

With a view to obviate this difficulty, the Corporation have introduced "Certificate of Contribution Payable", to be submitted by those employers who are not in a position to submit return of contribution due to nonpayment of the contribution. This will be effective from the contribution period ending September 1995. This certificate would enable the employer-members to avail medical and cash benefits.

10. What are the other Obligations of the Employer?
 

1. Accident Report: In case of an accident in the establishment, the employer should prepare an 'Accident Report' in form 16 (in triplicate) and submit to the local office and the Insurance Medical Officer. The third copy is the office copy. The reports are to be submitted within 48 hours in ordinary cases and immediately in death cases. 2. Abstention Verification: The employer should furnish and verify the particulars in form 28, in respect of the abstention of an employee from work, for which sickness/ maternity/ temporary disablement benefit has been claimed. 3. Death Report: In case of death of an insured employee due to an employment injury or otherwise, at the place of employment, the employer should immediately report to the local office and to the nearest ESI dispensary or hospital. 4. Not to employ sick employees: The employer must not put to work any sick employee unless he submits a certificate of fitness from the ESI dispensary (in form 8 or 9).

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