EMPLOYEES STATE INSURANCE CORPORATIONPANCHDEEP BHAWAN, C.I.G. ROAD

NEW DELHI - 110 002Website - esic.in Ph : (011) 23234092

ESlCChinta s. I Mukti

No. P-1L14/32/2013-Rev-II Dated : 28/2/201431~\~~

The Regi »nal Director/Director IICIJoint Din .ctor l/CESl Corp orationRegional Office/Sub-Regional Office/Divisional Office

Sub: The New Amnesty Scheme 2014, for withdrawal of criminal casestilt;d against the Insured Persons and Employers under Sec 84, 85arul 85 A of ESI Act 1948 and settlement of cases filed by employersun(:ter Sec 75 ofESI Act 1948

Sir/Mada n,

Th« Corporation in its 161st meeting held on 28/1/2014 and 1412/2014 hasapproved the launching of Amnesty Scheme 2014

1. to J educe the number of litigation by providing a mechanism for resolution ofdis iutes outside the court.

2. To earn goodwill of stakeholders and thus enhance the brand image of theCo poration,

Keeping in view above factors, the New Amnesty Scheme 2014 provides forthe withd 'awal of all prosecution cases filed uls 84 and 85 of ESl Act and court casesu/s 75 anc. 82 of the ESl Act upto 31st December 2013 subject to following terms andcondition: :.

A. SE'I'TLEMENT OF COURT CASES FILED UIS 75 AND APPEAL UIS 82

L. DISPUTE OF COVERAGE The Scheme shall include all cases filedin which the employer has disputed the coverage which may be settledsubject to the following conditions:

, In case o(closed units,

, Unit is closed for more than 5 years as on 31st December 2013, Case is pending for more than 5 years as on 31st December 2013

~ffR ~ ~-~ <.! I assessment has been made for the period under dispute andI 'i'i.", ;:.;Contents Mar' Im~~. litigation period upto the date of commencement of Amnesty?"H" V./Oltlry No..,,:~. \.~ .......•.u:.Scheme 2014.i~;Jim / DJt~L,D,.')./9..~~?/..l..t_, .

: 2 :

It In case o(running units

" If the factory is functioning and the employer produces genuinerecords to substantiate his plea regarding non-coverage orcoverage from later date.

2. DISPUTE OF CONTRIBUTION This Scheme shall also include casesin which the employer has disputed the determination or recovery ofcontribution in the Employees' State Insurance Court, uls 75 of the ESIAct and appeal u/s 82 Upto 31st December 2013, subject to thefulfillment of the following conditions :-

1. The employer shall file a petition before the court where he hasraised the dispute and seek permission of Hon'ble Court for out ofsettlement of matter under litigation. If court allows, then thematter shall be settled as per this Scheme. The employer/IP shallapply for the scheme in the enclosed proforma of Annexure 'A',

11. The employer shall pay both the Employees' and Employers' shareof contribution in full as per their records, which he shall producebefore the assessing officers if the contribution has been assessedon assumed wages and he shall comply with other provisions ofthe Act.

iii. In case the relevant records are not available with the employer,they shall produce alternative records such as Income Tax Recordetc and shall pay the contribution accordingly as per that record.

iv. However, if the employer is not able to produce any records andthe assessment has been made in respect of wages other than thewages shown in Regulation 32 Register, he shall pay thecontribution which shall not be less than 30% of the assessedamount of contribution. The cases where assessment has alreadybeen made as per Hqrs instruction NO. P-11l13/97-Ins-IV dated26/5/2003 or where the contribution has been assessed on actualbases will not fall under the purview of this Scheme.

v. The employer pays the Interest in fullvi. No damages shall be levied.vii. The employer shall also furnish an undertaking to the

Corporation to the effect that he/she shall be regular in compliancein the provisions of ESI Act in future or else he/she shall forfeitthe right to avail of such amnesty scheme.

. 3 .. .

B. Cfl:SES WHERE EMPLOYER HAS DISPUTED THE LEVY OFDfl:MAGES

'~ There are cases where employer has disputed levy of damages in thecourt of law after making payment of contribution and interest. Thesecases filed upto 31st December 2013 may also be considered forwithdrawal with benefit of 50% waiver in damages since court insist onproof of contumacious conduct for upholding orders passed under 85-B(Proof of which is difficult).

C. SCHEME TO WITHDRAW COURT CASES FILED U/S 84, 85, 85-A ofES I: ACT, 1948

1. Cases filed against the Insured Person under section 84 of the ESIAct.

Prosecution filed against the IPs U/S 84 of the ESI Act for givingwrong declaration/statement resulting in excess payment to him/her maybe withdrawn subject to the condition that1. the entire amount paid in excess to the Insured person is refunded in

full be him/her to the Corporation11. No interest will be claimediii. An undertaking is also given by Insured Person to the effect that

helshe would not give wrong declaration/statement in future.

;~.Cases filed against the employers under section 85 and 85-A of theESI Act up to 31st December 2013

Prosecution cases filed against the employers uls 85 and 85-A ofthe ESI Act upto 31st December 2013 may be withdrawn subject to thefollowing conditions :-

1. The employer shall pay both the Employees' and Employers' share ofcontribution in full as per his records, which he shall produce beforethe assessing officers, if the contribution has been assessed onassumed wages.

11. In case the relevant records are not available with the employer, heshall produce alternative records such as Income Tax Returns etc andshall pay the contribution as per that record. However, if theemployer is not able to produce any records, he shall pay contributionon the basis of following, in the same order, (i.e only in cases wherethe records as per option 'a' is not available, down below alternativesin the same order is to be exercised for assessing dues.)

c

: 4 :

a) The rate of monthly contribution paid for the month prior to themonth from which default started.

ORb) Monthly wages declared in form-Ol

ORc) Monthly wages reported by SSO in the Survey Report

ORd) Minimum wages applicable in the State/Region

iii. The employer pays the interest due for the period of prosecution infull.

iv. No damages shall be levied.v. The employer shall also furnish an undertaking to the Corporation to

the effect that he/she shall be regular in compliance with theprovisions of ESI Act in future or else he/she shall forfeit the right toavail of such Amnesty Scheme.

I'he scope of Amnesty Scheme 2014 is enhanced to include cases as under:

1_. Cases file u/s 85 (a & g)

There are large numbers of old pending cases which are pendingfor more than 15 years as on 31st December 2013. In many ofsuch cases the dues involved are very meager as compared toexpenditure and manpower involved in handling such cases incourt of law. These cases may also be considered for withdrawalsubject to the following conditions:

• For closed units

, The unit is closed or its whereabout is not known, and,

, The outstanding contribution (excluding Interest & Damages) isupto Rs. 5000/-

• For runnin~ units

, If unit is functioning, the unit should make upto date, and,

, The outstanding contribution (excluding Interest & Damages) isupto Rs. 5000/- and,

, 30% of contribution only to be paid

; "J ;

;~. eases filed u/ 85 (e) - non-submission of return ofcontribution only

There are cases where ESIC has filed a criminal case against theemployer for non-submission of return of contribution. As thesecases do not have any financial implication and ESI has now doneaway with submission of Return of Contribution, such cases filedup to 31st December 2013 may be considered for withdrawalsubject to following conditions:

• For closed units

, The unit is closed or its whereabouts is not known, and,

, Employer has deposited contribution and interest for theperiod of return

• For running units

, If the unit is running and compliance is up to date, and,

, Employer has deposited contribution and interest for theperiod of return.

(D) All cases are required to be settled as per this scheme, within 3 monthsfro III the date of filling of application by the Principal Employer/InsuredPei 'Son

(E) The Scheme will also be available to those employers/insured personswh ) have already availed of the benefits of earlier Amnesty Schemes.

(F) The New Amnesty Scheme-2014 will be in force from 28/1/2014 to27/ll/2015.

(G) The Regional Directors/Director lies/Joint Director lie of RO/SRO/D arefully empowered to accord sanction for withdrawal/settlement of cases aspel para (A) to (B) on receipt of compliance as per the Scheme

(H) Th( Regional Directors/Director lies/Joint Director lie of RO/SRO/D.Oare requested to give vide publicity to the Scheme throughadvertisement/press release in leading local newspapers and by holdingco tinuous interaction/meeting with Employer and Trade Union etc. Theco tents of the new Amnesty Scheme 2014 must also be posted on theRe: :;ionalWeb Site. The members of Regional Board/Localeo nmittee/W orkers Union and Employers Association must also beinformed about launch of New Amnesty Scheme 2014.

(1) Regional Directors/Director lies/Joint Director lie of RO/SRO/D.Oneed not refer any case to Hqrs.

•l •. u .

(1) The Corporation has also approved that incentive as mentioned belowma y also be given to Panel Advocate for their contribution inwithdrawal of cases during the Scheme.

CI) Incentive ofRs. 2,000/- for cases filed uls 751,) Incentive of Rs 500/- for cases filed u/s 85 (a) to 85 (g) of

ESI Act.C,' Further, regions which succeed in withdrawal of 25% of

their pending cases may be given certificate of merit

(K) Monthly Progress report in this regard should reach this office by 10th of everymont 1.

(L) They are advised to form a monitoring cell at their level, to implementsuccessfully and smoothly, the contents of this Scheme, including for reportingto Hqr :

(M) The re .eipt of this communication may be acknowledged.

Yours faithfull y,

~2 L-(ARUN KUMAR)

ADDL. COMMISSIONER (REV)

Copy forward \~dto

1. All Divis ional Heads in Hqrs office2. All SSM.~s/SMCs - for information .3. Joint Dircctors/Dy. Director (Fin) ESI CorporatlOn, RO/SRO ----4 A C (Vig lance), Hqrs office .S' D: (Vi }'JD(V)(NZ)/JD(V)(WZ)/JD(V)(SZ) - for informatlOn. .6~ ~:bsit: 1,1anager - with the request to post the matter in the Official WEbslte

of ESI Co l:poration .7. All brand \es in Hqrs office for informatlOn.

•ANNEXURE-A

PROFORMA FOR WITHDRAWAL OF COURT CASES

1. Name and address of the Insured person/employer

]1. Employer Code No./lnsurance No.

] U. Date of Institution of case

I V. Name of the Court/Forum in which case is pending

\'. Section of ESI Act 1948 under which the case was filed.

\ 'I. Present status of the case and the issues involved

\ U. Details of amount involved with period.

Compliance madeNature of defaultS.No.

V 1]1. Copy of court order permitting out of court settlement in case of

litigation u/s 75 and appeal u/s 82 of the Act.

D ::. Proof & Details of deposit of the amount.

The above information is true and correct to the best of my

kuowledqe, I also undertake that I shall be regular in compliance in the

pi ovisions of ESI Act in future or else shall forfeit the right to a avail of

Sl ch Amnesty scheme.

Date:

PI :ICe:

Signature of the Applicant

Name:

Status: