If a software company having more than 100 employees where half of the employees earning gross less then 10,000/-; does not provide ESI to anybody what can be the consequences? Is the penalty/ fine amount less than the yearly ESI return amount?
If the management is ready to pay the ESI amount, but not ready to bear the administrative nuisance of handling ESI because of lack of manpower and time, how can it be avoided?
From India, Mumbai
If the management is ready to pay the ESI amount, but not ready to bear the administrative nuisance of handling ESI because of lack of manpower and time, how can it be avoided?
From India, Mumbai
25
Dear Sonai,
You are working as a HR executive, then why are you of your own not going through the provisions of penalty under the ESI Act,1948. For your second query you may exceed the wages limit for the non applicability of the ESI. Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
You are working as a HR executive, then why are you of your own not going through the provisions of penalty under the ESI Act,1948. For your second query you may exceed the wages limit for the non applicability of the ESI. Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
dear sonai
there is a way you can avoid to pay ESI ,as well as,will not bear administrative nuisance,you ask your employer to shift your factory to non specified zone.some areas does not have ESi dispensary and ESI facilities are not provided there,if you shift your esablishment to that place than you are not required to pay ESI.
j s malik
From India, Delhi
there is a way you can avoid to pay ESI ,as well as,will not bear administrative nuisance,you ask your employer to shift your factory to non specified zone.some areas does not have ESi dispensary and ESI facilities are not provided there,if you shift your esablishment to that place than you are not required to pay ESI.
j s malik
From India, Delhi
Dear Sonali,
ESI is a statutory complaince and simply you can not avoid the same. This may leads to lot of legal implications and as a HR person you should not allow this to happen. This cannot be avoided by mere paying penality.
Two things you can be done ie., either you have to increase the salaries to that extent where all the people comes out of ESI purview or you can outsource the activity to a consultant who can take care of the same. You are only talking about ESI but what about the PF part, the same also not implemented if so better to outsource the activity.
with regards - kameswarao
From India, Hyderabad
ESI is a statutory complaince and simply you can not avoid the same. This may leads to lot of legal implications and as a HR person you should not allow this to happen. This cannot be avoided by mere paying penality.
Two things you can be done ie., either you have to increase the salaries to that extent where all the people comes out of ESI purview or you can outsource the activity to a consultant who can take care of the same. You are only talking about ESI but what about the PF part, the same also not implemented if so better to outsource the activity.
with regards - kameswarao
From India, Hyderabad
Hi Sonai,
The administrative costs of maintaining ESI is quite less compared to the penalty as well as the benefits provided by ESI.
You may be aware that as per the rules, the employer must provide medical and insurance benefits to employees. However, if the Employee is covered under ESI, the employer may not provide these benefits separately and hence save the cost of 'adminsitrative nuisance' (BTW, which it is not)!
Regards,
Neeraj K Singh
From India, Mumbai
The administrative costs of maintaining ESI is quite less compared to the penalty as well as the benefits provided by ESI.
You may be aware that as per the rules, the employer must provide medical and insurance benefits to employees. However, if the Employee is covered under ESI, the employer may not provide these benefits separately and hence save the cost of 'adminsitrative nuisance' (BTW, which it is not)!
Regards,
Neeraj K Singh
From India, Mumbai
Hi Sonai,
Calculating the ESI will not take much time. I might take hardly half day to calculate & to remit the challans into bank. If U don't have even that time you can outsource to consultants. Now a days all the statutory forms comes along with Payroll Software package in single pack. So no need to calculate the ESI & PF. As on you are doing the salary for the employees automatically even these forms will be filled automatically. Only thing you have to do is want to go to bank to remit the amount & to department to file the Forms. Those things you will be doing only once a month. U dont think it as nuisance
From India, Bangalore
Calculating the ESI will not take much time. I might take hardly half day to calculate & to remit the challans into bank. If U don't have even that time you can outsource to consultants. Now a days all the statutory forms comes along with Payroll Software package in single pack. So no need to calculate the ESI & PF. As on you are doing the salary for the employees automatically even these forms will be filled automatically. Only thing you have to do is want to go to bank to remit the amount & to department to file the Forms. Those things you will be doing only once a month. U dont think it as nuisance
From India, Bangalore
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