The Employees State Insurance Corporation (ESIC) has issued a critical reminder for timely determination of contributions under the ESI Act, 1948. Recent observations indicate that some regional offices (ROs) and sub-regional offices (SROs) have issued orders beyond the five-year limit, leading to legal challenges and unnecessary litigation. This has caused financial strain and setbacks for the corporation. This notification was published on July 24, 2024.
To prevent such issues, all field offices are directed to adhere strictly to the time limits stipulated under the ESI Act. Additionally, if court proceedings delay determination due to disputes over coverage or contributions, the ROs and SROs must request the court to exclude this delay period from the assessment timeline. This proactive approach is essential to avoiding extended litigation and financial losses. Compliance with these guidelines is mandatory and will be closely monitored.
