Scheme to Promote Registration of Employers/Employees (SPREE)

The Employees State Insurance Corporation in its 170th meeting held on 3-12-2016, has approved a Scheme to promote registration of Establishment/Factories and employees coverable under the ESI Act. 1948.

The ESI Scheme is one of the premier Schemes launched in independent India, with an objective to provide Social Security to the workforce in the country, which has now become part of life for millions. Employees State Insurance Corporation has been striving hard to evolve itself to serve India’s workforce with utmost efficiency, keeping pace with time and technology, relentlessly trying to narrow down the digital divide and bringing in health reform initiatives
under 2nd Generation Reforms, titled as “ESIC 2.0”.

The employers are required to register the Factory/Establishment under the ESI Act within 15 days (Regulation 10-b) after the Act becomes applicable to the unit and also required to register their employees immediately. The principal employer shall pay the employees’ and employer’s contribution (Section 40). Damages are recoverable for non-payment of any dues in time (Regulation 31C). Provisions for punishment for failure to pay contribution are defined under Section 85(a) to (g) of the Act. Section 85B provides power
to recover damages as an arrear of land revenue.

A onetime drive, is intended to extend the social security benefits to all-eligible under the Act, who have till now been kept out of the ESI coverage, and is open for the
period w.e.f. 20th December, 2016 to
31st March, 2017.

The salient features of the Scheme are as under:

1. The employers registering during the period will be treated as covered from the date of registration or as declared by them.

2. The newly registered employees shall be treated as covered from the date of their registration.

3. This will not have any bearing on actions taken / required under ESI Act, if any, prior to 20th December 2016.

All the employers/employees are encouraged to use this opportunity & ensure that all the units/employees coverable under the ESI Act. are registered availing the one time benefits of the Scheme.

It is advisable that eligible employers should take the advantage of this amnesty scheme.