Registration under ESI Act, 1948

Introduction

As per section 2A of the ESI Act every Factory/Establishment to which this Act applies shall get registered within such time (not later than 15 days after the Act becomes applicable) and in such manner as may be specified in the regulations.

Applicability of the Act

Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theaters, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).

"Registration is the process by which every Employer/Factory and its every employee employed for wages, is identified for the purpose of the ESI Scheme, and their individual records are set up for them."

1.     Registration under ESI Act is a two way process:

Further, registration can be done either online or by filing hard-copy forms to the regional offices. (List of forms is given below). 

Under ESI Act, employer can get registered either as a Factory or as Shop/ Establishment. Thus, it is important that the employer has with it Factory license no. under Factories Act, 1948 or Registration no. under Shops & Establishment Act, 1953 respectively.

It is pertinent to note that at the time of registration, employer is required to pay advance contribution for the period of 6 months based on minimum wages, though the amount paid in advance is then adjusted against the actual contribution payable thereafter.

1.1       Employer Registration

For new employer registration under ESIC visit the following link:

https://www.esic.in/ESICInsurance1/ESICInsurancePortal/Signup.aspx, or

Alternatively, Form 01 (Employer's Registration Form) duly completed by employer can be furnished to the RO (Regional Office). It has been made mandatory for the employer to submit Declaration Forms (discussed in detail below) in respect of all his cover-able employees who were not registered earlier.

Upon receipt of the completed Employer’s Registration Form, the appropriate Regional Office shall, allot to the employer an Employer’s Code Number (unless the factory or the establishment has already been allotted an Employer’s code Number) and shall inform the employer of that number.

1.2       Employees’ Registration

For the purpose of employee registration Form 1 i.e. 'Employee Declaration form' is used.

A Declaration Form in respect of every employee should be submitted to the Branch Office to which he is attached within 10 days from the day on which the relevant information required for filling in the form is made available by the employee.

This Declaration Form should be accompanied by a Return of Declaration in Form 3 in duplicate. Normally a declaration form is submitted to a Branch Office only after the allotment of a code number to the factory/establishment.

In respect of female employees separate declaration forms and separate return of declaration forms have to be used and declaration forms and returns should be stamped 'Female'.

Some of the important points to be born in mind while filling in the declaration form can be summed up as under:

• Column against the insurance number is to be left blank
• If the area is under panel system leave the column against the dispensary blank
• If father's name is not available write the name of mother. A married female employee would indicate the name of her husband only.
• Indicate the date of birth correctly.
• Full and exact residential address should be indicated
• Another important column is the one regarding the nominee. Section 71 of the ESI Act which is relevant in this case reads as follows:
• " If a person dies during any period for which he is entitled to a cash benefit under this Act, the amount of such benefit up to and including the day of his death shall be paid to any person nominated by the deceased person in writing in such form as may be specified in the regulations or, if there is no such nomination, to the heir or legal representative of the deceased person."
• The details of the family should be filled in correctly in the relevant column and due care may be taken to fill in only such names which qualify for the status according to Section 2(11) of the ESI Act.
• The name of the Branch Office will be that to which the factory/establishment is attached
• The signature/thumb impression of the employee should be invariably be given on the D.F. It may be ensured that when an employee is capable to sign his signature may be obtained and not the thumb impression.
• The D.F. should be signed by a clerk and should be countersigned by an officer authorized to sign
• The full name, code number and address of the factory/establishment should be indicated in the declaration form

1.2.1       The procedure for registration of employees under the Computerized Process will be as follows:-

• The Employer will log into the official website of ESIC
  https://www.esic.in/ESICInsurance1/ESICInsurancePortal/Portal_Login.aspx
• The Employer will log in as Employer using the Login User ID/Password
• On entering the user ID and Password the Employer will be directed to the Employer landing page.
• On this page Employer will have to click Registration > Register your Employees link
• On clicking it employer will be redirected to Employee Declaration form, in this form details relating to the employees are required to be filled.
• On successful completion of the Declaration Form the same can be submitted and 10 digit Insurance No. will be automatically allotted.
• The Employer will be able to take a printout of Code allotment letter and can also generate the insurance numbers and take the print out of the Temporary Identity Certificate for the Insured Persons.
• A family photograph will be affixed on the designated space in the Temporary Identity Certificate and countersigned by the Employer for getting treatment till the Pehchan Card is delivered to the Insured Person.
• The Insured person along with his family will be required to visit the Branch Office of his choice or any other nearby place as directed by the Corporation for capturing the biometrics and photographic details for preparation of the Pehchan Cards.

2 .        List of Forms under ESI Act

Form No.	Name	Used for
Form 01	Employer Registration Form	For registration of employer
Form 1	Declaration Form for employees	For registering employee details
Form 3	Return of Declaration form	Summary of employees declaration forms
Form 5	Return of Contributions	For filling return of contributions
Form 01(A)	Annual Information of factory
Form 5A	Advance payment of contribution

Author: -Hardeep Singh.  For any queries or any suggestions kindly visit Contact us section.