The Hindu : Karnataka / Bangalore News : Ailing staff suffer for employers’ fault

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Friday, Jan 04, 2008
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Karnataka

Karnataka - Bangalore

Ailing staff suffer for employers’ fault

Staff Reporter

Several units have defaulted on ESI contribution

BANGALORE: Thousands of employees working in about 3,000 small-scale industries in the State and their families have been deprived of medical facilities at ESI hospitals and dispensaries as their employers have defaulted on ESI contributions running into nearly Rs. 40 crore.

Ailing employees and their family members who go to ESI hospitals are sent back by the authorities stating that they are not eligible to avail themselves of the facilities as their employers had not remitted the ESI contribution. Nearly nine lakh employees across the State, including eight lakh in Bangalore alone, are eligible for ESI facilities.

The Employees State Insurance Corporation (ESIC) Regional Director S. Jayaprakash told The Hindu that they had filed 160 prosecution cases and 214 civil cases against the erring employers in Karnataka. “Though we do not want to become a prosecution agency, cases are being filed against chronic defaulters who err year after year. Prosecution cases are filed as a deterrent,” he added.

Revenue recovery actions, including attaching properties and freezing bank accounts, are also initiated against the defaulting employer, Mr. Jayaprakash said.

Problems

Employees of defaulting units face difficulties to avail themselves of medical facilities offered under the ESI scheme as their names are not included in the “live list” sent out by the corporation after the employer fails to remit the contribution. “Employees will not be treated at ESI facilities and they will be forced to obtain a certificate from the employer, which has to be endorsed by ESI officials later. Medical treatment could be delayed in these situations,” Mr. Jayaprakash pointed out.

ESI officials state that many employers default payments due to financial crunch and also it could be lethargy on part of the employers, who take ESI payments casually. According to the law, the employer has to remit 6.5 per cent of the wages of which 1.75 per cent would be deducted from the employee’s salary. There are instances when the employer would have deducted the ESI contribution from the employee, but not have remitted to ESIC, officials said.

Amnesty scheme

To encourage the employers to pay the ESI dues, the corporation has announced a new amnesty scheme effective from January 1, 2008, during which employers could pay the dues to escape prosecution. Mr. Jayaprakash said: “Under the scheme, the erring employer will have to pay only 25 per cent of penal charges (damages) that otherwise should have been paid in full, along with the interest and the ESI dues that should be paid.

He said that though 91 prosecution cases were withdrawn under an earlier amnesty scheme, and due to lack of time many employers could not avail it.

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