ESIC 10-Day Rule for Employee Registration – Full Guide for Employers

The Employees’ State Insurance (ESI) Scheme is a vital social security initiative by the Government of India. It provides medical, cash, maternity, disability, and dependent benefits to employees earning ₹21,000 or less (₹25,000 for persons with disabilities).

To ensure that employees start receiving ESI benefits without delay, the Employees’ State Insurance Corporation (ESIC) mandates registration of new employees within 10 days of their appointment. This regulation is not only a compliance requirement but a critical step in safeguarding employee welfare.

What is the 10-Day Rule for ESI Registration?

As per the ESIC guidelines, employers are required to register new employees under the ESI Scheme within 10 days from the date of joining the organisation. This rule ensures that:

• Employees are covered under ESI from the very beginning of their employment.
• They can access ESI medical facilities and benefits promptly in case of need.

ESIC Circulars and 10-Day Registration Compliance Rule

In recent years, ESIC has strengthened its compliance procedures to ensure the timely registration of employees and reduce misuse of the system.

According to official circulars dated 03.12.2019 and 06.11.2023, if an employee is not registered within 10 days of the date of joining, the system will:

• Allow registration with a pop-up warning.
• Automatically issue a Show Cause Notice (SCN) to the employer’s registered email ID.
• Require the employer to submit a written justification with supporting records (like appointment letter, attendance, wage sheet) within 15 days to the Regional or Sub-Regional Office (RO/SRO).

The Regional Director or Authorised Officer will then verify the documents and either accept or reject the declared date of joining.

Key Takeaway:

Failure to register within 10 days may lead to:

• Strict scrutiny from ESIC authorities
• Denial of benefits from the actual date of joining
• The registration date will be treated as the official date of joining for ESIC records and benefits
• Employer liability for medical or other costs if the delay is unjustified

Why is Timely ESI Registration Important?

For Employers:

• Legal Compliance: Delayed registration can invite show cause notices or penalties from ESIC.
• Avoid Legal Liabilities: In case of medical emergencies, accidents, or maternity, the employer could be liable for the entire cost if ESI coverage was not provided on time.
• Smooth Audit Trail: Timely registration ensures clean records and hassle-free ESIC inspections.

For Employees:

• Access to Benefits: Employees can avail of ESI medical services and other benefits like sickness or maternity leave from the start of their employment.
• Financial Security: In case of illness, accident, or death, financial support is available for the insured person or their family.
• E-Pehchan Card Activation: Early registration ensures timely generation of the E-Pehchan Card, which is required to access ESI medical facilities.

How to Register an Employee Under ESI Within 10 Days

Step-by-Step Guide for Employers:

1. Login to ESIC Employer Portal:
   Visit www.esic.gov.in and log in using your employer ID and password.
2. Navigate to ‘Register/Enroll New Employee’:
   Go to the “Employee” section and select “Register/Enroll New Employee”.
3. Enter Employee Details:
   Fill in the following fields as required by the ESIC Employer Portal:
   • Mobile Number
   • Upload Photograph
   • Name
   • Father’s Name
   • Date of Birth
   • Gender
   • Residential Address (with PIN code)
   • Dispensary (ESIC Clinic / Hospital nearest to the employee’s address)
   • Date of Joining (must be current or within the last 10 days)
   • Nominee Details (for benefit claims)
   • Bank Details (Account Number, IFSC Code, etc.)
   • SMS Preferred Language
4. Submit and Generate Insurance Number (IP Number):
   Upon submission, an Insurance Number will be generated instantly.
5. Provide E-Pehchan Card to Employee:
   After registration, download and print the E-Pehchan Card from the employer portal. This card serves as the official identification for availing ESI benefits. ESIC no longer issues physical Pehchan Cards; the E-Pehchan Card is now considered final and valid.

What If Registration Is Done After 10 Days?

If an employee is registered after 10 days of the date of appointment, the ESIC system automatically flags the registration as delayed and issues a Show Cause Notice (SCN) to the employer’s registered email ID.

The employer must then:

1. Submit a written justification explaining the reason for the delay.
2. Provide supporting documents, such as:
   • Appointment letter
   • Attendance register or biometric report
   • Wage register or salary slip
   • Any other proof showing the continuity of employment from the date of joining
3. Submit these within 15 days to the concerned Regional or Sub-Regional Office (RO/SRO).
4. The case will be reviewed by the Regional Director or Authorised Officer, who may:
   • Accept the declared date of appointment and allow contributions from that date, or
   • Reject the justification, in which case the registration date will be treated as the official date of appointment for ESI purposes.

Important: If the delay is not justified, the employer may be held liable for any medical, sickness, or maternity benefits availed by the employee during the non-covered period.

Best Practices for Employers

• Register employees on the same day of joining or within 48 hours to avoid last-minute delays.
• Maintain digital and physical records of employee appointments, attendance, and salary.
• Educate your HR and compliance teams on ESIC portal operations.
• Regularly audit your ESI records to ensure no one is left out.

Role of Employees

Though registration is the employer’s responsibility, employees should also:

• Provide correct and complete information (Mobile, Aadhaar, Bank Account, etc.).
• Ask for their ESI Insurance Number and E-Pehchan Card.
• Verify their registration by visiting www.esic.gov.in and clicking on “Insured Person / Beneficiary Login”.

Penalties for Employers

Failure to register employees within time can lead to:

• Monetary penalties under the ESI Act.
• Recovery of medical or sickness expenses from the employer if the employee was not registered.
• Legal action for non-compliance.

Final Thoughts

Timely ESI registration is not just a statutory obligation, but also a critical welfare measure that protects employees from health and income risks. Employers must implement robust HR and compliance systems to ensure new hires are registered within 10 days of joining.

By acting responsibly and staying compliant, employers avoid penalties, and employees enjoy uninterrupted health and social security benefits from day one.

FAQs

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