Overview
Approved during ESIC’s 196th meeting on June 27, 2025
Objective: reduce litigation and build goodwill with stakeholders
Valid from October 1, 2025 to September 30, 2026
Covers cases filed under various sections of the ESI Act, 1948, and Article 226
Scope of the Scheme
1. Settlement of Court Cases (Sections 75, 82, Article 226)
Covers disputes related to coverage and contribution
Conditions differ for closed, recently closed, and running units
No damages will be levied if conditions are met
Employers may submit alternate records (e.g., EPFO, income tax)
Minimum 30% payment required if records are unavailable
2. Disputed Damages
Employers who’ve already paid contributions may settle by paying 10% of damages
Applicable to cases in higher courts
3. Criminal Cases Filed (Sections 84, 85, 85A)
Insured persons must return excess funds and submit a compliance undertaking
Employers can settle if dues are paid using valid wage records
No interest or damages for settled cases
Additional Provisions
Expanded Coverage Includes:
Cases older than 15 years with dues under ₹25,000
Non-submission of contribution returns with no financial implications
Delayed declaration forms, if compliance is made and cases are 3+ years old
Administrative Notes:
Reassessment should be done by a different officer than the original
Applications to be resolved within 6 months
Prior amnesty beneficiaries are eligible
Regional Directors can settle cases independently
Implementation and Incentives
Legal and finance committees will oversee withdrawals
Awareness campaign to promote the scheme
Incentives:
₹2,500 for panel advocates in civil cases
₹1,000 for criminal cases
Honorarium for staff involved
Top 10 performing regions to be felicitated by ESIC Chairman
