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