Daijiworld Media Network - New Delhi

New Delhi, Oct 2: In a major step aimed at reducing litigation and improving ease of doing business, the Employees' State Insurance Corporation (ESIC) has launched the Amnesty Scheme 2025, offering a one-time opportunity to settle long-pending court and prosecution cases.

The scheme, which will be in force from October 1, 2025, to September 30, 2026, is designed to resolve disputes under the ESI Act in a structured, transparent, and time-bound manner. According to an official statement, the initiative seeks to ease compliance, cut down on legal backlogs, and rebuild trust between employers and the ESIC.

Key Features of the Amnesty Scheme 2025:

1. Coverage Disputes:

• Closed Units:
o Closed for over 5 years with no assessment and litigation pending for 5+ years: Cases will be withdrawn.
o Closed within 5 years: Must produce records, pay accepted dues with interest; no damages applicable.
• Running Units:
o Can settle by producing records; no damages will be imposed.
o Cases where employers registered voluntarily through Form-01 on ESIC portal are excluded.

2. Contribution Disputes:
• Applicable to cases under Sections 45A, 45AA, 75, 82, or Article 226, if no substantial legal question is involved.
• Employers must:
o Obtain court permission.
o Apply in the prescribed format.
o Pay employer and employee contributions with interest.
o If records are missing, data from EPFO or Income Tax can be used.
o In the absence of any verifiable records, employers must pay at least 30% of the assessed contribution, plus interest. No damages, but a compliance undertaking is required.

3. Damages Disputes:
• Cases withdrawn on payment of 10% of the assessed damages, provided contribution and interest are already paid.
• If ESIC has appealed in higher courts, lower court’s damage assessment will be accepted.

4. Criminal Cases (Section 84):
• Withdrawn if:
o Excess benefits are refunded.
o No interest charged if undertaking is submitted.
o Pending for 5+ years and insured persons are untraceable.
• Excludes cases involving conspiracy or forgery.

5. Prosecution Cases (Sections 85 & 85A):
• Withdrawn if:
o Contributions and interest are paid based on official or alternative records (EPFO/IT).
o In absence of records, dues to be calculated based on declared wages, SSO surveys, or minimum wages.
o No damages to be imposed.

• Old Cases under 85(a) & 85(g):
o Pending for 15+ years and dues up to Rs 25,000 may be withdrawn.
o For closed units – withdrawal allowed.
o For running units – must pay 30% of dues with interest and update compliance.
• Section 85(e) Cases (non-filing of returns):
o Withdrawn, as filing has moved online; subject to updated compliance.

• Late Declaration Cases:
o Pending for over 3 years may be withdrawn if accident cases are settled and compliance is in place.

Implementation and Oversight:

• Regional and Sub-Regional ESIC Officers (Additional Commissioners, Regional Directors, Deputy Directors, etc.) have been fully empowered to process and settle cases under this scheme.
• A field-level committee, including legal and finance officers along with panel advocates, will review applications.
• All cases must be settled within six months from the date of application.
• Entities that benefitted from previous amnesty schemes are still eligible.

Broader Impact:

The Amnesty Scheme 2025 is expected to:

• Reduce legal backlogs significantly.
• Provide relief to employers through a simplified and non-punitive mechanism.
• Encourage future compliance with ESI regulations.
• Strengthen ESIC’s image as a progressive and responsive social security institution.

By providing a practical route for dispute resolution, the scheme aims to restore faith in the system while reinforcing ESIC’s commitment to balancing regulatory enforcement with business facilitation.