ESI (Employee State Insurance Corporation) inspections of units are conducted by Social Security Officers (SSOs) to ensure compliance with the ESI Act and to verify the coverage of eligible employees and accurate contribution payments. Inspections are typically initiated through the Shram Suvidha portal and are based on Labour Identification Numbers (LINs) and SSO details.
Inspection Procedure
The inspection process unfolds in stages, beginning with the SSO communicating the inspection plan and requesting requisite documents. Essential documents include annual financial statements, muster rolls, salary registers, challans, and compliance-related documents for third-party vendors.
- Social Security Officers, their functions and duties.
(1)The Corporation may appoint such persons as Social Security Officers, as it thinks fit, for the purposes of this Act, within such local limits as it may assign to them.
(2)Any Social Security Officer appointed by the Corporation under sub-section (1) (hereinafter referred to as Social Security Officer), or other official of the Corporation authorised in this behalf by it, may, for the purposes of enquiring into the correctness of any of the particulars stated in any return referred to in section 44 or for the purpose of ascertaining whether any of the provisions of this Act has been complied with
(a)require any principal or immediate employer to furnish to him such information as he may consider necessary for the purposes of this Act; or
(b)at any reasonable time enter any office, establishment, factory or other premises occupied by such principal or immediate employer and require any person found in charge thereof to produce to such Social Security Officer or other official and allow him to examine such accounts, books and other documents relating to the employment of persons and payment of wages or to furnish to him such information as he may consider necessary; or
(c)examine, with respect to any matter relevant to the purposes aforesaid, the principal or immediate employer, his agent or servant, or any person found in such factory, establishment, office or other premises, or any person whom the said Social Security Officer or other official has reasonable cause to believe to be or to have been an employee;
(d)make copies of, or take extracts from, any register, account book or other document maintained in such factory, establishment, office or other premises;
(e)exercise such other powers as may be prescribed.
(3)An Social Security Officer shall exercise such functions and perform such duties as may be authorised by the Corporation or as may be specified in the regulations.
(4)Any officer of the Corporation authorised in this behalf by it may, carry out re-inspection or test inspection of the records and returns submitted under section 44 for the purpose of verifying the correctness and quality of the inspection carried out by a Social Security Officer.
Section 45 of the Employees’ State Insurance Act, 1948, outlines the powers and duties of Social Security Officers (SSOs) appointed by the Corporation. These officers are tasked with ensuring compliance with the Act, including inspecting establishments, requesting information, and examining records. Essentially, they act as inspectors to verify that employers are following the ESI regulations.
