CITU on Saturday objected to the introduction of amnesty scheme and reduction of damages payable by Employees’ State Insurance Corporation (ESIC).
CITU denounces the re-launching of SPREE Scheme, introduction of Amnesty Scheme 2025 and reduction of damages payable by the employer as schemes decriminalising the offences under Employees State Insurance Act 1948 and curbing the legitimate rights of employees to be insured under the ESI Scheme, said CITU general secretary Tapan Sen in a statement.
“The Employees’ State Insurance Corporation (ESIC), at its 196th meeting in Shimla, Himachal Pradesh, deliberately announced these decisions and schemes focused “on promoting ease of doing business,” though the ESI Act was promulgated in 1948 for the “creation and development of a fool-proof multi-dimensional Social Security system.” This blatant shift in the Central Government’s approach is evident in its attempt to tamper with the Parliament-enacted ESI Act and its statutory provisions.
These schemes are being framed surreptitiously while the Social Security Code, 2020—containing similar clauses for compounding employers’ offences—remains unimplemented. CITU therefore urges ESIC to rescind the announced schemes and enforce statutory compliance by employers through strict penal actions for non-compliance, as prescribed in the Act,” said CITU.
“Although these schemes are loudly announced in the guise of expanding coverage, the pressing issue of extending coverage beyond the current eligibility wage limit of `21,000 — repeatedly raised by CITU and other Central Trade Unions—has still not been resolved by the Government. This delay excludes a huge number of workers every day, even in PSUs, from the ambit of ESIC,” said CITU.
The Left trade union said that in the new scheme, the maximum rate of damages has been cut from 25 per cent per annum to 1 per cent per month on the amount payable by the employer. This effectively halves the maximum charge and is clearly designed to benefit wilfully defaulting employers. The ESI Act allows these dues to be recovered as arrears under the Land Revenue Act, yet these new schemes—mirroring the Union Government’s “Vivaad se Vishwas” and “Samasya se Samadhan” initiatives for corporate tax dues — let ESI violators go scot-free, undermining workers’ interests, said CITU. CITU said that including charitable hospitals in will lead to ESIC fund flow to private hospitals.
“In short, the schemes announced at this meeting have a single purpose: to decriminalise and bail out employer groups that are wilful defaulters and responsible for the suffering—and even deaths — of millions of eligible employees.
CITU demands strong legal action and full enforcement of workers’ rights, not lofty Government offers,” said CITU in a detailed statement objecting to the new policies of ESIC.
