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Pathological Labs in Kerala Covered Under ESI Act From 2007 & Not 2002- Supreme Court Dismisses ESIC Appeal

Contents News/Article Date:2nd August 2023

Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948          

Penalty under the Act: Section 85(a):  Penalty for failure to pay contribution Non-payment of this contribution is a serious offence because it directly affects insurable employees. Hence, the maximum imprisonment for this offence is 3 years and the minimum is 6 months with Rs. 5,000 as a fine.

Applicable to which State: All the States and Establishments covered by the ESI Act

Type: Supreme Court Judgement dated 2nd August 2023 – ESI versus Endocrinology and Immunology

Pertains to: Pathology labs in Kerala

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing, and Regulatory Compliances right from its inception in 2004 since then, has brought in a lot of efficiencies and technological upgradations with experts on its role, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory, and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of the expansion of the ESI Scheme, so as to make it available in the remotest of places viz. 744 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding postgraduate medical seats.

And in this instance: Pathological Labs in Kerala Covered Under ESI Act from 2007 & Not 2002- Supreme Court Dismisses ESIC Appeal.

Further, the fact remains that there is a Notification issued on 06.09.2007 by the Government of Kerala covering medical institutions including pathological laboratories from that date. The aforesaid Notification was issued in consultation with the Corporation and with the approval of the Central Government. If the pathological laboratories were already covered under the Act, as is sought to be urged by the Corporation, there was no occasion to issue such a notification.

This fact clearly establishes that even as per the understanding of the Corporation, pathological laboratories were not covered under the Act prior to that date.

For the aforesaid reasons, we do not find any merit in this appeal. The same is hereby dismissed. There shall be no orders as to costs.

Subject: Pathological Labs in Kerala Covered Under ESI Act from 2007 & Not 2002- Supreme Court Dismisses ESIC Appeal.

Attached is the supreme court judgment


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