Penalties under ESI Act

Applicable same to all states

Offence For whom Section Penalty
Wilfully makes any false statement or false representation to cause any increase in payment or benefit under this Act. Employer/Employee 84 Imprisonment for a term which may extend to six months, or with fine not exceeding two thousand rupees, or with both.
Willful act to cause any payment or benefit to be made where no payment or benefit is authorised by or under this Act Employer/Employee 84 Imprisonment for a term which may extend to six months, or with fine not exceeding two thousand rupees, or with both.
Willlful act to avoid any payment to be made by himself under this Act or enabling any other person to avoid any such payment Employer 84 imprisonment for a term which may extend to six months, or with fine not exceeding two thousand rupees, or with both.
Failure to pay contribution Employer 85(a), 85-A In case of failure to pay the mployee’s contribution; imprisonment for a term ranging from one year to three years and fine of ten thousand rupees provided that employee’s contribution which has been deducted by employer from the employee’s wages. In all other cases, imprisonment of not less than six months, and fine of five thousand rupees. For subsequent offence, imprisonment ranging from two years to five years but and fine of twenty-five thousand rupees.
Deduction of employer's contribution from employee's wage Employer 85(b), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.
Employer who reduce wages of employees for employer's benefit. Employer 85(c), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.
Employer who dismisses employee during sickness etc. Employer 85(bd), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.
Failure in submitting return Employer 85(e), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.
Obstruct inspector in discharge of his duty Employer/employee 85(f), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.
Non-compliance with any of all other requirements of this Act or the rules or the regulations. Employer 85(g), 85-A Imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both. For subsequent offence, imprisonment which may extend to two years and with fine of five thousand rupees.