ESIC’s New Amnesty Scheme 2025: A Legal Relief Window for Employers and Insured Individuals

The Employees’ State Insurance Corporation (ESIC) has rolled out the New Amnesty Scheme 2025 to help employers and insured persons resolve pending legal matters efficiently. This one-time relief initiative, approved during the Corporation’s 196th meeting, aims to cut down court proceedings and encourage out-of-court compliance.

Here, we’ll explore the scheme’s eligibility, coverage, and process. If you’re an employer or an insured person with unresolved ESIC disputes, this may be your best opportunity to close the case with minimal penalties and without lengthy litigation.

Understanding the New Amnesty Scheme 2025

The New Amnesty Scheme 2025 is a structured settlement window available from October 2025 to September 2026. It is designed to handle disputes under Sections 75, 82, 84, 85, and 85A of the ESI Act, 1948, along with certain constitutional petitions filed under Article 226.

Who can benefit?

• Employers involved in contribution or coverage disputes
  
• Insured individuals facing benefit-related criminal cases
  
• Units that have not opted for earlier amnesty schemes
  
• Businesses with old, inactive, or minimal dues under legal review
  

Major Provisions Under the Scheme

Legal Disputes Regarding Coverage (Sections 75 & 82)

Eligible Units:

• Closed units older than five years
  
• Units closed within the last five years
  
• Active businesses still functioning
  

Conditions:

• Submit proof regarding actual coverage dates
  
• Pay accepted ESIC contributions with applicable interest
  
• No damage charges will be imposed
  
• Units that registered voluntarily via Form-01 on ESIC’s portal are excluded
  

Contribution-Related Disputes

If an employer disagrees with the contribution assessment under Section 45A or 45AA, they must:

• Approach the relevant court for permission to settle outside litigation
  
• Provide accurate records such as salary sheets, EPFO data, or IT filings
  
• If no records are available, contribute a minimum of 30% of assessed dues
  
• Submit an undertaking to remain compliant under the ESI Act going forward
  
• No penalties or damages will be applied
  

Cases Filed Against Insured Persons (Section 84)

For insured persons involved in cases of excess benefit claims through false declarations:

Resolution Terms:

• Refund the full excess amount received
  
• Provide a written commitment to refrain from future false declarations
  
• No interest will be recovered on the refunded amount
  
• Forgery and criminal conspiracy-related cases are not included
  

Criminal Prosecution of Employers (Sections 85 and 85A)

Employers with active cases under these sections can avail of the scheme if:

• They pay all due contributions and associated interest
  
• In the absence of direct records, fallback options like:
  
  • Previous wage data
    
  • Form-01 submissions
    
  • Survey reports
    
  • Minimum wage standards of the state
    are acceptable to determine dues
    
• If dues and interest are already settled without protest, the case will be withdrawn automatically
  
• No additional penalties or damages will be claimed
  

Extended Coverage Under the Scheme

Legacy Cases (Section 85 (a & g))

• Cases pending for more than 15 years with dues below ₹25,000
  
• Closed units can have such cases withdrawn directly
  
• Running units must pay 30% of the outstanding contribution + interest
  

Failure to Submit Contribution Returns (Section 85(e))

• Allowed if contribution and interest have been paid
  
• Applies to both closed and active establishments
  

Delays in Declaration Submission

• These cases are eligible for closure if:
  
  • Proper compliance is completed
    
  • Related accident claims have been resolved
    
  • The case is pending for over three years
    

Why This Scheme Matters for Businesses

Here’s why employers and insured individuals should consider opting in:

• Opportunity to clear long-standing disputes without litigation
  
• No additional fines or damage penalties
  
• Simplified process for closed or low-activity units
  
• Fast-track case closures within 6 months
  
• Regional offices have full authority to process cases — no need for HQ approval
  

Step-by-Step Guide to Avail Amnesty

1. Apply using the official ESIC format
   
2. Submit records such as salary registers or EPFO documents
   
3. Make the payment covering contribution and interest
   
4. Request court permission if the case is sub judice
   
5. Get approval from the Regional Director or committee
   
6. Closure of the case within six months from the application
   

Additional Provisions and Incentives

• Review committees comprising legal and finance officers and a panel advocate will verify eligibility
  
• Panel advocates will receive monetary incentives per closed case
  
• Best-performing regions will be acknowledged by ESIC’s Chairman
  
• Widespread publicity will be conducted through press and trade bodies
  
• Officers involved in implementing the scheme will be eligible for honorariums
  

Conclusion

The New Amnesty Scheme 2025 by ESIC represents a progressive approach to resolving compliance disputes. With the focus on simplification and goodwill, it eliminates the burden of litigation while promoting regulatory harmony.

If your business or you as an insured person have unresolved ESIC matters, this is your chance to close them transparently and affordably. Avoid legal complexities — act before 30 September 2026 and leverage this opportunity for a fresh start.