NO DAMAGES IF EMPLOYERS FAIL TO PAY ESI CONTRIBUTION
The Supreme Court has ruled that Employees State Insurance Corporation (ESIC) cannot levy
damages for employers’ failure to deposit contributions of employees and establishments. Existence of mens rea (guilt mind) to contravene a statutory provision must also be held to be a necessary ingredient for levy of damages and / or the quantum upon the employer, said the apex court.
damages for employers’ failure to deposit contributions of employees and establishments. Existence of mens rea (guilt mind) to contravene a statutory provision must also be held to be a necessary ingredient for levy of damages and / or the quantum upon the employer, said the apex court.
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