Employers with pending ESIC litigation have been given additional time to examine settlement under the New Amnesty Scheme, 2025.
According to the attached ESIC circular, the Competent Authority has approved a three-month extension, from 1 October 2026 to 31 December 2026, on the existing terms and conditions.
The scheme was originally operational from 1 October 2025 to 30 September 2026.
Particulars | Details |
|---|---|
Issuing authority | Employees’ State Insurance Corporation |
Circular reference | Q/6/2026-Rev. I |
Document number | I/4554315/2026 |
Digital signature date | 27 October 2026 |
Extended period | 1 October–31 December 2026 |
Original scheme instructions | P-11/14/Amnesty Scheme/2023-Rev.II, dated 24 July 2025 |
Conditions | Existing scheme terms continue |
What does the extension cover?
The circular continues the opportunity for withdrawal of eligible criminal cases against insured persons and employers, and settlement of eligible cases filed by employers under Sections 75 and 82 of the Employees’ State Insurance Act, 1948.
The original instructions also address specified Article 226 proceedings, coverage disputes, contribution disputes, damages disputes and prosecution cases, subject to the conditions applicable to each category. The scheme refers to eligible proceedings filed up to 31 March 2025. The extension circular does not announce a revised case-filing cutoff.
Does every employer receive the same relief?
Relief depends on the nature of the case and compliance with the relevant conditions.
For example, eligible contribution-dispute settlements may require payment of contribution and interest while providing relief from damages. A separate provision addresses eligible employer challenges to damages after contribution and interest have been paid, allowing settlement on payment of 10% of the damages determined by ESIC. These provisions should be applied to the relevant category of dispute.
Is prior court permission required to approach ESIC?
ESIC’s clarification of 25 March 2026 states that prior court permission is not a precondition for availing the scheme. Where litigation is pending, the settlement must subsequently be placed before the court for appropriate disposal or withdrawal orders, with the prescribed undertaking and affidavit process followed.
What should employers do now?
Prepare a list of pending ESIC cases, including filing dates and present status.
Identify the applicable scheme category and check its eligibility conditions.
Compile assessment orders, contribution records, payment challans and court papers.
Approach the concerned Regional or Sub-Regional Office promptly for processing.
Coordinate payment, undertakings and court filings with the authorised representative.
The extended deadline provides a useful opportunity to resolve eligible legacy disputes. Employers should begin the review early enough to complete the required settlement steps within the extended period.