There is a business model in metro cities called urbanclap. They are like flip kart in service sector. They send electricians, plumbers etc to the customers' homes. Here the urbanclap is working with workers on commission basis. Customer gives a problem to the company, it sends the worker, he will solve the problem, customer pays to company, company deducts its commission and pays the rest to the worker. My question is: will the company be liable to pay compensation to the family of the worker if the worker ,on his way to customer's home, meets an accident and dies?
From India, Lucknow
6From India, Lucknow
Sir, thank for replying. But here the worker is not working for wages. Company is not administering his attendance, leave, performance appraisal or career path, discipline etc which are the in the case of employees. The company is merely providing an opportunity to the worker to work. Company says"Hello! Carpenter! Some work came in a place 3 km away from you. Are you interested in going?". After the worker completes the work the system is customer pays into the account of urbanclap and after deducting their commission, they will pay the rest to the worker as his professional fee or whatever the word is. Isn't the relationship between urbanclap and worker is similar to company and contractor(not contractual worker, but the boss who signs all papers)? Or can we say it as casual employment in which work is assigned when and where it arises but not guaranteed (employee compensation act is not applicable to casual employees)? In this kind of workplace environment what should be apptopriate treatment of workers so that those young entrepreneurs will not be liable for employee's death? Please think as if you are an entrepreneur not a social reformer. (If someone is planning for a business as proprietor, he hires 10 workers, on the very first day the worker dies in this kind of business model, that businessman needs to pay lakhs of rupees as compensation, where the motivation is to start a business? He needs to mitigate this risk. I request knowledgeable seniors please guide how they can mitigate the risk? If it is not possible, shall he change his business model to one person company which has limited liability?)
From India, Lucknow
From India, Lucknow
In proprietaryship model, the owner has full liability to his business whereas in one person company(OPC) he will have limited liability. To reduce the risk of employee compensation, by young aspiring enterpreneur should opt for OPC. So I included that point in the above comment.
From India, Lucknow
From India, Lucknow
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