Dear All,
When contract Labour is engaged, when the ESI coverages is not there for the particular establishment, we ask the contract labour to cover them under Workmen Compensation Act.
But, in one case, the contractor has engaged 40 contract labour and submitted the W.C. Policy for 20 people, when we have asked to submit for total 40 people, that particular contractor has asked for any "Write up" on this saying all the labour have to be covered under W.C act.
If any write up (or) any case law is there, may plz. be forwarded.
Regards
G.K - HR
From India, Mumbai
8When contract Labour is engaged, when the ESI coverages is not there for the particular establishment, we ask the contract labour to cover them under Workmen Compensation Act.
But, in one case, the contractor has engaged 40 contract labour and submitted the W.C. Policy for 20 people, when we have asked to submit for total 40 people, that particular contractor has asked for any "Write up" on this saying all the labour have to be covered under W.C act.
If any write up (or) any case law is there, may plz. be forwarded.
Regards
G.K - HR
From India, Mumbai
Hi G.K,
You may please follow the Act as per the details given hereunder also note there are no bar of headcount towards applicability of the Act,
Employees’ Compensation Act
Compensation if injury/death occurs out of and during the course of employment or for occupational disease
Under Employees’ Compensation Act, 1923 (earlier known as Workmen’s Compensation Act upto 18-1-2010), an employee who dies or suffers disablement (partial or total) due to accident is entitled to get compensation from employer, if it is employment injury, i.e. arising out of and during the course of employment.
Notional Extension of employment - A workman is entitled to get compensation even beyond working hours or beyond his work place, if there is nexus between the time and place of the accident and the employment of workman.
Occupational disease – Employer is liable if a employee contracts any specified occupational disease, while he is in service of employer for at least 6 months. [section 3(2)].
No compensation if employee covered under ESI
Since an employee is entitled to get compensation from ESIC, an employee covered under ESI Act is not entitled to get compensation under Employee’s Compensation Act, as per section 53 of ESIC.
Applicability of Act
Act is applicable to factories, mines, plantations, transport establishments, construction work etc. (who are not covered under ESI Act). In most cases, Act applies even if number of employees are much less than 20.
Coverage of employees
Every employee, including those employed through contractor, but excluding casual employees who is engaged for purpose of employer’s business is eligible.
Persons employed outside are also covered. Persons employed in clerical capacity are also included w.e.f. 18-1-2010.
Employment through contractor
Person employed through contractor is also eligible for compensation. Principal employer is liable though he can recover the amount from contractor.
From India, Calcutta
You may please follow the Act as per the details given hereunder also note there are no bar of headcount towards applicability of the Act,
Employees’ Compensation Act
Compensation if injury/death occurs out of and during the course of employment or for occupational disease
Under Employees’ Compensation Act, 1923 (earlier known as Workmen’s Compensation Act upto 18-1-2010), an employee who dies or suffers disablement (partial or total) due to accident is entitled to get compensation from employer, if it is employment injury, i.e. arising out of and during the course of employment.
Notional Extension of employment - A workman is entitled to get compensation even beyond working hours or beyond his work place, if there is nexus between the time and place of the accident and the employment of workman.
Occupational disease – Employer is liable if a employee contracts any specified occupational disease, while he is in service of employer for at least 6 months. [section 3(2)].
No compensation if employee covered under ESI
Since an employee is entitled to get compensation from ESIC, an employee covered under ESI Act is not entitled to get compensation under Employee’s Compensation Act, as per section 53 of ESIC.
Applicability of Act
Act is applicable to factories, mines, plantations, transport establishments, construction work etc. (who are not covered under ESI Act). In most cases, Act applies even if number of employees are much less than 20.
Coverage of employees
Every employee, including those employed through contractor, but excluding casual employees who is engaged for purpose of employer’s business is eligible.
Persons employed outside are also covered. Persons employed in clerical capacity are also included w.e.f. 18-1-2010.
Employment through contractor
Person employed through contractor is also eligible for compensation. Principal employer is liable though he can recover the amount from contractor.
From India, Calcutta
Dear Gopi Krishna
The construction Industries are not normally covered by ESI. Hence all the employees and workmen are covered with WC Policy from the Insurance in the name of GPA Policy. It is the principal employer's responsibility to ensure that the workmen injured/deceased should get the due compensation.
Mr. Sandip has given you the complete details from the act. Hope it will guide you properly.
From India, Kumbakonam
The construction Industries are not normally covered by ESI. Hence all the employees and workmen are covered with WC Policy from the Insurance in the name of GPA Policy. It is the principal employer's responsibility to ensure that the workmen injured/deceased should get the due compensation.
Mr. Sandip has given you the complete details from the act. Hope it will guide you properly.
From India, Kumbakonam
Dear Mr.J.Gopi Krishna
Please check whether the insurance policy produced by the contractor refers to the contract workers by name or by the number of contract workers employed. If the policy contains the name of 20 contract workers, then the remaining contract workers whose names are not specified are not covered by the policy. On the other hand if the policy states that 20 workmen working in a particular site are covered then the liability of the insurance company is limited to 20 workers without reference to their name. If during the period of cover of the insurance policy the 21st contract worker is injured in an accident arising out of and in the course of his employment then the insurance company is not liable to pay the compensation and will refuse to pay the compensation amount. In such a case the entire liability for the 21st contract worker will be on the contractor and the principal employer.
With regards
From India, Madras
Please check whether the insurance policy produced by the contractor refers to the contract workers by name or by the number of contract workers employed. If the policy contains the name of 20 contract workers, then the remaining contract workers whose names are not specified are not covered by the policy. On the other hand if the policy states that 20 workmen working in a particular site are covered then the liability of the insurance company is limited to 20 workers without reference to their name. If during the period of cover of the insurance policy the 21st contract worker is injured in an accident arising out of and in the course of his employment then the insurance company is not liable to pay the compensation and will refuse to pay the compensation amount. In such a case the entire liability for the 21st contract worker will be on the contractor and the principal employer.
With regards
From India, Madras
Dear V.Harikrishnan / Madhu.T.K
We are recently renew our WC policy without given employee list or any other detail to insurance company they given us policy on lump sump annual Basic/Wage salary amount and age group (18-25, 26-40, 40-60)
Above base, Agent give us authorized company’s Insurance Policy
My question is that is it acceptable policy which continue from long time (Before my joining) without mention NAME of insured person & one more things is that our employee injury / accident claim are section
Plz. reply on this matter
With best regards
Amit Trada
From India, Ahmadabad
We are recently renew our WC policy without given employee list or any other detail to insurance company they given us policy on lump sump annual Basic/Wage salary amount and age group (18-25, 26-40, 40-60)
Above base, Agent give us authorized company’s Insurance Policy
My question is that is it acceptable policy which continue from long time (Before my joining) without mention NAME of insured person & one more things is that our employee injury / accident claim are section
Plz. reply on this matter
With best regards
Amit Trada
From India, Ahmadabad
Dear Mr.Amit Trada I can take a view in the issue stated in your post only after seeing the insurance policy document. With regards
From India, Madras
From India, Madras
Dear Gopi Krishna
You have given little information.Still, based on the information given, my opinion is as under:
1. You (i.e.the company you represent) are Principle Employer and compensation in case of accident or Occ.Disease remain responsibility of Principle Employer. Several case laws available.
2. Principle employer can enter into contract with contractor and one of the many other conditions may be, policy for WC for ALL workers engaged by the contractor. Condition may be negotiated for sharing the amount of premium or not.
3. WC policy is not binding under any law. The insurance is to secure your own security for any incident which can drag you to financial loss. If you are prepared to carry the risk it is fine with law.
4.If in this case, contractor has not covered all his workers, in absence of any condition agreed by both parties, you can not compel contractor to cover all the workers in WC insurance. In that case both- contractor and principle employer run risk of paying compensation to the workers not covered in the policy. If both agree to run the risk there is no breach of legal provision. Our W.C.Act do not compel to buy insurance for compensation
5. @ Madhu- coverage of construction workers may be in the States where State Govt. has agreed for it and ESIC has made necessary arrangement for collecting contributions and extend benefits to the registered IPs (Insured persons). In Gujarat construction workers are not yet covered
From India, Coimbatore
You have given little information.Still, based on the information given, my opinion is as under:
1. You (i.e.the company you represent) are Principle Employer and compensation in case of accident or Occ.Disease remain responsibility of Principle Employer. Several case laws available.
2. Principle employer can enter into contract with contractor and one of the many other conditions may be, policy for WC for ALL workers engaged by the contractor. Condition may be negotiated for sharing the amount of premium or not.
3. WC policy is not binding under any law. The insurance is to secure your own security for any incident which can drag you to financial loss. If you are prepared to carry the risk it is fine with law.
4.If in this case, contractor has not covered all his workers, in absence of any condition agreed by both parties, you can not compel contractor to cover all the workers in WC insurance. In that case both- contractor and principle employer run risk of paying compensation to the workers not covered in the policy. If both agree to run the risk there is no breach of legal provision. Our W.C.Act do not compel to buy insurance for compensation
5. @ Madhu- coverage of construction workers may be in the States where State Govt. has agreed for it and ESIC has made necessary arrangement for collecting contributions and extend benefits to the registered IPs (Insured persons). In Gujarat construction workers are not yet covered
From India, Coimbatore
Dear Sir,
The Principal employer is engaging a contract labour through contractor for the work of the factory or establishment.
In case of any untoward incident happened to the contract labour, the contractor is liable for W.C. In case, he is not
paid then the employer is fully responsible for payment.
In the case, they book both contractor and the principal employer for compensation.
The writeup etc. are internal, it is nothing to do with the court.
D.Gurumurthy
LL,HR & IR Consultant
From India, Hyderabad
The Principal employer is engaging a contract labour through contractor for the work of the factory or establishment.
In case of any untoward incident happened to the contract labour, the contractor is liable for W.C. In case, he is not
paid then the employer is fully responsible for payment.
In the case, they book both contractor and the principal employer for compensation.
The writeup etc. are internal, it is nothing to do with the court.
D.Gurumurthy
LL,HR & IR Consultant
From India, Hyderabad
Dear All,
Plz. clarify me point to point :-
1) in one case, the contractor has engaged 40 contract labour and submitted the W.C. Policy for 20 people, when we have asked to submit for total 40 people, that particular contractor has asked for any "Write up" on this saying all the labour have to be covered under W.C act.
2) Any write up (or) any case law is there, may plz. be forwarded.
Regards.
G.K - HR
08600098272
From India, Mumbai
Plz. clarify me point to point :-
1) in one case, the contractor has engaged 40 contract labour and submitted the W.C. Policy for 20 people, when we have asked to submit for total 40 people, that particular contractor has asked for any "Write up" on this saying all the labour have to be covered under W.C act.
2) Any write up (or) any case law is there, may plz. be forwarded.
Regards.
G.K - HR
08600098272
From India, Mumbai
Dear Mr.Pradeep,
09878056108
Where it is written that when the employee salary or wages cross the ESIC limit i.e., Rs.15000/- pm, then he will automatically covered under W.C.Act,
The above statement is not correct, the W.C policy is not binding, this is only for the security of the employee and employer. If really employee is ready to bear on his own, he does not require to go for W.C.Policy.
Thanking you
Regards
G.K - HR
08600098272
From India, Mumbai
09878056108
Where it is written that when the employee salary or wages cross the ESIC limit i.e., Rs.15000/- pm, then he will automatically covered under W.C.Act,
The above statement is not correct, the W.C policy is not binding, this is only for the security of the employee and employer. If really employee is ready to bear on his own, he does not require to go for W.C.Policy.
Thanking you
Regards
G.K - HR
08600098272
From India, Mumbai
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