Can the principal employer take a direct WC policy for the contract workers???
From India, Vadodara
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6From India, Vadodara
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Yes, the Principal Employer must compensate the contractor worker when the Contractor fails to do so.
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In respect of certain statutory employment rights of contract labor engaged within the zone of work of the establishment for which their services are hired, the Principal Employer is charged with vicarious liability under Section 21 of the CLRA Act, 1970.
Compensation under the Employees' Compensation Act, 1923 for any injury sustained due to any employment accident, including death, is one such liability fastened on the PE.
However, it is not obligatory for the PE to take up insurance for the contract labor for such a contingency, given the absence of an employer-employee relationship between the PE and the contract labor. Hence, it is sufficient that the PE ensures insurance coverage by making it an essential condition of the service contract between the contractor and themselves, compelling the contractor to obtain a suitable insurance policy under the EC Act for the respective project undertaken.
From India, Salem
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Compensation under the Employees' Compensation Act, 1923 for any injury sustained due to any employment accident, including death, is one such liability fastened on the PE.
However, it is not obligatory for the PE to take up insurance for the contract labor for such a contingency, given the absence of an employer-employee relationship between the PE and the contract labor. Hence, it is sufficient that the PE ensures insurance coverage by making it an essential condition of the service contract between the contractor and themselves, compelling the contractor to obtain a suitable insurance policy under the EC Act for the respective project undertaken.
From India, Salem
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Workmen Compensation Notification.pd f
Workmen Compensation Return.doc