Sir, if the contract period was not extended and work is still ongoing on the site, and a fatal or non-fatal accident occurs during that time, is employee compensation applicable to the deceased?
From India, Warangal
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16From India, Warangal
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The Employee's Compensation Act of 1923 would apply whether there is a valid contract or even if the contract period is over. Under the Act, it is the establishment (where the work takes place) that is liable to ensure compliance. The contract enables the principal employer to deduct any compensation paid for the contract labor deployed by the contractor from the contractor.
From India, Mumbai
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From India, Mumbai
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Sir,
Compensation has to be paid to the deceased, okay.
But, is the company legally eligible to receive the compensation from the insurance company or not (due to the unavailability of a work order extension)?
If the work order has expired and not been extended by the principal employer, then the labor license (valid up to Aug-2023) and WC Policy (valid up to Oct-2023) are still valid or not in the absence of a work order.
PLEASE CLARIFY
From India, Warangal
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Compensation has to be paid to the deceased, okay.
But, is the company legally eligible to receive the compensation from the insurance company or not (due to the unavailability of a work order extension)?
If the work order has expired and not been extended by the principal employer, then the labor license (valid up to Aug-2023) and WC Policy (valid up to Oct-2023) are still valid or not in the absence of a work order.
PLEASE CLARIFY
From India, Warangal
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The insurance document has to be seen to answer on the eligibility to get compensation from the insurance company. Since it is said that the insurance policy is valid up to Oct '23, it appears there will be continued coverage. Is there any problem in getting the contract extended?
There would be some correspondence asking the contractor to carry on although the contract period is over. So, though there is no formal contract, even otherwise there is a valid contract running on the date of the accident.
From India, Mumbai
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There would be some correspondence asking the contractor to carry on although the contract period is over. So, though there is no formal contract, even otherwise there is a valid contract running on the date of the accident.
From India, Mumbai
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The Employee Compensation Act is applicable. If there is any insurance policy taken by the employer, it is only to safeguard his interest. As far as compensation is concerned, the employer is liable, and in case the insurance company denies, the liability will be with the employer.
From India, Hyderabad
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From India, Hyderabad
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Sitaramsn Sir Can you please provide support document that, If the insurance company denies the claim, then the liability will be with the employer. Please
From India, Warangal
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From India, Warangal
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In this case, there is one principal employer and contractor. Hopefully, the contractor has taken EC policy which is valid up to October 23. In the meantime, the work order eligibility date to finish the job is over. But work is continuing at the site without any new work order.
It appears to me that without a formal extension, why is the contractor continuing the job? Will the principal employer pay for the extension period of work, or is it part of the earlier Work Order, and the contractor is continuing its job to get payment from the principal employer?
Whatever the case may be, the query is whether the insurer will pay against the EC policy in the absence of a new Work Order. Against the EC policy, the claim is raised by the family of the deceased employee with the party insurer and the contractor along with the principal employer. Usually, the EC Commissioner is looking after the merit of the case, and if there is insurance coverage, insurers are paying money as per the award of the EC Commissioner. Whether the work order was valid or not is not the concern of the insurer or EC Commissioner in normal conditions. In my opinion, if any question is raised, then the principal employer may certify the situation.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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It appears to me that without a formal extension, why is the contractor continuing the job? Will the principal employer pay for the extension period of work, or is it part of the earlier Work Order, and the contractor is continuing its job to get payment from the principal employer?
Whatever the case may be, the query is whether the insurer will pay against the EC policy in the absence of a new Work Order. Against the EC policy, the claim is raised by the family of the deceased employee with the party insurer and the contractor along with the principal employer. Usually, the EC Commissioner is looking after the merit of the case, and if there is insurance coverage, insurers are paying money as per the award of the EC Commissioner. Whether the work order was valid or not is not the concern of the insurer or EC Commissioner in normal conditions. In my opinion, if any question is raised, then the principal employer may certify the situation.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay, Sir,
The principal employer is not interested in extending the current work order. The work order's eligibility date to finish the job has passed, yet work is continuing at the site without a work order extension.
If the contract period was not extended, and work is still ongoing at the site, if a fatal or non-fatal accident occurs, what are the implications?
Currently, there are no gate passes for workmen, no running RA bills, and no valid work order. In this scenario, is employee compensation applicable to the deceased?
From India, Warangal
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The principal employer is not interested in extending the current work order. The work order's eligibility date to finish the job has passed, yet work is continuing at the site without a work order extension.
If the contract period was not extended, and work is still ongoing at the site, if a fatal or non-fatal accident occurs, what are the implications?
Currently, there are no gate passes for workmen, no running RA bills, and no valid work order. In this scenario, is employee compensation applicable to the deceased?
From India, Warangal
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Here we are to see the following:
Where the accident took place - Employer's site. So when it comes to payment of compensation, prima facie, it is the employer's liability. It is for the employer to prove otherwise. Basically, we are to understand that the EC insurance policy is a safeguard for any accident that took place at a work site for payment or reimbursement of compensation. Please understand that having a policy does not absolve the employer's liability unless the conditions of the accident took place in circumstances where exceptions apply.
From India, Hyderabad
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Where the accident took place - Employer's site. So when it comes to payment of compensation, prima facie, it is the employer's liability. It is for the employer to prove otherwise. Basically, we are to understand that the EC insurance policy is a safeguard for any accident that took place at a work site for payment or reimbursement of compensation. Please understand that having a policy does not absolve the employer's liability unless the conditions of the accident took place in circumstances where exceptions apply.
From India, Hyderabad
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In case of an accident resulting in an injury lasting more than 3 days:
1) If the workers' compensation (WC) policy is not expired, the company is legally eligible to receive compensation from the insurance company. There is no issue of non-availability of work order extension.
2) If the WC is not available or has expired, the Principal Employer is responsible for paying compensation to the injured party.
3) There is no issue regarding work orders, contract licenses, etc., as this falls under the responsibility of the Principal Employer and Contractor. If an accident occurs during employment, the liable party must provide compensation.
From India, Mumbai
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1) If the workers' compensation (WC) policy is not expired, the company is legally eligible to receive compensation from the insurance company. There is no issue of non-availability of work order extension.
2) If the WC is not available or has expired, the Principal Employer is responsible for paying compensation to the injured party.
3) There is no issue regarding work orders, contract licenses, etc., as this falls under the responsibility of the Principal Employer and Contractor. If an accident occurs during employment, the liable party must provide compensation.
From India, Mumbai
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Renewal Of Licence Period Extended for 15 yrs.Under Tamil Nadu Factories Rules,1950.pdf
Contract Letter to an Employee for fixed period.doc