Wages To Contractual Workers During Accident - CiteHR
Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Natraj@sakthimanagement.com
Head - Outsourcing
Avinash Pathak
Dy. Manager - Hr (raymond Group Of Co)
+2 Others

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Dear Sir, If any contract worker met with an accident while working on machine then wages for his absent period to be paid by principal or not?
Sir, wages to contract worker are paid by the contractor and ultimately, it is for the principal employer to reimburse the wages in the shape of bill received from the contractor.
It appears that your question or the issue you raised is not clear. Hope you will clarify whether ESI Act, 1948 is applicable in your unit.

Dear Mr. Harsh,
Thanks for the response. Basically ESI Act is not applicable to our zone. Our factory unit is not in Muncipal Corporation area hence Employee compensation Act is applicable. contractor has covered their employees under unnamed Employee Compensation Policy from Bajaj but without hospitalisation. The whatsoever treatment expenses of injured employee will be reimbursed to the contractor against actual but what about the wages? During his unfit period plus hospitalisation period wages should be paid by principal employer or not to the contract workers? Please confirm.

Mr Avinash Pathak
Temporary disablement compensation can be claimed under EC policy for the unemployment period. Pl check with the Insurance Company whether hospitalisation expenses can also be claimed.
Regards
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 ; e-mail : )

IF THE CONTRACTOR’S WORKER IS COVERED UNDER ESI THEN WAGES DURING THE PERIOD OF ABSENT DUE TO ACCIDENT WILL BE PAID BY ESIC. WORKERS SHOULD PRODUCE ESIC DOCTOR’S CERTIFICATE.
Dear Mr. Kartik,
My question was related to the wages of contract workers for his unfit period after his accident. According to me the contract worker should get wages for his accident leave period plus treatment expenses should be bourne by the principal employer.
Hope you are agree. Because ESIC is not applicable to our zone (other than Muncipal zone area) & Employee Compensation policy never pay the hospitalisation charges, if there is no any parment partial disabliments.

As Mr. Mehta has mentioned the wages of the worker has to be paid by the contractor themselves, if the same is not paid by the contractor and is claimed by the worker legally then the Principal employer can pay on behalf of the contractor and the said amount can be deducted from their respective bills. Hope it clears
Under the employee compensation act there is a provision that the employee will be paid wages for temper or disablement. That is at 50% of wages and full payment of all medical expenses. Since it was an accident on machine, I would suggest you pay the full wages for the unfit period.
If there is a complain and investigation you will be in a lot of trouble because he should not have been given work in core production activity anyway

The case is covered by sec 12 of the EC Act.If the contractor has covered the employee under EC policy he has to arrange compensation from the insurance Co.,including the cost of medical expenses.If not principal employer is liable unless he is indemnified by the contractor u/s 12(2). of the Act.
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