Umakanthan53
Labour Law & Hr Consultant
Manojkamble
Sr. Hr Executive
Bharat Gera
Principal Hr Consultant
Nishikant Das
Proprietor, Ideal Business Solution
Srinath Sai Ram
Hr Manager
Venkatraghavanm
Ir, Er, Payroll, Recruitment,
Mr_varma
Exec Engineer
+3 Others

Iam an exec engr with govt dept. One labour of contractor died during work. Now his family has approached me for compensation. Also contractor says he is not on his muster roll. He says the labour was mustered by another labour contractor. What should we do?
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The reply will depend on cause of death as mentioned in the death certificate.
Dear Mr. Varma,
You should check if employee is registered under ESIC or workmen compensation policy. Then you need to ask the contractor to intimate appropriate authorised about sad demise and then the contractor and respective authority will deal with it.
Seems there is some administrative flaw in the system. Without any verification how a contract worker is allowed to work in the premises, in general every contract worker need to carry some type of ID like ID Card / attendance card etc.,
In the present scenario no proof is available then ultimately the employer is responsible. If you are able to investigate and get a proof then check for his ESI card etc., and support the family in getting related benefits from various offices like ESI / PF / Labour welfare fund etc., etc., Pl do it fast failing which this will become a big issue.
Dear Mr. Verma,
A contractor cannot employ excess no of labour than he is licensed. And he is responsible to maintain different registers prescribed by the CLRA 1970. You should go by one of the register named Muster Roll cum Attendance Register.
In this case it seems that you are a Principle Employer, so you must have given the undertaking/declaration in Form V of the said Act. In my opinion the contractor has the responsibility to pay the compensation, and you are responsible to ensure that the right compensation has been paid to heirs of the workmen. And if contractor refuses then responsibility of compensation is yours.
1. Please ascertain on which contractor's rolls that employee was working?
2. What was the cause of death, whether natural or accident while on duty? Compensation will depend on this fact.
3. As a principal employer Government is under obligation to compensate if Contractor refuses.
4. If he was covered under ESI Scheme, then it will be a saving grace otherwise the Compensation will be decided on the basis of Workmen Compensations Act by the authority under the Act.
5. Please be liberal with the bereaved family.
Dear Mr Varma,
As principal Employer you are liable for settling Death Claim of a Contract Employee.It is a Death while on duty.The following Benefits are payable to the deceased Family:
Gratuity Payable by Principal Employer
EPF,EPS &EDLI-Claim from EPF Department
If Employee was covered under ESI-Pension to Spouse & Funeral Benefit of Rs10,000/- Payable by ESIC
If Deceased Employee is not covered under ESI, Deceased Family should be Paid Compensation as per The Employees Compensation Act by The Principal Employer.
Mr Varma
If the deceased worker has not be on rolls of any licensed contractor, please ensure that his name is included in the muster of that licensed contractor, from the first date of the month in which accident happened i.e., June 17, and immediately cover his name and particulars in the ESIC, through the licensed contractor. Also submit the detailed accident report to the ESIC Branch office and the nearby ESI dispensary. If there is no ESI coverage in your area, please check whether you already have Insurance coverage under Employees' compensation Act.
This would save you from your liability to a certain extent and also ensure reasonable amount of compensation is provided to the dependent family members.
M Venkatraghavan
The concept of Principal Employership under the CLRA Act,1970 with vicarious liability revolves around elimination of employment exploitation as well as protection of employment rights of the indirect labour engaged through contract system.The fact of the situation that a contract labour being engaged through any unlicensed contractor or sub-contractor with or without the knowledge of the principal employer and dieing in harness due to any employment accident, does not alter his vicarious liability in respect of the omissions and commissions of any of them.So, it is imperative that the principal employer should first observe all the due legal formalities relating to the employment mishap and next only proceed against the actual contractor who engaged the victim.
Irrespective of everything if the cause of death is due to accident arising out of & during course of employment that your role for compensation will come.

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