can a Labour Enforcement Officer obstruct while delivering compensation cheque to the deceased labour's family - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Umakanthan53
Labour Law & Hr Consultant
+1 Other

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Hi All,
Please guide me in handling the critical situation...a labour died in the year 2016..as per WC Policy a compensation cheque was prepared (although delayed by a year) for approx Rs.8 Lacs, favouring Deputy Labour Commmissioner of the region and handed over to him, but the LEO raised the point of delay and did not give the cheque to the victim's family. In between the DD/Cheque expired and we got it re-validated through the issuing bank.
Now the victim's family is ready to accept the cheque but since the DD/Cheque is in the name of DLC, cannot be handed over to them directly, it has to be submitted to DLC, but then again LEO may raise a point for delay / impose penalty for that or may ask for some favour for himself.
Kindly guide how can the compensation cheque be given to vicitim's family. Can a affidavit from victim's family stating that they are ready to accept the cheque and have no objection if the payment is delayed.. will do??
Please Guide..please suggest the way out
Thanks and Regards
Nitin Kandya

Dear Nitin,
The amount in the form of cheque drawn in favor of the E.C.Commissioner is the compensation under the Employees Compensation Act,1923. As such, why should you try to disburse it directly to the deceased's family in stead of depositing it with the D.L.C? How come the LEO came into the picture?
I would like to invite your kind attention to the provisions of sec.8 of the E.C Act,1923 which deals with the procedure for distribution of compensation deposited with the E.C.Commissioner. Under ss(4) of sec.8 the Commissioner can conduct a dependent's enquiry in case of multiplicity of claims by different people. For this purpose he can utilise the services of subordinate officers like L.E.O. Therefore, the officers like L.E.O, if so directed by the Commissioner has to conduct the enquiry and submit his report to the Commissioner and it is none of his business to verify the correctness of the amount already deposited with the Commissioner. Such being the legal position relating to disbursement of compensation in respect of any employee's death, your description is a bit confusing. Better calculate the interest amount @10% simple interest from the date of death till the date of deposit of the compensation amount and deposit the entire sum with the E.C.Commissioner.

Thanks Umakanthan Sir,
You always guide us the right way in a very understandable language. As rightly advised by you..i am going to submit the compensation Draft made in favour of DLC on coming monday with a prayer to pass the money to the victim's family, if as per law our company has to bear any penalty in the form of Interest, on account of inordinate delay in submitting the compensation amount, i will request the DLC to notify us about that through a letter/notice, and we will abide by the same.
Hope it works out and there is no more delay in compensating the victim's family.
Thanks a lot for your guidance.
Take care
Nitin Kandya
Lucknow

Dear Nitin,
On reading your post, one can infer that there is insensitiveness from both the sides. From company side because of the delay in preparation of the cheque and from the labour authorities side for raising the objection on delay and withholding the issue of the cheque itself. In the cross-fire between the two, the dependants of the deceased employee are held ransom.
If LEO had raised objection for the delay, you could have replied that as of now the compensation amount may be transferred to the dependants of the deceased and additional compensation arising out of delay can be worked out separately. Did you do that?
Have you taken appointment of ALC (or DLC as the case may be) to explain your position? His ruling could have hastened the disbursement of terminal benefits to the nominees of the deceased.
Lessons for HR Fraternity: - Many companies conduct training on Time Management. But most of the discussion centres around personal time management. For this tools like "To Do List", "Prioritisation" etc are discussed. However, one major flaw is not having discussion on organisation's time. The whole issue has cropped up because of the delay in disbursement of the cheque to the nominee of the deceased employee. If there is a procedure flaw, then it wastes whole lot of time by the parties involved in the procedure. Apart from calculation of the interest required to be paid because of the protractedness in cheque preparation, will anyone calculate losses caused because of the time spent in addressing objections by the labour authorities? Nobody calculates because these are invisible one!
Thanks,
Dinesh Divekar

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