Understanding the Basics of the Workmen's Compensation Act: What Do You Need to Know?

Dear Friends,

Please see the attachment of some fundamental details on THE WORKMEN'S COMPENSATION ACT.

Regards,

PBS KUMAR

Dear All,

ESI is not covered in our factory area. We covered all the employees under WCA. One of our staff members is receiving a salary of 17500/-. He had an accident outside the factory after duty hours. Immediately, we admitted him to the nearby (tie-up) hospital. He was on bed rest for two months. We have not paid any salary to this person, and now the hospital bill, including operation expenses, amounts to around 20000/- that needs to be paid.

Kindly advise if we, as the employer, need to pay this bill or if it is the responsibility of the employee. Can we sanction a loan and deduct it from the employee's salary? Is the staff member receiving a salary of 17500/- covered under this WCA?

Kindly advise.

Regards,
VASU

Dear Friend,

The answer to your first query is NO if the accident occurs outside the course of employment. There is no stipulated amount of salary given under the WC Act, so your employee is covered under it. Yes, you can sanction a loan and deduct it from his salary.

Regards

Dear Vasu ji,

Firstly, your organization is not covered under ESI as you stated. Since your organization is not covered, you have to implement a GROUP INSURANCE POLICY for all the employees (it's a benefit scheme for all). By God's grace, the accident occurred outside of duty hours. If it had occurred on duty...? So, you should establish a WC policy for all employees with any nationalized Insurance Company (e.g., United India Insurance Co.).

Regards,
PBS KUMAR

Dear Sir,

One of our staff (Engineer - Salary $16,500) went to his residence for dinner due to the unavailability of canteen facilities in the company. He was actually performing the B Shift (4:00 PM to 12:00 Midnight). After having his dinner and returning to his duties, he met with an accident and died immediately due to a head injury.

Kindly advise whether his dependents can receive Workers' Compensation from the company. The total number of workers working in the factory is more than 300.

Regards,
Venkatesh