Navigating Sick Leave vs. Medical Leave: How Should We Handle Extended Absences?

We are a construction company, consultants, and manufacturers of Tunnel Boring Machines. As per Company Policy, sick leave can be up to 7 days in a year. However, if someone is involved in an accident and advised to rest for 20 days, they shall not fall under the purview of serious bodily injury as per the Workman Compensation Act Sec-10(1). Nevertheless, we are required to pay them half their salary for the period they produce medical documentation. How should we term this kind of leave?

Furthermore, if the period of temporary total/partial disability extends, for instance, to 1 year, how can we compensate the worker? The insurance company stipulates that all payments must be made through the Court of Workman’s Compensation Commissioner. What happens if the work is completed before the end of the stated period of disablement?

Additionally, it has come to our attention that Medi-Claim is not covered under the Workman’s Compensation Act or the insurance policy. Any opinions on this matter are welcome.

Dear Aby :D

The absence caused due to injuries covered under the WC Act need not be regularized under your leave head. This is a statutory liability, and the treatment to be given is to reckon such absence to be as on duty for purposes like gratuity, retrenchment, etc. Such period of absence can extend to a maximum of 5 years, and the half-monthly compensation is payable till then {Sec.4(2)(ii)}, even though the project may have been completed.

As per Section 8, only in case of death, payment to women or to a person with legal disability needs to be made through WC commissioner. Such agreements have legal validity and should be admissible to insurance agencies. In law, there is no provision for medi-claim insurance or such other arrangements, agreed.

Thanks.

KK Nair

Dear Mr. Nair,

Thank you very much for your advice. However, I specifically mentioned less than 20 days, i.e., it does not fall under the purview of the WC Act. How can we term these Compensatory Leaves paid at half the rate of wages?

I have another question, please. How should an insurance company pay half-monthly wages when the certificate of disability is provided by the doctor several months later? How can a payment be made in this situation? Any suggestions are welcome.

Thanks again.