Navigating Worker’s Compensation: Can Daily Wage Laborers Claim Benefits After a Tragic Accident?

We are in the construction business. We had hired one labor contractor for our construction work. The contractor was employing 100 daily wage laborers. During the work, one laborer was seriously injured on duty and died later in the hospital. We were paying Rs. 175/- to the contractor for each laborer, and in turn, he was paying Rs. 150/- to the laborers on a daily basis. He would raise the bill to us on a monthly basis.

Please let me know if the deceased laborer is entitled to claim under the Worker's Compensation (WC) Act as he was working as a daily wages/casual laborer. We have also taken a WC policy on an unnamed basis. We have already provided some amount of money to the deceased's family members but intend to deduct that amount from the contractor's bill.

The contractor is approaching us to seek the claim from the insurance company under WC. Can the labor commissioner verify all the compliances of the Minimum Wage Act set by the government during the investigation? What type of documents can he demand from us for filing the claim in the WC commissioner's office?

These are situations that may become very sensitive. The laborer would have come under ESI had he been brought under the rolls properly. It is unfortunate that you or even your contractor failed to bring him under ESI. Now the only remedy is to sort out the matter as per the Workmen's Compensation Act. Though he was not directly employed by you, he worked for the trade or business transacted by you only. Therefore, being the principal employer, your responsibility is not limited but primary. When the question of compensation arises, there are chances of queries relating to minimum wages and non-coverage of employees under ESI coming up. Therefore, it is advisable to have an outside settlement without the interference of the Labor department.

In fact, I didn't come across such a situation, and therefore, my judgment may be wrong. Throughout my career, I have not diluted at least this point, that is to ensure that all those who fall under the definition of ESI are covered.

Regards,

Madhu.T.K

Dear,

In my company, one of the workers got injured, and he has swelling on his leg. He was treated by the doctor and took a leave for one day. Can I claim under the Workers' Compensation Act as we have the Workers' Compensation policy?

Seeking guidance for Workers' Compensation.

Prashant
9099086438