Tragic Accident at Work: What Are the Company's Liabilities and Legal Issues?

Please guide,

The company has assigned some civil work and leakage proofing work of the factory shed to a civil contractor. A worker of the civil contractor falls from the top of the factory shed and dies. What are the liabilities of the company in this case? What are the legal issues involved in it?

Please help.

Dear,

As per the Factory Act, the person in question will be considered a worker, and the employer will be obligated to pay compensation under the Workmen's Compensation Act. Legally, this worker is an employee of the civil contractor. In the absence of the contractor, the principal employer will be legally bound to pay the compensation.

Please review the contract made with the civil contractor.

Thanks,
Mohd. Arif Khan

Hi Prasad,

The ultimate liability lies with the owner of the factory. If the contract agreement with the civil contractor is silent on workmen's compensation and there is no insurance for the workmen, then the owner has to bear the responsibility.

Dear Mohd. Arif Khan & Parasurampur,

Thank you for your reply. There is no formal work contract between the company and the civil contractor, only a verbal agreement regarding the work.

Dear,

In this case, the principal employer will be responsible for all mishappenings. It is better to sort out the matter.

Regards,
JS Malik