Legal Liabilities and Compensation After a Contractor's Fatal Accident at Work? Urgent Help Needed

Dear all,

I am working in a manufacturing company. In our manufacturing unit, construction is ongoing while working. One laborer in a contractor role unfortunately met with an accident and died. In such a situation, is our company legally liable for any compensation? If yes, what compensation do we have to pay under which act? We are also covered by ESIC, so can our company claim any benefits under the ESIC?

Seniors, please respond urgently.

Regards, Priyanka

The compensation is to be paid under Workmen's Compensation Act. The amount of compensation will depend on his age at the time of death and last salary drawn (ceiling of Rs. 4000). The formula will be as follows: 50% of wages (subject to max. wages as Rs. 4000) * multiplying factor as provided in the Act corresponding to his age. This amount has to be deposited in the Labour Court within 30 days of the accident. The same amount may be indemnified from the contractor under section 12(2) or from the insurance company from whom the WC policy has been taken. Notice of the accident is to be given to WC commissioner in Form EE as soon as possible. The amount is to be deposited along with Form A. It is advised to deposit the amount through an advocate in the labor court making the dependents of the worker & contractor, Insurance Company party to the case.

Regards,
Rajendra Bhavsar
09850869517

When the ESI Act is applicable and if the worker is covered under the ESI scheme, then intimation is to be given to the ESI Corporation. The amount of pension/compensation will be paid by ESIC to his legal heirs/dependents. No amount is to be deposited anywhere. It will be the total liability of ESIC.

Regards,

Rajendra Bhavsar

Dear Rajendra,

Thank you for your response. The worker is not covered under the ESIC. His age is approximately 25 years. How should we calculate the workmen's compensation?

Regards,
Priyanka