Navigating State-Specific Labor Laws: Why Are Rules So Different and How Can We Simplify Compliance?

Dear Friends,

While doing the erection work at our construction site, an accident took place, and the next day, the injured person died in the hospital.

Normally, in Andhra Pradesh, I used to give intimation to the Joint Commissioner of Labour, and they would calculate the compensation amount to be paid to the family of the deceased and intimate the same to us. If we make the payment, then our part will be over.

Whereas in Gujarat, we have to submit the Accident Investigation Report in Form 18 under BOCW (Gujarat) Rules 2003. We have to calculate the compensation ourselves and submit the same to the Labour Court. The Labour Court will then intimate the next of kin to claim the compensation from them. We have to issue a NOC to the family of the deceased, stating that we do not have any objection to making the payment to the family members of the deceased. The amount can be claimed only by engaging a lawyer; without a lawyer, they cannot claim it.

My Question is,

Why do our rules differ from state to state? Why are we not adopting a single code of practice? Once the Central Government has made the concerned Acts and Rules, what is the purpose of making the State Act and State Rules, which further complicates matters for those strictly following the rules?

What is the requirement for one job, two registrations (Registration of Establishment under BOCW Act and CL Act) and two licenses (CL Act & Inter State Migrant Workers Act) and numerous acts and rules?

As we are covered with countless acts and rules (Contract Labour Act, Rule (State & Central), Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, Payment of Gratuity Act, Equal Remuneration Act, Workmen Compensation Act, Rules, BOCW Act, BOCW Rules, BOCW Welfare Cess Act, BOCW Welfare Cess Rules, Industrial Dispute Act, ID Rules, Maternity Benefit Act, Industrial Employment Act, Rules, Trade Union Act, Factories Act, Rules, Shops and Commercial Establishment Act, Mines Act, Fatal Accident Act, etc.), we can be penalized at any time, even if we maintain all the registers, forms, welfare amenities, and other statutory requirements as required by any act (for the purpose of extraction of something). What is the real remedy we have with us?

What can be the remedy for these issues?

May I expect our learned members' comments/remarks?

Regards

This is for your information only. When an accident occurs on the premises, whether an employee has died or been injured, the following procedures must be followed irrespective of different states:

1. Immediately inform the Local Thana and the Labour Enforcement Officer (in case of death or injury).

2. For an injured person, start the medical examination to determine the exact injury factor for calculation purposes.

3. For a deceased person, conduct a postmortem and record the information.

4. Begin calculation based on the age factor of the deceased or injured employee.

5. Request a claim letter and proof of address from the injured or deceased employee's next of kin.

6. Enclose all the above information with a cover letter and issue a Demand Draft in favor of the District Magistrate (or the Deputy Commissioner if applicable).

7. Obtain a receiving copy from the Deputy Commissioner or District Magistrate's office.

Provide a photocopy of all the above information to the injured or deceased employee's next of kin so they can claim their compensation through a lawyer at the District Magistrate's office or Deputy Commissioner's office.

Wait for the judgment. Once the judgment is issued, request a copy from the Deputy Commissioner's office or District Magistrate's office.

All the above records are necessary for claiming insurance from the insurance company.

Regards

We need not get any claim letter from the heir of the deceased. We have to calculate and deposit the amount through a Demand Draft drawn in favor of the Workmen Compensation Commissioner (normally, the Labour Commissioner will act as the Workmen Compensation Commissioner) along with the details of family members and their address, and not to the DC or DM. Details of family members, a legal heir certificate, address proof, bank account details (first page xerox), death certificate, and other details must be provided by the claimant while claiming with the Workmen Compensation Commissioner or through the labor court. Thanks for giving your views.

Bhaskar, this cumbersome process is not only in Gujarat but in some other states as well. In Haryana, where I was working recently, similar procedural hassles were noticed. Yeah, in a federal structure, there are different sets of rules. Only the Union Government should intervene to rationalize.

Regards,
Pon

The answer I received from a senior person in ER is as follows:

Provisions of Central Acts and State Government Enforcement

Provisions of various Central Acts are enforced through State Governments because they are empowered to create their own rules based on local conditions and the environment.

Registration Under Factory and BOCW Acts

In the case of an establishment or factory like ours, it is registered under the Factory Act. However, before registration under the Factories Act, the establishment is registered under the BOCW Act. This means that registration of one establishment under both Acts at the same time is not required.

Licenses Under Contract Labor and Inter-State Migration Acts

Licenses under the Contract Labor (R&A) Act and the Inter-State Migration Act are applicable only when there is deployment of contractual workers; otherwise, they are not necessary.

Regards,