How Should We Handle Employee Compensation for a 10-Day Injury Without ESI Coverage?

Employee Injury and Compensation Query

If an employee is injured in the company resulting in temporary disablement for 10 days, and the employee is not covered under ESI because the area is not under ESI, how should we treat the 10 days? Should it be considered as sick leave, should we give him full salary, or provide him with 25% of the salary as per the Workmen's Compensation Act? Should the 10 days be deducted from his eligible sick leave or not? Please advise me with relevant proofs.

Thanks in anticipation.

Regards,
B. Vijayasarathy.

The concerned employee is eligible for 25% of the monthly wages during the period of disablement according to the Employees' Compensation Act. However, my suggestion is that on compassionate grounds, the organization should pay him the full salary without adjusting any leave. Organizations are free to provide better benefits than what is stipulated in different labor acts.

Thank you.

Determining the Root Cause of the Accident

First, you need to find the root cause of the accident, whether it was due to human error or not. In this incident, what is the role of the injured party? If the accident occurred due to either management's mistake or someone else's mistake, the injured party may be eligible for full wages. When the accident happens without any fault on the injured party's part, why should they lose their salary/wages?

Regards,
V K Rao

Please grant special leave for that period and provide full salary since the accident took place in the course of employment.

Regards,
Alphonse

As I understand it, the provisions of the Employees Compensation Act entitle workers to complete treatment. Regarding wages, if the absence is for 3 days or less, no amount needs to be paid. If it extends for more days, 50% of wages have to be paid.

The person is very much entitled to the full salary if the incident happened while at work, subject to proper investigations. Workers' compensation (WC) is applicable as a statutory benefit and will require a thorough investigation, which may take its own time for settlement. In fact, it is always in the company's best interest that every employee is considered an asset and is treated generously in such cases.

Thanks,
Regards,
Bijay Majumdar

No one wants to get injured; it is not in the interest of the company to investigate whose fault it is. The investigation should focus on how to avoid a recurrence. In my opinion, the employee should be granted full salary without any deduction of leave from their account. I agree that every employee is an asset to the company.

Thank you for your comments. I agree with all of you, but I need clarification on whether we have to treat his absence from duty as leave with 25% salary or full salary, without treating it as leave. Please provide me with any rules that explain these guidelines because I have referred to books, but I am still unclear.

Thanks & Regards,
B. Vijayasarathy
[Phone Number Removed For Privacy Reasons]

Rule books are for reference and to settle critical issues. In the case referred to, it would be better to compensate the employee with full wages for his treatment period, granting him special paid leave along with the full treatment cost.

Regards,
R K SINGH
CHANDIGARH

This is a normal case. Mark his absent days as accident leave and just pay him as if he was present on those days. This may not be a rule but could be a policy of the company or a decision of management.

Options for Handling Absence

If you go by the rule, then there are three options:

1. If the person is absent for more than 48 hours, this is a reportable accident, and you should comply with the Factory Inspector's Office.
2. If you do not have accident policy coverage, you should pay E.C. as per the table and calculation. If you do so, you do not need to mark the absent days as leave.
3. If you mark it as sick leave, then you should ask the employee to provide a medical certificate for that. Keep in mind that this is a lengthy procedure.

Regards,
Mangesh Wakodkar
Aurangabad

As a good employer practice, workers should be granted special leave with full wages, along with the cost of treatment. Since the accident occurred at work, an inquiry should be conducted, and corrective measures should be taken to prevent such incidents in the future.

Regards,
AK Mathur

Understanding Employee Compensation Under the Employees' Compensation Act, 1923

Under the Employees' Compensation Act, 1923, an employee who dies or suffers disablement (partial or total) due to an accident is entitled to receive compensation from the employer if it is an employment injury, i.e., arising out of and during the course of employment. Further, as per Section 53 of the ESIC, if the employee is covered under the ESI Act, they are not entitled to receive compensation under the Employees' Compensation Act. The employer is liable even if the employee was negligent, careless, or at fault, due to the principle of no-fault liability.

However, no compensation is payable if the disablement lasts for only up to three days. In cases of temporary disablement, whether total or partial, resulting from the injury, the employee is entitled to a half-monthly payment equivalent to twenty-five percent of their monthly wages, to be paid in accordance with the provisions of sub-section (2).

Exceptions to Employer Liability

However, the employer shall not be liable in respect of any partial injury caused by an accident which is directly attributable to:

- The employee being under the influence of drink or drugs at the time.
- The willful disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employees.
- The willful removal or disregard by the employee of any safety guard or other device which they knew to have been provided for the purpose of securing the safety of employees.

Regards,
U.C. Dalai
Chief Executive Officer
Aparajita Compliance Solution Private Limited

Kindly ascertain that the accident has not arisen due to negligence or willful neglect of safe instructions, etc. If so, he is to be paid leave with full wages. This already justifies your stand. Otherwise, workmen will not be loyal to your company. The leave to be sanctioned shall be special leave.

Regards,
S.K. Johri