Contract Worker Injury: Who Should Pay Compensation, the Company or the Contractor?

Hello All,

Please provide me information regarding the injury. If a contract worker got injured while working, who is responsible for providing compensation? Is it the company or the contractor that has to pay?

Thanks

If the contractor fails to pay, then the principal employer needs to pay, subject to recovery from the contractor.

Dear Pandek,

Will you please tell me in which section of contract law this is mentioned?

Dear Dhaval Kaku,

Normally, the contractor is liable to pay compensation in such a situation. However, if he fails or is unable to do so, the Principal Employer is responsible for paying the compensation first and then seeking indemnification from the contractor. Please refer to Sec. 12 of the Employees' Compensation Act, 1923.