There is a business model in metro cities called UrbanClap. They are like Flipkart in the service sector. They send electricians, plumbers, etc., to customers' homes. Here, UrbanClap works with workers on a commission basis. When a customer gives a problem to the company, it sends the worker, who will solve the problem. The customer pays the company, which deducts its commission and pays the rest to the worker.
My question is: Will the company be liable to pay compensation to the family of the worker if the worker, on his way to the customer's home, meets an accident and dies?
From India, Lucknow
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7My question is: Will the company be liable to pay compensation to the family of the worker if the worker, on his way to the customer's home, meets an accident and dies?
From India, Lucknow
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Yes Company will be responsible and liable to compensate family.
From India, Pune
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From India, Pune
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Understanding the Relationship Between UrbanClap and Workers
Thank you for your response. However, in this situation, the worker is not employed for wages. The company does not manage his attendance, leave, performance appraisal, career path, discipline, etc., as it would for employees. Instead, the company provides an opportunity for the worker to work. For example, the company might say, "Hello! Carpenter! Some work came in a place 3 km away from you. Are you interested in going?" After the worker completes the task, the customer pays UrbanClap, which deducts its commission and pays the remainder to the worker as a professional fee.
Isn't the relationship between UrbanClap and the worker similar to that of a company and a contractor (not a contractual worker, but the boss who signs all papers)? Or can we say it is casual employment, where work is assigned as it arises but is not guaranteed (the employee compensation act does not apply to casual employees)?
Appropriate Treatment of Workers in Casual Employment
In this kind of workplace environment, what should be the appropriate treatment of workers to ensure that young entrepreneurs are not liable for an employee's death? Please consider this from an entrepreneurial perspective, not a social reformer's.
If someone is planning to start a business as a proprietor and hires 10 workers, and a worker dies on the first day in this business model, the businessman would need to pay a significant amount as compensation. Where is the motivation to start a business? He needs to mitigate this risk. I request knowledgeable seniors to guide on how they can mitigate the risk. If it is not possible, should he change his business model to a one-person company with limited liability?
From India, Lucknow
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Thank you for your response. However, in this situation, the worker is not employed for wages. The company does not manage his attendance, leave, performance appraisal, career path, discipline, etc., as it would for employees. Instead, the company provides an opportunity for the worker to work. For example, the company might say, "Hello! Carpenter! Some work came in a place 3 km away from you. Are you interested in going?" After the worker completes the task, the customer pays UrbanClap, which deducts its commission and pays the remainder to the worker as a professional fee.
Isn't the relationship between UrbanClap and the worker similar to that of a company and a contractor (not a contractual worker, but the boss who signs all papers)? Or can we say it is casual employment, where work is assigned as it arises but is not guaranteed (the employee compensation act does not apply to casual employees)?
Appropriate Treatment of Workers in Casual Employment
In this kind of workplace environment, what should be the appropriate treatment of workers to ensure that young entrepreneurs are not liable for an employee's death? Please consider this from an entrepreneurial perspective, not a social reformer's.
If someone is planning to start a business as a proprietor and hires 10 workers, and a worker dies on the first day in this business model, the businessman would need to pay a significant amount as compensation. Where is the motivation to start a business? He needs to mitigate this risk. I request knowledgeable seniors to guide on how they can mitigate the risk. If it is not possible, should he change his business model to a one-person company with limited liability?
From India, Lucknow
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