I am an executive engineer with a government department. One laborer of a contractor died during work. Now, his family has approached me for compensation. The contractor also says he is not on his muster roll. He claims the laborer was mustered by another labor contractor.
What should we do?
From India, Ahmedabad
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1What should we do?
From India, Ahmedabad
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The reply will depend on cause of death as mentioned in the death certificate.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Varma,
You should check if the employee is registered under ESIC or workmen's compensation policy. Then, you need to ask the contractor to inform the appropriate authority about the sad demise. The contractor and the respective authority will then handle the situation.
Thank you.
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You should check if the employee is registered under ESIC or workmen's compensation policy. Then, you need to ask the contractor to inform the appropriate authority about the sad demise. The contractor and the respective authority will then handle the situation.
Thank you.
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Seems there is some administrative flaw in the system. Without any verification, how a contract worker is allowed to work on the premises. In general, every contract worker needs to carry some type of ID like an ID Card or attendance card.
In the present scenario, no proof is available, and ultimately the employer is responsible. If you are able to investigate and obtain proof, then check for his ESI card. Support the family in getting related benefits from various offices like ESI, PF, Labour welfare fund, etc., Please do it quickly; failing which, this will become a significant issue.
From India, Hyderabad
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In the present scenario, no proof is available, and ultimately the employer is responsible. If you are able to investigate and obtain proof, then check for his ESI card. Support the family in getting related benefits from various offices like ESI, PF, Labour welfare fund, etc., Please do it quickly; failing which, this will become a significant issue.
From India, Hyderabad
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Dear Mr. Verma,
A contractor cannot employ an excess number of laborers than he is licensed to do so. He is also responsible for maintaining different registers as prescribed by the CLRA 1970. One of these registers that you should refer to is the Muster Roll cum Attendance Register.
In this situation, it appears that you are the Principal Employer, therefore, you must have provided the undertaking/declaration in Form V of the aforementioned Act. In my opinion, the contractor holds the responsibility to pay compensation, and you are accountable for ensuring that the correct compensation is provided to the heirs of the workers. If the contractor refuses to do so, then the responsibility for compensation falls on you.
From India, Allahabad
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A contractor cannot employ an excess number of laborers than he is licensed to do so. He is also responsible for maintaining different registers as prescribed by the CLRA 1970. One of these registers that you should refer to is the Muster Roll cum Attendance Register.
In this situation, it appears that you are the Principal Employer, therefore, you must have provided the undertaking/declaration in Form V of the aforementioned Act. In my opinion, the contractor holds the responsibility to pay compensation, and you are accountable for ensuring that the correct compensation is provided to the heirs of the workers. If the contractor refuses to do so, then the responsibility for compensation falls on you.
From India, Allahabad
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1. Please ascertain on which contractor's payroll that employee was working.
2. What was the cause of death, whether natural or an accident while on duty? Compensation will depend on this fact.
3. As a principal employer, the Government is under obligation to compensate if the Contractor refuses.
4. If he was covered under the ESI Scheme, then it will be a saving grace; otherwise, the compensation will be decided based on the Workmen Compensation Act by the authority under the Act.
5. Please be generous with the bereaved family.
From India, Thane
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2. What was the cause of death, whether natural or an accident while on duty? Compensation will depend on this fact.
3. As a principal employer, the Government is under obligation to compensate if the Contractor refuses.
4. If he was covered under the ESI Scheme, then it will be a saving grace; otherwise, the compensation will be decided based on the Workmen Compensation Act by the authority under the Act.
5. Please be generous with the bereaved family.
From India, Thane
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Dear Mr. Varma,
As the principal employer, you are liable for settling the death claim of a contract employee. It is a death while on duty. The following benefits are payable to the deceased family:
- Gratuity payable by the principal employer
- EPF, EPS, and EDLI claims from the EPF department
- If the employee was covered under ESI: pension to spouse and funeral benefit of Rs. 10,000 payable by ESIC
- If the deceased employee is not covered under ESI, the deceased family should be paid compensation as per The Employees' Compensation Act by the principal employer.
From India, New Delhi
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As the principal employer, you are liable for settling the death claim of a contract employee. It is a death while on duty. The following benefits are payable to the deceased family:
- Gratuity payable by the principal employer
- EPF, EPS, and EDLI claims from the EPF department
- If the employee was covered under ESI: pension to spouse and funeral benefit of Rs. 10,000 payable by ESIC
- If the deceased employee is not covered under ESI, the deceased family should be paid compensation as per The Employees' Compensation Act by the principal employer.
From India, New Delhi
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Mr. Varma,
If the deceased worker has not been on the rolls of any licensed contractor, please ensure that his name is included in the muster of that licensed contractor from the first date of the month in which the accident happened, i.e., June 17, and immediately cover his name and particulars in the ESIC through the licensed contractor. Also, submit the detailed accident report to the ESIC Branch office and the nearby ESI dispensary. If there is no ESI coverage in your area, please check whether you already have insurance coverage under the Employees' Compensation Act.
This would save you from your liability to a certain extent and also ensure a reasonable amount of compensation is provided to the dependent family members.
M. Venkatraghavan
From India, Selam
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If the deceased worker has not been on the rolls of any licensed contractor, please ensure that his name is included in the muster of that licensed contractor from the first date of the month in which the accident happened, i.e., June 17, and immediately cover his name and particulars in the ESIC through the licensed contractor. Also, submit the detailed accident report to the ESIC Branch office and the nearby ESI dispensary. If there is no ESI coverage in your area, please check whether you already have insurance coverage under the Employees' Compensation Act.
This would save you from your liability to a certain extent and also ensure a reasonable amount of compensation is provided to the dependent family members.
M. Venkatraghavan
From India, Selam
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The concept of Principal Employership under the CLRA Act, 1970 with vicarious liability revolves around the elimination of employment exploitation as well as the protection of employment rights of the indirect labor engaged through the contract system.
The fact of the situation is that a contract laborer being engaged through any unlicensed contractor or subcontractor with or without the knowledge of the principal employer and dying in harness due to any employment accident does not alter his vicarious liability in respect of the omissions and commissions of any of them. Therefore, it is imperative that the principal employer should first observe all the due legal formalities relating to the employment mishap and only then proceed against the actual contractor who engaged the victim.
From India, Salem
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The fact of the situation is that a contract laborer being engaged through any unlicensed contractor or subcontractor with or without the knowledge of the principal employer and dying in harness due to any employment accident does not alter his vicarious liability in respect of the omissions and commissions of any of them. Therefore, it is imperative that the principal employer should first observe all the due legal formalities relating to the employment mishap and only then proceed against the actual contractor who engaged the victim.
From India, Salem
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Irrespective of everything if the cause of death is due to accident arising out of & during course of employment that your role for compensation will come.
From India, Mumbai
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From India, Mumbai
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Irrespective of whether the contractor was licensed or not, it is a fact that one contract worker died in harness during the course of employment, whether he was on roles or not. According to Sec. 12(1) of E.C. Act, 1923, the principal employer is liable for compensation to the contract worker as if the deceased was immediately engaged by him. However, under Sec. 12(2), the duty is cast on the contractor to indemnify the principal employer. Therefore, the liability of the principal employer cannot, in any case, be ceased until the dependents of the deceased are paid the compensation by the contractor. It is a joint and several liability.
Further, any payment made to the dependents of the deceased not through the Commissioner for Employees' Compensation cannot be considered as payment of compensation as Sec. 8 of the EC Act bars such payments.
Email: kesavapanda@gmail.com.
From India, Visakhapatnam
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Further, any payment made to the dependents of the deceased not through the Commissioner for Employees' Compensation cannot be considered as payment of compensation as Sec. 8 of the EC Act bars such payments.
Email: kesavapanda@gmail.com.
From India, Visakhapatnam
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