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Compensation

(Querist) 01 January 2012 This query is : Resolved 
An unskilled labourer had been working under a Contract Firm for a Public Sector Undertaking. He was employed in a Chemical plant of the said Undertaking without proper training.

The Contract Firm which supplied him as man-power to perform the duties of the said Undertaking is a registered firm of the said Undertaking. The P. F. deductions for the said Labourer was regularly made by the said Public Sector Undertaking during his employment.

While on duty the said labourer died at the premises of the said Undertaking. But, after his death both the Contract Firm as well as the said Public Sector Undertaking shows indifference towards any compensation or responsibility demanded by his dependents.

Now, the question is that whether it is the responsibility of the Contract Firm to pay necessary compensation to the dependents or whether the Contract Firm can be demanded for Compensation or not.
Jai Karan Nagwan (Expert) 02 January 2012
Mr. Sharma, typical from the legal point of view contractual worker was the responsibility of the contract firm, but as per Contract labor Act 1970, it was the responsibility of Principal Employer (PSU)to ensure that all benefits are granted to the workers of contract firm. if the PSU situated in the ESIC implemented area worker should have been covered under the ESIC and if worker covered under ESIC, worker beneficiary will get pension from ESIC, However contract firm has to initiate the process for grant of pension. bwneficiary will get certain benefits from the ESIC & PF department. on the other hans if PSU situated in ESInon implemented area than ECA 1923 will come to help the worker. Please give detail whether person insured under ESIC or not.
J K Agrawal (Expert) 03 January 2012
Further I add to Jai Karan's Answer

Under Workman Compensation Act All persons, The Principal, The Contractor and any insurance company if insurance is there are liable to compensate.

If the labour is not registered with ESIC you may go to Labour Commissioner of Area where Accident took place. You Should give notice to both under section 10 of WC act and then file case within 2 year of date of accident.


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