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What is workman compensation

(Querist) 10 January 2012 This query is : Resolved 
Our Employee who left the job without notice, has filed a complaint against us for not giving his dues.

We visited the Labour Inpector and stated that all dues were duly paid, except the last month.

Inspector got satisfied but told us that we have to pay the Gratuity for 10 years he had worked for us.

We said that since we had only 3-4 employees during the 10 years of his service and Gratuity do not apply here.

Then he said that, "No No its some thing like workman compensation, given to him at the time of retirement. This amounts for 15 days salary (last given) for every year worked"

Otherwise he is threatening to forward the matter to Labour Court.

But I had never heard such thing. Kindly guide me please.
sanjeev murthy desai (Expert) 10 January 2012
Nothing to worry if he forwarded to labour court then you just have to contest in the case. In my view you have good merits in case.
ajay sethi (Expert) 10 January 2012
As per Sec 10 (10) of Income Tax Act, gratuity is paid when an employee completes 5 or more years of full time service with the employer
Gratuity Payable = 15 days wages x No of completed years of service

Every factory ,mine,oilfield,plantation ,port,railways,company,shop,establishment or educational institutions employing ten or more employees.

since only 4 employees in your organisation payment of gratuity act is not applicable
Deepak Nair (Expert) 10 January 2012
I recall that you had posted the earlier part of this query a few days back. This is with related to your employee who left your shop without notice and somebody from office of labour inspector visited your office stating that he have filed a complaint.

No need to worry. if he approaches the labour court, you can fight the case on its marit as you have a good case to fight.

Not to give in to any threas from his side.
Deepak Nair (Expert) 10 January 2012
Workman's compensation Act is not at all applicable in this case as the WC Act applies only in case of injury caused during and in the course of employment.
V R SHROFF (Expert) 10 January 2012
Not to worry, let him go to labour court, you have good defense
Sankaranarayanan (Expert) 10 January 2012
Yes merits of facts r favour to u so need not worry
Anjali Arya (Querist) 10 January 2012
(@Deepak Nair... Yes I had posted related query earlier. Now I have got the copy of complaint and visited Labour Office one time.)

Again thanks to all....

But

1. what is the thing the labour Inspector was talking about ?

2. Is anything there, other than Gratuity, that is payable to an employee at the time of leaving job ?

3. If the labour Inspector was trying threatening me with unlawful provisions, shall I file complaint against him ?

4. Inspector has fixed next Date of hearing on 16-1-2012. Shall I go there or wait for Court notice ?

Regards to all ...
Deepak Nair (Expert) 11 January 2012
1. It is Gratuity that the labout inspector was talking about. But since it does not apply to you, you need not worry.

2. No.

3. it is useless to take any legal actions against the labout inspector. You cannot say that the provisions put forward by him are unlawful.

4. Yes. you shall go and attend the hearing and deny any of all liabilities.

Let him go ahead with the case in labout court. You can say that you are ready to face him in the labour court.
prabhakar singh (Expert) 11 January 2012
I guess inspector looking for grease.
Raj Kumar Makkad (Expert) 14 January 2012
I do with nair.


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