Contract Employee compensation in case of fatal/nonfatal accident on the site?

Sir, If the contract period was not extended and work is still running on the site in that time any fatal/nonfatal accident happens on the site. In that case Employee compensation applicable or not to the deceased? There is no gate pass for workmen, no running RA Bills, and No valid work order.

PLEASE MOST URGENT

Dear Rupesh,
The Workmen Compensation Act-1923 gives compensation to the employees or their dependent's in case of disability or death due to the nature of work during employment. If an employee while functioning in an establishment has sustained any personal injury (whether physical or phycological) by an accident, then employer shall be liable to compensate such an employee. Personal injury has not been defined under the Act. If you are covered under ESIC Act you can also take ESIC benefit.
*Employer is not liable for pay the compensation if- An injury that doesn't result in partial or total disablement of the employee for more than three days. Any injury that does not result in permanent total disability or death because of an accident in the influence of drugs or drink.

Dear Alok sir

Please clarify to the following

If the contract period was not extended and work is still running in the site in that time any fatal / non fatal accident happened in the site.

There is no gate pass for workmen, no running RA Bills, No valid work order. In that case Employee compensation applicable or not to the deceased ???.

As per Contract Labour act,the contractor and principal employer are the parties between whom the contract is established and executed. Now that if the agreement between the parties if exists and the statutory compliance being done in accordance,then employee will be getting the benifits or compensation.
If the contract date expires and there was no extention granted by the principal employer, then question arises that why the contractor continued working?. Secondly Why contractor was allowed to work by the principal employer too?
Under such circumstances, if any incident happens and employee is injured or death occurs during work at work place, the principal employer stands responsible as even if there was no work order or any othe permit etc,the incident happend in the premises of principal employer and during work hrs, hence the principal employer can be held responsible towards compensating the employee.
It is however the right of employee to get compensation in any case under natural justice.

Dear Rupesh,

Extension of the contract without a valid work order cannot exempt the Principal Employer's vicarious liability u/s 21(4) of the CLRA Act,1970 in case of any injury or death suffered by any contract labor engaged in such a contract work. Moreover, such a situation resulting in an invalid contract for service between the PE and the contractor would render the affected contract labor being the direct workman of the PE for the purpose of compensation under the EC Act,1923.

Good evening Umakanthan sir

Central Government Act

Section 21(4) in the Contract Labour (Regulation and Abolition) Act, 1970
(4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.


Can you please guide us what kind of action can we take against Principal Employer for not doing of work order extension.

Dear Rupesh,
pls don't be confuse.
My suggestion is- If such type of Accident/mishappening has happened actually and the concerned employer is not responding properly, then you can communicate with the DLC or Labour Enforcement officer for same with written complaint they will be investigate the matter properly.

Dear All
Its happen when we are working with govt. department when the contract period is expire and new contract is not finalized at that time govt. office ask to continue the work and they will issue extension later on or when new contract is awarded. In this situation contractor is not in the position to say no because his payment is still pending and he has to work in future also. Mostly this happen in state govt. contract.
I faced the same issue so can understand.

Indu Garu

You also faces the same situation, then what are the decisions you have taken against in that critical situation. Can you please guide me.

By allowing the contractor to carry on work as before, there is an implied contract running through. The Principal cannot just wash off the hands by rising a technical plea that there is no subsisting contract. There would surely be some correspondence regarding the extension of the contract from both sides. So, that is indicative of the subsistence of the contract at the relevant time.
Whether there is a subsisting contract or not, the establishment where the work takes place is liable to pay compensation and they can deduct the amount from contractor bills.
The signed contract agreement takes time in government setup, and many times work starts with LOI, or issue of work permit, etc.