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Dependents Are Entitled to Compensation When Death Caused Due to Stress and Strain/Work Pressure. – The Employees Compensation Act, 1923


Contents News/Article Date: 30th September 2023

Relating to which Act: The Workmen Compensation Act 1923; also known as Employee Compensation Act 1923

Penalty under the Act: Employee having right to make any further claim. – if not, commissioner direct the employer to pay the arrears with simple interest rate 12% or as prevailing in the bank. – further delay: – 50% of amount due will be recovered as penalty.

Applicable to which State: Whole of India

Type: Get answers to common questions about workmen’s compensation insurance policy from KARMA MANAGEMENT GLOBAL CONSULTING SOLUTIONS.

Pertains to:

  • Front-line workers in the some of the industries are liable to protection under this law:
  • Non-permanent employees of the Railways who do not fall under the sub-divisional, district or administrative offices.
  • Captains and crew members on an aircraft.
  • Labours employed abroad as per Schedule II of the Workmen Compensation Act 1923.
  • Individuals working in construction sites, mines, docks, factories and specific places as per Schedule II of the above mentioned Act.
  • Drivers, mechanics, helpers and any other person associated with working with vehicles.
  • According to this Act, any company or establishment operating in the sector highlighted above and having more than 10 employees are liable to abide by its rules.

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global has set up its offices in UK, USA, UAE, Canada and South East Asia and is fully into providing solutions for workplace issues, employment law advice, immigration and negotiation, representation in employment tribunals and involvement in leading cases, addressing HR issues in line with Labour Laws, payroll, staffing and talent acquisition.

Karma Global is fully in to regulatory compliances and its entire team is fully well versed with all labour laws including employee’s compensation act and in connection with court cases and legalities, it has an alliance with renowned Advocate Sundeep Puri & Associates.

And in the current instance: The advantages to the clients will be manifold, in the sense that, scrutiny or observations of the compliance processes maintained for the clients on its behalf by Karma Management Global Consulting Solutions Pvt. Ltd., will be available in this WeProcess tool as a snapshot or the glimpses of the verified numbers will reveal the progress flow of compliances for the week, for the month, for the quarter, for half-yearly and the full year as well. There will be alerts, notifications, updates on a regular basis from the system informing promptly the well-being status of client’s compliances where an independent login credentials will also be available throughout the time.

Thus, in the various scheme of things, governance has been put articulately in place which is required to be adhered to in terms of:

  • Registrations and renewals of licenses
  • Maintenance of registers and records
  • Filing of periodic statutory returns
  • Implementation of contract labour act for indirect vendor employees
  • Payment of provident fund contributions
  • Payment of ESI contributions
  • Payment of gratuity contributions
  • Payment of full and final settlement on exit
  • Payment of compensation in accidents and deaths
  • Payment in terms of suspension, retrenchment, layoffs, etc.
  • Payment to indirect employees in relation to service conditions by vendors

Subject: Dependents Are Entitled to Compensation When Death Caused Due to Stress and Strain/Work Pressure. – The Employees Compensation Act, 1923

Appended is the complete news item

Dependents Are Entitled to Compensation When Death Caused Due to Stress and Strain/Work Pressure. – The Employees Compensation Act, 1923

By applying the principle of ‘doctrine of notional extension of employment’ holding the deceased died due to stress and strain caused due to work pressure, is justified when accident occurred during course of employment, Employer-employee relationship is admitted, deceased alone drove the vehicle from Tamilnadu to Karnataka and he became ill and died, in post mortem cause of death is ‘sudden cardio respiratory arrest due to severe Myocardial infarction. As per law settled by the Supreme Court in North-East Karnataka Road Transport Corporation vs. Sujatha, 2018 (159) FLR 840 (SC), the claimants are entitled to interest @ 12% per annum.

Kannammal and Others vs. N. Balasubramanian and Others. (Mad. H.C.)

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