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How Employee Compensation Start In Organisation?

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  • How Employee Compensation Start In Organisation?

    Dear HR colleague,

    I have one doubt that, how we start Workmen Compensation system in our Organization,

    1) Is there any policy which we need to buy ? so that our employee can avail this Compensation.

    or 2) Staff member can avail Compensation under this WC Act?

    3) Case :- Two months back our one staff member died during travel from Nasik to Mumbai for official work on weekly off. now his family member asked compensation ?

    Please suggest whether his family applicable for WC or not ??

  • #2
    Dear friend,
    Statutory liability of employers to pay appropriate compensation to certain class of employees in the event of their death or disabilities sustained by them in employment accidents, the scales of compensation, methods of computation, Authority to dispose of claims and other relevant matters are elaborately dealt with in the Employees Compensation Act,1923.
    As a progressive employer, if you want to extend such a social security benefit to all your employees without any distinction as to their cadre or classification, certainly it is a welcome decision.
    You can formulate a overall policy for the entire people working in the organization. So, I would request you to go through the provisions of the above Act. Coming to your queries, you can take up a WC Insurance Policy with the LIC. Regarding "staff", there is no such legal classification of employees under the Labor Laws.
    To get clarity in this regard, you can go through the definition of the term "employee" under the EC Act with reference to the exhaustive illustrations given in its relevant schedule.


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