Standard Operating Procedure for Compliance Under Workmen Compensation Act , 1923
I. Objective :
To ensure due compliance under act by …… Ltd. and also by contractor/sub-contractor of …… Ltd.
II. Applicability :
1. It is applicable to ……. Ltd. as Principal Employer(incase of manufacturing locations/our owned premises/product business ) and also as Principal Contractor ( incase of Project locations where in ….. Ltd. is in capacity of Contractor and our client is Principal Employer).
2. It is also applicable to all contractors of ….. Ltd. ( In case of manufacturing locations where in ……. Ltd. is Principal Employer ) and also sub-contractors of …… Ltd. ( In case of project locations where in ……. Ltd. is Principal Contractor ) .
3. It is also applicable to all persons on the rolls of …… Ltd. and all such contractual persons who are on rolls of various agencies / vendors / contractors , whose services are hired by them for the business of ……. Ltd.
III. Methodology :
1. All employees on rolls of …… Ltd. are covered under the WC Policy obtained by the company which is handled by Mr. ……………. who is nationally responsible for all insurance matters.
2. All contractors must have valid WC policy throughout the tenure of their contract and activities till the last person is not removed and site is not vacated and officially handed over to ….. Ltd.
3. The copy of WC policy should be submitted to Labour Compliance Co-Ordinator / Location HR Resource before commencement of his activities by contractor/sub-contractor.
4. The policy should be renewed from time to time by the concerned contractor / sub – contractor
IV. Verification of WC Policy Document :
In order to ensure the validity of WC Policy documents following aspects to be carefully verified by all the concerned –
1. The contractor/sub-contractor should submit the copy of WC policy document only. In no case the Money Receipt of Premium or Cover Note of Policy should be treated valid.
2. The name & address of the contractor in the contract signed between him and ……. Ltd. and that on the WC Policy documents should be similar.
3. The nature of work mentioned in the WC Policy should be as that of mentioned in the Purchase Order / Work Order / Contract or Agreement issued by ……. Ltd.
4. The strength of personnel mentioned in the policy should be maximum average strength used by the contractor / sub-contractor on any particular at respective site / premises and same should be authenticated by the Manager of User Dept. or Project of …….. Ltd.
5. The location of work mentioned in the policy should include respective location / site of …… Ltd. for which the policy is issued.
6. The strength of personnel of contractors / sub-contractors should be categorized in various skill categories i.e. Highly Skilled , Skilled , Semi – Skilled and the respective nature of work should be mentioned against such category.
7. The period of the policy is to be constantly monitored by the contractor/sub-contractor and same should be immediately renewed by them.
8. Any period not covered by the policy the contractor / sub-contractor will be solely liable for the compensation.
V. Process for Payment of Workmen Compensation :
1. The compensation is payable only incase of any accident resulting into “Disability” or “Death” if it is “During the Course of Employment” and “Out of the Course of Employment”.
2. The compensation is to be deposited within 30 days of occurrence of accident.
3. The compensation is to be deposited either covered through any workmen compensation policy or not.
4. The compensation is to be deposited in time whether the claim has been received or not from the insurance company.
5. The compensation is to be deposited only to the Judge of the Labour Court who is designated as Workmen Compensation Commissioner.
6. No direct payment to workmen / legal heirs of deceased workmen is allowed as it has no legal sanctity. No outside court settlement is considered valid in such cases.
7. While depositing compensation the necessary details about the dependent family members of the workmen / deceased workmen to be furnished in the applicable formats as prescribed (attached herewith) under WC Act,1923.
8. All other necessary documents viz. Detailed Accident Report , Copy of FIR , Copy of Inquest Panchanama , Date of Birth Certificate , Certificate of Disability in case of non-fatal accident is to be also submitted.
9. In case of fatal accident additional records like Copy of Post-Mortem Report , Original Death Certificate etc. is to be submitted.
10. Any other documents as required by the court for the said matter should be submitted in time to avoid any delay.
11. The court seeks the permission make ……Ltd or its’ contractor / sub – contractor to participate in the process of disbursement of the compensation which is avoidable. The …….Ltd or contractor/sub-contractor can give no-objection to court as the same is very time consuming process and is avoidable.
12. The court issues summons for the hearing for the disbursement of compensation. The concerned Functional / Project Manager must take help of respective Location HR / Labour Compliance Coordinator.
13. The dependent family members of deceased workmen should be extended adequate necessary support for obtaining compensation from the court.
14. The copy of all important documents related to such cases should be properly maintained with Location HR Resource / Labour Compliance Coordinator.
VI. Method of Calculation of WC Amount :
1. Please refer Schedule IV under the act and find out the Relevant Factor applicable to the age of workmen who met with an accident.
2. Formula for calculation :
3. Workmen Compensation = % of Wages X Relevant Factor
Example :
• For Fatal Accident :
• Age of deceased workmen at the time of death : 30 years
• Relevant factor : 207.98
• Wages of the workmen at the time of death : Rs.4000/- per month
• % of Wages applicable to fatal accident : 50% of Wages
• Hence, in this case : Rs.2000/- per month
Workmen Compensation = 2000 X 207.98
= Rs.4,15,960/-
VII. Formats :
As per attached files as prescribed under Workmen Compensation Act , 1923
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