Compliance Requirements under the Rules in Accordance with the Code

1. Application for review of half monthly payment in Gujarat (Section 79)

A review application for half-monthly compensation under section 79 can be filed without a medical certificate:

(a) by the employer if the employee’s wages have increased;

(b) by the employee if wages have decreased or if the employer stopped payments without valid reason;
(c) by either party if the compensation was decided through fraud, undue influence, or clear error.

2. Form XV: Notice-book to be kept by employer in Gujarat (Section 82(4), Rule 22(1)(b))

The Government may require certain employers to keep, at their work premises, a Form XV notice-book that is accessible at all reasonable times to any injured employee and to any bona fide representative acting on their behalf.

The Notice book is in respect of notice of accidents/diseases contracted given by employees, arising in the course of employment

3. Employer to present memorandum upon receiving information in Gujarat (Rule 24)

An employer who learns of an accident may, at any time (even if no claim has been filed), submit to the Competent Authority a memorandum backed by an affidavit from themselves or a knowledgeable subordinate detailing the results of any investigation into the accident. Once the required fee is paid, the Authority must record the memorandum.

4. Form XVI: Notice of fatal accidents and serious bodily injuries (Section 73, Rule 23)

Employer/authorised person, of any establishment other than the establishment to which provisions of ESIC apply is required to give Notice of any accident occurring in his premises which results in death or serious bodily injury to the prescribed authority

5. Liability for compensation for work injuries or occupational diseases in Schedule III (Section 74(1),(2))

Employers must compensate employees for work-related injuries or occupational diseases contracted & listed in Third Schedule, unless the injury results in disablement of less than three days or is caused by employee intoxication, disobedience of safety rules or deliberate disregard of safety devices

1) The employer is not liable for:

(a) injuries that do not result in the employee’s total or partial disablement for more than three days; and

(b) injuries not resulting in death or permanent total disablement if the accident is directly caused by:

(i) the employee being under the influence of alcohol or drugs at the time,

(ii) the employee’s wilful disobedience of an explicit safety order or rule, or

(iii) the employee’s intentional removal or disregard of a safety guard or device provided for their safety

2) An accident or occupational disease mentioned in sub-section (1) is considered to arise out of and in the course of an employee’s employment even if, at the time, the employee is violating applicable laws or orders from the employer, or acting without instructions, if:

(a) the accident or disease would have deemed to be arisen even without the contravention or lack of instructions, and

(b) the act was done for the employer’s trade or business purposes.

6. Compensation payable if employee in Schedule II job contracts disease in Schedule III (Section 74(3))

If an employee in a Second Schedule job contracts a Third Schedule occupational disease after at least 6 months of continuous service, disease is considered an injury by accident, presumed to arise out of & during employment unless proven otherwise & employer would be liable for compensation payment

7. Liability for accidents arising while commuting for employment related work (Section 74(4))

If an employee has an accident while commuting to or from work, it will be considered to have happened during the course of employment if there is a clear connection between the circumstances, time, and location of the accident and the employee’s job.

8. Employer Liability for House Collapse Injury or Death Compensation in a plantation (Section 75)

If a worker or their family member suffers death or injury due to a house collapse provided by the employer in a plantation, and the collapse isn’t solely due to the fault of the occupants or a natural disaster, the employer is responsible for providing compensation.

For the purposes of this section, the expression “”worker”” means a person employed in a plantation for hire or reward, whether directly or through any agency, to do any work, skilled, unskilled, manual or clerical, and includes a person employed on contract for more than sixty days in a year, but does not include (i) a medical officer employed in the plantation (ii) any person employed in the plantation (including any member of the medical staff

9. Employer Liability for House Collapse Injury or Death Compensation in a plantation (Section 75)

If a worker or their family member suffers death or injury due to a house collapse provided by the employer in a plantation, and the collapse isn’t solely due to the fault of the occupants or a natural disaster, the employer is responsible for providing compensation.

For the purposes of this section, the expression “worker” means a person employed in a plantation for hire or reward, whether directly or through any agency, to do any work, skilled, unskilled, manual or clerical, and includes a person employed on contract for more than sixty days in a year, but does not include

(i) a medical officer employed in the plantation

(ii) any person employed in the plantation (including any member of the medical staff) whose monthly wages exceed the amount as determined by the appropriate Government, by notification, from time to time;

(iii) any person employed in the plantation primarily in a managerial or administrative capacity, notwithstanding that his monthly wages do not exceed the amount as determined by the appropriate Government, by notification, from time to time;

(iv) any person temporarily employed in the plantation in any work relating to the construction, development or maintenance of buildings, roads, bridges, drains or canals.

10. Amount of compensation for work-related injuries and fatalities (Section 76(1))

Amount of compensation to be paid shall be – where death results from the injury, an amount equal to fifty per cent. of the monthly wages of the deceased employee multiplied by the relevant factor or an amount as may be notified by the Central Government from time to time, whichever is more

1) If an injury results in permanent total disablement, compensation is 60% of employee’s monthly wages multiplied by relevant factor/ amount notified by CG, whichever is higher

2) If an injury results in permanent partial disablement:

i) For injuries specified in Part II of IV Schedule, compensation is a percentage of permanent total disablement (PTD) compensation, based on loss of earning capacity listed there

ii) For injuries not specified in IV Schedule, compensation is a percentage of PTD compensation proportional to assessed permanent loss of earning capacity

3) If injury results in temporary disablement (total/partial), half-monthly payment equal to 25% of employee’s monthly wages is made U/S 76(4)

4) Employee shall be reimbursed medical expenses for treatment of injuries caused during course of employment

5) If injury results in death, employer to deposit Rs.15,000 with competent authority for eldest dependent’s funeral expenses, or, if none, for person who incurred expenses

11. Compensation to be paid when due and damages for default in Gujarat (Section 77(1),(2), 78)

Compensation to be paid when due. If the employer disputes liability, they must make provisional payments based on accepted claims. Payments go to the employee or competent authority, without prejudice to the right of the employee to make any further claim

Method of calculating monthly wages for purposes of compensation will be as per Section 78 of the Code on Social Security, 2020

12. Deposit of compensation with competent authority in Gujarat (Section 81(1), (2))

Compensation for death or disability must be deposited with the competent authority, not paid directly by the employer. Advances up to three months’ wages to dependents are allowed, deducted by the authority from the total compensation and refunded to the employer as applicable.

1) No payment of compensation in respect of an employee whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the competent authority, and no such payment made directly by an employer shall be deemed to be a payment of compensation Provided that, in the case of a deceased employee, an employer may make to any dependant, advances on account of compensation of an amount equal to three months’ wages of such employee and so much of such amount as does not exceed the compensation payable to that dependant shall be deducted by the competent authority from such compensation and repaid to the employer.

2)Any other sum amounting to not less than Rs. 5000 which is payable as compensation may be deposited with competent authority on behalf of the person entitled thereto

13. Medical Examination of employees on receipt of notice of accident by employer in Gujarat (Section 84)

Employees are required to promptly report accidents to their employer. If the employer offers a medical examination within three days of receiving notice, the employee must undergo it, particularly if they are receiving half-monthly payments.

1) An employee can’t be required to have medical exams more often than State Govt allows

2) If employee refuses/obstructs a required medical exam, their right to compensation is suspended unless they have valid reason

3) If an employee leaves the area before undergoing a required medical exam, their right to compensation is suspended until they return and undergo exam. If they couldn’t attend due to events beyond their control and couldn’t inform anyone, delay may be excused, and their right to compensation restored

4) If an employee dies without a medical exam, competent authority may still direct compensation to their dependents

5) If compensation rights are suspended, no compensation is due during that period. If suspension starts before waiting period ends, the waiting period is extended by suspension duration

6) If an employee refuses medical treatment/disregards instructions, and this worsens injury compensation will be based on how injury would have progressed with proper medical care.

14. Liability for Compensation of Principal Employer for Contractor’s Employees’ in Gujarat (Section 85)

When an employer engages a contractor to carry out work that is typically part of the employer’s trade or business, the employer is responsible for compensating any employee working on that project as if they were directly employed by the employer.

1) The compensation amount is determined based on the wages the employee would have received if they were directly employed by the employer

2) If the employer is liable for compensation, they can be indemnified by the contractor or anyone else from whom the employee could have recovered compensation. If a contractor liable for compensation or indemnity is also an employer, they can seek indemnity from another contractor

3) This section does not prevent an employee from recovering compensation from the contractor instead of the employer

4) This section does not apply if the accident occurs outside the employer’s premises or areas under their control

15. Transfer of Employer’s Rights to Insurers upon Insolvency in Gujarat (Section 87(1))

If an employer has contract with insurers concerning liability to employee and becomes insolvent, enters a composition/scheme of arrangement with creditors or if the employer is a company that begins winding-up proceedings, employer’s rights against insurers for that liability transfers to employee

Upon this transfer, the insurers assume the same rights, remedies, and liabilities as the employer, but their liability to the employee remains unchanged.