When Should the Employer Deposit Compensation To The Commissioner Straight Away?
It is generally understood that the compensation amount cannot be directly paid to the workman by the employer. The employer usually credits the amount to the commissioner together with a statement. This is later paid by the commissioner to the workman. If an amount is directly paid to the workman or his dependants in the following cases, it is not considered compensation:
- Where the employee has expired
- Where the lump sum payable is to a woman, an underage person or a person who is not of sound mind. It also includes dependants whose legal entitlements are disputed under law.
The employer may deposit an amount of Rs.10 or more with the commissioner for a person who is entitled to the compensation. A receipt of such a deposit is considered sufficient proof of the fact that the employer has discharged his liability.
What Amount Can Be Directly Paid To The Workman?
Under the workmen compensation laws, the amounts considered below can be paid to the workman /dependants straight away:
- In case the workman has expired, the employer may make an advance payment amounting to 3 months of wages to the dependants straight away.
- A direct payment may also be made in case the beneficiary is an adult male worker whose entitlement is not disputed.
- In case the workman was receiving half monthly payments.
Workmen Compensation Laws in India