Draft Rules for compensation under Code on Social Security notified
The labour ministry has notified draft Rules for offering compensation to employee covered under the Code on Social Safety, 2020, a transfer aimed toward guaranteeing funds are made inside 30 days to the employees or to their households in case of loss of life or incapacity.
In case the funds are delayed, the employer shall be liable to pay curiosity on the fee of 12% every year from the due date until the time the compensation is made, it stated.
The proposed draft Rules will replace the Employees’s Compensation Rules, 1924, the Employees’s Compensation (Switch of Cash) Rules, 1935 and the Employees’s Compensation (Venue of Proceedings) rules, 1996 underneath the erstwhile Employees’s Compensation Act, 1923. The Act will be repealed by Code on Social Safety, 2020 once it comes in force.
The labour ministry has sought feedback from the stakeholders on the proposed draft Rules within45 days following which it will likely be notified .
Whereas the Centre has not so far notified the the date of implementation of the Code on Social Safety, 2020, it plans to inform and implement the compensation provision within the Code even earlier than the Code to keep away from any authorized disputes arising over compensation to employees, both working domestically or abroad, in case of loss of life as a result of pandemic.
“If the quantity of compensation payable under sub-section (3) of part 77 will not be paid by the employer within thirty days, the employer shall pay, from the date on which the compensation is payable to the date on which it’s paid, an interest @12% every year or every other fee notified by the Central Authorities on occasion,” labour ministry stated in a draft notification.
The draft Central Rules under the Code have already been notified.
“When any sum is transmitted by any authority in India to every other authority in accordance with these Rules, the prices of such transmission could also be deducted from the sum so transmitted,” it stated, including that such cash shall be transmitted by remittance switch receipt or by cash order.