Compensation claim from Principal Employer by contract worker under Employee’s compensation Act, 1923

As per the relevant section of the Employee’s compensation Act, 1923, the injured contractual employee can claim the compensation from the Principal Employer.

It has very well mentioned under section 12 of the Employee’s compensation Act, 1923 that the Principal Employer is made liable to pay compensation to such injured employee of the contractor which Principal Employer would have been liable to pay if that employee had been immediately employed by him.

Nevertheless, the amount of compensation shall be calculated with reference to the wages of the employee under the employer by whom he/she is immediately employed. But when the Principal Employer is liable to pay compensation then in that case Principal Employer shall be entitled to be indemnified by the contractor.

It may please be noted that the injured employee is at liberty to claim the compensation from the contractor instead of Principal Employer.

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