Page 59 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes
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Caution Every notice shall be served upon the employer. It may be served by delivering it
at or sending it by registered post and addressed to the residence or any of office or place
of business of the person on whom it is to be served. Where a workman has given a notice
of accident he should submit himself for medical examination if required by the employer.
And such medical examination shall take place within 3 days from the date of service of
the notice of accident to the employer refusal to submit himself for medical examination
will result in the suspension of the right of the workman for compensation during the
period of refusal. During the period of suspension of the right no compensation shall be
paid to the workman.



Caselet Sarda Gum & Chemicals vs. Union of India & Ors.
(2012) LLR 416

he petitioner industrial unit was aggrieved by the order passed by the regional
Provident Fund Commissioner-II, Jodhpur and Appellate order passed by
TEmployees Provident Fund Appellate Tribunal New Delhi, holding that the
petitioner Unit is covered by the EPF Act, 1952 since number of employees found at the
time in the industrial unit were more than 20. The commissioner and the Tribunal had
held that the petitioner was covered by the provisions of the said Act and was liable to pay
provident fund contribution in respect of such 20 workmen. It was found that out of 21
who were said to be employed in the factory of the petitioner, 8 persons were temporarily
labourers employed for the purpose of carrying on the repairs of the factory building and
the Court observed that it cannot be held that they were employed for the normal business
of the establishment. The Court further observed that it naturally depends upon the facts
of each case as to whether the so called temporary workmen are regularly employed in
connection with the normal and usual course of the business or they are engaged in the
performance of some work which had no relation with the normal and regular course of
business of the establishment. Even if casual or temporary workers are engaged occasionally
or intermittently to meet some temporary or casual work, such workmen cannot be
considered to be employees for the purpose of section 1 (3)(a) of the Act. The high Court
held that unless temporary or casual workers are found to be regular employees of an
industrial unit, the same cannot be included to make 20 workmen of an industrial unit for
the purpose of determining whether the establishment is covered under the definition in
section 1 (3)(a) of the Act. The full bench decision of the court found the impugned order of
the Appellate Tribunal and the Regional Provident Fund Commissioner were found to be
non speaking orders and deserve to be quashed. The court set aside the orders.

Source: http://www.chadha-co.com/pdfs/C&Co-Labour-Law-Update-April-May-2012.pdf
Self Assessment

State whether the following statements are true or false:
1. An accident alone gives a workman a right to compensation.
2. Section 3(2) of the Act also recognizes that the workman employed in certain types of
industries of occupation risk exposure to certain occupational disease peculiar to that
employment.

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