I was director of one company till 1 Dec 2018.
in month of July 2018 one field employee died in scooter accident.
as company was in bad financial position we were unable to pay any compensation .now his wife has filed case in labour court under section 4 A .
The company has no revenue for last 7 months.
What can be punishment for 4A ??
The Sec-4A of Workmen's Compensation Act- the court will qauntify the compansation for the dependants of your deceased employee, whatever your condition you need to apprise the court.The courts usually take in to consederation the earning capablity proportional to years he had worked while being alive.Your only option is to join the proceeding and give real facts to court,well finally it the deciding authority to decide about the quantum of compensation to be granted. You were suppoused to insure the employees.
