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Gargi Ranade (Company Secretary)     09 October 2017

One time settlement agreement

We are machine manufacturer , during installation of our machine at customers factory one accident took place due to nigligence of customers machine operator and in this accident customers employee has lost 3 fingers of right hand.

Now customer factory is yet to be established , but according to him he is not liable to pay anything to his employee because that factory is yet to be established.

Further , he demanded certain amount from us on the grounds that our engineer has not given proper instructions to machine operator while installing machine.

Now we are ready to compensate certain amount , but we want to pay off in one shot and we also expect that customer or his employee will not demand anything else than one tome settlement .

Now my queries are ,

1. With whome we should enter into one time settlemet Agreement , with our customer or his employee , as we do not have any direct liability to wards employee as such.

2.  If we enter into settlement agreement with employer then how we will ensure that benificiary has been fully compensated and he will not raise any further demand on us.

Please share if you have any draft contract in this repsect

 

 

 



Learning

 7 Replies

Kumar Doab (FIN)     09 October 2017

It is felt that:

- person Operating might during training programme might be covered in def. of Employee Compensation Act.

Although the employee that has lost fingers is not your direct employee, you may still refer to Employee Compensation Act and assess the compensation as per the Act.

- you have already engaged Owners of the Factory into written communications and probably have declined your liability towards accident and payment. Later you seem  to have agreed.

W.r.f. to same, the Owners of the Factory may declare to you in writing by which enactment the fair damages are ascertained and how and how much IT want you to contribute and how much IT will pay.

Arrive on agreement in writing on it.

Let employee also sign it.

 

Let IT also agree that the compensation be paid to employee by cheque favoring to employee and acknowledgment shall be signed by IT and IT’S employee and Employee ID and Aadhar card shall be mentioned attached with acknowledgment and declare that Nothing is due and any further settlelement shall be doen by IT.

1 Like

Kumar Doab (FIN)     09 October 2017

Preferably take help of your legal cell/Counsle specialisng in Labor/service matters engaged by your establishment. 

Siddharth Srivastava (Advocate)     09 October 2017

Since accident was caused on the premises of employer so primarily employer is liable but since it was caused due to your machine so you also cannot escape from your liability. The excuse of employer is baseless. You may have to prove that there was negligence of employee and also that accident was caused as the employee and employer have not followed given instruction but to buy peace it is good to settle. 1. The agreement should be tripartite where employee should at one end while employer and your company should be at other end. 2. To ensure payment make payment directly in the bank account of employee in terms of settlement. Consult a lawyer with details. Siddharth 9811776422
1 Like

Gargi Ranade (Company Secretary)     10 October 2017

Thanks a lot Kumar Sir and Sidharth sir, it was indeed a great help.

 

Yes Kumar sir, it is further to my earlier query on the same subject,even though accident has taken place at customers site due to nigligence of his own employee , we do not want to let him go through regrous lengthy legal proceedings , just because of the fact that accident took place in presence of our engineer.

 my management has decided to help the injured , but now want to make only one time help , hence I asked further query

Regards,

Gargi A. Ranade

 

 

Kumar Doab (FIN)     10 October 2017

You are welcome.

Registerexperts (company registeration)     11 October 2017

Since accident was caused on the premises of employer so primarily employer is liable but since it was caused due to your machine so you also cannot escape from your liability. The excuse of employer is baseless. You may have to prove that there was negligence of employee and also that accident was caused as the employee and employer have not followed given instruction but to buy peace it is good to settle. 1. The agreement should be tripartite where employee should at one end while employer and your company should be at other end. 2. To ensure payment make payment directly in the bank account of employee in terms of settlement. Consult a lawyer with details.

 


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