In the event that the payments are deferred, the employer will owe an interest of 12% per annum from the due date until the time the compensation is paid.
The proposed draft rules replace the 1924 Employee Compensation Rules, the 1935 Employee Compensation (Transfer of Money) Rules, and the 1996 Employee Compensation (Venue of Procedures) Rules under the earlier Compensation Act of 1923. The Act has been repealed by Article 164 of the said Social Security Act, 2020 passed by Parliament in September 2020.
The Ministry of Labor has asked stakeholders to comment on the proposed draft rules within 45 days, after which it will be communicated and come into effect.
While the Center has not announced the date of implementation of the Social Security Code, 2020, the Center plans to notify and implement the compensation provision in the Code before the Code to avoid legal disputes over benefits. to Indian workers, whether working at home or abroad, in the event of loss of life due to the pandemic.
“If the amount of the compensation due under paragraph (3) of Article 77 has not been paid by the employer within the period of thirty days, the employer shall pay from the date on which the compensation becomes due until the date on which it is paid, simple interest at the rate of 12% per annum or any other rate communicated from time to time by the central government,” the Ministry of Labor said in a draft notice.
In addition, it has also notified Rules to implement arrangements with other countries for the transfer of money paid as compensation under Article 159 of the Code.
“When an amount is transferred by an authority in India to another authority in accordance with these rules, the cost of such shipment may be deducted from the amount so sent,” it said, adding that such money will be transferred through a receipt. or by money order.
The ministry further said that where all or part of a lump sum deposited with a competent authority for payment as compensation under the Code is to be paid to a person or persons who reside or are going to reside in another country, the competent authority may order the transfer to that country of the amount so owed.