In the event that payments are delayed, the employer will be required to pay interest of 12% per annum from the due date to the time the compensation is paid, it states.
The proposed draft rules will replace the Employee’s Compensation Rules, 1924, the Employee’s Compensation (Transfer of Money) Rules, 1935 and the Employee’s Compensation (Venue of Proceedings) Rules, 1996 under the former Employee’s Compensation Act, 1923 Act have been repealed. by § 164 of the said Code on social securityAdopted by Parliament in September.
The Ministry of Labor has asked stakeholders for comments on the proposed draft rules within 45 days, after which it will be notified and enter into force.
While the Center has not yet announced the date of implementation of the Social Security Code, 2020, it plans to notify and implement the compensation provision in the Code even before the Code to avoid legal disputes arising over compensation to Indian workers working either domestically or abroad, in case of loss of human life due to the pandemic.
“If the amount of compensation under section 77 (3) is not paid by the employer within the period of 30 days, the employer must pay from the date on which the compensation is due to the date on which it is paid, simple interest of 12% per annum or any other rate announced by The central government from time to time, ”the Ministry of Labor said in a draft notice.
In addition, it has also announced rules to give effect to schemes with other countries for the transfer of money paid as compensation under section 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 a transfer may be deducted from the amount transferred in this way,” it states, adding that such money must be transferred by transfer receipt . or by money order.
The Ministry further stated that when all or part of a lump sum deposited with a competent authority for payment as compensation under the Code shall be paid to any person or persons residing or residing in another country, the competent authority may order the shipment. to the country concerned of the amount thus payable.