Liability of principal employer to pay compensation to contract employee

Principal employer is liable for payment of compensation when an employee engaged by the contractor dies or become disabled in an accident or employment injury in course of employment. The liability to pay compensation to the employee or the dependents of a deceased employee is on employer only irrespective of the status of employment, i.e. whether the employee is engaged by a contractor or management.  However, the principal employer can recover the amount from the contractor.

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