High Court sets new guidelines for releasing workers’ compensation

Kolkata: In a move aimed at ensuring that injured workers and the families of deceased employees receive the compensation due to them, the Calcutta High Court has issued fresh directions to all Commissioners for Workmen’s Compensation and Labour Courts across Bengal.

The High Court notification follows a Supreme Court directive passed in April this year in a suo motu case concerning unclaimed compensation lying with tribunals and labour courts.

The new guidelines, titled “Practice Directions for Providing Material Details while filing claim applications and Disbursement and Monitoring of Compensation under the Workmen’s Compensation Act, 1923,” are effective immediately and apply to all pending and future proceedings under the Act.

To reduce delays and prevent funds from remaining unclaimed, the High Court has made it mandatory for claim applications to include specific personal details of the injured worker or, in the case of death, their legal heirs. These include local and permanent addresses, Aadhaar and PAN numbers, and email IDs, if available. Commissioners will not reject claims lacking these details but must ensure they are submitted before notices are issued.

For disbursal of compensation, recipients must provide verified bank account information, either through a bank-issued certificate or a cancelled cheque. Consent awards and settlements must also record these details. Disbursements are to be made directly into the accounts and in cases where account details are outdated, Commissioners have been advised to seek updated information.

Unclaimed compensation deposits must be invested in fixed deposits with nationalised banks offering the highest available interest, until further orders for disbursement are passed.

The court has also directed Commissioners to work with District Legal Services Authorities and para-legal volunteers to trace beneficiaries who have not come forward.

Offices are required to publicly display monthly lists of unclaimed compensation, including names, deposit amounts and dates.

The directions aim to address administrative delays and ensure that compensation reaches the rightful beneficiaries without prolonged legal or procedural hurdles.