Report No. 62

2.23. Section 2(1)(e)-employer lending the workman to another employer.-

Where an employer lends a workman, at present, under section 2(1)(e), the lending employer is not liable to pay compensation. Under the English Act,1 the lending employer is liable. We are of tie view that both the lending employer and the borrowing employer should be liable. Usually, the services of the workman are lent at the instance of the lender and the relationship between the lender and the workrhan continues. In some cases the lender would ordinarily be more rich than the person to whom the services are lent. The lender has also, in most cases, a business interest in lending. He exposes the workman to hazard. Hence he should be liable. The borrowing employer, who uses the services of the workman should, of course, continue to be liable since the hazard is in the new employment.

1. Section 5(1) of the English Act of 1925.