Workmen's [Employees] Compensation Act 1923

 

In 2009 Workmen’s Compensation Act 1923 amended as “Employees Compensation Act 1923.

OBJECTIVE

The Workmen’s Compensation Act 1923 is one of the important Social Security Legislations. It provides compensation / financial protection to an workmen / Employee and their dependents in case of accidental injuries [fatal, disablement] and Occupational Diseases in course of employment. The Compensation has to be paid by the employers.

CHAPTERS

CHAPTER -1 Preliminary

CHAPTER -2 Employee Compensation

CHAPTER -3 Commissioners

CHAPTER -4 Rules

CHAPTER -1 PRELIMINARY 

SECTION NO.02: DEFINITIONS

SECTION 2.1.b “COMMISSIONER” means a Commissioner for          Workmen’s  Compensation appointed under section 20.

SECTION 2.1.d “DEPENDANT” means any of the following relatives of a deceased  [employee], namely

• Widow
• Minor legitimate or adopted son
• Unmarried legitimate or adopted daughter
• Widowed Mother
• A son or a daughter who has attained the age of 18 years and who is infirm  (unwell);
• Paternal grandparent if no parent of the employee is alive.

SECTION 2.1.dd “EMPLOYEE” means a person who is working in

• Factories
• Mines
• Plantations
• Transport Establishments
• Construction works
• Railways
• Ships
• Circuses

Not consider who are

• Members in armed forces of union
• Employees covered by ESI Act 1948
• Casual workers & workers employed otherwise than for employers trade or business

SECTION 2.1.e “EMPLOYER”

• includes anybody of persons whether incorporated or not
• any managing agent of an employer
• the legal representative of a deceased employer

SECTION 2.1.g “PARTIAL DISABLEMENT” means, where the disablement is of a  temporary nature, such disablement as reduces the earning capacity of a employee in  any employment in which he was engaged at the time of the accident resulting in the  disablement, and, where the disablement is of a permanent nature, such disablement  as reduces his earning capacity in every employment which he was capable of  undertaking at that time: provided that every injury specified in Part II of Schedule I  shall be deemed to result in permanent partial disablement

SECTION 2.1.l. “TOTAL DISABLEMENT” means such disablement, whether of a  temporary or permanent nature, as incapacitates a employee for all work which he  was capable of performing at the time of the accident resulting in such disablement  specified in Part I of Schedule I

SECTION 2.1.m. “WAGES” includes any privilege or benefit which is capable of  being estimated in money, other than a travelling allowance or the value of any  travelling concession or a contribution paid by the employer of a employee towards  any pension or provident fund or a sum paid to a employee to cover any special  expenses entailed on him by the nature of his employment

CHAPTER -2 WORKMENS COMPENSATION

SECTION 3 “EMPLOYERS LIABILITY FOR COMPENSATION

Under the Section 3 of the Act provides the liability of the employer,

a) OCCUPATINAL DISEASES - SCHEDULE III Part A, Part B, Part C

b) Death

c) Permanent Total disablement

d) Permanent partial disablement

e) Temporary disablement whether total or partial  However, the employer shall not be liable when: Disablement not exceeding 3 days, Accident due to influence of drink, drug, disobeyed orders, the willful removal of  guards.

SECTION 4 “AMOUNT OF COMPENSATION”

Provide compensation for

a) Death

b) Permanent Total disablement

c) Permanent partial disablement

d) Temporary disablement whether total or partial  Note: Occupational diseases are treated as injuries only

• Where death of a workmen results from the injury. An amount equal to 50% of the monthly wages of the deceased workmen multiplied  by the relevant factor or an amount of Rs.1,20,000 which is higher

• Where permanent total disablement of a workmen results from the injury. An amount equal to 60% of the monthly wages of the deceased workmen multiplied  by the relevant factor or an amount of Rs.1,40,000 which is higher

• Where permanent partial disablement results from the injury (Part II Schedule I). % of loss earning capacity that such % of compensation payable

• Where temporary total/ partial disablement results from the injury. An amount equal to 25% of the monthly wages payable every half month.

Higher the age – Lower the compensation

Compensation Calculation:

Nature of injury: Death 

Wages: 1000 INR Per month

Age : 45 Years

Relevant Factor as per schedule IV:169.44

Amount of compensation: (1000*0.5)* 169.44 = 84720

Total compensation payable: 1,20,000

SECTION 4A “COMPENSATION TO BE PAID WHEN DUE AND PENALTY FOR DEFAULT”

Where an employer is in default in paying the compensation due under this Act,  within one month from date it fell due, the commissioner shall:

a) Direct that the employer in addition to the amount of arrears, pay simple interest  there on at the rate of 12 % per annum or on such higher rates

b) Commissioner has the power under the Act to impose penalty and the interest on  the cleared amount as per the provision of the Act.

In case of death of a workman funeral expenses amount of 2500 INR shall be  payable to the dependent of the deceased workman or to anyone who incurs the  expenses of the funeral.

SECTION 6 “REVIEW”

Half monthly payment may be reviewed by Commissioner on the application by  Employer or employee.

Application must be accompanied by certificate of qualified medical practitioner that  there has been changed in the condition of employee.

On review, Half monthly payment may be continued, increased, decreased, ended or  converted int lump sum.

SECTION 10A POWER TO REQUIRE FROM EMPLOYER’S STATEMENTS REGARDING FATAL ACCIDENTS

Where a Commissioner receives information from any source that a employee has  died as a result of an accident arising out of and in the course of his employment, he  may send by registered post a notice to the workman’s employer requiring him to  submit, within thirty days of the service of the notice, a statement, in the prescribed  form, giving the circumstances attending the death of the employee, and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation  on account of the death.

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