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WORKM N’S

COMPENSATION

ACT 1923

SWATI KACKAR (2K12A45)

ANAMIKA RANI SINGH (2K12A58)

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INTRODUCTION

Workmen's Compensation Act, 1923

1) This Act may be called the Workmen'sCompensation Act, 1923.

(2) It extends to the whole of India.

(3) It shall come into force on the first day of July,1924.

OBJECTIVE:

The Workmen's Compensation Act, aims to provide

workmen and/or their dependents some relief in caseof accidents arising out of and in the course ofemployment and causing either death or disablementof workmen.



DEFINITION

The Workmen's Compensation Act, 1923 is

one of the important social security

legislations. It aims at providing financial

protection to workmen and their dependantsin case of accidental injury by means of

payment of compensation by the employers.



THE GENERAL PRINCIPLES THAT ARE EVOLVED

ARE

There must be a casual connection between theinjury and the accident and the work done in thecourse of employment;

The onus is upon the applicant to show that itwas the work and the resulting strain whichcontributed to or aggravated the injury;

It is not necessary that the workman must be

actually working at the time of his death or thatdeath must occur while he was working or had just ceased to work.



APPLICABILITY OF THE ACT

The Act extends to the whole of India except theStates/Union Territories of Arunachal Pradesh,Mizoram, Nagaland, Sikkim and Daman & Diuand Lakshadweep.

The Act applies to workers employed in anycapacity specified in Schedule II of the Actwhich includes Factories, Mines, Plantations,

Mechanically Propelled Vehicles, ConstructionWork and certain other Hazardous Occupationsand specified categories of Railway Servants.



DEFINITIONS{SECTION 2}

COMMISSIONER

DEPENDANT

EMPLOYER DISABLEMENT

WAGES

WORKMAN



COMMISSIONER

Sec.2(1)(b)

A Commissioner means a Commissionerfor Workmen’s Compensation appointedunder section 20



DEPENDENT Means any of the following relatives of a deceased

workman, namely

(i) a widow, a minor legitimate or adopted son, andunmarried legitimate or adopted daughter, or a widowedmother; and

(ii) if wholly dependent on the earnings of the workman atthe time of his death, a son or a daughter who has attainedthe age of 18 years and who is infirm;

(iii) if wholly or in part dependent on the earnings of theworkman at the time of his death,(a) a widower,(b) aparent other than a widowed mother,(c) a minorillegitimate son, an unmarried illegitimate daughter or adaughter legitimate or illegitimate or adopted if marriedand a minor or if widowed &minor,(d) a minor brother or

an unmarried sister or a widowed sister if a minor,(e) awidowed daughter-in-law,(f) a minor child of a pre-deceased son,(g) a minor child of a pre-deceased daughterwhere no parent of the child is alive, (h) a paternalgrandparent if no parent of the workman is alive.



EMPLOYER(SEC 2(1)!E)

Any body of persons whetherincorporated or not

Any managing agent of an employer; and

The legal representative of a deceaseemployer



DISABLEMENT

Disablement means any loss of capacity towork or move

May result in loss or reduction of his earning

capacity Disablement may be

- Total {sec.2.1(g)}

- Partial {sec 2.1(l)}

- Temporary

- permanent



WAGES{ SEC.2.1(M)}

“wages” includes any privilege or benefitwhich is capable of being estimated inmoney, other than travelling concession or

a contribution paid by the employer to theworkman towards any pension orprovident fund or a sum paid to a

workman to cover any special expensesentailed to him by the nature of his

employment



WORKMAN{SEC.2.1

Any person who is:

(a) a railway servant as defined in clause (34) ofsection 2 of The Railways Act 1989 not permanently

employed in administrative, district or sub-divisionaloffice of a railway and employed in any suchcapacity as is specified in schedule II or,

(b) a master, seaman, or other member of the ship

or crew It does not include a person whose employment is

of a casual nature



CONDITION FOR RECEIVINGCOMPENSATION FOR PERSONAL

INJURY

The three tests for determining whether an accidentarose out of employment are :

At the time of injury workman must have been engagedin the business of the employer and must not be doing

something for his personal benefit;

That accident occurred at the place where he wasperforming his duties; and

Injury must have resulted from some risk incidental to

the duties of the service, or inherent in the nature orcondition of employment.



MAIN PROVISIONS AND SCOPE OF THE ACT

Under the Act, the State Governments are empowered to appointCommissioners for Workmen's Compensation for

(i) settlement of disputed claims

(ii) disposal of cases of injuries involving death

(iii) revision of periodical payments. Sub-section (3) of Section 2

of the Act, empowers the State Governments to extend the scopeof the Act to any class of persons whose occupations areconsidered hazardous after giving three months notice to bepublished in the Official Gazette. Similarly, under Section 3(3) ofthe Act, the State Governments are also empowered to add anyother disease to the list mentioned in Parts A and B of Schedule –

II and the Central Government in case of employment specified inPart C of Schedule III of the act.



WHEN IS AN EMPLOYER NOT LIABLE TO PAY

COMPENSATION

if the injury did not result in total or partialdisablement of a workman for a period exceedingthree days,

if the workman was at the time of the accident underthe influence of drink of drug, or

if the workman willfully disobeyed an order expresslygiven or a rule expressly framed for the purpose ofsecuring safety of workman, or

If the workman willfully removed or disregarded anysafety guard or other device which to his knowledgewas provided for the purpose of securing his safety.



ACCIDENT REPORT

Where the accident results in deathor serious bodily injury, the employershould send a report to theCommissioner, within 7 days of theaccident, in the prescribed form

giving the circumstances attendingthe death or serious bodily injury



MEDICAL EXAMINATION

The employer may get the concernedworkman examined by a qualifiedmedical practitioner, within 3 days fromreceiving the notice of accident. Theemployee must present himself for suchexamination otherwise he shall loose hisright to the compensation.

Failure of employer to have the workmanmedically examined does not debar himfrom challenging the medical certificateproduced by the workman.



AMOUNT OF COMPENSATION{SEC.4}

The amount of compensation payable to aworkman depends on

-the nature of injury caused by accident

-the monthly wages of the workman concernedand the relevant factor

-the Relevant Factor is specified in schedule IV forworking out the lump sum amount ofcompensation

THERE IS NO DISTINCTION BETWEEN AN ADULTAND A MINOR WORKER WITH RESPECT TO THEAMOUNT OF COMPENSATION



COMPENSATION FOR DEATH

In case of death resulting from injury,the amount of compensation shall beequal 50% of the monthly wages ofthe deceased workman multiplied bythe relevant factor.

Or an amount of Rs 80,000/- whicheveris more.



EXAMPLE:

A workman is employed in a factory on a monthlywage of Rs 3000. While working he met with an accidentand dies on oct 2000. His date of birth is july 18 , 1970. Theamount of compensation payable to his dependentwould be

50* monthly wages* Relevant factor of age 30100

0r 80,000 whichever is higher50* 3000* 207.98 = 3,11,970

100Since Rs 311970 is more than 80000 the compensationpayable to him shall be Rs 311,970



MONTHLY WAGES {SEC.4(A)

One-twelfth of the total wages fallen due for payment by theemployer during the last twelve months of that period

Where the whole of the continuous period immediatelypreceding the accident was less than one month the average

monthly amount earned by a workman employed in thesame work by the same employer or if no such workman isemployed, by a workman employed in a similar work in thesame locality

In any other case, thirty times the total wages earned in the

last continuous period of service divided by the no. of dayscomprising such period

Where the monthly wages of a workman exceeds 4000/-, hismonthly wages will be deemed to be 4000/- only



FAILURE TO REGISTER AGREEMENT

When a memorandum of anyagreement is not sent to theCommissioner for registration, theemployer shall be liable to pay thefull amount of compensation, which

he is liable to pay under theprovisions of this Act.



AMENDMENTS AND CHANGES

The Act is now known as ‘Employee’sCompensation Act

Throughout the Act where ‘workman’ or‘workmen’ occur, the words ’employee’ and

‘employees’ shall be substituted Clerical employees are included in the

definition of ‘employee’ Compensation for death raised from 80,000 to

12oooo Compensation for permanent total

disablement raised from 90,000 to 14oooo



CONTD……

New subsection is added for medical reimbursement The employee shall be reimbursed the actual medical

expenditure incurred by him for treatment of injuries causedduring the course of employment”

Funeral expenses amount is increased from Rs.2500 to “not

less than Rs.5000” No changes in definition of “wages

It reserves the right for Central Government to enhance theamount of compensation

Explanation II:

Where the monthly wages of a workman exceed fourthousand rupees, his monthly wages for the purposes ofclause (a) and clause (b) shall be deemed to be four thousandrupees only:”



REVIEW

1. Any half-monthly payment payable under

this Act either

Under an agreement between theparties or

Under the order of a Commissioner.reviewed by the Commissioner on theapplication either

Of the employer orOf the workman.

accompanied by the certificate of a

qualified medical practitioner



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