workmen s compensation act

7/30/2019 Workmen s Compensation Act

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WORKMEN

COMPENSATION ACT,1923

Presented byChandana I

S3 MBACET


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OBJECT ANDSCOPE

This act is the first socialsecurity measure to theworkmen introduced in India.

The act imposes statutoryliability upon an employer to

provide payment to employeeswhen they suffer from physicaldisabilities & diseases duringcourse of employment.

It extends to whole of India.


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DEFINITIONS


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DEPENDENTMeans any of the following relatives of a deceased workman, namely(i) a widow, a minor legitimate or adopted son, and unmarriedlegitimate or adopted daughter, or a widowed mother;and

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

(iii) if wholly or in part dependent on the earnings of the workman atthe time of his death,(a) a widower,(b) a parent other than a widowed mother,(c) a minor illegitimate son, an unmarried illegitimate daughter or adaughter legitimate or illegitimate or adopted if married and a minor

or if widowed & minor,(d) a minor brother or an unmarried sister or a widowed sister if aminor,(e) a widowed daughter-in-law,(f) a minor child of a pre-deceased son,(g) a minor child of a pre-deceased daughter where no parent of thechild is alive, (h) a paternal grandparent if no parent of the workmanis alive.


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WORKMENMeans any person who is (i) a railway servant as defined in clause (34) of section 2 of the

Railways Act, 1989 not permanently employed in anyadministrative, district or sub-divisional office of a railwayand not employed in any such capacity as is specified inSchedule II, or

(a) a master, seaman or other member of the crew of a ship,(b) a captain or other member of the crew of an aircraft,(c) a person recruited as driver, helper, mechanic, cleaner or inany other capacity in connection with a motor vehicle,(d) a person recruited for work abroad by a company, and whois employed outside India in any such capacity as is specifiedin Schedule II and the ship, aircraft or motor vehicle, or company, as the case may be, is registered in India, or


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WORKMEN

(ii) employed in any such capacity as is specified in Schedule IIIf the workman is dead, any reference to a workman shall

include his dependents.

A person must fulfill the following 3 conditions to be called as aworkmen

1)His employment must not be of a casual nature.2)The employment must be for the purpose of employes trade

and business3)The employment must be of the nature mentioned in section

2(1) of the act.


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DISABLEMENT"PARTIAL DISABLEMENT " means

where the disablement is of a temporary nature, suchdisablement as reduces the earning capacity of a workman in anyemployment in which he was engaged at the time of the accidentresulting in the disablement

where the disablement is of a permanent nature, suchdisablement as reduces his earning capacity in everyemployment which he was capable of undertaking at that time

TOTAL DISABLEMENT " means such disablement, whether of a temporary or permanent nature, as incapacitates a workman for

all work which he was capable of performing at the time of theaccident resulting in such disablement


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WAGES

Wages means all remuneration capable of being expressed interms of money, which would if the terms of employment

were fulfilled be payable to a workman and it---Include DA,Over Time pay, bonus, share in profit, amenities

like free quarters ,food allowance, outstanding allowance,maternity benefit, gratuity etc.

--didnt include TA or PF or pension, value of annual leave withwages unless encasement there of allowed.


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Employers liability for

compensationSection 3


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OCCUPATIONAL DISEASES1. Part A ,B,C of schedule III

Disease peculiar to a particular employment becauseof its nature.

PERSONAL INJURYPersonal injury - not only physical but also

mentalAccident -unexpected event happening without

design even though there may benegligence on the part of the workman

a)Accident arising out of employment b)Accident arising in the course of employment


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EMPLOYER IS NOT LIABLE WHEN

1)Disablement not exceeding 3 days2)Accident due to influence of drink, drugs or disobeyed orders, disregards of safe guards

3)If the injured workman has instituted a suit in a civilcourt for damages in respect of the injury against theemployer or any other person4)If the occupational disease is not directly attributable

to a specific injury by accident arising out of and incourse of his employment.5)If the accident causing injury or death did not ariseout of and in course of workman's compensation.


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Employers liability when

contractor is engagedSection 12


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Employer cannot be held liable in case of any injury causedto the workers engaged by Contractor because they are notemployed by him and hence are not his workmen.

12(1) makes the Employer liable for compensation to suchworkmen under the following circumstances:

a) The contractor is engaged to do a work which is a part of the trade or business of the employer (called principal).

b) The workmen were engaged in the course of or for thepurpose of his trade or business.

c) The accident occurred in or about the premises on whichthe principal employer has undertaken or undertakes toexecute the works concerned.

Amount of compensation With reference to the wages of the workman under the employer.


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compensationMeaning Defined under Section 2(1)(c)

Where the monthly wages of the concernedworkman exceeds Rs.4000/- it should be

presumed to be Rs.4000/-


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AMOUNT OF COMPENSATIONThe amount of compensation payable to a

workman depends ona)The nature of the injury caused by the

accident b)The monthly wages of the workman

concernedc)The relevant factor for working out lump-

sum equivalent of compensation amountThere is no distinction between an adult and a

minor worker with respect to the amount of compensation


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Amount of compensation Section 4

Where death of a workman results from the injury:An amount equal to 40% per cent of the monthlywages of the deceased workman multiplied by therelevant factor or an amount of twenty thousandrupees, whichever is more.

Where permanent total disablement results fromthe injury:

An amount equal to 50% per cent of the monthlywages of the injured workman multiplied by therelevant factor or an amount of twenty four thousand rupees, whichever is more.


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AMOUNT OF COMPENSATION

Compensation for permanent partial disablementIn the case of injury specified in the schedule 1, the

amount of compensation shall be such percentageof the compensation which would have been

payable in case of permanent total disablementIn case the injury not specified in schedule 1, the

amount of compensation shall be such percentageof compensation payable in case of permanent totaldisablement , as it is proportionate to the loss of earning capacities permanently caused by theinjury.


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AMOUNT OF COMPENSATION

Compensation of Temporary disablement (Total/partial)

If the temporary disablement, whether total or partial, results frominjury:

25% of monthly wages of the workmen shall be payable every half month on the sixteenth day.

a) from the date of disablement where such disablement lasts for a period of less than 28 days or more;

b) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than28 days.

There after the compensation shall be payable half monthly duringthe disablement period or 5 years which ever is shorter.

Any payment received by workman towards his medical treatmentcannot be consider as compensation


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Time of payment of Compensation

Section 4A of the act has made it mandatory on the part of the employer to pay compensation as soon

as it falls due.When any default is made the commissioner may

order the payment of the amount together withinterest at 6% per annum and if the commissioner

finds the default unjustifiable, he may order payment of a further sum not exceeding 50% of theamount due by way of penalty.


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Procedure for calculation Higher the age Lower the compensation

Relevant factor specified in second column of Schedule IV givingslabs depending upon the age of the concerned workman.

Example : In case of death:Wages Rs.3000 PM Age 23 years

Factor as schedule IV : 219.95 * 1,500Amount of compensation Rs.3,29,935.00

In case of total disablement: Rs.3,95,910.00

Schedule II: List of persons engaged in different employment. Schedule III: List of occupational diseases. Schedule IV: Relevant factor.


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Section 4A -Penalty.

Where an employer is in default in paying

the compensation due under this Act,within one month from the date it fell due,the Commissioner shall:

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

b) Commissioner has the power under theAct to impose penalty and the interest onthe cleared amount as per the provision of the act.


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Section 8 - Distr ibution of compensation. The compensation payable for death and The compensation payable to a woman or person of legal

disability shall be through the commissioner only. Employer can make advance payment directly to dependents in

case of death equivalent to three months salary of the deceasedperson.

Employer is exonerated from his liability if he deposits thecompensation amount with the commissioner within thestipulated time.

The commissioner shall call all dependents of the deceased anddetermine the method for distribution of compensation amongthem.

If no dependents are found then amount shall be refunded to theemployer.

On request by the employer the commissioner shall furnish thedetails of disbursement.


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Section 17 - Contr acting Out of the compensation.

Any contract or agreement whereby a workman

relinquishes any right of compensation from theemployer for personal injury arising out of or in thecourse of the employment, shall be null and void inso far as it purports to remove or reduce the liability

of any person to pay compensation under this Act.


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NOTICE AND

CLAIMSection 10


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To claim the compensation: The claimant shall give notice of accident to theemployer or by entering in the notice book withinthe reasonable period. Every such notice shall give the name and addressof the person injured, the cause of the injury and thedate on which the accident happened and Submit the claim application to the commissioner within two years from the date of accident. In case of occupational disease the accident isdeemed to have occurred on the first day of disease. Defect if any in the notice or not giving notice or delayed application will not bar the claim for compensation.


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Procedure in theproceedings before thecommissioner


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Appointment of commissioner . Section 20: The State Government may, by notification in

the Official Gazette, appoint any person to bea Commissioner for Workmen's Compensation

for such area as may be specified in thenotification. Any Commissioner may, for the purpose of

deciding any matter referred to him for decision under this Act, choose one or more

persons possessing special knowledge of anymatter relevant to the matter under inquiry toassist him in holding the inquiry.


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Reference to commissioners.

Section 19 : 19(1) If any question arises in any proceedings under this Actas to the liability of any person to pay compensation(including any question as to whether a person injured is oris not a workman) or as to the amount or duration of compensation (including any question as to the nature orextent of disablement), the question shall, in default of agreement, be settled by a Commissioner.

19(2) No Civil Court shall have jurisdiction to settle, decide ordeal with any question which is by or under this Actrequired to be settled, decided or dealt with by aCommissioner or to enforce any liability incurred under thisAct.


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Section 21 - Venue of proceedings and transfer. Section 22 - Form of appli cation. Section 22A Power of the Commissioner to

require fur ther deposit i n case of fatal accident. Section 23 Powers and procedur e of

Commissioners. Section 24 Appearance of Parti es. Section 25 - M ethods of recording evidence. Section 26 Costs.

Section 27

Power to submi t cases. Section 28 Registr ation of Agreements. Section 29 Effect of f ail ur e to register

agreement.


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workmen s compensation act

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