Workmen’s Compensation Act, 1923

Objectives of the law… • • One of the oldest legislation of social security in India. a workman who dies or suffers disablement (partial or total) due to accident is entitled to get compensation. Coverage – even if one worker is employed… The act is applicable on factories etc. (where ESI Act is not applicable), however, this act is applicable even when only one worker is employed and it is not a not a factory‘ under Factories

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Workmen under the act: • • Section : 2(1)(n) Workman‘ means * railway servant * crew of ship * Crew of aircraft * Driver, cleaner, helper or mechanic of motor vehicle * Person recruited abroad * Employed in capacity specified in Schedule II

The central govt. or state govt. can add new class of workmen in schedule II after giving at least 3 month notice. Schedule II • It includes manufacturing process, explosives, mine, ship, loading/unloading, construction, electricity generation and distribution, drivers, horticulture, circus etc. Cultivation of land, fishing, rearing of live stock is covered if more than 25 persons are employed. Persons employed outside are also covered. However, persons employed in clerical capacity are excluded.

Mode of compensation… • Mode of computation of compensation is given in section 4 of the Act. Compensation is payable to workmen. It is payable to dependents of workman in case of death.

Coverage : all the workers in factories etc. are covered… • Every employee, including those employed through contractor, but excluding casual employees who is engaged for purpose of employer‘s business is eligible. The Act does not

circus etc. [section 3(1)] Exceptions – when compensation is not available : • In case of Injury which does not result in total or partial disablement of workman for a period exceeding 3 days Injury caused by an accident directly attributable to workman under influence of drinks or drugs willful disobedience of express orders for safety willful removal of safety guard or device. as per section 53 of ESIC. The compensation is payable if accident arises out of and during the cause of employment. However. • • Coverage…. are covered. an unmarried legitimate or adopted daughter. the employer will be liable]. mines. watchmen etc. workmen in manufacturing processes.employees covered under ESIC not to be covered by this law Employee State Insurance Act is also similar law and therefore a worker cannot get compensation under two laws Since a workman is entitled to get compensation from ESIC. and also drivers. and who is infirm and (3) if wholly / partly dependent : Widower a parent other than widowed mother • • • • . a workman covered under ESI Act is not entitled to get compensation under Workmen‘s Compensation Act. • Employer’s liability to pay compensation • An employer is liable to pay compensation if personal injury is caused to a workman by accident arising out of and in the course of his employment. minor legitimate or adopted son. or a widowed mother (2) if wholly dependent.2 cover employees employed in clerical capacity. [Even if such case. ships. if the workman dies or suffers permanent total disablement.son. daughter who has attained the age of 18 years. and such accident causes either death or disablement. tractor or mechanical appliances in agriculture. • Who are dependent persons? • • Sec. construction. . 2(1) (d) : (1)widow.

Ltd. if no parent of the workman is alive What is partial disablement? • Where disablement reduces the earning capacity of the workman in the employment in which is was working at the time of accident . v.3 • • • • • • Minor illegitimate son. claim of workmen for compensation under Motor Vehicle Act was rejected due to negligence of employee. it was held by the court that he suffered from total disablement – as he would not get any job of carpentry – as now he cannot do carpentry. Cas. where the aggregate of such injuries is 100% or more) Example: Pratap Narain Singh Deo Vs sriniwas Sabata : (1976) : a carpenter lost his left hand. • • Employment disease • Employer is liable if a workman contracts any specified occupational disease. Compensation payable – even if no fault of employer • The compensation is payable even when there was no fault of employer. Quantum of compensation . while he is in service of employer for at least 6 months. [section 3(2)]. 251 (Ker HC DB). Pennamna Kuriern . Where disablement reduces the earning capacity for all times in every employment in which he was capable earlier – it is called permanent partial disablement.(1995) 84 Comp.it is called temporary partial disablement. but compensation was awarded under Workmen‘s Compensation Act on the principle of no fault‘. In New India Assurance Co. • • What is total disablement? • Whether temporary or permanent – which incapacitates a workman for all work which he was able to perform at the time of accident (mentioned in part I of schedule I or combination of injuries mentioned in Part II of schedule I. Schedule I gives list of diseases which causes permanent partial disablement. unmarried illegitimate daughter Daughter legitimate or illegitimate or adopted if married and a minor or if widowed and a minor Widowed daughter in law A minor child of a pre=deceased son A minor child of a pre-deceased daughter where no parent of the child is alive A paternal grandparent.

funeral expenses upto Rs 2. it will be considered as Rs 4. The compensation must be paid only through the Commissioner in case of death or total disablement. If salary exceeds Rs 4.. Direct payment to workman or his dependents is not recognised at all as compensation. Termination of an employee without following principles of natural justice is violative of Article 21 of Constitution . . that will be refunded to employer. Maximum compensation is Rs. [section 9]. Maximum compensation is an amount equal to 50% of monthly wages of deceased workman multiplied by factor depending on age (More the age. Compensation – liability of principal employer – even if employed through contractor… Principal Employer is liable to pay the amount of compensation for the injury suffered by workman employed through contractor.57. [section 4(3)]. 80. if workman was 16 years of age at the time of accident. it cannot be attached or assigned. Quantum of compensation in case of disablement… In case of permanent total disablement.000 only for purpose of calculating the compensation. However. if employer has paid some compensation to dependent. [section 8(1)].500 are payable. Any lump sum payment to workman under the Act must be made only through Commissioner.e. Principles of natural justice have to be followed. minimum compensation is Rs. 90. Maximum compensation payable is Rs. if the accident arises as a result of accident arising out of and during the course of employment. i. Any punishment of suspension or dismissal can be imposed after conducting a Domestic Enquiry‘.000. compensation is payable on basis of percentage of loss of earning capacity. [section 12].000. • • • • .In case of permanent partial disablement. lower the compensation).080 if a person at the time of death was 16 years of age an. 5.4 • In case of death resulting from injury. Compensation – protected… The compensation paid under the Act is protected.496. Maximum compensation is an amount equal to 60% of monthly wages of deceased workman multiplied by factor depending on age (More the age. 4. • • • • • • Payment of compensation through commissioner… • A Commissioner for Workmen‘s Compensation is appointed by Government. In addition. Punishment to employee for disobedience etc. Expenditure by employer is not compensation… Expenditure made by employer for medical treatment of workman is not considered for purposes of the compensation. in case of death.D K Yadavv.000.48. lower the compensation). minimum compensation is Rs.

5 • • Procedure of enquiry … For proper conduct of enquiry (1) Employee should be informed of charges leveled against him (2) Witnesses should be ordinarily examined before him. Santosh Raj 2001 LLR 164 (Ker HC DB). Workmen (1964) 3 SCR 616 = (1963) 2 LLJ 367 (SC) Compensation payable even if worker was careless… Compensation is payable even if it is found that the employee did not take proper precautions. • • . However. – Sur Enamel v. (3) The employee should be given fair opportunity to cross examine the witnesses. An employee is not entitled to get compensation only if (a) he was drunk or had taken drugs (b) he wilfully disobeyed orders in respect of safety (c) he wilfully removed safety guards of machines. – Mar Themotheous v. compensation cannot be denied on the ground that workman was negligent or careless. including himself (4) The enquiry officer should record his findings with reasons.

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