1.

Disablement categories
2. Employeesees liability
3. Commissioner authority
4. Esi benefits authorities contribution
Introduction

• The workplace especially factory work is prone to injuries arising out of accident
• Rampant in the early days of industrialisation
• Lead to disablements affecting earning capacity AND wellbeing
• Growing complexities of industries, increase in use of machinery and consequent danger
compelled the legislation
• To be as protected as possible from hardships arising out from accidents
• the act tries to protect victims of such accidents
• Provides social security- to employees who struggle without regular income - securing
income in case the earning is interrupted by unemployment, sickness, accident, provide
against the loss of support by death

Employees:
1. Railway servants not in an administrative capacity
2. Crew of ship
3. Captain/ members of aircraft
4. People recruited as drivers, mechanics, helpers, cleaners, or any capacity with
connection to motor vehicle
5. Employed by company, ship, aircraft, motor vehicles registered in india who is
employed outside

DISABLEMENT CATEGORIES:

• Means such disablement – permanent or temporary in nature –

• Reducing the earning capacity while still being able to do some work.
When an accident occurs and the workman sustains an injury, it results into loss of earning
capacity of that workman. Such condition of incapacity of doing work is called
disablement.
If the earning capacity of a workman is reduced by the disablement merely in
the particular employment in which he was engaged at the time of his accident,
it is known as partial disablement of temporary nature, on the other hand if the
earning capacity of a workman is reduced as result of disablement in every
employment which he was capable of undertaking at the time of the accident, it is
known as partial disablement of permanent nature

PARTIAL TOTAL
Defining criteria of partial disablement- Defining criteria is incapacitation
reduction in earning capacity
 One would still be able to work but with
reduced earning
Here temporary means – any work
Here permanent means- all work
one would not be able to in any of the
work that he could at the time of the
accident. Reduction in earning capacity is
100%
Here temporary means temporary
period
Here permanent means – for permament
period

PARTIAL Defining criteria-

incapacitation
The defining criteria-
reduction of earning (one would not be able
capacity to do the all the work
he was doing during the
(one would still be able to
time of accident IOW
work but in reduced
recuction is 100%
earnings due to accidnet)
earning capacity)
Temporary = any work
Temporary = for a
Permanent = all work temporary period

Permanent= for a
permanent period

EMPLOYEES’ LIABILITY FOR COMPENSATION – S.3

An accident alone does not give a workman a right to compensation.

To entitle him to compensation at the hands of his employer,
the accident must arise out of and in the course of his employment.

The idea of an accident arising out of and in the course of his employment is complicated;
adopted from English law; argued that there is no clear reasoning to elaborate the
meaning of terms and fix a meaning to all circumstances; no universal consensus on this
word

The phrase arising out of the course of employment isn’t limited to the nature of
employment.
- When the injury occurred, employee must have been engaged in the business of the
employer and not a personal task
- Accident must occur while performing duties
- Injuries must have occurred due to risk incidental to the duties of the work/ if the na
ARISING OUT OF COURSE OF EMPLOYMENT
Oriental fire and general insurance v Sunderbai Ramji: the scope of term arising out of
 employment was discovered. A labourer performing hard labour involving physical
excretion – after 3 hours of performing duty felt chest pain and fainted on spot.
the commissioner observed that it was his duty that caused him physical discomfort.
IN THE COURSE OF EMPLOYMENT:
National Iron and Steel Company ltd v Manorama: deceased boy worked at a tea stall
outside the factory, his duty was to serve tea to employees of the factory, on way
back from the factory, crosse a violent mob, a bullet accidentally hit him, court
Held: since the accident took place during the work hours and at the place of
employment - liable for compensation

moondra and co v bhawani: a truck driver with due permission entered the tank of
trunk to check for leaks, sustained burn injuries when he lit a match.
Held: doctrime of notional extension – link between time, place of accident of
work- liable u/s.3
General Manager BEST v Agnes: deceased bus driver after leaving depot boarded a
bus which collided with a lorry leading t his death. SC held: accident was in middle of
his employment as he was going to residence from the depot
Doctrine of added peril:
Devidayal ralyaram v secretary of state: if the employee performs something
which is not required in his duty which involves extra danger, employee cant be
held liable

Employer is not liable:

1. If the injury does not result in partial disablement of the employee for a period
exceeding 3 days
2. If the injury does not result in death/ permanent disablement AND If the injury is
directly attributed to:
i. Employee at the time of the accident is under the influence of drinks or drugs
ii. Disobedience of an order by the employee which is expressly given and
framed for the purpose of securing the safety of the employee
iii. Willful disregard by an employee of a safety guard or other devices which he
knows have been provided for the safety

Adjudication of compensation:
Done by the commissioner – quantum of compensation calculated from the date of accident

Contributory negligence:
• Employyes new duty to carry out their work with reasonable care
• Employers are vicariously liable for employee’s negligence
• But are entitles to clain contribution or indemnity
• The employer is liable to pay compensation ot the extend of his own negligence
• The compensation amount may reduce

Occupational diseases: dealt with u/ Schedule III

u/s.3(2) occupational disease conreacted shall be deemed to be an injury by accident

authorities under legislation

• S.19 commissioner to resolve :

- questions about the person injured/not
- How much amount to be given
- Duration of compensation
- Extend of disability
- Who gets compensation
-
United India Fire and General Insurance v Kamalakshmi: the commisoner has the power u/S.19 to
decide on any questions as to liability of any person to pay compensation when an application is
made under the act

• The SG through notification in official gazette appoints a commissioner u/s.20

• Qualifications:
- Member of state judial services more than 5 years
- Advocate more than 5 years
- Gazetted officer more than 5 years having education qualifications and experience in:
personal management
human resourse
industrial relations

• no matter shall be processed before or by a Commissioner

• other than the Commissioner having jurisdiction over the area
• in which the accident took place
• without his giving notice in the manner prescribed by the Central Government to the
Commissioner having jurisdiction over the area and the State Government concerned