Employees Compensation

Act,1923
Work space and incidences
 Employees Compensation Act,1923
Conditions governing payment of compensation
Methodology to claim compensation
Employer’s liability to pay compensation- defences available
Injury- accident- arising out of and in the course of employment
Notional extension theory
Indemnification– s.12
Employers liability u/S.3
Which establishments are covered
Who are the dependants
What are the eventualities covered
What is the basis of computing compensation
How compensation is paid
Authority to approach for claims arising out of… u/ the Act
Beneficial provisions if any to women or legally disabled
dependants….
Appeal if any from orders granted..
 OBJECTIVE
• To provide compensation to -Employee and /or their dependants
• Instances
– Death
– Disablement
– Accidents arising out of and during course of employment
– OCCUPATIONAL DISEASES
• ECA//ESIA
• increasing accountability on employers
• payment by certain classes of employers
• Quasi penal Act
• no wage limit for coverage of workers
• Calculating the compensation payable -Calculation based as per-
Rs.15,0000/- (2020) 8,000/- wage ceiling
limit(Cent.Govt.notification,2010)- S.4(1-A)
• Post 1923- Loss of earning capacity-WAGE EARNING CAPACITY
BEFORE &AFTER ACCIDENT
 ECA ESIA
• "employer" as defined under section 2(e) of the
ECA
• Notified area -Once a area is covered under
• + ESI act, it is compulsory for the employer to
• individual should come within the definition of register itself under ESI.
the term "employee" as defined under section • Stategovt+corp+cent.govt interventions
2(i)(dd) of the EC Act read with the Schedule II to
the Act.

• Non applicability of ESIA. • cash and medical benefits

– a) the place of employment is in an area to which – Medical Benefits
the ESI Act is not made applicable or – Sickness Benefits
– (b) though the ESI Act is applicable to the – Maternity Benefits
industrial establishment, still the ESI Act may not – Disablement Benefit
be applicable to the employee in question as
he/she draws wages exceeding Rs.21000/- per – Dependants’ Benefits
month. – Funeral Expenses
– Rehabilitation allowance
– death in work place, – Vocational Rehabilitation
– Total disablement, – Unemployment Allowance (Under Rajiv
Gandhi Shramik Kalyan Yojana)
– Total Partial disablement,
– Partial disablement.
– Occupational diseases
ESIC is liable(INSUARANCE SCHEME)
• Contributory in nature
• Employer is liable
• No CONTRIBUTIONS
• ESI Courts
• Commissioners
 S 53
Employees' State Insurance Act, 1948

ECA-APPLICABILITY TO THOSE EXCLUDED UNDER ESIA

Bar against receiving or recovery of compensation or damages under any other law.—
An insured person or his dependents shall not be entitled to receive or recover, whether from
the employer of the insured person or from any other person, any compensation or damages
under the Workmen’ ’s Compensation Act, 1923 (8 of 1923), or any other law for the time being
in force or otherwise, in respect of an employment injury sustained by the insured person as an
employee under this Act.]
All the employees who are not covered by the ESI are covered by the ECA.
Medical Benefits
Sickness Benefits
Maternity Benefits
Disablement Benefit
Dependants’ Benefits
Funeral Expenses
Rehabilitation allowance
Vocational Rehabilitation
Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)
• Section 61 of the ESI Act.
• "Bar of benefits under other enactments.-
• When a person is entitled to any of the
benefits provided by this Act, he shall not be
entitled to receive any similar benefit
admissible under the provisions of any other
enactment."
 Employee
• a railway servant as defined in clause (34) of section 2 of the Railways Act,
1989 (24 of 1989), not permanently employed in any administrative district
or sub-divisional office of a railway and not employed in any such capacity
as is specified in Schedule II; or
• (ii) (a) a master, seaman or other members 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 in any other
capacity in connection with a motor vehicle,
• (d) a person recruited for work abroad by a company,
and who is employed outside India in any such capacity as is specified in
Schedule II and the ship, aircraft or motor vehicle, or company, as the case
may be, is registered in India; or
• (iii) employed in any such capacity as is specified in Schedule II, whether
the contract of employment was made before or after the passing of this
Act and whether such contract is expressed or implied, oral or in writing;
but does not include any person working in the capacity of a member of
the Armed Forces of the Union; and any reference to any employee who
has been injured shall, where the employee is dead, include a reference to
his dependants or any of them;]
• + REFER schedule II of the Act
 Employer.
• "includes" the following:
• (i) any body of persons, whether incorporated
or not
• (ii) any managing agent of an employer
• (iii) the legal representatives of a deceased
employer, and
• (iv) any person to whom the services of a
workman are temporarily lent or let out, while
the workman is working for him.
 Ways of claiming compensation

• Civil suit(ALL DEFENCES FOR EMPLOYER)//

• ECA

• Non applicability of ECA

• Members of armed forces
• ESIA beneficiaries
SCHEDULE I : See sections 2(1) and (4)]

• PART I : LIST OF INJURIES DEEMED TO RESULT

IN PERMANENT TOTAL DISABLEMENT=
INCAPACITY TO DO ALL WORK+ (100% LOSS OF
EARNING CAPACITY)

• PART II : LIST OF INJURIES DEEMED TO RESULT

IN PERMANENT PARTIAL DISABLEMENT
 SCHEDULE I : See sections 2(1) and (4)]
• PART I : LIST OF INJURIES DEEMED TO RESULT
IN PERMANENT TOTAL DISABLEMENT

Percentage of loss of earning

Serial No. Description of Injury
capacity
Loss of both hands or amputation at higher
1. 100
sites.
2. Loss of a hand and a foot . 100
Double amputation through leg or thigh, or
3. amputation through leg or thigh on one side100
and loss of other foot
Loss of sight to such an extent as to render
4. the claimant unable to perform any work for100
which eye-sight is essential
5. Very severe facial disfigurement ..... 100
6. Absolute deafness ...... 100
• SCHEDULE II See section 2(1)(dd)
• List Of Persons Who, Subject To The Provisions Of Section
2(1)(DD), are included in the definition of employees
• employees within the meaning of section 2(1)(dd) and subject to
the provisions of that section
• SCHEDULE III (See section 3)
• LIST OF OCCUPATIONAL DISEASES
• Part A, B & C
• Occupational disease-Employment
• Schedule IV (See section 4)
• Factors for working out lump sum equivalent of compensation
amount in case of permanent disablement and death
• -Completed years of age on the last birthday of the workman
immediately preceding the date on which the compensation fell
due-corresponding Factors
 Occupational diseases egs:
• Skin diseases caused by physical, chemical or biological
agents.
• (ii) Bronchopulmonary disease caused
• by flax, hemp and sisaldust (Byssinosis).
• (iii) Occupational asthma caused by recognized sensitizing
agents inherent to the work process
• No minimum period of service required
• Infectious & parasiteic diseases-contamination
• Compressed air
• Lead &toxic compounds
• Nitrous fumes
• Organo phosphorous compounds
 Injury resulting from occupational diseases.S.3(2)-
Schedule III of the Act(A,B,&C)

• A -No specified period of employment is

necessary
• B -employee to be in continuous employment of
same employer for 6 months
• C -period of employment to be specified by
Central Government, for each such employment
(in cases of 2 or more employers-extent of
responsibility by diff. employers to be made out
by Comp. Commissioner)
• Deeming provision- arising out of and in the
course of employment
 Add on power
• The State Government in the case of employments specified in
Part A and Part B of Schedule III, and the Central Government in
the case of employments specified in Part C of that Schedule, after
giving, by notification in the Official Gazette, not less than three
months' notice of its intention so to do, may, by a like notification,
add any description of employment to the employments specified
in Schedule III, and shall specify in the case of employments so
added the diseases which shall be deemed for the purposes of this
section to be occupational diseases peculiar to those
employments respectively, and thereupon the provisions of sub-
section (2) shall apply as if such diseases had been declared by
this Act to be occupational diseases peculiar to those
employments.]
• (4) Save as provided by sub- sections (2), (2A)] and (3), no
compensation shall be payable to a workman in respect of any
disease unless the disease is directly attributable to a specific
injury by accident arising out of and in the course of his
employment.
 Coverage (2010)

• Workmen's Compensation Act, 1923 - Employee's Compensation Act,

1923.
• Workmen becomes employees
• All the employees who are listed in Schedule II to the Employees
Compensation Act are covered.
• Mines, Factories, Plantation, Transport establishments, construction work,
railways, ships, circuses
• Includes clerical employees (2010)
• Applicable For All Employees Irrespective Of The Nature Of Work Done
And The No. Of Employees Engaged By An Industry /
Establishment.(2010)
• All the employees who are not covered by the ESI are covered by the
Employees Compensation Act.
• No wage ceiling for inclusion of employees under the ECA.
• while calculating the compensation payable under the EC , the
salary/wage is restricted to Rs.8000/- per month.
(i) Being dependants of the
deceased worker.(specific
relationship-no dependency to
be proved)
(a) A widow,
(b) A minor
legitimate/ adopted son,
(c ) An unmarried legitimate/
adopted daughter and;
(d) A widowed mother.
(ii) If wholly dependent on
the earnings of the worker,
then in addition: (proof of
dependency must)
(a) a son or
(b) a daughter who has
reached the age of 18 but is
infirm or sick
iii)If wholly or partly
dependant on the worker,
(a) a widower;
(b) a parent other than a
widowed mother;
(c) a minor illegitimate son;
(d) an unmarried or
widowed, adopted,
legitimate or
illegitimate daughter;
(e) a minor brother;
(f) an unmarried sister;
(g) a widowed sister, if minor;
(h) a widowed daughter-in-
law;
(i) a minor child of a
deceased son;
(j) an orphaned grandchild;
(k) a paternal grandparent if
the parents of the deceased
worker are also dead.
 Partial Disablement S.2(1) (g)
Temporary Partial
Disablement
Permanent Partial disablement
• temporary nature • Reduces earning capacity of
• Reduces earning capacity of employee employee in every employment he
in any employment he was engaged at was capable of undertaking at the
the time of accident time of injury
• IN ALL EMPLOYMENTS
• SPECIFIC EMPLOYMENT • Affects Every capability to get the
• Affects wages work.
• REFER-injury specified in Schedule
I Part II (48 ITEMS)-(1%TO 90%)-to
the Act - with percentage loss of
earning capacity for each item
mentioned
• METHOD of calculation
• - substituting the percentage of
disability suffered and the
appropriate ‘relevant factor’
obtained from the schedule IV, as
per the age of the concerned
worker.
 4 TYPES OF EVENTUALITIES

• occupational disease
• Principles
– Loss of earning capacity & not physical injury
– Nature of injury, nature of work done by the worker
availability of work to him after injury
– more severe disablements- naturally receive higher
compensation.
– higher the age of the injured-worker, the lower the
compensation
 EMPLOYERS LIABILITY S.3
– Personal injury is caused to a workman(ONUS)
– by accident
– arising out of and in the course of his employment,
– Injury must have resulted either in death or total or partial disablement
for a period exceeding 3 days
• employer shall not be liable —
– in respect of any injury which does not result in the total or partial
disablement of the workman(ONUS) for a period exceeding [three]
days;(WAITING PERIOD)
– (b) in respect of any injury, not resulting in death or permanent total
disablement]caused by an accident which is directly attributable to—
• (i) the workman having been at the time thereof under the influence of drink
or drugs, or
• (ii) the willful disobedience of the workman to an order expressly given, or to
a rule expressly framed, for the purpose of securing the safety of workmen,
or
• (iii) the willful removal or disregard by the workman of any safety guard or
other device which he knew to have been provided for the purpose of
securing the safety of workman, (SPECIFIC MISCONDUCTS)
 Wilful disobedience -Eg:
– Existence of rule/order – workmen disobeyed
– Rule/order was in force
– Intention was to secure safety of workers
– Rule .order indicated clearly the purpose
– Terms informed to workers
– Rule/order disobeyed
– Disobey was wilful & deleberate(not mistake/negligence)
– Accident is directly attributable to disobey
– If death happens-twin conditions satisfied- must pay compensation(irrespective of wilful
disobey/disregard issues)

• Aryamuni v UOI
• Workman sustained injury on eye due to spark-Co.’s notice- written in English-requires using of
googles for such work.
• Googles not provided to them-googles were in stock- nor was asked so by employee- workmen did
not know English also
• Co. defense- negligence of employees.
• Employee- asked for googles- but not provided with
• held-duty of supervisor to warn them and provide googles-workman is not wilfully disobedient and
was unaware of contents of notice- nor explained to them.
 Add on power
• The State Government in the case of employments specified in
Part A and Part B of Schedule III, and the Central Government in
the case of employments specified in Part C of that Schedule, after
giving, by notification in the Official Gazette, not less than three
months' notice of its intention so to do, may, by a like notification,
add any description of employment to the employments specified
in Schedule III, and shall specify in the case of employments so
added the diseases which shall be deemed for the purposes of this
section to be occupational diseases peculiar to those
employments respectively, and thereupon the provisions of sub-
section (2) shall apply as if such diseases had been declared by
this Act to be occupational diseases peculiar to those
employments.]
• (4) Save as provided by sub- sections (2), (2A)] and (3), no
compensation shall be payable to a workman in respect of any
disease unless the disease is directly attributable to a specific
injury by accident arising out of and in the course of his
employment.
 S.3(5) ECA
• (5) Nothing herein contained shall be deemed to confer
any right to compensation on a workman in respect of
any injury if he has instituted in a Civil Court a suit for
damages in respect of the injury against the employer
or any other person; and no suit for damages shall be
maintainable by a workman in any Court of law in
respect of any injury—
– (a) if he has instituted a claim to compensation in respect
of the injury before a Commissioner; or
– (b) if an agreement has been come to between the
workman and his employer providing for the payment of
compensation in respect of the injury in accordance with
the provisions of this Act.
 Employer’s liability for compensation
• Personal injury(Physical+ psychological +nervous shock
+a mental injury /illness/psychological
diseases/strain/sunstroke/traumatic neurosis/hysterical
paralysis) caused to an employee
• Personal injury (affecting efficiency & earning capacity)
wider than physical injury
• Collisions/falls of roof/shock/…….
• Injury resulted in death of employee or in his total or
partial disablement for a period exceeding 3 days
 Employer is liable to pay
Compensation-Conditions to be
PERSONAL INJURY=
fulfilled
Physiological, bodily injury &MENTAL STRAIN(reducing the capacity to earn)
• Indian News Chronicle v Mrs. Lazarus -personal injury
Workman died on duty –existing heart disease-aggravated by strain of work-amounts to personal injury

Caused by an Accident
(Padam Debi v.Raghunath Ray(motor bus accident)-negligence-irrelevant factor)
• Unexpected mishap, untoward event, consequence brought out by unanticipated/un designed act +
OCCUPATIONAL DISEASES ALSO
• Not necessary for employee to locate the unexpected event.
• series of tiny accidents-unidentifiable results-may operate cumulatively=final condition of injury + accident

Arising out of (service)&in the course of(duties to be performed)

employment
(Saurashtra Salt Manufacturing Co. v Bai Velu Raja )
Raj Dulari v.Spdt Engineer Punjab State Electricity Board)

Results in
Death, total /partial disablement for a period exceeding 3 days
 Arising out of = causation effect
• Risks incidental to duties of service
• nature,
• its conditions,
• its obligations
• its incidents

• in the course of = in the currency of employment

• refers to the
– time,
– place, and
– circumstances of the accident
• Period of employment &place of work
• What is the course of discharge of duties incidental to contract of service
• BOP- ON EMPLOYEE -to show that he was doing employer’s job &not doing
something for his own personal benefit, -was doing something in discharge
of his duty directly/indirectly imposed on him by his service.
• Superintending Engineer, Parambikulam Aliar
Project, Pollachi v. Andummal
• Jayaram Motor Service v. Pitchammal(night
watchman)-stress & strain
 “’Arising out of(service) &
in the course of”(duties-Twin
conditions
– Whether at the moment of accident-employee was
obliged to be present on that site either by
express/implied terms of service
– Whether he was there in his capacity as an employee or
merely as a member of public
– Whether he was at the time u/ control or direction of
employer or was he acting as a completely free man
– Whether his presence at the spot Was incidental to his
employment
– Whether there was proximate connection between
employment and the accident
• If answered affirmatively-twin conditions are involved
 Twin tests
• United India Insurance Co. v. • Raj DularI v Spdt. Engineer P.S.E.B
C.S.Gopalakrishnan (bus &Another- employee while fixing
conductor)-nature of work&hours wires on electric pole beyond
of work work hours- bus accident-
• Proof of exceptional strain is not • National Iron &Steel Co. Ltd v
required Manorama- boy employed by Co.
in a tea shop to take tea from
• State of Rajasthan v Ram Prasad shop to employees- boy suffered
& another(natural lightening at bullet injury by attack of mob-
work site) died-mother claimed-
• R.B.Moondra &Co. v Mst. • held liable- for the risk to which
Bhanwari- he was exposed by the nature of
• Was it a part of the injured his employment-
employees duty to risk, to suffer
and to do that which caused the
accident?
• If yes = accident has arisen out of
the employment
• Trustee Port of Bombay v.
Yamunabai
• (bomb explosion)
 Casual link between
work & event of death
• National Mineral Development Corp. v. Bindi Bai(work at the
height of 150 feet on the conveyer+ heart attack)

• EG:DEATH DUE TO HEART ATACK WHILE CARRYING A

LOAD,DEEMED TO HAVE ARISEN…..-CAUSAL CONNECTION IS
ESTABLISHED HERE
• M/s J.D &Co. Mills v E.S.I Corporation
• Absence of mechanic &fitter from place of work need to
disconnect crushing machine-unskilled employee tried to stop it
legs got caught in between, fell down &died.
• Accident -held- arisen out of…..-employer was guilty of negligence
in not complying with safety rules- deceased did his part in the
interest of employer-to prevent the machine from getting
damaged-loss to co. – concern
 Doctrine of added peril.
• Worker should not be doing something which is way out of
scope of his employment – doctrine of added peril.
• R.B. Moondra &Co. v Mst. Bhanwari-
• Defense of added peril(negligence &carelessness) taken by Co.)-
• held-
– within the sphere of employment-
– incidental to it,
– in the interest/furtherance of employer
– (Tank being empty-was partly filled with water last night-he could not
have little reason to foresee the risk involved.

• Raj DularI v Spdt. Engineer P.S.E.B &Another- employee while

fixing wires on electric pole beyond work hours- bus accident-
• Held- accident arisen out of…..Working as per the directions by
his superior beyond working hours- no application of added peril
 Notional extension? of employer’s
•
premises
St.Helens Colliery Co. Ltd., v. Hewitson (1924 House of Lords)-(non obligation of workers to use train)
(conveyance facility by employer & duty on employee to use it –situations)
• Alderman v. Great Western railway Co.1937 (House of Lords)
• Steel Authority of India Ltd. Rourkela Plant- different & circuitous route (Orissa H.C)

• S.C Decisions
• Saurashtra Salt Manufacturing Co. v Bai Velu Raja &others.(1958)
• Gen. Manager, BEST v. Agnes(1964)-held liable (Rules &CONDITIONS OF SERVICE)
• EMPLOYMENT DOES NOT NECESSARILY END WHEN DOWN TOOL SIGNAL IS GIVEN OR WHEN WORKMAN
LEAVES THE ACTUAL WORKSHOP WHERE HE IS WORKING
• NOTIONAL EXTENSION APPLIES BOTH TO EXIT AND ENTRY POINTS BY TIME & SPACE
– Employer provides means of conveyance
– Efficiency of service
– Employee is u/duty u/contract of service to use it
– Right of the employee not grace
– Use of bus- Proved necessity =implied obligation/practical compulsion

Regional Director ESI Corpn v Francis De Costa (1996)

Arising out of & in the course of=(nature, conditions, obligations and incidents)
Works Manager ,Carriage &Wagon Shop. E.I Railway v Mahabir-Environmental Accidents

Theory is applicable- if No other route/means of conveyance

 Exceptions
• Where accident occurs in public place
• Risk faced by employee is not due to his
employment
• But to his being on the spot as a member of
the public
• Employer will be liable- only if the presence of
employee on the spot can be found traceable
to an obligation imposed upon him by the
employer.
 COMPENSATION
(a) Where the death results 50% x (monthly wages)/15000 X R.F /or an amount of
from the injury : Rs 1,20,000/-whichever is more +
Rs.2,500- increased to Rs.5,000/-Funeral
Expenses(S.4(4) (DEPENDANT’S FACTOR)-Rs.80,000/-
increased to Rs 1,20,000/-

(b) where permanent or total 60% X monthly wages/15,000/- X relevant

disablement results from the factor(100%)/ or an amount of Rs 1,40,000/-whichever
injury is more.(MORE MOUTHS TO BE FED- FACTOR)-
Rs.90000/- increased to Rs.1,40,000/-

REIMBURSEMENT OF ACTUAL MEDICAL

(c) where permanent partial
disablement results from the
injury
EXPENSES(2009Amd.)-No limit(claim-lim. period-2
years)
Injury is specified in part II of Schedule I, % of loss of
earning capacity caused by the accident
Non scheduled injury- % as assessed by the qualified
Medical Practitioner.
 2009 Amendment
• S.4 (2A) The employee shall be reimbursed
the actual medical expenditure incurred by
him for treatment of injuries caused during
course of employment.
 Compensation in case of injury resulting in temporary
disablement? (Section 4(2) to 4(4))
• Payments equal to 25% of the workers wages
shall be made at half monthly intervals.
• If disablement lasts for more than 28 days -then
the employer should make the payment on the
16th day from the day of the disablement.
• If the period of disablement lasts for less than 28
days then the payment shall be made after the
expiry of 3 days.
• In case the employer makes any payment to the
worker before the payment of this half monthly
or lump sum amount it shall be deducted from
this.
 Commutation of half-monthly
payments
• A
—ny right to receive half-monthly payments
may, by agreement between the parties or, if
the parties cannot agree and the payments
have been continued for not less than six
months, on the application of either party to
the Commissioner, be redeemed by the
payment of a lump sum of such amount as
may be agreed to by the parties or
determined by the Commissioner, as the case
may be.
 Payment of compensation..4A
• (1)Compensation under section 4 shall be paid
as soon as it falls due.
• (2) In cases where the employer does not accept
the liability for compensation to the extent
claimed, he shall be bound to make provisional
payment based on the extent of liability which he
accepts, and, such payment shall be deposited
with the Commissioner or made to
the [employee], as the case may be, without
prejudice to the right of the [employee] to make
any further claim.
• Where any 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 shall, in addition to the amount of the
arrears, pay simple interest thereon at the rate of twelve per cent.
per annum or at such higher rate not exceeding the maximum of
the lending rates of any scheduled bank as may be specified by the
Central Government, by notification in the Official Gazette, on the
amount due; and
• (b) if, in his opinion, there is no justification for the delay, direct
that the employer shall, in addition to the amount of the arrears
and interest thereon, pay a further sum not exceeding fifty per
cent. of such amount by way of penalty:
• Provided that an order for the payment of penalty shall not be
passed under clause (b) without giving a reasonable opportunity to
the employer to show cause why it should not be passed.
• [(3A) The interest and the penalty payable under sub-section (3)
shall be paid to the 44[employee] or his dependant, as the case
may be.(2000Amd.)
• Pratap Narain Singh Deo v. Srinivas Sabata&anr.
 Review of payments in case of temporary disablement
S.6

• Increase, decrease or end the half-monthly payment, depending on the condition

of the worker
• If temporary disablement leads to a permanent disablement, then the review has
the power to call for the lump sum compensation to be paid to the worker less any
amount that she/he has already received in half monthly payments.
• Application by whom R.3
• by the employer, on the ground that since the right to compensation was
determined, the workmen’s wages have increased;
• by the workman, on the ground that
– since the right to compensation was determined, his wages have diminished;
– on the ground that the employer, having commenced to pay compensation, has ceased to pay
the same, notwithstanding the fact that there has been no change in the workmen’s condition
such as to warrant such cessation;
• either by the employer or by the workmen, on the ground that
– the determination of the rate of compensation for the time being in force was obtained by
fraud or undue influence or other improper means;
– the determination of compensation there is a mistake or error apparent on the face of the
record.
 20. Appointment of Commissioners.-
• (1) The State Government may, by notification in the Official Gazette, appoint any person *
• [who is or has been a member of a State Judicial Service for a period of not less than five
years or
• is or has been for not less than five years an advocate or a pleader or
• is
• or has been a Gazetted officer for not less than five years having educational qualifications
and
• experience in personnel management, human resource development and industrial
relations]
• to be a Commissioner for *[employees]'s Compensation for such area as may be specified
in the notification.
•
(2) Where more than one Commissioner has been appointed for any area, the State
Government may, by general or special order, regulate the distribution of business
between them.
• (3) 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 any
matter relevant to the matter under inquiry to assist him in holding the inquiry.
19. Reference to Commissioners.-
• (1) If any question arises in any proceedings under this
Act as to the
– liability of any person to pay compensation (including any
question as to
– whether a person injured is or is not a employee
– amount or duration of compensation
– any question as to the nature or extent of disablement),
• the question shall, in default of agreement, be settled
by a Commissioner.
• (2) No Civil Court shall have jurisdiction to settle,
decide or deal with any question which is by or under
this Act required to be settled, decided or dealt with
by a Commissioner or to enforce any liability incurred
under this Act.
 CONTENTS OF CLAIM APPLICATION?
• a statement in ordinary language
• the circumstances under which the application is being forwarded
and
• the relief or order which the applicant claims
• (b) in case the claim for compensation is made against the
employer, the application should mention the date when the
notice of such accident was made to the employer,
• and if there was any delay in doing so, the reason for the delay;
• (c) The name and address of the parties
• Leg.representation-
– A registered legal practitioner/
– trade union member/
– inspector /
– other person appointed by the Government for this purpose can
represent the worker or can represent the parties if the necessary.
 s.30-Conditions for appeal(60 DAYS)
• Appeal-H.C(2 months)-only if the commissioner allows the
appeal, which is determined by his certificate allowing so,
attached along with the appeal.
• From an order
• awarding as compensation a lump sum whether by way of
redemption of a half-monthly payment or otherwise
• or disallowing a claim in full or in part for a lump sum;
– [(aa) an order awarding interest or penalty under section 4A;]
– (b) an order refusing to allow redemption of a half-monthly payment;
– (c) an order providing for the distribution of compensation among the
dependants of a deceased employee] or disallowing any claim of a
person alleging himself to be such dependant;
– (d) an order allowing or disallowing any claim for the amount of an
indemnity under the provisions of sub-section (2) of section 12; or
– (e) an order refusing to register a memorandum of agreement or
registering the same or providing for the registration of the same
subject to conditions:
 No appeal shall lie against any order
• unless
• a substantial question of law is involved in the appeal and, in
the case of an order other than an order such as is referred to
in clause (b), unless the amount in dispute in the appeal is not
less than three hundred rupees( Rs.10,000/-) 2017 Amd.:
• Provided, further, that no appeal shall lie in any case in which
– the parties have agreed to abide by the decision of the
Commissioner, or
– in which the order of the Commissioner gives effect to an
agreement come to by the parties: 2
• Provided further that no appeal by an employer under clause
(a) shall lie unless the memorandum of appeal is
accompanied by a certificate by the Commissioner to the
effect that the appellant has deposited with him the amount
payable under the order appealed against.]
 Penalties (on Employer for not discharging duties
under the Act
• Instances-
– Failure to sent to the commissioner a statement; or
– report as required in case of fatal accidents fails to do so,
or
– maintain a notice book
• liable to pay a fine, which may extend to Rs.5000/-
• Such a proceeding cannot be made without the
previous permission of the commissioner,
• and the court shall not take cognizance of any offence,
if such matter is not brought before the court at least
within six months from the time that the commissioner
becomes aware of such offence
• S.10
• [No claim for compensation shall be entertained by a
Commissioner
• unless notice of the accident has been given as to the happening
thereof and unless the claim is preferred before him
– within [two years] of the occurrence of the accident or
– in case of death within [2 years] from the date of death:]
• Provided that where the accident is the contracting of a disease
• accident shall be deemed to have occurred on the first of the days during which
the [employee] was continuously absent from work in consequence of the
disablement caused by the disease:
• [Provided further that in case of partial disablement due to the contracting of
any such disease and which does not force the [employee] to absent himself
from work, the period of two years shall be counted from the day
the [employee] gives notice of the disablement to his employer:
• Provided further that if [an employee] who, having been employed in an
employment for a continuous period, specified under sub-section (2) of section
3 in respect of that employment, ceases to be so employed and develops
symptoms of an occupational disease peculiar to that employment within two
years of the cessation of employment, the accident shall be deemed to have
occurred on the day on which the symptoms were first detected:]
 Gen Rule: Notice to employer-claim before Commr.
• [Provided further that the want of or any defect or irregularity in a notice
shall not be a bar to the [entertainment of a claim]—
• (a) if the claim is [preferred] in respect of the death of an employee]
resulting from an accident which occurred on the premises of the employer,
or at any place where the [employee] at the time of the accident was
working under the control of the employer or of any person employed by
him, and the [employee] died on such premises or at such place, or on any
premises belonging to the employer, or died without having left the vicinity
of the premises or place where the accident occurred, or
(b) IF Employer had knowledge of the accident from any other source at or
about the time when it occurred

(C) Provided further that the Commissioner may [entertain] and decide any claim
to compensation in any case notwithstanding that the notice has not been given,
or the claim has not been preferred], in due time as provided in this sub-section, if
(Commr. Is satisfied that failure to give notice was duee to sufficient cause)

Employer had knowledge of the accident from any other source at or about the
time when it occurred
 ……………..
• (2) Every such notice shall give the
– name and address of the person injured and
– shall state in ordinary language the cause of the injury and
– the date on which the accident happened, and
– shall be served on the employer or upon [any one of] several
employers, or upon any person 8responsible to the employer for the
management of any branch of the trade or business in which the injured
workman was employed.
• [(3) The State Government may require that any prescribed class
of employers shall maintain at their premises at
which [employees] are employed a notice book, -shall be readily
accessible at all reasonable times to any injured [employee]
employed on the premises and to any person acting bona fide on
his behalf.
• (4) A notice under this section may be served by delivering it at, or
sending it by registered post addressed to, the residence or any
office or place of business of the person on whom it is to be
served, or, where a notice-book is maintained, by entry in the
notice-book.]
 28. Registration of agreements.-
• Where the amount of any lump sum payable as compensation has been settled by
agreement, whether by way of redemption of a half- monthly payment or otherwise, or
where any compensation has been so settled as being payable to a woman or a person
under a legal disability a memorandum thereof shall be sent by the employer to the
Commissioner, who shall, on being satisfied as to its genuineness, record the
memorandum in a register in the prescribed manner:
• Provided that—
• (a) no such memorandum shall be recorded before seven days after communication by
the Commissioner of notice to the parties concerned; 3
• (c) the Commissioner may at any time rectify the register;
• (d) where it appears to the Commissioner that an agreement as to the payment of a lump
sum whether by way of redemption of a half- monthly payment or otherwise, or an
agreement as to the amount of compensation payable to a woman or a person under a
legal disability] ought not to be registered by reason of the
– inadequacy of the sum or amount, or
– by reason of the agreem agreement having been obtained by fraud or undue influence or
– other improper means,
• he may refuse to record the memorandum of the agreement 5 and may make such order]
including an order as to any sum already paid under the agreement, as he thinks just in
the circumstances.
• (2) An agreement for the payment of compensation which has been registered under
sub- section (1) shall be enforceable under this Act notwithstanding anything contained
in the Indian Contract Act, 1872 (9 of 1872 ), or in any other law for the time being in
force.
 S .29
Effect of failure to register agreement
• Where a memorandum of any agreement the registration of which is
required by section 28, is not sent to the Commissioner as required by
that section, the employer shall be liable to pay the full amount of
compensation which he is liable to pay under the provisions of this Act
• A compromise can only be made in terms of the interest and penalty due
from the employer

• Kuldeep Singh v. Panna Lal (SC) 2015-NON REGISTRATION U/s.29ECA-NON

ENFORCEABLE
• If in the agreement the employer states that the amount is an ex gratia
payment and the language of the receipt does not show that the money
given was in settlement of compensation, then the employers liability to
pay compensation still exists

• Intention- to safeguard the interests of the women and dependants from

fraud or force.
 Distribution of compensation(including in case of worker’s
death, and payment of compensation to women workers /
persons under legal disabilities-s.8
• To be paid only through commissioner
• (death, and no payment of a lump sum as compensation to [an employee] or a person
under a legal disability, shall be made otherwise than by deposit with the Commissioner, and
no such payment made directly by an employer shall be deemed to be a payment of
compensation:
• The receipt of the Commissioner shall be a sufficient discharge in respect of any
compensation deposited with him.

• On the deposit of any money under sub-section (1), [as compensation in respect of a
deceased [employee]] the Commissioner shall, if he thinks necessary, cause notice to be
published or to be served on each dependant in such manner as he thinks fit, calling upon
the dependants to appear before him on such date as he may fix for determining the
distribution of the compensation.
• If the Commissioner is satisfied after any inquiry which he may deem necessary, that no
dependant exists, he shall repay the balance of the money to the employer by whom it
was paid. The Commissioner shall, on application by the employer, furnish a statement
showing in detail all disbursements made.

• Compensation deposited in respect of a deceased [employee] shall, subject to any deduction

made under sub-section (4), be apportioned among the dependants of the
deceased [employee] or any of them in such proportion as the Commissioner thinks fit, or
may, in the discretion of the Commissioner, be allotted to any one dependant.
• Where any compensation deposited with the Commissioner is
payable to any person, the Commissioner shall, if the person
to whom the compensation is payable is not a woman or a
person under a legal disability, and may, in other cases, pay
the money to the person entitled thereto.
• Where any lump sum deposited with the Commissioner is
payable to a woman or a person under a legal disability, such
sum may be invested, applied or otherwise dealt with for the
benefit of the woman, or of such person during his disability,
in such manner as the Commissioner may direct; and where a
half-monthly payment is payable to any person under a legal
disability, the Commissioner may, of his own motion or on an
application made to him in this behalf, order that the
payment be made during the disability to any dependant of
the [employee] or to any other person, whom the
Commissioner thinks best fitted to provide for the welfare
of the [employee].]
•
 Revision of compensation paid to
dependants:
• Where, on application made to him in this behalf or otherwise, the
Commissioner is satisfied that, on account of neglect of children on
the part of a parent or on account of the variation of the
circumstances of any dependant or for any other sufficient cause,
an order of the Commissioner as to the distribution of any sum paid
as compensation or as to the manner in which any sum payable to
any such dependant is to be invested, applied or otherwise dealt
with, ought to be varied, the Commissioner may make such orders
for the variation of the former order as he thinks just in the
circumstances of the case:
• Provided that no such order prejudicial to any person shall be made
unless such person has been given an opportunity of showing cause
why the order should not be made, or shall be made in any case in
which it would involve the repayment by a dependant of any sum
already paid to him.
 Recovery..
• payment of compensation to any person has
been obtained by fraud,
• impersonation or
• other improper means, any amount so paid to
or on behalf of such person may be recovered
 Compensation Commissioner-
• Appointed by State Govt
Role & Powers
• Has powers of Civil Court
• Power to require from employer info abt fatal accidents
• Notice to employer –statement within 30 days- deposition of compensation
• If yes, employer agrees- deposit
• If employer feels contrary-employer to inform Commr
• Commr. to inform dependants –left to the choice of dependants
• If employer did not comply=-liable to penalties
• Fatal accidents= ask for further deposits-if amount is inadequate
• Power-Review of compensation amount
• Power-Recording of evidence
• Appeal –H.C(substantial que. Of law)
• Power-Commr can recover any amount payable-as arrears of land revenue
• Burden of proof-employee
• No payment to be made directly to heirs of deceased unless through Comr.(in case
of death)
• In case of delayed payment=Commr. can impose simple interest(12%) or pay
penalty not greater than 50%of compensation
 Compensation not to be assigned,
attached or charged.—
• S.9-Save as provided by this Act no lump sum or
half-monthly payment payable under this Act
shall in any way be capable of being assigned or
charged or be liable to attachment or pass to any
person other than the workman by operation of
law nor shall any claim be set off against the
same.
• 14A. Compensation to be first charge on assets
transferred by employer.

• Protectionist approach
 S.12-Contracting- pre- requisites
• Applicability- Engagement of contractors/intermediaries/sub
contractor(contractual relationship)
• Contract to do work & not supplying labour (labour contract)
• (1) Where any person (hereinafter in this section referred to as the
principal) in the course of or for the purposes of his trade or business
contracts with any other person (hereinafter in this section referred to as
the contractor) for the execution by or under the contractor of the whole
or any part of any work which is ordinarily part of the trade or business
of the principal,(onus on employee) the principal shall be liable to pay to
any *[employee] employed in the execution of the work any
compensation which he would have been liable to pay if that
*[employee] had been immediately employed by him( deemed capacity);
and where compensation is claimed from the principal,(vicarious liability of
principal) this Act shall apply as if references to the principal were
substituted for references to the employer except that the amount of
compensation shall be calculated with reference to the wages of the
*[employee] under the employer by whom he is immediately
employed.(admonitory value in accident prevention by employer)
• If no contractor/ sub contractor – no applicability of s.12
 4 CONDITIONS
• The principal can seek to be indemnified by the contractor
if he has been made answerable for the payment of
compensation.

– P is carrying on trade—in the course of ---or for purposes of

trade engages a contractor
– work is ordinarily part of trade/business of P
– accident occurred on, in or about the premises of p u/ his
control and management
– accident occurred in the course of his employment in executing
the work
• Travancore Devaswom Board v.Purushothaman (workman
employed for business of contractor only)-P has no liability
to compensate
 Indemnification …. statutory right
• (2) Where the principal is liable to pay compensation under
this section, he shall be entitled to be indemnified(RIGHT TO
INDEMNITY) by the contractor, or any other person from
whom the *[employee] could have recovered compensation
and where a contractor who is himself a principal is liable to
pay compensation or to indemnify a principal under this
section he shall be entitled to be indemnified by any person
(sub contractor) standing to him in the relation of a
contractor from whom the *[employee] could have
recovered compensation](expansion of indemnifiers-can be a
sub contractor also-1933 Amd) and all questions as to the
right to and the amount of any such indemnity shall, in
default of agreement, be settled by the Commissioner.
• (FORUM)- JURISDICTION-DISPUTES OF RIGHT TO
COMPENSATION &RIGHT TO AMOUNT OF INDEMNITY-
 S.12………….
• (3) Nothing in this section shall be construed as preventing a *[employee] from
recovering compensation from the contractor instead of the principal.(OPTIONS
ARE AVAILABLE)

• To hold P.E liable, to pay compensation to any injured employee employed by C:

• (4) This section shall not apply in any case where the accident occurred elsewhere
that on, in or about the premises on which the principal has undertaken or
usually undertakes, as the case may be, to execute the work or which are
otherwise under his control or management.(EXCEPTION TO VICARIOUS LIABILITY)

• Bhuvaneshwari Rice Mills v. Mannava Pullayya (includes case of place of close

proximity to work-loading&unloading at rly stn.)

• Koodalingam v Supdt. Engineer &others

• P.W.D— C - 2 employees died (landslide)
• Construction of canal
• P.W.D held liable –to be indemnified by C
• + RIGHT OF THE EMPLOYEES/ DEPENDANTS TO CLAIM COMPENSATION FROM
EITHER OF THEM AT THEIR OPTION
 Principle behind S.12
• SPEEDY DISPOSAL OF CLAIMS MADE BY INJURED
EMPLOYEES
• EMPLOYER HELD LIABLE
• INTERMEDIARY CONTRACTORS MAY NOT BE FINANCIALLY
SOUND TO PAY OFF
• P.E IS INTERESTED IN ADVANCING HIS OWN BUSINESS &
INTERESTS
• He should be more promising & be a certain source of
recompense to injured employee
• To do away with
• P.E EVADING THE PAYMENT COMPENSATION BY SETTING UP
THE PLEA THAT THERE IS NO EMPLOYER –EMPLOYEE
RELATIONSHIP(CONTRACT OF SERVICE) BETWEEN HIMSELF
& INJURED EMPLOYEE
 17. Contracting out.-
• Any contract or agreement whether made before
or after the commencement of this Act, whereby
a *[employee] relinquishes any right of
compensation from the employer for personal
injury arising out of or in the course of the
employment, shall be null and void in so far as it
purports to remove or reduce the liability of any
person to pay compensation under this Act.
• Contributory negligence -does not exonerate
master from his liability
Key Amendments(2009) to Workmen’s Compensation Act 1923
• Title -“Employees Compensation Act 1923”.
• ‘Workmen’ substituted by -‘employee’ or ‘employees’ wherever they
occur.
• Clerks -covered for compensation. refer to schedule-II for specified
employments.
• minimum ceiling limit of compensation for death was Rs.80000/-to
Rs1,20,000/-
• minimum ceiling limit of compensation for permanent total disablement
was Rs.90000/-to Rs1,40,000/-
• Sub-Sec.2A of sec.4-entitles an employee to reimbursement of actual
medical expenditure incurred by him for injuries caused during the course
of employment.
• Explanation II to clauses(a)&(b) of Sec.4 of Sec.4-OMITTED-maximum
wage limit atRs.4000/- p.m for the purpose of computing compensation
for death and permanent disablement
• a new sub-section (IB) has been added after Sub-section IA of sec.4
whereby the maximum wage limit has been revised to Rs.8000/-p.m
• existing limit of funeral expenses is Rs.2500/-TO 5,000/-
• Sec.25A-NEWLY INSERTED-fixes 3 months time limit for disposal of claims
from the date of reference.
 2017 Amendment
• "17A. Every employer shall immediately at the
time of employment of an employee, inform
the employee of his rights to compensation
under this Act, in writing as well as through
electronic means, in English or Hindi or in the
official language of the area of employment,
as may be understood by the employee.".
• Penalty- fifty thousand rupees but which may
extend to one lakh rupees"