WORKMENS

COMPENSATION ACT, 1923

INTRODUCTION
This is one of the early legislations
This is one of Social Security legislations
providing for times when a person is not
working
This is a fantastic piece of legislation, till then
burden of proof for claim of compensation
lay with the workman, this Act reversed the
position, now the employer is to prove if he
denies claim
DEFINITIONS
COMPENSATION- means as provided for by
this Act
 DEPENDANT-

(i) widow, minor legitimate or adopted son,

unmarried legitimate or adopted daughter
and widowed mother
(ii) if wholly dependant on the earnings of the
workman at the time of death, son or
daughter who has attained the age of 18
years and who is infirm
(iii) if wholly or in part dependant on the
earnings of the workman at the time of death,
(a) widower
(b) parent other than widowed mother et al
 EMPLOYER
 PARTIAL DISABLEMENT- means
where the disablement is of temporary
nature, such disablement as reduces the
earning capacity of a workman in the
employment he was engaged at the time of
accident resulting in the disablement, and
where the disablement is of permanent
nature, such disablement as reduces the
earning capacity in every employment which
he was capable of undertaking at that time
provided that every injury specified in Part II
of Schedule I is deemed to result in
permanent partial disablement
 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 accident
resulting in such disablement
provided that permanent total disablement is
to be deemed to result from every injury in
Part I of Schedule I or combination of injuries
specified in Part II where the aggregate
percentage of loss of earning capacity
amounts to one hundred percent or more
 WORKMAN- means any person who is
(i) railway servant not permanently employed
in any office and not employed in any
capacity as is specified in Schedule II
(ii) crew of a ship, aircraft, motor vehicle, a
person recruited for work abroad by a
company and employed in capacity specified
in Schedule II and it is registered in India, or
(iii) employed in any capacity specified in
Schedule II
N.B. if workman has died, his dependant(s)
WORKMENS COMPENSATION
Section 3(1)- Employers liability for
compensation
If personal injury is caused to a workman by
accident arising out of and in the course of
employment, his employer shall be liable to
pay compensation in accordance with the
provisions of this Chapter
 Provided the employer shall not be so liable
(a) if injury does not result in total or partial
disablement for a period not exceeding three
days
(b) if injury, not resulting in death or
permanent total disablement, caused by
accident directly attributable to
(i) workman having been at that time under
the influence of drink or drugs, or
(ii) wilful disobedience of the workman to
order expressly given or rule expressly
framed for securing safety of workmen
(iii) wilful removal or disregard by the
workman of safety guard provided to him
 (2) If a workman employed in any
employment specified in Part A of Schedule
III contracts any disease specified therein as
occupational disease peculiar to that
employment, or
whilst in service of an employer for a
continuous period of not less than six
months under him in any employment
specified in Part B of Schedule III, or
whilst in service of one or more employers
for a continuous period as Central
Government may specify in any employment
specified in Part C of Schedule III
contracts any disease specified therein as
occupational disease peculiar to that
employment,
the contracting of the disease is to be
deemed to be an injury by accident, unless
contrary is proved, arisen out of and in the
course of employment
provided that if it is proved that the workman
contracted the occupational disease in any
employment in Part C within the specified
period and the disease has arisen out of and
in the course of employment
provided further that if it is proved that the
workman having served in any employment
in Part B or part C for a continuous period
specified therein contracted the occupational
disease after the cessation of service and the
disease has arisen out of and in the course
of employment
the contracting of the disease is to be
deemed to be an injury by accident within
the meaning of this section
(2A) If workman employed in any employment
specified in Part C under more than one
employer, all the employers are to be liable to
pay compensation in such proportion as the
Commissioner may deem just
(3) Central Government may add to Schedule
(4) Except as provided in (2), (2A) and (3)
above no compensation is payable unless
disease is directly attributable to a specific
injury
(5) No compensation is payable under this Act
if workman has gone to Civil Court and no
suit is maintainable in any court of law if he
has claimed compensation before a
Commissioner or if he and his employer
have agreed for compensation under this
Act
 Section 4- Amount of compensation
(a) where death results- 50% of monthly
wages x relevant factor or Rs 80000
whichever is more
(b) where permanent total disablement
results- 60% of monthly wages x relevant
factor or Rs 90000 whichever is more
- For relevant factor Sch 4 is to be referred
- If monthly wages > Rs 4000, Rs 4000
(c) where permanent partial disablement
results- if injury specified in Part II of Sch I
compensation for permanent total
disablement x % loss of earning capacity
- if injury not specified in Sch I compensation
for permanent total disablement x % loss of
earning capacity as assessed by qualified
medical practitioner
- Aggregate of compensation not to exceed
compensation for permanent total
disablement
- loss of earning capacity is to be correctly
assessed
(d) Where temporary disablement results
from injury- half monthly payment of sum
equivalent to twenty five per cent of monthly
wages, to be paid in accordance to Section
(2) i.e.
Half monthly payment is to be payable on the
sixteenth day
(i) from date of disablement where
disablement lasts for a period of twenty eight
days or more, or
(ii) after the expiry of waiting period of three
days,
from date of disablement where disablement
lasts for a period of less than twenty eight
days; and thereafter half monthly during the
disablement or during a period of five years
whichever period is shorter
provided from lump sum or half monthly
payments, payment and allowance received
during period of disablement prior to
receiving lump sum or first half monthly
payment is to be deducted, and half monthly
payment is not to exceed difference of half of
monthly payment before accident and half of
monthly payment after accident
(3) On ceasing of disablement before the date
half monthly payment falls due, proportional
payment is to be paid for that half month
(4) If injury results in death, employer is to, in
addition to compensation, deposit with the
Commissioner Rupees two thousand five
hundred towards the expenditure of the
funeral of the workman
 Section 4A(1)- Compensation is to be paid as
soon as it is due
(2) Employer is to be bound to make payment
based on the extent of liability he accepts
depositing it with Commissioner or making it
to workman
(3) Where employer is in default in paying
compensation within one month from date
due the Commissioner is
(i) direct the employer to pay in addition to
arrears simple interest at rate of 12% p.a. and
(ii) penalty not exceeding 50%
 Section 5- Monthly wages
(a) If workman was in service for past 12
months - 1/12th of total wages
(b) If workman was in service for less than a
month average monthly wages of workman
doing same work under the same employer
(c) Average daily wages x 30
 Section 6(1)- Review- Half monthly payment,
either under agreement or order, may be
reviewed by Commissioner, on application
by employer or workman accompanied by
certificate by qualified medical practitioner
that there has been change in the condition
of workman or subject to rules if not
accompanied by certificate
(2) Half monthly payment, on review, may be
continued, increased, decreased or ended or
if accident has been found to have resulted
in permanent disablement, be converted to
lump sum less amount already received
 Section 7- Commutation of half monthly
payment may, by agreement or if half monthly
payments have been continued for not less
than six months on application by either party
to the Commissioner, be redeemed by lump
sum agreed by them
Section 8- Distribution of compensation-

Compensation for injury resulting in death

and compensation payable to a woman or a
person under a legal disability is necessarily
to be deposited with the Commissioner
Section 9- Compensation not to be assigned,

attached or charged
 Section 10(1)- Notice and claim- No claim for
compensation is to be entertained by the
Commissioner unless notice of accident is
given in manner provided within two years of
accident or death
Two years is to be counted from the first day
as follows
- If accident is contracting of occupational
disease, the first day of continuous absence
of the workman because of it
- In the event of partial disablement, the first
day he gives notice
- Want of, defect or irregularity in giving
notice does not bar the claim
 Section 10A- Power to require from the
employer statements regarding fatal
accidents The Commissioner is to require
statement from the employer within thirty
days
Section 10B- Report of fatal accidents and
serious bodily injuries - within seven days
Section 11- Medical examination - If notice of
accident has been given and employer has
arranged free medical examination within
three days, workman is to submit for it.
Workman receiving half monthly payment, if
required is to submit. If workman refuses, his
right to compensation is suspended
 Section 12- The Principal Employer is to pay
compensation in contract
Section 14A- Compensation is to be first
charge on assets transferred by employer
Section 16- Returns as to compensation
 Section 19(1)- Reference to Commissioners-
Questions of liability, whether a person is
workman, amount and duration of
compensation, nature and extent of
disablement are to be decided by
commissioner
(2) No Civil court has jurisdiction on these
matters
Section 20- Appointment of Commissioners
Section 21- Venue of proceedings and
transfer- Any matter under this Act is to be
done by and before the Commissioner for the
area in which
(a) accident took place resulting in injury, or
(b) workman or dependant resides, or
(c) employer has registered office
provided no matter is to be processed before
any other Commissioner without giving notice
to Commissioner of the area in which accident
took place
(1A) If Commissioner, other than
Commissioner with whom money has been
deposited, proceeds with the matter he is to
call for transfer of records and moneys
(2) Commissioner, for more convenience in
dealing, may transfer matter to any other
commissioner provided parties agree
 Section 22(1)- Form of application
Claim of compensation is to be made before
Commissioner
(2) No application, other than made by
dependant(s), is to be made before
Commissioner unless and until question has
arisen between parties in connection
therewith which they have been unable to
settle by agreement
(3) Application is to be accompanied by fee
and is to contain, in addition to particulars
prescribed
(a) Concise statement of circumstances, relief
and order applicant claims
(b) Date of service of notice, and if not
served, the reasons
(c) Names and addresses of the parties
(d) Except in the case application is of
dependant, concise statement of matters on
which agreement has and those on which
agreement has not been come to
(3) If applicant is illiterate or unable to furnish
required information in writing, application, if
he desires, is to be prepared under direction
of Commissioner
 Section 22A(1)- Power of Commissioner to
require further deposit in cases of fatal
accident- Commissioner may by notice stating
his reasons call upon employer to show
cause why he should not make deposit
(2) If employer fails to show cause to his
satisfaction he may make award determining
total amount payable requiring him to deposit
Sections 23-31 Powers and procedures of

Commissioners- Commissioner is to have all

powers of Civil Court following its prcedures
Sections 32-35- Rules