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The Workmens Compensation Act, 1923

Presented by
Haritha Udayan
The workmens compensation act, 1923

The workmens compensation act was passed in 1923. The act

provides for cheaper and quicker disposal of disputes relating to
compensation through special tribunals than possible under the
civil law.


The workmens compensation act,1923, aims to provide workmen

and/or their dependends some relief in case of accidents arising
out of and in the course of employment and causing either death
or disablement of workmen.

The act covers all workmen employed on railway, factories,

mines etc
The act applies to all factories engaged in an industry specified in
schedule II of the act.
The act also applies to seaman and shipmasters of power driven
ships or of non power driven ships of 50 or more tons.
It applies generally to organized industries and hazardous
occupations including building and loading or unloading
The act lays down the following definitions:

1. COMMISSIONER [Sec. 2(b)].

Commissioner means a commissioner for workmens

compensation appointed under section 20.
The state government may, by notification in the Official Gazette,
appoint any person to be a commissioner for workmens
compensation for such area as may be specified in the
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.
2. DEPENDENT [Sec. 2(d)].
Dependent means any of the following relatives of a deceased
workman, namely:
A widow, a minor legitimate son and unmarried legitimate
daughter, or a widowed mother.
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 yr and
who is infirm.
If wholly or in part dependent on the earnings of the workman at
the time of his death;
A widower,
A parent other than a widowed mother,
A widowed daughter-in-law,
A minor child of a pre-deceased son,
A paternal grandparent if no parent of the workman is alive.
3. EMPLOYER [Sec. 2(e)].

Employer includes any body of persons whether

incorporated or not and any managing agent of an employer
and the legal representative of a deceased employer, and when
the service of a workman are temporarily lent or let on hire .

To establish the relationship of employer and employee, a

contract of service is generally necessary. Such contract may
be expressed or implied. There is a difference between
contract of service and contract for service. It is former which
creates the relationship of employer and employee.

Partial Disablement [Sec. 2(h)].

Partial Disablement means, where the disablement is of a
temporary nature, such disablement as reduces the earning capacity
of a workmen in any employment in which he was engaged at the
time of accident resulting in the disablement.

Total Disablement [Sec. 2(l)].

Total Disablement means disablement , whether of a temporary or
permanent nature, which incapacitates a workman for all work
which he was capable of performing at the time of the accident
resulting in such disablement.
5. WAGES [SEC. 2(m)].

Wages includes any privilege or benefits which is capable of

being estimated in money, other than travelling concession or
a contribution paid by the employer to the workman towards
any pension or provident fund or a sum paid to a workman to
cover any special expenses entailed to him by the nature of
his employment.
The following privileges and benefits are included in the
Overtime allowance.
Free accommodation.
Benefits in the form of food and clothing
Dearness allowance.
Maternity benefit payable to a woman delivering a child.
Gratuity payable to a workman on retirement.
6. WORKMAN [Sec.2(n)].

Any person who is:

A railway servant as defined in clause(34) of section 2 of the
railway act 1989 not permanently employed in administrative,
district or sub divisional office of a railway and employed in any
such capacity as is specified in schedule II or,

A master, seaman, or other member of the ship or crew

It does not include a person whose employment is of a casual


The amount of compensation payable depends upon;

The nature of the injury caused by accident
The amount of the average monthly wages of the workman

Compensation is payable for:

1. Death
2. Permanent Total Disablement
3. Permanent Partial Disablement
4. Temporary Disablement for determining the amount of