THE FIRST ACT RELATED TO SOCIAL

SECURITY MEASURES INTRODUCED IN

INDIA PRIOR TO INDEPENDENCE.
This Act does not apply where workmen are
covered under the ESI Act

Since a workman is entitled to get

compensation from the ESIC, a worker covered
under the ESI Act is not entitled to get
compensation under Workmen’s
Compensation Act, even as per section 53 of the
ESI Act.
However, this Act is applicable to factories,
mines, plantations, transport establishments,
construction work etc, but only to those people
who are not covered under the ESI Act.
 OBJECTIVES

The Act seeks to impose an obligation upon

employers to pay compensation to workers for
accidents arising out of and in course of
employment, resulting in death or total or
partial disablement for a period exceeding three
days.
The payment of compensation is the main
object of the At.
Compensation is also payable for some
occupational diseases contracted by workmen
during the course of their occupation.
Earlier, there used to be a wage limit for
coverage under the Act. But this has been
removed with effect from 1st July 1984 by an
amending Act of 1984.
This amending Act of 1984 also provides for
rates of compensation and coverage of 34
occupational diseases.
 INTERPRETATIONS
DEPENDANT – SEC.2 (1-D):
Dependant means any of the following relatives
of a deceased workman, namely:
i) a widow, a minor legitimate or adopted son
and unmarried legitimate or adopted daughter,
or a widowed mother, and

ii) if wholly dependant on the earnings of the
workman at the time of his death, a son or a
daughter who has attained the age of 18 years
and who is infirm,
DEPENDANT – SEC.2 (1-d):
iii) if wholly or in part dependant on the
earnings of the workman at the time of his
death,
a) a widower,
b) a parent other than a widowed mother,
c) a minor illegitimate son, an unmarried
illegitimate daughter or a daughter legitimate or
illegitimate or adopted if married and a minor or
if widowed and a minor,
DEPENDANT – SEC.2 (1-d):
d) a minor brother or unmarried sister
or a widowed sister if a minor,
e) a widowed daughter-in-law,
f) a minor child pf a predeceased son or
daughter where no parent of the child is
alive,
h) a paternal grandparent if no parent
of the workman is alive.
PARTIAL DISABLEMENT – sec. 2(1-g) :
Partial Disablement means a disablement of
a temporary nature reducing the earning
capacity of a workman in any employment in
which he was engaged at the time of accident
resulting in the disablement.
A PERMANENT PARTIAL
DISABLEMENT:

A Permanent Partial Disablement is a

disablement of permanent nature that
reduces the earning capacity in every
employment which he was capable of
undertaking at that time.
 TOTAL DISABLEMENT – section.2 (1-L):

Total Disablement means disablement,

whether of a temporary or permanent nature,
as it incapacitates a workman for all work
which he was capable of performing at the
time of the accident resulting in such
disablement.
EMPLOYER’S LIABILITY FOR COMPENSATION –
section 3

1) If personal injury is caused to a

workman by accident arising out of and in
the course of his employment, his
employer shall be liable to pay
compensation in accordance with the
provisions prescribed.
These conditions are :-
a) such personal injury must have been
caused to workman,
b) such an injury must have been caused
by an accident,
c) the accident must have arisen out of and in
the course of employment,
d) the injury must have resulted either in the
death of the person or in his total or partial
disablement for a period exceeding 3 days.

BUT, the employer shall not be liable to pay

compensation in the following cases :

a) if the injury did not result in total or partial

disablement of a workman for a period
exceeding three days,
b) if the workman was at the time of the
accident under the influence of drink of
drug, or
c) if the workman willfully disobeyed
an order expressly given or a rule
expressly framed for the purpose of
securing safety of workman, or
If the workman willfully removed or
disregarded any safety guard or other
device which to his knowledge was
provided for the purpose of securing his
safety.
AMOUNT OF COMPENSATION –section 4
The amount of compensation payable to
a workman depends on:]
a) the nature of injury caused by
accident,
b) the monthly wages of the workman
concerned, and
c) the relevant factor for working out
lump sum equivalent of compensation
amount as specified in Schedule IV.
There is no distinction between an adult
and a minor worker with respect to the
amount of compensation.
AMOUNT OF COMPENSATION –section 4
Section 4 of the Act provides for compensation
for :
a) death,
b) permanent total disablement,
c) permanent partial disablement,
d) temporary disablement, whether total
or partial.
COMPENSATION FOR DEATH
In case of death resulting from injury, the
amount of compensation shall be equal 50%
of the monthly wages of the deceased
workman multiplied by
the relevant factor.
Or an amount of Rs 80,000/- whichever is
more.
 COMPENSATION FOR PERMANENT TOTAL
DISABLEMENT

In case of permanent total disablement resulting

from the injury, the amount of compensation
shall be 60% of the monthly wages of the injured
workman multiplied by the relevant factor or Rs
90,000/- thousand whichever is more.
COMPENSATION FOR PERMANENT PARTIAL
DISABLEMENT
Where permanent partial disablement
occurs, the amount of compensation
payable shall be as follows :
(i) in case of an injury specified in part II
of the schedule I, the amount of
compensation shall be such percentage of
the compensation which would have been
payable is the percentage of loss of
earning capacity caused by that injury.
(ii) in case of an injury not specified in
schedule I, such percentage of the
compensation is payable which is
proportionate to the loss of earning capacity
(as assessed by a qualified medical
practitioner) permanently caused by the
injury.
 COMPENSATION FOR TEMPORARY
DISABLEMENT (TOTAL OR PARTIAL)
If the temporary disablement, whether total
or partial results from the injury, the amount
of compensation shall be a half monthly
payment of the sum equivalent to 25% of the
monthly wages of the workman to be paid in
accordance with the provisions.
The half monthly payment shall be payable on
the sixteenth day;
i) From the date of disablement where such
disablement lasts for a period of 28 days or more,
ii) After the expiry of a waiting period of three
days from the date of disablement.
COMPENSATION TO BE PAID WHEN DUE
AND PENALTY FOR DEFAULT (section 4A)
As per this section, compensation has to
paid as soon as it is due.
In case the employer does not accept the
liability of paying the compensation, he
is bound to make provisional payment to
the extent of the liability he accepts. Such
amount has to be deposited with the
commissioner or paid to the workman. If
he defaults, the commissioner may order:
i) the payment of the amount with
interest at 6% per year
ii) if the default to be unjustifiable then
the commissioner may order payment of
a further sum not exceeding 50% of the
amount due, by way of penalty.
NOTICE AND CLAIM – SEC.10
No claim shall be entertained by the
commissioner unless the notice of accident
has been given by the workman in writing
as per the section 10(1) of the Act in the
following manner :
i) the notice of the accident shall be
given as soon as practicable after the
happening of the accident.
ii) the notice shall give the name and
address of the person injured and state the
cause of injury and the date of accident.
NOTICE AND CLAIM – SEC.10…
iii) the notice shall be served on the
employer or upon any one of the several
employers or upon any person responsible
to the employer for the management of
any branch of the trade or business.
iv) the notice 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 by entering in a book if
such a book is maintained by the
employer.
NOTICE AND CLAIM – SEC.10…
v) State Government may require any
prescribed class of employers to
maintain at a place of employment a
notice book in the prescribed form for
keeping the record of accidents.
Section 10 A – deals with the power to
require from employers statements
regarding fatal accidents.
Section 10 B – deals with reports of fatal
accidents and serious bodily injuries.
MEDICAL EXAMINATION – sec. 11
I) Where a workman has given a notice
of an accident, he shall within 3 days be
medically examined free of charge by a
qualified medical practitioner and
thereafter who in entitled to receive
half-monthly payment go for the same
from time to time.

2) If the employee refuses to submit

himself for examination, in such a case
his, his right to compensation shall be
suspended till the time of refusal unless
he has cause to prove otherwise.
MEDICAL EXAMINATION – sec. 11

3) If the employee voluntarily leaves without

having been examined, his right to
compensation shall be suspended till he returns
for examination.

4) If a workman whose right to compensation

was suspended, dies without medical
examination, the commissioner may, if he
thinks fit, direct the payment of compensation
to the dependents of the deceased workman.
MEDICAL EXAMINATION – sec. 11

5) If a right to compensation is suspended on

reasonable grounds, no compensations shall be
payable in respect of the period of suspension.

6) If an injured workman refuses to go for

medical examination, he will be treated on the
above lines.
 CONTRACTING – section
12
1) In respect of any Principal making use
of the services of the Contractor, ultimately
the principal shall be liable to pay to pay to
any workman employed in the execution of
the work any compensation which he would
have been liable to pay if that workman had
been immediately employed by him.

2) where the principal is liable to pay the

compensation, he shall be entitled to be
indemnified by the contractor and this
matter is to be settled by the commissioner.
CONTRACTING – section 12…

3) nothing can prevent a workman from

recovering compensation from the
contractor.

4) if the accident occurs outside the

premises of the principal, then payment of
compensation will not be executed by the
principal.
COMMISSIONERS – section 19 to 31
Sec.19 – as per this section any matter of paying
compensation in question shall be settled by a
‘Commissioner’ and no civil court shall have
jurisdiction to settle, decide or deal with the
matter in question.
Sec. 20 – the State Govt. by NOG appoint any
person to be a commissioner for Workmen’s
Compensation and in case more commissioner
are needed, then the state Govt. may regulate
the distribution of business between them.
COMMISSIONERS – section 19 to 31…
The commissioners may choose one or more
persons possessing special knowledge of any
relevant matter to assist them in holding
inquiry. Furthermore, they shall be deemed to
be public servants as per IPC.
Sec.21 – deals with venue of proceedings and
transfer that the matters connected should be
within the jurisdiction of the commissioner.
Sec.22 – deals with the form of application that
it should be made with the prescribed form,
requisite fee, a concise statement, with
complete details, names and addresses etc.
COMMISSIONERS – section 19 to 31…
Sec. 22A – deals with the power to require
further deposit in cases of fatal accidents.
In such a case, if the amount deposited by
an employer is found to be insufficient,
the commissioner may call upon the
employer to show cause notice to that
effect and further award/ order the
employer to pay the deficit amount.
Sec.23 – deals with the powers of
commissioners i.e. the commissioner has all
the powers of a civil court under the code of
Civil Procedure for the purpose of taking
evidence on oath and of enforcing the
attendance of witnesses and compelling the
production of documents and material objects.
Sec. 24 – deals with appearance of parties

Sec. 25 – deals with the method of recording

evidence – by this the commissioner to make a
brief account of evidence of every witness
which shall be written and signed by him with
his own hand and kept on record.
Sec. 26 – deals with costs – wherein all costs
incidental to any proceedings before a
commissioner shall be solely at the discretion
of the commissioner.

Sec. 27 – power to submit cases – a

commissioner may submit any question of law
for the decision of the High court and may
decide the question in conformity with such
decisions.

Sec.28 – deals with the registration of

agreements- whereby any compensation has
been settled by agreement, the matter be sent
to the commissioner who shall record the
same in register in the prescribed manner.
Sec.29 –deals with the effect if failure to register
agreement –that the employer is liable to pay the
full amount of compensation.
Sec.30 – deals with appeals.
Sec.31 –deals with the recovery aspect –the
commissioner is deemed as a public officer and
authorised to recover dues payable to any person.