The document discusses the key aspects of the Employees' Compensation Act, 1923 in India. Some of the main points covered include: 1. The objectives of the Act are to provide relief to workmen and their dependents in case of accidents arising out of and in the course of employment. 2. The Act extends to the whole of India and covers all types of workers. Employers have obligations to pay compensation and submit required reports in case of accidents. 3. Employees are entitled to compensation in case of injuries or death from accidents arising from work. The amounts payable depend on the nature of injury and monthly wages.

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2. •Gracy Jayaraj (316)
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G ro u •Poonam Kadam (319)
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•Lisha Murali (320)
•Ahlm Khan (322)
•Tanveerali Khan (323)
•Mital Patil (336)
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3. What Is the Objectives of Employee’s
Compensation?
The Employee's Compensation Act, 1923,
aims to provide workmen and/or their
dependents some relief in case of accidents
arising out of and in the course of
employment and causing either death or
disablement of workmen.
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4. Scope and Coverage :
Scope and Coverage The Act extends to the whole of
India.
To the persons engaged in cleaning, spraying or dusting,
harvesting and traching
The Employee's Compensation (Amendment) Act, 2000.
has brought all the workers within its ambit irrespective of
their nature of employment.
The coverage of this act is also to cooks employed in
hotels and restaurants.
Establishments which are covered by the Employees State
Insurance Act, are outside the preview of this Act.
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5. Changes - Update
• W.e.f 18th Jan 2010 the Workmen’s
compensation Act, 1923. the word
‘workman’ has been changed to
‘employee’ in all respect
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6. Employees Entitled
• Employees who suffers an injury in any accident
arising out of and in the course of his
employment, shall be entitled for compensation
under the Act.
• A person employed in a factory which is yet to
commence production would also be entitled for
the benefit of the Act.
• Any person engaged in manufacturing premises
who is contributing for the intended
manufacturing process would be deemed to be
workman for the purpose of the Act
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7. Whether Contractor is a Workman?
• An independent contractor lies in this that while the
former agrees himself to work, and latter agrees to get
other persons to work.
• A person who agrees himself to work and does so is an
employee.
• Where a person entered into a construction contract and
agreed to work himself and also to employ his own
labour, while construction material was to be supplied by
the owner, and the contractor died while working himself,
it was held that the dependents of the deceased were
entitled to compensation.
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8. Administrative Authority
• Administrative Authority The State
Governments administer the provisions of
this Act through the Commissioners
appointed for specified areas. The State
Governments also make rules for ensuring
that the provisions of the Act are complied
with.
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9. Definitions
Dependant
Dependant means any of the following:
Relatives of a deceased workman (namely a widow, a minor
legitimate or adopted son and unmarried legitimate or adopted
daughter, or a widowed mother, and 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, And any of
the following wholly or partly dependent on the workman at the time
of his death— a widower, a parent other than a widowed mother, a
minor illegitimate son, a unmarried illegitimate daughter, a widowed
daughter in law, a minor child of the deceased son & daughter & a
paternal grandparent if not the parent of the workman is alive.
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10. Definitions cont…
Disablement
Injury caused to a workman by an accident
ordinarily results in the loss of the earning
capacity of the workman concerned and this loss
of earning capacity is technically "disablement".
Disablements can be classified as (a) Total, and
{b) Partial. It can further be classified into (i)
Permanent, and {ii) Temporary..,
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11. Definitions cont…
Monthly Wages:
Monthly wages means:
(c)Where the employee hass been in a continous
service
(d)Where the employee has been in continuous
service f he employer for a period of less than 12
months.
(e)In any other case.
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12. Definitions cont…
Wages:
It include any benefit or perquisite
expressible in terms of money but excludes
travelling allowance, employers contribution
to a pension or PF
It also includes bonus, night out allowance,
dearness allowance, gratuity overtime, etc.
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13. Silent provision
• Accident Compensation-when payable?
When payable the employer of any establishment covered
under this Act, is required to compensate an employee:
who has suffered an accident arising out of and in the
course of his employment, resulting into (i) death, (ii)
permanent total disablement, (iii) permanent partial
disablement, or (iv) temporary disablement who has
contracted an occupational disease accident arising out of
and in the course of Employment Accident arising out of
and in the course of Employment An accident arising out
of employment implies a casual connection between the
injury and the accident and the work done in the course
of employment.
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14. Silent provision cont…
• What are the condition for receiving
compensation for Personal Injury caused
by the accident ?
The three tests for determining whether an
accident arose out of employment are : At
the time of injury workman must have been
engaged in the business of the employer and
must not be doing something for his personal
benefit; That accident occurred at the place
where he was performing his duties; and
Injury must have resulted from some risk
incidental to the duties of the service, or
inherent in the nature or condition of
employment.
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15. Silent provision cont…
When is an Employer not liable to pay compensation?
BUT, the employer shall not be liable to pay
compensation in the following cases: if the injury did not
result in total or partial disablement of a workman for a
period exceeding three days, if the workman was at the
time of the accident under the influence of drink of drug,
or 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.
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16. Doctrine of Notional Extension
The expression in the course of his employment', connotes not only
actual work but also any other engagement natural and necessary
thereto, reasonably extended both as regards work-hours and work-
place. It refers to the time during which the employment continues. .
However, this is subject to the theory of notional extension of the
employer's premises so as to include an area which the workman
passes and re-passes in going to and in leaving the actual place of
work. There may be some reasonable extension in both time and
place and a workman may be regarded as in the course of his
employment even though he had not reached or had left his
employer's premises. This is also called as the Doctrine of Notional
Extension. The doctrine of notional extension could not be placed in
a strait jacket; it was merely a matter of sound common sense as to
when and where and to what extent this doctrine could be applied.
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17. Payment of Compensation to
Contract Labour
Payment of Compensation to Contract
Labour The principal employer is liable to
pay compensation to contract labour in the
same manner as his departmental labour.
He is entitled to be indemnified by the
contractor. The principal employer shall
not however be liable to pay any interest
and penalty leviable under the Act
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18. Occupational Diseases
Workers employed in certain types of
occupations are exposed to the risk of
contracting certain diseases which are
peculiar and inherent to those occupations.
A worker contracting an occupational
disease is deemed to have suffered an
accident out of and in the course of
employment and the employer is liable to
pay compensation for the same.
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19. Compensation-when not payable
statement of fatal Accidents
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: the payment of the amount with
interest at12 % per year 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.
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20. Accident Report
• Accident Report where the accident results
in death or serious bodily injury, the
employer should send a report to the
Commissioner, within 7 days of the
accident, in the prescribed from giving the
circumstances attending the death or
serious bodily injury
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21. Amount of
Compensation
• Section 4 The amount of compensation payable
to a workman depends on the nature of injury
caused by accident, the monthly wages of the
workman concerned, and 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.
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22. Table for the compensation
Cases Compensation
50% if the monthly wages x Relevant factor or Rs[1,20,000],
whichever is more.
In case of death And [not less than Rs. 5000] for funeral expenses.
In case of total permanent disablement 60% of the monthly wages x Relevant Factor or Rs.
specified under Schedule I [1,40,000], whichever is more.
Such percentage of the compensation payable in cae (b)
In case of partial permanent disablement above, as is proportionate to the loss of earning capacity
specified under schedule I. (specified in Schedule).
Such percentage of the compensation payable in cae (b)
In case of partial permanent disablement not above, as is proportionate to the loss of earning capacity
specified under schedule I. (as assessed by a qualified medical practitioner).
A half-monthly installment equal to 25% of the monthly
In case of temporary disablement (Weather wages, for the period of disablement or 5yrs, which ever
total or partial). is shorter.
For treatment of injuries caused in the
course of employment. Actual medical expenditure incurred by him.
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23. Mode of Payment
Mode of Payment The employer becomes liable to pay the compensation as
soon as the personal injury was caused to the workman by the accident
which arose out of and in the course of the employment. The amount of
compensation should be paid as soon as it falls due. It will be computed on
the date of accident. If the amount is not paid within one month from the
date it fell due, the Commissioner may after giving reasonable opportunity
of being heard, direct the employer to pay simple interest @ 12% p.a. or at
such higher rate as may be specified not exceeding the. Maximum lending
rate of any scheduled bank. Besides, if there is no justification for the delay,
the Commissioner may after giving reasonable opportunity of being heard,
direct the employer to pay a further sum not exceeding 50% of the
compensation, by way of penalty. The amount of penalty (earlier payable to
the Government) and also interest shall be paid to the workman or his
dependent as the case may be The half-monthly installments of
compensation (payable in case of temporary disablement) should be paid
within the time specified. The half-monthly installments can be converted
into a lump sum payment, by an agreement between the employer and the
employee or by applying to the Commissioner.
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24. Compensation to be deposited
with Commissioner
Compensation to be deposited with Commissioner The amount of
compensation is not payable to the workman directly. It is generally
deposited along with the prescribed statement, with the
Commissioner who will then pay it to the workman. Any. payment
made to the workman or his dependents, directly, in the following
cases will not be deemed to be a payment of compensation :
2. In case of death of the employee.
3. In case of sump sum compensation payable to a woman or a minor
or a person of unsound mind or whose entitlement to the
compensation is in dispute or a person under a legal disability.
Besides, compensation of Rs. 10 or more may be deposited with the
Commissioner on behalf of the person entitled thereto. The receipt
of deposit with the Commissioner shall be a sufficient proof of
discharge of the employer's liability.
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25. Notice of Accident
Notice of Accident A 'notice of accident' should be sent
to the Commissioner, by the concerned employee as soon
as practicable after the happening thereof. The notice
should contain such particulars as the name and address
of the person injured, the date and cause of accident, etc.
A Copy of the notice should also be sent to the
establishment wherein he was employed. The notice of
accident may be served either personally or by registered
post or by means of an entry in the notice-book
maintained by the employer.
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26. Filing of Claims
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27. Medical Examination
Medical Examination The employer may get the
concerned workman examined by a qualified
medical practitioner, within 3 days from
receiving the notice of accident. The employee
must present himself for such examination
otherwise he shall loose his right to the
compensation. Failure of employer to have the
workman medically examined does not debar
him from challenging the medical certificate
produced by the workman.
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28. Attachment and Assignment of
Compensation
Attachment and Assignment of
Compensation No compensation payable
under this Act, whether in lump sum on
half-monthly payments, can be attached,
charged or passed on to any person other
than the workman by operation of law, nor
can it be set-off against any other claim.
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29. Obligations of Employer
Obligations of Employers is to pay compensation for an accident
suffered by an employee, in accordance with the Act. To submit a
statement to the Commissioner (within 30 days of receiving the
notice) in the prescribed form, giving the circumstances attending the
death of a workman as result of an accident and indicating whether
he is liable to deposit any compensation for the same. To submit
accident report to the Commissioner in the prescribed form within 7
days of the accident which results in death of a workman or a serious
bodily injury to a workman. To maintain a notice book in the
prescribed from at a place where it is readily accessible to the
workman. To submit an annual return of accidents specifying the
number of injuries for which compensation has been paid during the
year, the amount of such compensation and other prescribed
particulars.
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30. Obligations of Employees
Obligations of Employees is to send a
notice of the accident in the prescribed
form, to the Commissioner and the
employer, within such time as soon as it is
practicable for him. This notice is
precondition for the admission of the claim
for compensation. To present-himself for
medical examination, if required by the
employer.
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31. Rights of Employer and
Employees
Certain important rights of the employer and
the employee:
To apply to the commissioner for the half
monthly review.
To refer any dispute as to liability to pay
compensation.
To appeal against an order of the
commissioner to the high court.
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32. Offences and Penalties
Offences Penalties
Unjustified Delay in the payment of the Up to 50% of the amount of compensation besides
Compensation, beyond one month. interest.
Failure to maintain a notice book u/s 10(3) Fine upto Rs. 5000
Failure to submit a statement of fatal accidents u/s
10-A. Fine up to Rs. 5000
Failure to submit an accident report u/s 10-B Fine up to Rs. 5000
Failure to file annual return of compensation u/s 16 Fine up to Rs. 5000
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33. Prof. Choudhry
Till the end of calendar
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