The Workmen's Compensation Act 1923 aims to provide relief to workmen and their dependents in cases of accidents arising from employment that cause death or disability. It extends to all of India and covers all workers, including casual laborers. It establishes employer liability for compensation in cases of work-related injuries. The compensation amounts are specified as percentages of monthly wages and include medical expenses, income support in cases of temporary or permanent disability, lump sums or pensions for dependents in cases of death.

1. Workman Compensation Act 1923
Objectives
The Workmen'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.

2. Scope and Coverage
• The Act extends to the whole of India .
• The Workmen's Compensation (Amendment)
Act, 2000 has brought all the workers within its
sphere irrespective of their nature of
employment i.e. whether employed on casual
basis or otherwise than for the purposes of the
employer's trade or business.
• For the first time, casual laborers will be provided
compensation for death or disability.
• Establishments which are covered by the
Employees State Insurance Act, are outside the
preview of this Act. The coverage of this act is
also to cooks employed in hotels and restaurants.

3. I. PRELIMINARY
Clause (a) omitted w.e.f. 1-6-1959
(b) "Commissioner" means a Commissioner for
Workmen's Compensation appointed under
Section 20;
(c) "Compensation" means compensation as
provided for by this Act;

4. Conti…
(d) "Dependent" means any of the following
relatives of a deceased workman namely: -
(i) a widow a minor legitimate or adopted son an
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;

5. Conti…
(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 minor
(d) a minor brother or an unmarried sister or a widowed
sister if a minor

6. Conti…
(e) a widowed daughter-in-law
(f) a minor child of a pre-deceased son
(g) a minor child of a pre-deceased daughter
where no parent of the child is alive or
(h) a paternal grandparent if no parent of the
workman is alive;

7. Conti…
Explanation: For the purpose of sub-clause (ii) and
items (f) and (g) of sub-clause (iii) references to a
son daughter or child include an adopted son
daughter or child respectively.
(e) "Employer"
(f) "Managing agent"
(ff) "Minor" means a person who has not attained
the age of 18 years;

8. Conti…
(g) "Partial disablement
(h) "Prescribed" means prescribed by rules
made under this Act
(i) "Qualified medical practitioner"
Clause (j) omitted by Act 15 of 1933

9. Conti…
(k) "Seaman" means any person forming part of
the crew of any ship but does not include the
master of the ship;
(l) "Total disablement"
(m) "Wages" includes any privilege or benefit
which is capable of being estimated in money

10. Conti…
It excludes:
• A travelling allowance or the value of any
travelling concession or
• A contribution paid by the employer of a
workman towards any pension or provident
fund or
• A sum paid to a workman to cover any special
expenses entailed on him by the nature of his
employment.

11. Conti…
(n) "Workman" means any person (other than a
person whose employment is of a casual nature and
who is employed otherwise than for the purposes
of the employer's trade or business) who is
(i) a railway servant as defined in Section 3 of the
Indian Railways Act 1890 (9 of 1890) 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:-
(a) a master seaman or other member of the crew
of a ship.

12. Conti…
(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;

13. Conti…
(ii) 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 the 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 a workman who has been
injured shall where the workman is dead
includes a reference to his dependants or any of
them.

14. II. WORKMEN’S COMPENSATION
3.Employer's liability for compensation
1. If personal injury is caused to a workman by
accident arising out of and in the course of
his employment .
Employer shall not be so liable :
1. Any injury which does not result in the total
or partial disablement of the workman for a
period exceeding three days.

15. Conti…
2. Any injury not resulting in death or
permanent total disablement caused by an
accident which is directly attributable to :
a. workman is under the influence of drink
or drugs.
b. 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.

16. Conti…
(iii) The willful removal or disregard by the
workman of any safety guard or other device he
knew to have been provided for the purpose of
securing the safety of workman.
2. If a workman employed in any employment
specified in Part A of Schedule III.
3. The Central Government or the State
Government after giving by notification in the
Official Gazette not less than three months'
notice of its intention so to do may by a like….

17. Conti…
notification add any description of employment
to the employments specified in Schedule III.
4. As provided by sub-Sections (2), (2A) and (3)
no compensation payable 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.

18. Conti…
5. Employer 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.
No suit for damages shall be maintainable
by a workman in any court of law in respect of
any injury:
1. already instituted a claim before a
Commissioner.

19. Conti…
2. if there is an agreement between the workman
and his employer.
4. Amount of compensation
(a) where death results from the injury an
amount equal to fifty per cent of the monthly
wages of the deceased workman multiplied by
the relevant factor; or an amount of 80
thousand rupees whichever is more;

20. Conti…
(b) where permanent total disablement results
from the injury an amount equal to sixty per
cent of the monthly wages of the injured
workman multiplied by the relevant factor; or an
amount of 90 thousand rupees whichever is
more.
(c) where permanent partial disablement results
from the injury:
1. If specified in Part II of Schedule I such
percentage of the compensation which….

21. Conti…
…would have been payable in the case of
permanent total disablement as is specified
therein as being the percentage of the loss of
earning capacity caused by that injury.
2. If specified in Schedule I such percentage of
the compensation payable in the case of
permanent total disablement as is proportionate
to the loss of earning capacity (as assessed by
the qualified medical practitioner) permanently
caused by the injury

22. Conti…
Explanation I: Where more injuries than one are
caused by the same accident the amount of
compensation payable under this head shall be
aggregated but not so in any case as to exceed
the amount which would have been payable if
permanent total disablement had resulted from
the injuries.

23. Conti…
Explanation II: In assessing the loss of earning
capacity for the purpose of sub-clause (ii) the
qualified medical practitioner shall have due
regard to the percentages of loss of earning
capacity in relation to different injuries specified
in Schedule I;

24. Conti…
(d) where temporary disablement whether total
or partial results from the injury a half monthly
payment of the sum equivalent to twenty five
per cent of monthly wages of the workman to
be paid in accordance with the provisions of
sub-Section (2).
Sub-section(1A)
1. An accident occurred outside India.
2. The half-monthly payment

25. Conti…
• lasts for a period of 28 days or more: payable
on the 16th day from the date of disablement
such disablement .
• for a period of less than 28 days : After the
expiry of a waiting period of three days from
the date of disablement.

26. Conti…
(3) On the ceasing of the disablement before the
date on which any half monthly payment falls
due, there shall be payable in respect of that
half monthly a sum proportionate to the
duration of the disablement in that half month.

27. Conti…
(4) In the case of death the employer shall in
addition to the compensation under sub-Section
(1) deposit with the Commissioner a sum of two
thousand five hundred rupees for payment of
the same of the eldest surviving dependant of
the workman

28. 4A. Compensation to be paid when
due and penalty for default
(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 workman as the case may be
without prejudice to the right of the
workman to make any further claim.

29. Conti…
Where any employer is in default in paying the
compensation 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 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

30. Conti…
(b) If in his opinion there is no jurisdiction 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.
"scheduled bank" means a bank for the time
being included in the Second Schedule to the
Reserve Bank of India Act 1934 (2 of 1934).

31. Conti…
(3A) The interest payable under sub-Section (3)
shall be paid to the workman or his dependant
as the case may be and the penalty shall be
credited to the State Government.

32. 5. Method of calculating wages
In this Act and for the purpose thereof the
expression "monthly wages" means the amount
of wages deemed to be payable for a months'
service and calculated as follows namely: -

33. Conti…
1. where the workman has during a continuous
period of not less than 12 months immediately
preceding the accident been in the service of
the employer who is liable to pay compensation
the monthly wages of the workman shall be
1/12 of the total wages which have fallen due
for payment to him by the employer in the last
12 months of that period.

34. Conti…
(b) where the whole of the continuous period of
service immediately preceding the accident is
less than 1 month the monthly wages of the
workman shall be the average monthly amount
which during the twelve months immediately
preceding the accident was being earned by a
workman employed on the same work by the
same employer or if there was no workman so
employed by a workman employed on similar
work in the same locality.

35. Conti…
(c) In other cases including cases in which it is
not possible for want of necessary information
to calculate the monthly wages under clause (b)
the monthly wages shall be thirty times the total
wages earned in respect of the last continuous
period of service immediately preceding the
accident from the employer who is liable to pay
compensation divided by the number of days
comprising such period.

36. Conti…
Explanation: A period of service shall for the
purposes of this Section be deemed to be
continuous which has not been interrupted by a
period of absence from work exceeding fourteen
days.

37. 6. Review
1. Any half-monthly payment payable under
this Act either
Under an agreement between the parties
or
Under the order of a Commissioner.
reviewed by the Commissioner on the
application either
Of the employer or
Of the workman.
accompanied by the certificate of a qualified
medical practitioner

38. Conti…
(2) Any half-monthly payment may on review
under this Section subject to the provisions of
this Act be continued increased decreased or
ended or if the accident is found to have
resulted in permanent disablement be
converted to the lump sum to which the
workman is entitled less any amount which he
has already received by way of half-monthly
payments.

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