THE EMPLOYEE COMPENSATION ACT,1923

1. BY-TAMANNA SATSANGI

2. The Employees
Compensation Act, 1923
Originally enacted Workmen’s Compensation Act 1923
Amendement Workmen’s Compensation ( amendment ) Act ,2009
Came into force on 18-01-2010
Replace the word ‘Workmen’ by word ‘Employee’
But why ?????
Workmen- blue collar job ( not included clerk)
Employee- white collar job

3. APPLICABILE TO ( whole of India )
- Mines
- All Factories
- Plantations
- Transport Establishments
- Construction Works
- Railways
- Ships
- Circuses
NOT APPLICABLE TO
Members of armed forces of
union
- Employees covered by ESI Act,
1948. (Dependent's benefits
available)
- Casual Workers & workers
employed otherwise than for
employer's trade or business

4. Objective : payment of compensation for injury caused by accident during
employment or due to employment
ACCIDENT
Arises out of
employment
Arises in the course
of employment
Result of some risk ,incidental to his
duty or inherent in nature o condition
of employment
Accident should take place when
employee is on duty at or about
the place of his work

5. Example

6. No compensation
IF
• Engage in the business of personal
benefit
• Injury did not result for a period
exceeding 3 days
• Under the influence of drink of
drugs
• Willfully disobeyed an order or rule
framed for the purpose of safety
• Removed safety guard or other
device
BUT
WHY
?????

7. 7
Commissioner
Dependant
Employer
Disablement
Wages
Workman
DEFINITIONS

8. DISABLEMENT
temporary
Total
partial
Permanent
Total
Partial
• DISABLEMENT : Reduce in earning capacity
• Total : reduce in all employment
• Partial : reduce in specific employment
Provided that permanent total disablement shall be
deemed to result from every injury specified in Part I
of Schedule I
Or
from any combination of injuries specified in Part II
Or
the aggregate percentage of the loss of earning
capacity, as specified in the said Part II against those
injuries, amounts to one hundred per cent or more.

11. Commissioner
1
Sec.2(1)(b)
Commissioner means a Commissioner
for Workmen’s Compensation
appointed under Sec.20.

12. Employer[Sec.2(1)(e)]
12
"employer" includes
Any body of persons whether incorporated or not;
Any managing agent of an employer; and
(Does not include an individual manager ,subordinate to an
employee}
The legal representative of a deceased employer.

13. Workman
13
• Contract of employment
• Master and servant relationship
• Purpose of employer’s trade or business
• Employee in abroad

14. Not Include …….
• Employment is of casual nature not connected with employer’s trade
& business
• Workers employed otherwise than or the purpose of trade or
business
• Outworkers :----made up, cleaned,alter,washed ,sale in their own
home
• Persons employed in agriculture unless holdings o 25 acres or more
with any engine or machine

15. Wages[Sec.2(1)(m)]
15
‘wages’ includes any privilege orbenefit which is capable of being
estimated in money,
other than
a travelling allowance
Or
the value of any travelling concession
or
a contribution paid by the employer 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.

16. Boy
MotherFather
WifeEmployeeMinor
child of a pre-
deceased son
Major
(legitimated/adopted )
(legitimated/
adopted )
Girl
Major
(legitimated/adopted )
unmarried
married
unmarried
married
unmarried
married
illegitimate
If
widowIf
Infirm
If
widow
Minor
widow
Brother Sister
If
Minor
unmarried
Widow if
Minor
widowed
daughter-in-
law
Minor
minor child of a pre-
deceased daughter
where no parent of
the child is alive
paternal grandparent if no parent of the workman is alive

17. Employer ‘s liability for compensation
Section 3 of the act provides for employer’s liability for compensation in case of
If an *[employee] employed in any employment specified in Part A of Schedule III
contracts any disease specified therein as an occupational disease peculiar to that
employment,
• If an *[employee] employed in any employment specified in Part B of Schedule III
if he has been employed for a continuous period of not less than six months, under same
employer, even when the disease was contacted after the employee ceased
occupational disease
Personal injuries
In case of occupational disease

18. If an Employee whilst in service of one or more employer in
any employment specific in part C of schedule III
• If he is employed for such continuous period as the central govt. may
specify,
• Contracts any disease even after he ceased to be in the service of any
employer
• The contracting of disease shall be deemed to be an injury by
accident arising out of and in the course of employment
• All such employers shall be liable for the payment of the
compensation
• In such proportion as the commissioner may in circumstances deem
just.

19. In case of personal injury
• Normally ,injury implies physical injury
• However, such personal injury will also include
• Nervous shock
• Break-down
• Mental strain
• Case: Indians News Chronicle V. Mrs. , Lazarus