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Group Members

G Tejashree Raje C 57

G Safiya Shaikh C - 46

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Object of the Act To provide for the payment of compensation by

certain employers to their workmen for injury caused

to them by accident while in employment.

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Applicability

Liable to pay:

Every employer

Entitled to receive

Workmen

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Injuries compensated Death

Permanent total disablement

Permanent partial disablement

Temporary disablement whether partial or total

Occupational diseases

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DEFINITIONS

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DEPENDENT - sec 2

(d)Means any of the following relatives of a deceased employee, namely

(i) a widow, a minor legitimate or adopted son, and unmarried legitimateor adopted daughter, or a widowed mother;

and(ii) 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 years and who is infirm;

(iii) if wholly or in part dependent 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 ifwidowed & minor,

(d) a minor brother or an unmarried sister or a widowed sister if a minor,

(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,(h) a paternal grandparent if no parent of the workman is alive.

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WORKMEN sec 2(dd) Railway servant

Master, seaman or other members of the crew of a

ship Captain or other member of the crew of an aircraft,

Person recruited as driver, helper, mechanic,

cleaner or in any other capacity in connection with a

motor vehicle. Person recruited for work abroad by a company

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EM

PLOY

ER

Sec2(e)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 services of an employee are

temporarily lent or let on hire to another person by the person with

whom the employee has entered into a contract of service or

apprenticeship, means such other person while the employee is

working for him.

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WAGES sec 2(m)

Includes any privilege or benefit 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 of an employee towards

any pension or provident fund or a sum paid to an employee to cover any

special expenses entailed on him by the nature of his employment

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DISABLEMENTPARTIAL DISABLEMENT sec 2(g)

Where the disablement is of a temporary nature, such disablement as

reduces the earning capacity of a workman in any employment in which he

was engaged at the time of the accident resulting in the disablement

Where the disablement is of a permanent nature, such disablement asreduces his earning capacity in every employment which he was capable of

undertaking at that time

TOTAL DISABLEMENT sec 2 (l)

Means such disablement, whether of a temporary or permanent

nature, as incapacitates a workman for all work which he was

capable of performing at the time of the accident resulting in

such disablement .

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Employers liability forcompensation

Section 3

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If personal injury is caused to an employee by

accident arising out of and in the course of

employment, his employer shall be liable to pay

compensation as per Section 4.

If an employee is employed in employment specified

in Part A of Schedule III contacts any specified

disease, it will be treated as an employment injury.

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Occupational diseases1. Part A of schedule III2. Part B of schedule III

3. Part C of schedule III

Personal injury1. Accident

2. Arising out of employment & in course of

employment

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Employer isnot liable when

Disablement not exceeding 3 days

Accident due to influence of drink, drugs or

disobeyed orders, disregards of safe guards

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COMPENSATION

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Calculation of Compensation

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Factors for c

alcu

lation Naturally the extent of the loss which in turn would

be dependent on the injury. Loss of one hand as

compared to both hands, loss of fingers as compared

to an arm, death as compared to loss of both eyes. The nature of injury

Monetisation of physical loss. That is linkage to

earnings.

Period of loss, age factor.

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CompensationType of Injury CompensationCalculationLimits Additional Points

Death

50% of Wages *

Relevant Factor + a

sum of Rs 5000/- for

Funeral expenses.

Upper: Limit on

maximum wages that

can be considered to

be decided by the

Central Government.

Lower:Compensation

cannot be lesser than

Rs 1,20,000 in anycase.

Relevant Factor is

based on the age

(completed years) of

the employee at the

time of the accident. It

is provided age wise

in second column of

Schedule IV.

Permanent Total

Disablement

60% of Wages *

Relevant Factor

Upper: Limit on

maximum wages that

can be considered to

be decided by theCentral Government.

Lower:Compensation

cannot be lesser than

Rs 1,40,000 in any

case.

PTD gets higher

compensation than

death as the employee

has to sustain himselftoo.

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ContdPermanent Partial

Disablement

% of injury *

(Compensation as ifit is PTD i.e. 100%)

Limits as in PTD

will apply.

In other words we

first calculate as init is 100%

disablement and

then depending on

the percentage of

injury reduce it

proportionately.

Temporary 25% wages payable

fortnightly till

recovery

Upper limit of wages

as prescribed by CG

from time to time

would apply.

It must be noted

that full wages is

based on some

value addition. It

would be amiscarriage of

justice if there is

full wages without

work done . Also

should not be seen

as an incentive.

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Contd

Occupational

Diseases

Depending on the

extent of injury viz

death / PTD etc.

Medical Expenditure Reimbursement of

actual expenditure by

the employer.

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OccupationalDiseases

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Occupational Diseases-1

Section 4 places liability on the employer to

compensate the employee in case of injury caused by

the employees exposure to occupational hazards.

Such occupational diseases are mentioned in

Schedule 3 and it is divided into three parts

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Occupational Diseases-2

Part

A

No minimum time period of employee engagement in

the industry specified

Example poisoning by nitrous fumes ; diseases caused

by lead and toxic compounds

Part

B

y Employee must have worked with the employer for a

continuous period of not less than 6 months to make the

employer liabley Example diseases caused by phosphorous ; mercury;

benzene or their toxic compounds respectively

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Occupational Diseases-3Part C y where the employee has worked for several

employers for such periods specified by the

Central Government compensation will be in

proportion as determined.

y in case the disease is contracted in a lesser period

and yet it is proved that it has arisen from such

employment then it is a disease arising out of

employment .

y external allergic alveetis caused by inhalation of

organic dusts; acute pulmonary oedema of higher

altitude.

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Occupational Diseases-4 Note:

If disease is caused post employment but employee

has served periods specified in Part B and Part C then

too it is a disease arising out of employment.

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Sec 4-A : Penalty

Where an employer is in default in paying the

compensation due under this Act, within one month

from the date it fell due, the Commissioner shall:

a) Direct that the employer in addition to the amount ofarrears, pay simple interest there on at the rate of 12%

per annum or on such higher rates.

b) Commissioner has the power under the Act to impose

penalty and the interest on the cleared amount as per

the provision of the act.

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Distributionof compensation-Sec 8

The compensation payable for death and

The compensation payable to a woman or person of

legal disability shall be through the commissioner only.

Employer is exonerated from his liability if he deposits

the compensation amount with the commissioner within

the stipulated time.

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Contd

The commissioner shall call all dependents of thedeceased and determine the method for distribution of

compensation among them.

If no dependents are found then amount shall be

refunded to the employer.

On request by the employer the commissioner shallfurnish the details of disbursement.

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Method ofCalculating WagesSec 5

a) Where the employee has, during a continuous period of

not less than twelve months immediately preceding the

accident the monthly wages of the workman shall be

one-twelfth of the total wages which have fallen due for

payment to him by the employer in the last twelve

months of that period

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Contd

b) In other cases 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.

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ProceduralSections

(Section6 &Section7)

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Payment ofCompensationthrough

commissioner

Appointed by the Government

In case of death or total disablement compensation

only through commissioner

Any lump sum payment to workman made throughcommissioner

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Commissioner

Every Commissioner shall be deemed to be a public

servant within the meaning of the Indian Penal Code

(45 of 1860)

The Commissioner shall have all the powers of a

Civil Court under the Code of Civil Procedure, 1908

(5 of 1908)

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Contd

If any question arises in any proceedings under this

Act as to the liability of any person to pay

compensation - be settled by a Commissioner.

No Civil Court shall have jurisdiction to settle, decide

or deal with any question which is by or under this

Act

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Compensation Protected

Section 9

The compensation paid under the Act is protected that

is, it cannot be attached, assigned or charged.

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References

Employers guide to labor laws S.R. Samant

Employees Compensation Act, 1923 S. L.

Dwivedi

Special thankyou to Patwardhan sir

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Thank you