labour laws - session 6

8/8/2019 Labour Laws - Session 6

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THE FIRST ACT RELATED TO SOCIAL

SECURITY MEASURES INTRODUCED ININDIA PRIOR TO INDEPENDENCE.



y This Act does not apply where workmen are coveredunder the ESI Act

y Since a workman is entitled to getcompensation from the ESIC, a worker coveredunder the ESI Act is not entitled to getcompensation under Workmens Compensation Act, even as per section 53 of the ESI Act.

y 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

y The Act seeks to impose an obligation uponemployers to pay compensation to workers foraccidents arising out of and in course of

employment, resulting in death or total orpartial disablement for a period exceeding threedays.

y The payment of compensation is the main objectof the At.

y Compensation is also payable for someoccupational diseases contracted by workmen

during the course of their occupation.



y Earlier, there used to be a wage limit forcoverage under the Act. But this has beenremoved with effect from 1st July 1984 by anamending Act of 1984.

y

This amending Act of 1984 also provides forrates of compensation and coverage of 34occupational diseases.



INTERPRETATIONS

y

DEPENDANT SEC.2 (1-D):y Dependant means any of the following relatives

of a deceased workman, namely:

y i) a widow, a minor legitimate or adopted son

and unmarried legitimate or adopted daughter,or a widowed mother, and

y

y ii) if wholly dependant on the earnings of the

workman at the time of his death, a son or adaughter who has attained the age of 18 years and who is infirm,



y DEPENDANT SEC.2 (1-d):

y iii) if wholly or in part dependant on the

earnings of the workman at the time of his death,y a) a widower,

y b) a parent other than a widowed mother,

y

c) a minor illegitimate son, an unmarriedillegitimate daughter or a daughter legitimate orillegitimate or adopted if married and a minor orif widowed and a minor,



y DEPENDANT SEC.2 (1-d):

y

d) a minor brother or unmarried sisteror a widowed sister if a minor,

y e) a widowed daughter-in-law,

y f) a minor child pf a predeceased son or

daughter where no parent of the child isalive,

y h) a paternal grandparent if no parentof the workman is alive.



PARTIAL DISABLEMENT sec. 2(1-g) :

y Partial Disablement means a disablement of atemporary nature reducing the earningcapacity of a workman in any employment in

which he was engaged at the time of accident

resulting in the disablement.



y A PERMANENT PARTIAL

DISABLEMENT:

y A Permanent Partial Disablement is adisablement of permanent nature thatreduces the earning capacity in every employment which he was capable of undertaking at that time.



TOTAL DISABLEMENT section.2 (1-L):

y 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 suchdisablement.



EMPLOYERS LIABILITY FOR COMPENSATION

section 3

y 1) If personal injury is caused to a workman by accident arising out of and inthe course of his employment, his employer

shall be liable to pay compensation inaccordance with the provisions prescribed.y These conditions are :-y a) such personal injury must have been

caused to workman,y b) such an injury must have been caused

by an accident,



y c) the accident must have arisen out of and inthe course of employment,

y d) the injury must have resulted either in thedeath of the person or in his total or partialdisablement for a period exceeding 3 days.

y BUT, the employer shall not be liable to pay compensation in the following cases :

y a) if the injury did not result in total or partialdisablement of a workman for a periodexceeding three days,



y b) if the workman was at the time of theaccident under the influence of drink of drug, or

y c) if the workman willfully disobeyed anorder expressly given or a rule expressly

framed for the purpose of securing safety of workman, or

y If the workman willfully removed ordisregarded any safety guard or other

device which to his knowledge wasprovided for the purpose of securing hissafety.



AMOUNT OF COMPENSATION section 4

y The amount of compensation payable toa workman depends on:]

y a) the nature of injury caused by accident,

yb) the monthly wages of the workmanconcerned, and

y c) the relevant factor for working outlump sum equivalent of compensation

amount as specified in Schedule IV.There is no distinction between an adult

and a minor worker with respect to theamount of compensation.



AMOUNT OF COMPENSATION section 4

y Section 4 of the Act provides for compensationfor :

y a) death,

y b) permanent total disablement,

y

c) permanent partial disablement,y d) temporary disablement, whether total

or partial.



COMPENSATION FOR DEATH

y In case of death resulting from injury, theamount of compensation shall be equal 50%of the monthly wages of the deceased

workman multiplied by the relevant factor.

y Or an amount of Rs 80,000/- whichever ismore.



COMPENSATION FOR PERMANENT TOTAL

DISABLEMENT

y In case of permanent total disablement resultingfrom the injury, the amount of compensation

shall be 60% of the monthly wages of the injured workman multiplied by the relevant factor or Rs90,000/- thousand whichever is more.



COMPENSATION FOR PERMANENT PARTIAL

DISABLEMENT

y Where permanent partial disablementoccurs, the amount of compensationpayable shall be as follows :

y

(i) in case of an injury specified in part IIof 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.



y (ii) in case of an injury not specified inschedule I, such percentage of the

compensation is payable which isproportionate to the loss of earning capacity (as assessed by a qualified medicalpractitioner) permanently caused by the

injury.



COMPENSATION FOR TEMPORARY

DISABLEMENT (TOTAL OR PARTIAL)

y If the temporary disablement, whether totalor partial results from the injury, the amount

of compensation shall be a half monthly payment of the sum equivalent to 25% of themonthly wages of the workman to be paid inaccordance with the provisions.



y The half monthly payment shall be payable on thesixteenth day;

y

i) From the date of disablement where suchdisablement lasts for a period of 28 days or more,

y ii) After the expiry of a waiting period of threedays from the date of disablement.



COMPENSATION TO BE PAID WHEN DUE

AND PENALTY FOR DEFAULT (section 4A)

y As per this section, compensation has topaid as soon as it is due.

y

In case the employer does not accept theliability of paying the compensation, he isbound to make provisional payment tothe extent of the liability he accepts. Suchamount has to be deposited with thecommissioner or paid to the workman. If he defaults, the commissioner may order:



y i) the payment of the amount with

interest at 6% per yeary ii) if the default to be unjustifiable then

the commissioner may order payment of a further sum not exceeding 50% of theamount due, by way of penalty.



NOTICE AND CLAIM SEC.10y No claim shall be entertained by thecommissioner unless the notice of accidenthas been given by the workman in writing

as per the section 10(1) of the Act in thefollowing manner :

y i) the notice of the accident shall be givenas soon as practicable after the happeningof the accident.

y ii) the notice shall give the name andaddress of the person injured and state thecause of injury and the date of accident.



NOTICE AND CLAIM SEC.10

y

v) State Government may require any prescribed class of employers tomaintain at a place of employment anotice book in the prescribed form for

keeping the record of accidents.y Section 10 A deals with the power to

require from employers statementsregarding fatal accidents.

y Section 10 B deals with reports of fatalaccidents and serious bodily injuries.



MEDICAL EXAMINATION sec. 11

y I) Where a workman has given a noticeof an accident, he shall within 3 days bemedically examined free of charge by aqualified medical practitioner andthereafter who in entitled to receive half-

monthly payment go for the same fromtime to time.

y 2) If the employee refuses to submit

himself for examination, in such a casehis, his right to compensation shall besuspended till the time of refusal unlesshe has cause to prove otherwise.




y 3) If the employee voluntarily leaves withouthaving been examined, his right tocompensation shall be suspended till he returns

for examination.

y 4) If a workman whose right to compensation was suspended, dies without medical

examination, the commissioner may, if hethinks fit, direct the payment of compensationto the dependents of the deceased workman.




y 5) If a right to compensation is suspended onreasonable grounds, no compensations shall bepayable in respect of the period of suspension.

y 6) If an injured workman refuses to go formedical examination, he will be treated on theabove lines.



12

y 1) In respect of any Principal making useof the services of the Contractor, ultimately the principal shall be liable to pay to pay toany workman employed in the execution of the work any compensation which he

would have been liable to pay if that workman had been immediately employedby him.

y 2) where the principal is liable to pay thecompensation, he shall be entitled to beindemnified by the contractor and thismatter is to be settled by the

commissioner.



CONTRACTING section 12

y 3) nothing can prevent a workman fromrecovering compensation from thecontractor.

y 4) if the accident occurs outside thepremises of the principal, then payment of compensation will not be executed by the

principal.



COMMISSIONERS section 19 to 31

y Sec.19 as per this section any matter of payingcompensation in question shall be settled by aCommissioner and no civil court shall have jurisdiction to settle, decide or deal with the

matter in question.y Sec. 20 the State Govt. by NOG appoint any

person to be a commissioner for WorkmensCompensation and in case more commissioner

are needed, then the state Govt. may regulate thedistribution of business between them.




y

The commissioners may choose one or morepersons possessing special knowledge of any relevant matter to assist them in holding inquiry.Furthermore, they shall be deemed to be publicservants as per IPC.

y Sec.21 deals with venue of proceedings andtransfer that the matters connected should be within the jurisdiction of the commissioner.

y Sec.22 deals with the form of application that it

should be made with the prescribed form,requisite fee, a concise statement, with completedetails, names and addresses etc.




y Sec. 22A deals with the power to requirefurther 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 theemployer to show cause notice to thateffect and further award/ order theemployer to pay the deficit amount.



y Sec.23 deals with the powers of commissionersi.e. the commissioner has all the powers of a

civil court under the code of Civil Procedure forthe purpose of taking evidence on oath and of enforcing the attendance of witnesses andcompelling the production of documents andmaterial objects.

y Sec. 24 deals with appearance of parties

y Sec. 25 deals with the method of recording

evidence by this the commissioner to make abrief account of evidence of every witness whichshall be written and signed by him with his ownhand and kept on record.



y Sec. 26 deals with costs wherein all costsincidental to any proceedings before a

commissioner shall be solely at the discretionof the commissioner.

y Sec. 27 power to submit cases acommissioner may submit any question of law

for the decision of the High court and may decide the question in conformity with suchdecisions.

y

Sec.28 deals with the registration of agreements- whereby any compensation hasbeen settled by agreement, the matter be sentto the commissioner who shall record the samein register in the prescribed manner.



y Sec.29 deals with the effect if failure to registeragreement that the employer is liable to pay the

full amount of compensation.y Sec.30 deals with appeals.

y Sec.31 deals with the recovery aspect thecommissioner is deemed as a public officer andauthorised to recover dues payable to any person.

labour laws - session 6

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