workmen comp act

8/14/2019 Workmen Comp Act

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Workmens compensation Act,

1923 The Workmens Compensation Act, aims to

provide workmen and/or their dependents

some relief in case of accidents arising out ofand in the course of employment and causing

either death or disablement of workmen.

It provides for payment by certain classes of

employers to their workmen compensation forinjury by accident.


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Scope of the act

The act is confined to industries which

are more or less organized.

That only those workmen whose

occupation is hazardous should be

included.


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Features of the act

Act provides for cheaper and quicker mode ofdisposal of disputes through special proceedingsthan possible under Civil Laws.

Act provides compensation to workmen for injurycaused by accident and occupational disease arisingout of and in the course of employment.

The act is applicable to apprentices also.

Procedure for settlement of claim is throughCommissioners.


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Employees not eligible

Workmen compensation is not payable

to persons insured under ESI Act, 1948

if the workmen is under the influence of drugsor drinks

if the workmen willfully disobeys instructions orrules framed or safety guards or other devices

if total or partial disablement does not exceed 3days


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Workmen Compensation Act,

1923 vs ESI Act, 1948 WC Act, 1923

1. The WC Act isrestricted to providing

compensation to the

workmen for injury

caused to workmen

arising out of and in

the course of

employment.

ESI Act,1948

1. The act providesbenefits to workmen incase of sickness,maternity andemployment injury.


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2.The act offers noncontributory set up

wherein the employer

has to pay the entirecompensation.

3. The act provides only

disablements benefit anddependents benefit.

2. The act offers contributoryschemes wherein both theemployer and the employeecontribute.

3. The act provides for 6benefits namely sicknessbenefit, medical benefit,maternity benefit, disablement

benefit, death benefit andfuneral expenses.


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4. The responsibility of

payment lies with the

employer.

5. Compensation is a onetime lump sum cash

payment.

6. No provision of

rehabilitation andreemployment under this

act.

4. The responsibility ofpayment lies with ESIC.

5. Compensation is paidperiodically.

6.Section 19 provides forrehabilitation andreemployment of inuredpersons who have beendisabled


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Employers liability ( Sec 3)

The employer of any establishment covered underthis 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) temporarydisablement whether total or partial, or

Who has contracted an occupational disease


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The employer shall not beliable

In respect of any injury which does not result in the totalor partial disablement of the workmen for a periodexceeding three days;

In respect of any injury not resulting in death, caused byan accident which is directly attributable to-

the workmen having been at the time thereof under theinfluence or drugs, or

the willful disobedience of the workman to an orderexpressly given, or to a rule expressly framed, for thepurpose of securing the safety of workmen


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Amount of compensation

1. In case of death: an amount equal to 50% of the monthlywage multiplied by the relevant factor as given inSchedule IV of the act or Rs. 80,000 whichever is more

2. In case of permanent total disablement, it is 60% or

Rs.90,000 whichever is more3. In case of permanent partial disablement occurs then the

compensation is proportionate to the disability arrived asat (2) above

4. Section 19 provides for rehabilitation and reemployment ofinured persons who have been disabled


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Time of payment of

Compensation (Sec 4A)

In cases, where the employer does not accept theliability for compensation to the extent claimed, he shallbe bound to make provisional payment payment on theextent of liability which he accepts & such provisional

payment shall be deposited with the Commissioner ormade to the workman, as the case may be

Where the employer is in default in paying the

compensation due under this Act within one month ofthe date, the commissioner shall direct the employer(a) To pay simple interest @ 12% p.a. or such higherrate as specified by Central Government(b) To payfurther sum not exceeding 50% of such amount ( dues

+ interest ) as penalty


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Distribution Of Compensation

(Sec8) If injury resulted in death No payment of

compensation( including to a woman or disable person)otherwise than by deposit with the Commissioner,provided that in case of deceased workman, advanceson account of compensation can be made

Any other sum according to not less than Rs.10 ( ascompensation) may be deposited with theCommissioner

The receipt of the Commissioner shall be a sufficientdischarge in respect of deposited compensation

On the deposit of compensation money, theCommissioner shall issue notice to be published/servedon each dependent , to appear before him on the datefixed and the Commissioner after enquiry,shall returnthe amount to employer if no dependant exist


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Contracting (Sec 12)

Normally the principal is not held liable to pay compensation to acontractor if an injury is caused by an accident to any of theworkers because such workers are not employed by him.

The principal employer is liable when (Sec12 (1)) :

a) The contractor is engaged to do a work which is part of the tradeor business of the principal employer

b) The workmen were engaged in the course of or for the purpose ofhis trade or business

c) The accident occur in or about the premesis on which the principal

employer undertakes to execute the work


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Jurisdiction of Commissioners

(Sec 19) If any question arises in any proceedings under this Act as

to the liability of any person to pay compensation(including any question as to whether a person injured is

or is not a workman) or as to the amount or duration ofcompensation (including any question as to the nature orextent of disablement), the question shall, in default ofagreement, be settled by a Commissioner.

No Civil Court shall have jurisdiction to settle, decide ordeal with any question which is by or under this Actrequired to be settled, decided or dealt with by aCommissioner or to enforce any liability incurred underthis Act.


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Powers and Duties of

Commissioners Deposit & distribution of Compensation

Powers to require from employers statementregarding fatal accident

Power of settlement of disputes

Power of transfer

Power to require further deposit in cases of fatalaccident

Power of Civil Court

Power to order costs


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Appeals ( Sec 30)An appeal shall lie to the High Court from the following orders of aCommissioner, namely :-(a) an order awarding as compensation a lump sum whether byway of redemption of a half-monthly payment or otherwise ordisallowing a claim in full or in part for a lump sum

(aa) an order awarding interest or penalty under section 4A

(b) an order refusing to allow redemption of a half-monthlypayment

(c) an order providing for the distribution of compensation amongthe dependants of a deceased workman, or disallowing any claimof a person alleging himself to be such dependant


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(d) an order allowing or disallowing any claim for the

amount of an indemnity under the provisions of sub-

section (2) of section 12;


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Case laws

Sohanbeer Vs workmenscompensation commissioner,

Muzaffarnagar & ORS 2007 (Allahabadhigh court).

National Insurance Co. ltd. Vs Mst.Param Lal Singh, through his father ShriSantokh Singh, 2007 ( Delhi high court).

workmen comp act

Documents