The Workmen’s Compensation Act 1923
The passing of Workmen’s Compensation Act in 1923 was the first step towards social security of workmen. The theory of this act is that “ the cost of product should bear the blood of the workman”. This Act provides compensation to certain classes of workmen by their employers for injury, which may be suffered, by the workmen as result of an accident during the course of employment.
Object
To provide Compensation to Workmen for accidental injury and occupational diseases arising during and in the course of employment.
Applicability of Act
This Act is applicable to all employments in which the ESI Act is not applicable.
Definitions
"Dependent"
means any of the following relatives of a deceased workman, namely :- (i) a widow, a minor legitimate or adopted son, and unmarried legitimate or 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 if widowed and a 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, or
(h) a paternal grandparent if no parent of the workman is alive.
Explanation : For the purposes 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;
"employer"
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 a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him;
"wages"
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 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;
"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 clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), 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.
Disablement
Total disablement Partial disablement
Incapacitates workman for all work which he was capable of doing at the time of accident
Temporary Permanent
Reduces earning capacity of workman in any employment in which he was engaged at the time of accident
Reduces earning capacity of workman in every employment in which he was engaged at the time of accident
Main Provisions of the Act
Injury / Diseases arising out of and in course of employment are payable –
The term ‘arising out of and in the course of employment’ means that Compensation is payable only in those injury/diseases where the employment is the immediate and proximate cause of the said injury/disease. In other words, the injury/disease would not have occurred had the workman not been employed in the particular employment
Compensation payable – The Workmen’s Compensation payable as per the act is as under :
S.N
Description
Compensation
1
Death due to injury
50% of wages * Relevant factor OR Rs 80,000/- , whichever is more
2
Permanent total disablement due to injury
60% of wages * Relevant factor OR Rs 90,000/- , whichever is more
3
Permanent Partial disablement due to injury
% of compensation as is payable in (ii) or % of compensation proportionate to loss of earning capacity
4
Temporary Disablement
25% of wages paid half monthly
5
Occupational disease
Occupational disease to be treated as injury by accident and compensation as applicable in the cases of injury are payable
Following points are to be noted in calculation of compensation
a) Wages to be actual or Max Rs 4000/- per month.
b) Relevant factor are given in Schedule III of the Act
c) Employee not eligible for compensation when he/she has filed a Civil Suit against the employer.
Compensation not payable : Compensation under this Act is not payable when
· The disablement due to injury is less than 4 days
· The employee was under the influence of drugs/alcohol at the time of accident
· Workman willfully disobeys any safety rule
· Workman willfully removes/disregards any safety guard/ equipments
· Workman has filed a Civil suit against the employer for claim of compensation.
· Workman has refused to get himself medically examined cost of which is borne by the employer.
Payment of Compensation – The Compensation payable under the Act is to be made by deposit to the Commissioner of Workmen’s Compensation who will distribute the same to workmen or his dependents.
However, amount equal to 3 months wages can be paid directly to the dependents in cases of death of workman, provided the said amount is less than the total compensation payable to workman.
Report of death and serious bodily injury – should be given within 7 days of the death/ serious bodily injury to the Commissioner of Workmen’s Compensation
Medical Examination –The employer should get the medical examination of the workman who has made a claim for compensation, within 3 days of receipt of claim.
The passing of Workmen’s Compensation Act in 1923 was the first step towards social security of workmen. The theory of this act is that “ the cost of product should bear the blood of the workman”. This Act provides compensation to certain classes of workmen by their employers for injury, which may be suffered, by the workmen as result of an accident during the course of employment.
Object
To provide Compensation to Workmen for accidental injury and occupational diseases arising during and in the course of employment.
Applicability of Act
This Act is applicable to all employments in which the ESI Act is not applicable.
Definitions
"Dependent"
means any of the following relatives of a deceased workman, namely :- (i) a widow, a minor legitimate or adopted son, and unmarried legitimate or 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 if widowed and a 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, or
(h) a paternal grandparent if no parent of the workman is alive.
Explanation : For the purposes 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;
"employer"
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 a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him;
"wages"
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 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;
"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 clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), 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.
Disablement
Total disablement Partial disablement
Incapacitates workman for all work which he was capable of doing at the time of accident
Temporary Permanent
Reduces earning capacity of workman in any employment in which he was engaged at the time of accident
Reduces earning capacity of workman in every employment in which he was engaged at the time of accident
Main Provisions of the Act
Injury / Diseases arising out of and in course of employment are payable –
The term ‘arising out of and in the course of employment’ means that Compensation is payable only in those injury/diseases where the employment is the immediate and proximate cause of the said injury/disease. In other words, the injury/disease would not have occurred had the workman not been employed in the particular employment
Compensation payable – The Workmen’s Compensation payable as per the act is as under :
S.N
Description
Compensation
1
Death due to injury
50% of wages * Relevant factor OR Rs 80,000/- , whichever is more
2
Permanent total disablement due to injury
60% of wages * Relevant factor OR Rs 90,000/- , whichever is more
3
Permanent Partial disablement due to injury
% of compensation as is payable in (ii) or % of compensation proportionate to loss of earning capacity
4
Temporary Disablement
25% of wages paid half monthly
5
Occupational disease
Occupational disease to be treated as injury by accident and compensation as applicable in the cases of injury are payable
Following points are to be noted in calculation of compensation
a) Wages to be actual or Max Rs 4000/- per month.
b) Relevant factor are given in Schedule III of the Act
c) Employee not eligible for compensation when he/she has filed a Civil Suit against the employer.
Compensation not payable : Compensation under this Act is not payable when
· The disablement due to injury is less than 4 days
· The employee was under the influence of drugs/alcohol at the time of accident
· Workman willfully disobeys any safety rule
· Workman willfully removes/disregards any safety guard/ equipments
· Workman has filed a Civil suit against the employer for claim of compensation.
· Workman has refused to get himself medically examined cost of which is borne by the employer.
Payment of Compensation – The Compensation payable under the Act is to be made by deposit to the Commissioner of Workmen’s Compensation who will distribute the same to workmen or his dependents.
However, amount equal to 3 months wages can be paid directly to the dependents in cases of death of workman, provided the said amount is less than the total compensation payable to workman.
Report of death and serious bodily injury – should be given within 7 days of the death/ serious bodily injury to the Commissioner of Workmen’s Compensation
Medical Examination –The employer should get the medical examination of the workman who has made a claim for compensation, within 3 days of receipt of claim.
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