Employee Compensation Act -1923 (As amended under Gazette of India (extraordinary) dt. 23.12.

09, RBE 61/11) This is an Act to provide for the payment by certain classes of Employers to their workmen of Compensation for injury by accident. It extends to the whole of India and it shall come into force on the first day of July 1924. Definitions :1. Commissioner :- Means a commissioner for workmans commissioner appointed under scheme 20. 2. 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 employee are temporarily lent 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. 3. Minor :- means a person who has not attained the age of 18 yrs. 4. Partial disablement :- Means where the disablement is of a temporary nature, such disablement as reduces the earning capacity of a employee in any employment in which he was engaged at the time of the accident resulting in the disablement, and where the disablement is of a permanent nature, such disablement as reduces his earning capacity in every employment which he was capable of undertaking at that time. Every injury specified in part II of schedule shall be deemed to result in permanent partial disablement. 5. Total disablement :- Means such disablement, whether of a temporary or permanent nature, as incapacitates a employee for all work which he was capable of performing at the time of accident resulting in such disablement. 6. 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 of a employee towards any pension or provident fund. 7. Employee :- (in reference to Rly.) A railway servant as defined in clause (34) of section 2 of the Railway Act. 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. Employers Liability For Compensation (1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this act. Employer shall not be liable :(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding three days. (b) In respect of any injury, not resulting in death, or permanent total disablement caused by an accident which is directly attributable to :(i) The employee having been at the time thereof under the influence of drink or drugs or (ii) The wilful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employee, or (iii)The wilful removal or disregard by the employee of any safety guard or other device he knew to have been provided for the purpose of securing the safety of employee. (2) If a employee employed in any employment specified in Part A schedule III contracts any disease specified therein as an occupational disease peculiar to that employment, or if a employee, whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months in any employment specified in part B of schedule III or if a employee whilst in the service of one or more employer in any employment specified in part C of schedule III contracts any disease specified therein as an occupational disease peculiar to the employment, the contracting of the disease shall be deemed to be an injury by accident arisen out of, and in the course of, the employment . ( If employment was under more than one employer, all such employers
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shall be liable for the payment of compensation in such proportion the Commissioner deem fit ) Amount of compensation (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely :(a) where death results from the injury an amount equal to fifty percent of the monthly wages of the deceased employee multiplied by the relevant factor; or an amount of One Lakh Twenty Thousand rupees, whichever is more; Formula = AP X 50/100 X AF = min 1,20,000/- or Actual which ever is more (b) where permanent total disablement results from the injury an amount equal to sixty percent of the monthly wages of the injured workman multiplied by the relevant factor; or an amount of One Lakh Forty Thousand rupees, whichever is more. Formula = AP X 60/100 X AF = min. 1,40,000/- or actual which ever is more. Explanation I For the purpose of clause (a) and clause (b) relevant factor in relation to a employee means the factor specified in the second column of Schedule IV against the entry in the first column of the Schedule specifying the number of years which are the same as the completed years of the age of the employee on his last birthday immediately preceding the date on which the compensation fell due. Explanation II Where the monthly wages of a employee exceed Eight thousand rupees, his monthly wages for the purpose of clause (a) and (b) shall be deemed to be Eight thousand rupees only. [Gazette of India (extraordinary) dt. 31.05.10] (c) where permanent partial disablement results from the injury (i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and (ii) in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury; (iii)where temporary disablement whether total or partial results from the injury a half monthly payment of the sum equivalent to twenty five percent of monthly wages of the employee, to be paid in accordance with the provisions of sub-section(2). (IA)Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to a employee in respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such employee in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the employee in accordance with the law of that country. 4. If the injury of the employee results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of Five thousand for payment of the same to the eldest surviving dependant of the employee towards the expenditure of the funeral of such employee or where the employee did not have a dependent or was not living with his dependent at the time of his death to the person who actually incurred such expenditure. 4A.Compensation to be paid when due and penalty for default. (1) Compensation under that act (section 4) shall be paid as soon as it falls due. (2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and , such payment shall be deposited with the Commissioner or made to the employee, as the case may be, without prejudice to the right of the employee to make any further claim. (3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall
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(a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve percent per annum or at such higher rate not exceeding the maximum of the landing rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due; and (b) if, in his option, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears, and interest thereon pay a further sum not exceeding fifty percent of such amount by way of penalty: (It may be recover the officer / staff held responsible for such delay) [RBs letter No. E(CL)2000/WC/1 dt. 01.06.2000] * Provided that an order for the payment of penalty shall not be passed under clause (b) without giving as reasonable opportunity to the employer to show cause why it should not be passed. (5) Method of calculating wages. - In this Act and for the purposes thereof the expression monthly wages means the amount of wages deemed to be payable for a months service (whether the wages are payable by the month or by whatever other period or at piece rates), and calculated as follows, namely (a) where the employee has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, 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; (b) where the whole of the continuous period of service immediately preceding the accident during which the workman was in the service of the employer who is liable to pay the compensation was less than one month, the monthly wages of the employee shall be the average monthly amount which, during the twelve months immediately preceding the accident, was being earned by a employee employed on the same work by the same employer, or, if there was no employee so employed, by a employee employed on similar work in the same locality; (c ) in other cases including cases in which it is not possible for want of necessary information to calculate the monthly wages under clause (b), 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. * Explanation. - A period of service shall, for the purpose of this section be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days. (8) Distribution of compensation - No payment of compensation in respect of a employee whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation. (9) Compensation not to be assigned, attached or charged - Save as provided by this Act no lump sum or half monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the employee by operation of law nor shall any claim be set off against the same. (10B) Reports of fatal accidents and serious bodily injuries Where, by any law for the time being in force, notice is required to be given to any authority, by or on behalf of an employer, of any accident occurring on his premises which results in death or serious bodily injury, the person required to give the notice shall, within seven days of the death of serious injury, send a report to the Commissioner giving the circumstances attending the death or serious bodily injury. (18A) Penalties (1) Whoever (a) fails to maintain a notice-book which he is required to maintain under sub- section (3) of section 10, or
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(b) fails to send to the Commissioner a statement which he is required to send under subsection (1) of section 10A, or (c) Fails to send a report which he is required to send under section 10B, or (d) Fails to make a return which he is required to make under section 16, shall be punishable with fine which may extend to five thousand rupees. (2) No prosecution under this section shall be instituted except by or with the previous sanction of a Commissioner, and no court shall take cognizance of any offence under this section, unless complaint thereof is made within six months of the date on which the alleged commission of the offence came to the knowledge of the Commissioner. COMMISSIONERS Reference to Commissioner (1) 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 employee) or as to the amount or duration of compensation (including any question as to the nature or extent of disablement), the question shall, in default of agreement, be settled by a Commissioner. (2) No Civil Court shall have jurisdiction to settled, decide or deal with any question which is by or under this Act required to be settled, decided or dealt with by a Commissioner, or to enforce any liability incurred under this Act. Venue of proceedings and transfer (1) Where any matter under this Act is to be done by or before a Commissioner, the same shall, subject to the provisions of this Act and to any rules made hereunder, be done by or before the Commissioner for the area in which (a) the accident took place which resulted in the injury; or (b) the employee or in case of his death, the dependant calming the compensation ordinarily resides; or (c) the employer has his registered office . Power and procedure of Commissioners - The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on oath (which such Commissioner is hereby empowered to impose) and of enforcing the attendance of witnesses and compelling the production of documents and material object, and the Commissioner shall be deemed to be a Civil Court for all the purposes of section 195 and of Chapter XXVI of the Code of Criminal Procedure, 1973, (2 of 1974). Appeals An appeal shall lie to the High Court against the orders of a Commissioner. Schedule under the employees compensation Act. 1923 there are four schedules as appended below :Schedule I This schedule indicates the list of injuries deemed to result in permanent total disablement. Schedule II under this schedule a list of persons has been given who are included in the definition of employee. Schedule III under this schedule list of occupational diseases have been shown. Schedule IV this schedule indicate age factors for working out lump sum equivalent of compensation amount in case of disablement and death .

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Duty Of Supervisor in Case Of Injury Following are the duties of supervisor in case of injury caused to a employee by accident arising out of and in the course of employment. (1) He should immediately render FIRST AID & Call doctor. (2) Give massage / Report to all concerned with in 48 Hrs. (3) He should take statement of two eye witnesses where possible. (4) He should prepare accident report including small diagram. (5) He should get Medical report of injured workman. (6) He should take down the particulars of leave taken during last 12 months. (7) He should make finding of inquiry . Note:- Notional extension of duty depend upon the cases as clarified in RB letter no. B(LL)99/AT/WC/4 dt. 12.03.99 Payment of Ex-Gratia lump sum compensation to the families of Railway employees who die in harness in performance of bonafide official duties are as under:[RBE No. 285/99,136/08,04/11] (a) Death occurring due to accidents in the course of performance of duties Rs.10 lakh (b) Death occurring in the course of performance of duties attributable to acts of violence by terrorists, anti-social elements, etc. Rs. 10 lakh (c) Death occurring during (a) enemy action in international war or border skirmishes and (b) action against militants, terrorists, extremists etc. Rs. 15 lakh (d) Death occurring while on duty in the specified high altitude, inaccessible Border posts etc. on account of natural disasters, extreme whether conditions. Rs. 15 lakh These order are applicable in the case of Railway servants who die in harness on or after 1.1.2006. (i) General Manager is competent to sanction such Ex-Gratia Compensation. [RBE No 285/99 & 31/09] (ii) Cases for payment of Ex-Gratia Compensation be finalized within 3 months. [RBs letter No. E(W)2008/CP-1/1 dated 10.06.2008 (Page no. 313 of RBO-09] (iii)Proposal for ex-Gratia lump sum compensation shall be sent to concurrence for FA&CAO and should accompanied following documents.. (1) Copy of FIR (2) Death report of employee (3) Post martam report. [RBs letter No. W/2000/CP/1/4 Dt. 06.12.2000] (iv) Income Tax is not applicable on Compensation amount. [RBE152/10] (v) Maximum sealing limit for payment of Compensation is 20 Laks, if the same is being paid from other sources also along with as mentioned under item (a) to (d) above [RBE 04/11] (vi) Ex-gratia payment be made through ECS to ensure immediate relief which is underlying intention. In rare cases where the ECS payment is not possible it should be through cheque. [RBA 33/10] ---***----***---

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