An Overview of Workmen Compensation Act
An Overview of Workmen Compensation Act
An Overview of Workmen Compensation Act
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An Overview of Workmen Compensation Act,1923
Introduction:-
The Workmen's Compensation Act is a social welfare legislation that aims to provide
compensation to workers who suffer injuries or disabilities arising out of and in the course of
employment. The Act was enacted in 1923 and is applicable to all industries and occupations,
both organized and unorganized. The main objective of the Act is to ensure that the dependents
of workers who are killed or disabled in industrial accidents are provided with monetary
compensation.
The Act imposes a statutory liability on the employer to pay compensation to the workers or their
dependents in the event of an injury or death arising out of employment. The compensation is
payable irrespective of the employer's fault or negligence, and the amount of compensation is
determined by a fixed formula based on the wages of the worker.
The Act provides for the establishment of workers' compensation courts or tribunals for the
adjudication of claims and disputes arising under the Act. The Act also provides for the
appointment of Commissioners for Workmen's Compensation, who are responsible for hearing
and deciding compensation claims.
The Workmen's Compensation Act is an important piece of legislation that ensures social
security for workers and their dependents in case of work-related accidents. It promotes a healthy
and safe work environment and ensures that the burden of compensation is borne by the
employer, rather than the worker or their family.
Historical Background
The Workmen's Compensation Act 1923 was enacted by the British colonial government in India
to provide for the payment of compensation to workers who suffer injuries or disabilities arising
out of and in the course of their employment. The Act was based on similar legislation enacted in
the United Kingdom in 1897, and it was modeled on the recommendations of the British Royal
Commission on Workmen's Compensation, which was established in 1893.
Before the enactment of the Workmen's Compensation Act, workers who were injured or
disabled in the course of their employment had no legal recourse for compensation. Their only
option was to file a civil suit against their employer, which was often an expensive and time-
consuming process. The Act was enacted to provide a speedy and inexpensive mechanism for the
payment of compensation to workers.
The Act underwent several amendments in subsequent years to expand its scope and coverage.
The Act was extended to cover all industries and occupations, both organized and unorganized,
and the definition of "worker" was expanded to include all employees, including those employed
on a casual or temporary basis. The Act was also amended to increase the rate of compensation
payable to workers.
The Workmen's Compensation Act 1923 remains an important piece of legislation in India's
labor law framework, providing social security to workers and their families in the event of
work-related injuries or disabilities.
1. Providing social security: The Act aims to provide social security to workers who suffer
injuries or disabilities arising out of and in the course of employment. It ensures that
workers and their dependents are compensated for loss of wages and medical expenses
incurred due to work-related injuries or disabilities.
2. Encouraging a safe work environment: The Act promotes a healthy and safe work
environment by imposing a statutory liability on employers to ensure the safety and
welfare of workers. Employers are required to take necessary precautions to prevent
accidents and ensure that workers are provided with necessary safety equipment and
training.
3. Establishing a simple and speedy mechanism for compensation: The Act provides for a
simple and speedy mechanism for the payment of compensation to workers or their
dependents. The Act establishes workers' compensation courts or tribunals for the
adjudication of claims and disputes arising under the Act.
4. Removing the burden of compensation from workers: The Act removes the burden of
compensation from workers and places it on the employer. The compensation payable to
workers is determined by a fixed formula based on the wages of the worker, and it is
payable irrespective of the employer's fault or negligence.
5. Ensuring social justice: The Act aims to ensure social justice by providing equal and fair
compensation to all workers, regardless of their social and economic background. The
Act also ensures that workers and their dependents are not left destitute in the event of
work-related injuries or disabilities.
In summary, the purpose and objectives of the Workmen's Compensation Act are to provide
social security to workers, promote a safe work environment, establish a simple and speedy
mechanism for compensation, remove the burden of compensation from workers, and ensure
social justice for all workers.
Important definitions
There are several important definitions under the Workmen's Compensation Act. Some of the
key definitions, along with their relevant sections, are:
1. Workman (Section 2(1)(n)): The Act defines a workman as any person who is employed
in any capacity, whether manual, clerical, or otherwise, in connection with any work of
an industrial establishment.
2. Employer (Section 2(1)(e)): The Act defines an employer as any person who employs a
workman and includes a principal, contractor, or sub-contractor.
3. Accident (Section 2(1)(d)): The Act defines an accident as any injury suffered by a
workman arising out of and in the course of his employment, whether caused by an
accident or an occupational disease.
4. Disablement (Section 2(1)(d)): The Act defines disablement as the loss or impairment of
a bodily function, whether partial or total, arising out of and in the course of employment.
5. Dependent (Section 2(1)(d)): The Act defines a dependent as any member of a workman's
family who is wholly or in part dependent on the earnings of the workman for their
support.
6. Wages (Section 2(1)(v)): The Act defines wages as all remuneration paid or payable in
cash to a workman for the work done, including the value of any kind of benefit, such as
housing, medical care, or other facilities, provided by the employer.
The scope and applicability of the Workmen's Compensation Act are as follows:
1. Covered employees: The Act covers all employees, whether permanent, temporary, or
casual, who work under a contract of service or apprenticeship. It also applies to
employees who work in hazardous occupations or in certain specified industries.
2. Covered injuries: The Act covers injuries caused by accidents arising out of and during
the course of employment. This includes injuries that result in total or partial
disablement, as well as those that result in death.
3. Compensation: The Act provides for the payment of compensation to the injured worker
or to the dependents of a deceased worker. The compensation amount is based on the
nature and extent of the injury or disability, as well as the worker's wages.
4. Employer liability: Employers are liable to pay compensation to their employees in case
of injury or death caused by accidents arising out of and during the course of
employment. Employers are also required to take out insurance policies to cover their
liability under the Act.
5. Statutory limits: The Act sets out the minimum and maximum limits of compensation
payable to the injured worker or the dependents of a deceased worker. These limits are
revised periodically by the government.
Overall, the Workmen's Compensation Act is applicable to a wide range of employees
and provides an important safety net for workers who are injured or killed while on the
job. Employers must ensure that they comply with the provisions of the Act to ensure that
their employees are adequately protected.
Nature of Liability
The Workmen's Compensation Act, 1923, imposes a statutory liability on employers to pay
compensation to their employees or their dependents in case of injuries, disablement or death
resulting from accidents arising out of and in the course of employment. The liability of the
employer under the Act is strict, which means that the employer is liable to pay compensation
regardless of whether they are at fault or not.
The nature of liability under the Workmen's Compensation Act is a "no-fault" liability. This
means that the employer is liable to pay compensation to the injured workman or to the
dependents of a deceased workman without establishing any negligence or fault on the part of
the employer. This is different from the liability under the common law, where an injured person
or his/her dependents would have to establish the employer's negligence or fault to claim
compensation.
Under the Workmen's Compensation Act, the employer's liability to pay compensation arises
when an employee sustains an injury, becomes disabled or dies as a result of an accident arising
out of and in the course of his/her employment. The liability is limited to the amount of
compensation prescribed under the Act and is payable irrespective of the employer's financial
position.
The employer's liability under the Act is not absolute, and there are certain circumstances where
the employer may be exempt from paying compensation. For instance, if the injury or death of
the workman is caused by his/her own willful misconduct, the employer may not be liable to pay
compensation. Similarly, if the workman has concealed his/her health condition or has
misrepresented his/her medical history at the time of employment, the employer may not be
liable to pay compensation.
In conclusion, the liability of the employer under the Workmen's Compensation Act is a "no-
fault" liability, and the employer is required to pay compensation to the injured workman or the
dependents of a deceased workman without establishing any negligence or fault on the part of
the employer. However, the liability is not absolute, and there are certain circumstances where
the employer may be exempt from paying compensation.
1. When the injury results in death, the employer is liable to pay compensation to the
dependents of the deceased workman.
2. When the injury does not result in death but results in partial or total disablement of the
workman, the employer is liable to pay compensation to the workman.
5. The employer's liability to pay compensation is not affected by the fact that the injury
was caused by the negligence or fault of the workman himself/herself.
6. However, the employer may be exempt from paying compensation if the injury or death
was caused by the willful misconduct of the workman or if the workman has concealed
his/her health condition or has misrepresented his/her medical history at the time of
employment.
In summary, Section 8 of the Workmen's Compensation Act makes it mandatory for the
employer to pay compensation to a workman who has suffered an injury or disability arising out
of and in the course of employment. The amount of compensation is calculated based on the
degree of disablement or death caused by the accident and is limited to the maximum amount
prescribed under the Act. The employer's liability to pay compensation is not affected by the fact
that the injury was caused by the workman's negligence or fault. However, the employer may be
exempt from paying compensation if the injury or death was caused by the willful misconduct of
the workman or if the workman has concealed his/her health condition or has misrepresented
his/her medical history at the time of employment.
The Workmen's Compensation Act, 1923, imposes a statutory liability on employers to pay
compensation to their employees or their dependents in case of injuries, disablement or death
resulting from accidents arising out of and in the course of employment. However, the Act also
covers occupational diseases contracted by employees in the course of their employment.
Under Section 3(1) of the Act, the employer is liable to pay compensation to a workman who has
contracted an occupational disease arising out of and in the course of his employment. An
occupational disease is defined under the Act as any disease specified in the Schedule III of the
Act or any other disease which may be notified by the Central Government in this behalf.
The liability of the employer in case of occupational diseases is similar to that in case of
accidents, i.e., it is a "no-fault" liability. This means that the employer is liable to pay
compensation even if there is no negligence or fault on the part of the employer. The amount of
compensation payable to the workman or his/her dependents is calculated based on the monthly
wages of the workman at the time of the diagnosis of the disease and the degree of disablement
caused by the disease.
However, the liability of the employer in case of occupational diseases is subject to certain
conditions. For instance, the workman must have been exposed to the particular risk of
contracting the disease in the course of his/her employment, and the disease must have arisen out
of such exposure. Moreover, the workman must have given notice of the disease to the employer
within the prescribed time period, failing which the employer may be exempted from paying
compensation.
1. Eligibility: Any worker who suffers an injury or disability as a result of an accident that
occurred in the course of employment is eligible to receive compensation under the Act.
The dependents of a worker who dies as a result of a work-related accident are also
eligible for compensation.
3. Time limit for filing a claim: The Act provides for a time limit for filing a claim for
compensation. Any claim for compensation must be filed within two years from the date
of the accident or the date of knowledge of the injury, whichever is earlier.
4. Exemptions: The Act provides for certain exemptions to the payment of compensation.
For example, an employer may be exempt from paying compensation if the injury was
caused by the worker's own negligence, or if the worker was under the influence of drugs
or alcohol at the time of the accident.
In summary, the Workmen's Compensation Act provides for the payment of compensation to
workers who suffer work-related injuries or disabilities. The amount of compensation payable is
calculated based on the nature and extent of the injury or disability, and the Act provides for
penalties for non-payment of compensation.
The Workmen's Compensation Act, 1923, provides for the payment of compensation to workers
or their dependents in case of death or permanent disablement arising out of and in the course of
employment. Here are some key points regarding compensation for death or permanent
disablement under the Act:
1. Death: In case of death of a worker due to an employment-related accident, the employer
is liable to pay compensation to the dependents of the deceased worker. The amount of
compensation payable is calculated as a percentage of the worker's monthly wages,
subject to a maximum limit of Rs. 1.2 lakhs. The Act provides for a minimum
compensation amount of Rs. 80,000 in case of death.
4. Time limit for filing a claim: Any claim for compensation must be filed within two years
from the date of the accident or the date of knowledge of the injury, whichever is earlier.
5. Exemptions: The Act provides for certain exemptions to the payment of compensation.
For example, an employer may be exempt from paying compensation if the injury was
caused by the worker's own negligence, or if the worker was under the influence of drugs
or alcohol at the time of the accident.
In summary, the Workmen's Compensation Act provides for the payment of compensation to
workers or their dependents in case of death or permanent disablement arising out of and in the
course of employment. The amount of compensation payable is calculated based on the worker's
monthly wages and the degree of disablement caused by the accident. The Act also provides for
penalties for non-payment of compensation.
The Workmen's Compensation Act, 1923, provides for the payment of compensation to workers
in case of temporary or partial disablement arising out of and in the course of employment. Here
are some key points regarding compensation in case of temporary or partial disablement under
the Act:
4. Time limit for filing a claim: Any claim for compensation must be filed within two years
from the date of the accident or the date of knowledge of the injury, whichever is earlier.
5. Exemptions: The Act provides for certain exemptions to the payment of compensation.
For example, an employer may be exempt from paying compensation if the injury was
caused by the worker's own negligence, or if the worker was under the influence of drugs
or alcohol at the time of the accident.
In summary, the Workmen's Compensation Act provides for the payment of compensation to
workers in case of temporary or partial disablement arising out of and in the course of
employment. The amount of compensation payable is calculated based on the worker's monthly
wages and the degree of disablement caused by the accident. The Act also provides for penalties
for non-payment of compensation. The relevant sections of the Act dealing with compensation
for disablement are sections 4, 5, and 6.
1. Notice of accident: When a worker sustains an employment-related injury that may result
in a claim for compensation, the employer must be notified of the accident as soon as
possible. The notice must be given in writing and must contain the name and address of
the injured worker, the nature and cause of the injury, and the date and time of the
accident.
3. Time limit for notice and claim: The notice of accident must be given within 30 days of
the occurrence of the accident, unless there is reasonable excuse for delay. The claim for
compensation must be made within two years of the occurrence of the accident, or within
two years of the date of knowledge of the injury, whichever is earlier.
4. Failure to give notice or claim: If the employer is not notified of the accident within the
prescribed time limit, or if the claim for compensation is not made within the prescribed
time limit, the worker may lose the right to claim compensation. However, the
Commissioner of Workmen's Compensation may allow the notice or claim to be given
after the prescribed time limit if he is satisfied that there was reasonable excuse for the
delay.
In summary, Section 10 of the Workmen's Compensation Act provides for the notice and claims
of accident in case of an employment-related injury resulting in disability or death. The notice
must be given in writing within 30 days of the occurrence of the accident, and the claim for
compensation must be made within two years of the occurrence of the accident or the date of
knowledge of the injury. Failure to give notice or claim within the prescribed time limit may
result in the loss of the right to claim compensation. The Commissioner of Workmen's
Compensation may allow the notice or claim to be given after the prescribed time limit if there
was a reasonable excuse for the delay.
1. The employer has the right to have the injured employee or workman medically
examined by a qualified medical practitioner of his choice.
2. The employee or workman is entitled to have his own medical practitioner present at the
examination.
3. The employee or workman must attend the examination at a time and place specified by
the employer.
4. The employee or workman must provide the examining medical practitioner with all
relevant information regarding the injury or illness, including any previous injuries or
illnesses.
5. The medical practitioner must prepare a report of the examination, stating the nature and
extent of the injury or illness, and the period of incapacity.
6. The report must be signed by the medical practitioner and a copy must be given to the
employee or workman.
7. The report must be submitted to the Commissioner or other authority responsible for the
determination of the compensation claim.
8. The cost of the medical examination and report must be borne by the employer.
In summary, Section 11 of the Workmen's Compensation Act provides for the medical
examination of an injured employee or workman in cases where a claim for compensation is
made. The employer has the right to have the employee or workman medically examined by a
qualified medical practitioner of his choice, and the employee or workman is entitled to have his
own medical practitioner present at the examination. The medical practitioner must prepare a
report of the examination, which must be submitted to the Commissioner or other authority
responsible for the determination of the compensation claim. The cost of the medical
examination and report must be borne by the employer.
4. Section 22: Procedure for hearing claims: A Commissioner must follow the procedure
laid down in the Act for the hearing and disposal of claims. The procedure must be
summary, and the Commissioner is not bound by the rules of evidence under the Indian
Evidence Act, 1872.
5. Section 23: Powers of Commissioners: A Commissioner has all the powers of a civil
court in the trial of suits, including the power to summon and examine witnesses, to
require the production of documents, and to enforce attendance of witnesses and
production of documents.
6. Section 24: Award of compensation: If the Commissioner is satisfied that the claimant is
entitled to compensation, he may award such amount as he thinks just and reasonable in
the circumstances of the case.
7. Section 25: Payment of compensation: The employer must pay the amount of
compensation awarded within 30 days of the date of the award, failing which he may be
liable to pay interest on the amount.
8. Section 26: Review of award: The Commissioner may review his own award or any
matter covered by the award at any time within one year of the date of the award.
10. Section 28: Reference to High Court: Any person aggrieved by an award of the
Commissioner may, within 60 days of the date of the award, apply to the High Court for
a decision on any question of law arising out of the award.
11. Section 29: Finality of orders: Every order passed by a Commissioner shall be final and
shall not be called into question by any court, except as provided under Section 28.
In summary, Sections 19-29 of the Workmen's Compensation Act provide for the appointment of
Commissioners, their qualifications, jurisdiction, powers, and procedures for hearing and
deciding claims for compensation. The Commissioners have wide powers to summon witnesses,
examine evidence, and award compensation in accordance with the Act. The employers are
required to pay the compensation within 30 days of the award, failing which they may be liable
to pay interest on the amount. The Commissioners may also review their own awards or
commute periodical payments to a lump sum payment. Any person aggrieved by an award may
apply to the High Court for a decision on any question of law arising out of the award. Finally,
every order passed by a Commissioner shall be final and shall not be called into question by any
court, except as provided under Section 28.
1. A person aggrieved by an order of the Commissioner may appeal to the High Court, if the
amount in dispute is more than Rs. 300.
2. The appeal must be filed within sixty days of the date of the order.
3. The appeal must be in the form of a memorandum of appeal, setting forth the grounds on
which the appeal is made, and accompanied by a copy of the order appealed against.
4. The appellant must deposit with the High Court a sum of money equal to fifty percent of
the amount payable under the order appealed against, or Rs. 500, whichever is less.
5. The High Court may, if it deems fit, direct the appellant to deposit further sums of money
as a condition for the admission of the appeal.
6. The High Court may, on appeal, confirm, modify, or reverse the order of the
Commissioner, or may remand the case for reconsideration by the Commissioner.
7. The High Court may make such orders as to the costs of the appeal as it deems fit.
8. The decision of the High Court on appeal shall be final and shall not be called into
question by any court.
In summary, Section 30 of the Workmen's Compensation Act provides for the right of appeal
against an order of the Commissioner. The appeal must be filed within sixty days of the date of
the order, and must be accompanied by a deposit of money equal to fifty percent of the amount
payable under the order, or Rs. 500, whichever is less. The High Court may confirm, modify, or
reverse the order of the Commissioner, or may remand the case for reconsideration. The decision
of the High Court on appeal is final and cannot be called into question by any court.
Conclusion
In conclusion, the Workmen's Compensation Act, 1923 is an important piece of legislation that
provides for the compensation of employees or workmen who suffer injury or death in the course
of their employment. The Act aims to provide financial security to employees or workmen and
their families in the event of work-related injuries or deaths. The Act sets out the liability of
employers for compensation, the types and amount of compensation payable, the procedure for
making claims, the role of Commissioners in determining claims, and the right of appeal. The
Act also provides for medical examination of injured employees or workmen, and lays down
penalties for non-compliance with its provisions. Overall, the Act has been successful in
providing a framework for the compensation of injured employees or workmen, and has helped
to ensure greater safety and welfare of workers in the workplace