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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).