Mahatma Gandhi Kashi Vidyapith, Varanasi

Name of the Faculty : Faculty of Law

Name of the Department : Department of Law

Topic of e-content : EMPLOYEE’S COMPENSATION

Sub-Topic of e-content : Aim, liability and Applicability

Key-Words of e-content : Aim, liability, Applicability

(with the help of key words students

can search the e-content easily)

Subject : Labour Law

Class : VI sem; LL.B. 3 year

Paper (Sr. No.) (Name) : (Labour Law)

Creator Name : Prof. Ranjan Kumar

Mob. No. : 9450182006

Email ID : [email protected]

Date of Creation : 08/10/2020

EMPLOYEE’S COMPENSATION

Aim, liability and Applicability

 Historical Background

This Act made for the social Security of Employee or

worker in the course of his employment if any injury
occurred then certain class of employer compensate the
Employees.
The Employee’s CompensationAct,1923 which is
known previously The Workman Compensation Act,
1923.
A "workman" was defined as, "any person who is
engaged in an employment to which this Act applies,
whether by way of manual labour or otherwise."
 Introduction
A Social Security Division has been set up under the
Ministry of Labour and Employment , which deals
with framing of social security policy for the workers
and implementation of the various social security
schemes. It is also responsible for enforcing this Act.
The Act is administered by the State Governments
through Commissioners for Workmen's
Compensation.
 • The Employees Compensation
Enforcement & Act, 1923 imposes statutory
Aim liability upon an employer to
discharge his moral obligation
The Employees towards employees when they
Compensation Act, 1923 suffer from any physical
extends to the whole of disabilities or diseases, during
India. It came into force on
the first day of July, 1924. the course of employment in
hazardous working conditions.
The aim of the Act is to It’s provides for payment of
provide quick and cheaper compensation to workmen and
disposal of disputes relating their dependants in case of injury
to the compensation which is
not possible in comparison and accident (including certain
in case of proceedings of occupational disease) arising out
civil law. The Act also helps of and in the course of
the dependants to get employment and resulting in
relieved from the hardship,
rising from accident. disablement or death.
 Applicability
Apply to N/A to
- Mines - Members of armed forces
- Factories of union
- Plantations - Employees covered by
- Transport Establishments ESI Act, 1948.
(Dependent’s benefits
- Construction Works available)
- Railways - Casual Workers &
- Ships workers employed
- Circuses otherwise than for
employer’s trade or
business
 Employee
Schedule II Under section 2 (1) (dd) of the Act-
Amendment "a person, 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-
Clerks are now covered divisional office of a railway and not employed in any such
for compensation. Refer capacity as is specified in Schedule II; or (ii) (a) a master,
to schedule-II for seaman or other members of the crew of a ship, (b) a captain
or other member of the crew of an aircraft, (c) a person
specified employments.
recruited as driver, helper, mechanic, cleaner or in any other
capacity in connection with a motor vehicle, (d) a person
Before that Clerks were recruited for work abroad by a company, and who is
not covered for employed outside India in any such capacity as is specified
compensation under the in Schedule II and the ship, aircraft or motor vehicle, or
company, as the case may be, is registered in India; or (iii)
Act.
employed in any such capacity as is specified in Schedule II,
whether the contract of employment was made before or
after the passing of this Act and whether such contract is
expressed or implied, oral or in writing; but does not include
any person working in the capacity of a member of the
Armed Forces of the Union; and any reference to any
employee who has been injured shall, where the employee is
dead, include a reference to his dependants or any of them;]
 Person engaged for one day
to drive vehicle of the owner
Case Law is also the employee in this
New India assurance act. The Owner have definite
co. ltd. v. Mohan control over the person. The
Kumar sahu 2003 II
OLR 388.
person was driving the
vehicle on the direction of the
owner of the vehicle. His
engagement for one day only
will not throw him out of the
definition of Employees u/s
2(1)(n) of the Act. Now it’s
U/S 2(1)(dd).
Case laws A govt. servant who is
State of Kerala v.
employed as “Mahout” in
khadeeja beevi, (1989) the forest department is also
IILLJ 438 Ker. treated as employee under
this act even if he is
covered by family pension,
GPF, & family benefits
scheme under the
Government.
 Expression “arising out and
Case laws in course of employment”.
N.A.CHAUHAN v. The words suggest that
N.K. SHAH there should be casual
1991 ACJ 904. relationship between the
employer and accident.
 Sec. 2(1)(d); DEPENDANT
whether actually so or not Wholly wholly or in part dependant on the
dependant on the earnings of the earnings of the employee at the time of
employees at the time of death death
(a) a widower, (b) a parent other than a
(a) a widow, (b) a minor widowed mother, (c) a minor illegitimate
legitimate or adopted son, son, an unmarried illegitimate daughter
(c) unmarried legitimate or a daughter legitimate or illegitimate or
or adopted daughter, or adopted if married and a minor or if
(d) a widowed mother or widowed and a minor, (d) a minor
brother or an unmarried sister or a
a son or a daughter who
widowed sister if a minor, (e) a widowed
has attained the age of 18 daughter-in-law, (f) a minor child of a
years and who is infirm. 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.
 The minimum and maximum
Amount of rates of compensation payable
compensation
for death (in such cases it is
Compensation to be
paid to the dependents of
paid depends on the
nature of the injury workmen) and for disability
and the average have been fixed and is subject
monthly wages and to revision from time to time.
age of workmen.
 Employer liability
NO
YES
If the injury does not result in the total or
(i) if personal injury is partial disablement of the workman for a
caused to a workman period exceeding three days. 2. If the
by accident arising out injury, not resulting in death or permanent
total disablement, is caused by an accident
of and in the course of which is directly attributable to:- (i) the
his employment; (ii) if workman having been at the time of the
a workman employed accident under the influence of drink or
in any employment drugs; or (ii) the willful disobedience of
contracts any disease, the workman to an order expressly given,
specified in the Act as or to a rule expressly framed, for the
an occupational purpose of securing the safety of
disease peculiar to that workmen; or (iii) the willful removal or
disregard by the workman of any safety
employment. guard or other device which has been
provided for the purpose of securing
safety of workmen.
 If workman do such work
Case Law which is out his duty.The
employer would not be
Devidayal liable to pay compensation
Ralyaram v/s if any injury caused to him.
Secretary of state According to Doctrine Of
(AIR) 1937 Sind Added Peril if a workman
288 while performing his duty
does something which is
not required to do and
which involves extra
danger,
 Appointment of Commissioner
Under the Act U/S 20, The State Government may, by notification in
the Official Gazette,
Any person to be a Commissioner -
who is or has been a member of a State Judicial Service for a period
of not less than five years or is or has been for not less than five
years an advocate or a pleader or is or has been a Gazetted officer
for not less than five years having educational qualifications and
experience in personnel management, human resource development
and industrial relations] to be a Commissioner for *[employees']
Compensation for such area as may be specified in the notification.
The Commissioner shall be deemed to be a public officer within the
meaning of the Revenue Recovery Act, 1980.
 Amount of Compensation
Temporary Disablement Total Permanent Disablement
Where the disablement is The permanent total
temporary i.e. workman not disablement is listed in
being able to attend to duty for
more than 3 days on account of Schedule I of the Act. Where
injury is entitle to get the disablement is permanent
compensation at the rate of a and total the amount of
half monthly payment of the compensation will be
sum equivalent to twenty five
percent of monthly wages of the equivalent of fifty percent of
workman. E.G. if workman's the monthly wages of the
wages are Rs.500/- per month injured workman multiplied by
he will receive Rs.125/- for a the relevant factor or an
fortnight i.e. 15 days or Rs. 8.33
p. per day and so on depending amount of twenty four
on his wages. If the disablement thousand rupees (Rs. 24,000/-)
continues for more than 28 days whichever is more.
therefrom days to be counted
from the date of injury.
 Death
Amount of Where death results from an injury
Compensation an amount equal to forty percent of
the monthly wages of the deceased
workman multiplied by the relevant
factor or an amount of twenty
thousand rupees (Rs. 20,000/-)
whichever is more.
 • Relation to workman mean the factor
specified in schedule IV of the Act
Relevant factor against the age of the workman.
• Where the monthly wages of a
workman exceed Rs.1,000/- his
monthly wages for the purpose of
clause (2) & (3) shall be deemed to
Amount of be Rs. 1,000/- only.
Compensation • Permanent partial disablement
results from the injury then Such
percentage of the compensation
which would have been payable in
the case of permanent total
disablement after determining the
loss of earning capacity caused by
that injury.
 If the employer fails to pay or
Recovery of deposit the amount of compensation
Compensation awarded by the Court or admitted by
Employer the employer, them on application by
the workman to the concerned court
for recovery of the same, the court
shall write to the collector and the
same will be recovered as arrears of
Land Revenue.
The Court has power to award
interest on the amount of
compensation, cost and penalty.
 When he fails to pay the compensation to
Recovery of a workman or fails to deposit the amount
of compensation with the commissioner
Compensation for Workmen's Compensation, or the
Labour Court concerned, then the injured
Procedure workman, either himself or through his
representative, should send a notice of his
claim or his employer mentioning therein
the time, date, place and nature of
accident, wage rate of the workman and
the amount of compensation. In case of
death of a workman , any of his
dependents or his/her representative can
send such notice with detailed
information. A copy of the same should be
sent to the Commissioner for Workmen's
Compensation or the Labour Court
concerned.
 Source
S.N.Mishra, Labour & Industrial Laws, 28th Edition
(2016) CLP, Allahabad.
The Employee’s CompensationAct,1923
https://www.manupatrafast.com/pers/Personalized.
aspx
Q.1. Describe the aim of the Employee’s CompensationAct,1923?
Q.2. Discuss the applicability of the Employee’s CompensationAct,1923?
Q.3. Who is dependent under the Employee’s CompensationAct,1923.
Discuss?