THE EMPLOYEES' COMPENSATION ACT, 1923
The Employees' Compensation Act, 1923 which was earlier known as Workmen's Compensation Act, 1923, provides compensation benefits to certain classes of employees by their employer for the injury which is caused to them as a result of accident arising out of employment and in the course of employment. Hence if an employee suffers injury in the course of employment shall be entitled to compensation. This Act basically provides a social security to employees who receive incapacity resulting in loss in the earning capacity
APPLICABILITY
1.
Applies to
all persons covered under the definition "Employee" under Section
2(1)(dd)
2.
A railway
servant not in administrative capacity or as per Schedule II
3.
Member of
the crew of aircraft , ship or employee in motor vehicle
4.
Persons
working outside India in capacity under Schedule II
5.
Employee in
any capacity under Schedule II
NON-APPLICABILITY
The Act does
not apply to:
·
Members of
Armed Forces of Union [Section 2(1)(dd)]
·
Factory
where ESI Act applies. (Section 10B)
DEPENDANT
·
A widow,
minor son and unmarried daughter (legitimate or adopted), widowed mother
·
Those who
are wholly or partially dependant on employee [Section 2(1)(d)]
LIABILITY
FOR COMPENSATION
For injuries
arising out and in the course of employment which includes injury under Part I
& II of Schedule I and Occupational diseases under Part A, B, C of Schedule
III
No
liability- if accident is due to influence of drinks/drugs or
Willful
disobediance to any order disregard to safety guard for the safety of employee
[Section 3(1)(b)]
CALCULATION
OF COMPENSATION
Death-50% of
monthly wages x Relevant factor or Rs 1,20,000 whichever is more [Section
4(1)(a)]
Permanent
total disablement-60% of monthly wages x relevant factor or Rs 1,40,000
whichever is more [Section 4(1)(b)]
Permanent
partial disablement- If schedule injury-% of compensation for total disablement
as loss of earning of earning capacity [Section 4(1)(c)(i)]
If
non-scheduled injury -% of compensation for total disablement in proportion to
loss of earning capacity [Section 4(1)(c)(ii)]
Loss of
earning capacity to be assessed by qualified medical practitioner
Temporary
disablement-25% of monthly wages in half monthly payments [Section 4(1)(d)]
PENALTY
Not
exceeding 50% of compensation is payable in case of default of 1 month in
paying compensation with interest [Section 4A(3)]
LIMITATION
For claiming
compensation - 2 years from date of accident
CONTRACT
EMPLOYEES
Principal
employer is liable to pay compensation to contract employees employed in
connection with his trade/business with right of indemnity from contractor
OFFENCE
& PENALTY
|
OFFENCE
|
PENALTY
|
|
Failure
to:
Maintain
notice book as per Section 10(3)
Send
statement to Commissioner as per Section 10(1)
Send
report of fatal accident as per Section 10B
Make
returns as per Section 16
|
Fine up to
Rs 5,000
|
