Workmen's Compensation Act: An Overview


This Act was one of the first pieces of legislation in India that intended and thought of providing certain relief to a worker if some uncertainty happens to that worker on the premises when the supervising officer or the employing officer of that worker is not present in that area or the place where the uncertain event or something that resulted in the disability of that worker happened or even the death. The act provides some sort of relief to the workers who have been the victims of uncertain injury or disability, and it also provides some relief to their family members in the event of the death of that worker.

It also reflects that the act is not only intended to protect a worker after the occurrence of that uncertainty, but it is also intended to take care of the family members or dependents of that worker who will be affected if something happens to that specific person who is acting as a worker in that respective industry. It somehow acknowledges the fact. If that worker is injured or dead, then the family or dependents of the respective deceased will suffer.

An Overview Workmen's Compensation Act

This act provided some compensation to workers on certain grounds that are defined in it. This act covers certain instances in which the person employing any worker will be liable if that worker has suffered any injury or any incident that resulted in his death. Before the enactment of this act, any person employing a worker was not obliged to pay some sort of monetary relief or provide any kind of relief to the worker in case of injury or death. This act also provided compensation to the workers if they contracted any disease during the course of their work at the premises.

So if the worker has been able to prove that he contracted that disease during the course of his work at that premises, then he is liable to get compensation as long as that disease continues. The worker was also entitled to apply for his monthly pay to the Commissioner and Just in case the Commissioner denies him the same, he can reach out to the courts as well. This provision also requires the industries to take care of the working environment and ensure the safety and good working conditions of their workers so that they may not be susceptible to any kind of disease at the workplace.

One of the instances where a worker may contract any disease from the workplace can be in the pharmacy sector, where if the workers are not provided with the respective shields or safety guards, then they may contract any disease if exposed to any kind of drug or chemical.

Scope and Objective

The objective of this act was to provide some sort of relief to those who have been the victims of any kind of disease, injury, or even death during the course of their employment. The scope of any act has two narratives: applicability and exemption.

Applicability

This act was applicable to all those workers who were included under the ambit of "worker" as provided by the act. This art covers a wide range of persons who come under the preview of the term "workmen" as mentioned under the schedule two, and besides that, it covers the servants of railways and even the cooks as mentioned under the schedule to, as well as those who use LPG and some kind of mechanical cooking devices.

The Act covers:

  • Mines

  • Factories

  • Plantations

  • Transport Establishments

  • Construction Works

  • Railways

  • Ships

  • Circuses

Exemption

One of the obvious exemptions to this act were the workers who had not been the victims of any kind of disease, injury, or even death. If the worker has suffered any of the aforementioned things, then he or his dependents are not entitled to compensation because the objective of this act was to safeguard the interest of the worker working at some respective premises and not to provide him with life insurance. So if the worker has died at his home, he is not eligible to get compensation under the provisions of this act. And like wise, if the worker has contracted any kind of disease or any injury that does not relate to the course of his employment, he cannot claim any kind of compensation.

Table of Contents

The following table states the sections that have been enshrined under the Workmen's Compensation Act of 1923.

SectionContent
Chapter I: Preliminary
1Short title, extend and commencement
2Definitions
Chapter II: Workmen's Compensation
3Employer’s liability for compensation
4Amount of compensation
4ACompensation to be paid when due and penalty for default
5Method of calculating wages
6Review any half-monthly payment payable
7Commutation of half-monthly payments
8Distribution of compensation
9Compensation not to be assigned attached or charged
10Notice and claim
10APower to require from employers statements regarding fatal accident
10BReports of fatal accidents and serious bodily injuries
11Medical examination
12Contracting
13Remedies of employer against stranger
14Insolvency of employer
14ACompensation to be first charge on assets transferred by employer
15Special provisions relating to master and seamen
15ASpecial provisions relating to captions and other members of crew
15BSpecial provisions relating to workmen abroad of companies and motor vehicles
16Returns as to compensation
17Contracting out any contract or agreement
18Proof of age
18APenalties
Chapter III: Commissioners
19Reference of Commissioners
20Appointment of Commissioners
21Venue of proceedings and transfer
22Form of application
22APower of Commissioner to require further deposit in cases of fatal accidents
23Powers and procedure of Commissioners
24Appearance of parties
25Method of recording evidence
26Costs
27Power of submit cases
28Registration of agreements
29Effect of failure to register agreement
30Appeals
30AWithholding of certain payments pending decision of appeal
31Recovery
Chapter IV: Rules
32Power of the state government to make rules
33Power of local governments to make rules (Repealed)
34Publication of rules
35Rules to give effect to arrangements with other countries for the transfer of money paid as compensation
36Rules made by central government to be laid before parliament

Liability of the Employer to Provide Compensation

The person employing was liable to provide compensatory relief if, during the course of work, under these circumstances:

  • The worker has acquired any occupational illness;

  • Any uncertain event has resulted in a partial or total disability;

  • The worker has suffered any kind of injury; or

  • Any uncertain event has resulted in the death of the worker.

Rights of Workmen

There were various rights that were provided to the worker, and a few of them are provided below:

  • The workman or his dependants were entitled to get compensatory relief in case of any injury, disease, or death;

  • If the person is employed If the person who employed him provides him with an inadequate amount of claim, then the worker can reach out to the Commissioner;

  • The worker had a right to claim before the Commissioner, and in case the Commissioner provides unsatisfactory relief, the worker has a right to go to the High Court, etc.

Conclusion

In a nutshell, this act followed the principle of "notional exception," which simply means the employees are liable to pay relief to workers if they become victims of any kind of injury or if they die. It also follows the ideology of "added peril doctrine," which says that if a person has done something that he was not required to do or has voluntarily undertaken the risk of, then he is not entitled to any kind of relief for injury or disability from the person employing him.

Besides that, practically speaking, with the passage of time the government felt the need to increase the amount of wages that are considered when calculating the compensatory amount, so the government increased the amount from Rs. 8000 to Rs. 15000. Thus, this act made it an obligation for employees to pay compensation without leaving any choice.

FAQs

Q1. What is the amount of wages that are considered for calculation?

Ans. After the year 2020, the amount of 15000 rupees is considered a wage for the purposes of the calculation of compensation.

Q2. If the worker has suffered any injury when he was not on industrial duty, can he claim compensation?

Ans. Regardless of whether the worker was on the premises or not, the factor that is taken into account when determining if anyone is entitled to get compensation or not is whether he has done the work in the course of his employment.

Q3. Who determines the amount of wages that are considered for the compensation's calculation?

Ans. The Ministry of Labor and Employment notifies the public of the amount that has to be considered from time to time by way of notifications.

Q4. If the commissioner does not provide satisfactory relief to the worker, what is the remedy?

Ans. The workers can go to court against the commissioner's order if they were not provided satisfactory relief by the commissioner.

Q5. Does this act cover workers who have signed contracts for work before the enactment of this act?

Ans. Yes, this act also covered those workers who had signed a contract of employment even before the enactment of this act.

Updated on: 27-Jan-2023

93 Views

Kickstart Your Career

Get certified by completing the course

Get Started
Advertisements