Thursday, 10 March 2016

Article by Pooja Jain

Workmen’s Compensation Act, 1923
By Pooja Jain (PU II Sem)
}  This act is social security legislation.
}  It imposes statutory liability upon an employer to discharge his moral obligation towards his employees when they suffer from physical disability & diseases during course of their employment
}  The act extends to whole of India.

Who is Entitled for Compensation?       

  • Legal representative of diseased employee
  • Any person to whom services of employee are temporary lent.

PARTIAL DISABLEMENT- means the disablement of temporary nature.

  • Such disablement reduces the earning capacity of a workman.
  • If the disablement is of permanent nature, such disablement reduces the earning capacity of an employee in every employment which he was capable of undertaking at that time.
Employers Liability for Compensation
If personal injury is caused to a workman by accident arising out of and in the course of employment, his employer shall be liable to pay compensation.

Amount of Compensation
(a) In case of death of an employee- 50% of monthly wages x relevant factor or Rs 80,000 whichever is more.                   (b) Where permanent total disablement results- 60% of monthly wages x relevant factor or Rs 90,000 whichever is more.
  - If monthly wages > Rs 4000, Rs 4000