An Overview of Workmen’s Compensation Act 1923

 

The Workmen Compensation Act 1923 was formed to provide compensation to workers who faced accidental death or injuries in the course of employment.The Workmen’s Compensation Act 1923 makes the employers liable to pay compensation to employees who sustained injuries which leads to their disablement or death in the course of employment.The Workman’s Compensation Act came into force on 1st July 1924, and it applies across India. However, the Workmen’s Compensation Act 1923 does not apply to employees covered under Employees State Insurance Act, 1948.

What is the necessity of Workmen’s Compensation Act?

Before the introduction of the Workmen’s Compensation Act, 1923, the employee was responsible for proving the negligence on part of the employer which resulted in an occupational injury. This resulted in a time-consuming and expensive litigation process.Thus, there was a need for a legislation which would give the employees the automatic right to claim compensation for any form of employment related accidents or diseases.

The Employee Compensation Act 1923 makes the employer responsible for injuries sustained by the employees in the course of employment and provides for faster settlement of disputes for compensation through Special Tribunals.

What are the features of Workmen’s Compensation Act 1923?

An employer is liable to pay compensation under the Workmen’s Compensation Act 1923 for injuries arising resulting Permanent or Temporary disablement of the employee due to accidents occurring in the course of employment.Disablement of the employee can be temporary or permanent. Permanent Disability reduces the earning capacity of the employee permanently while Temporary Disability reduces the employee’s earning capacity for the duration of disability.

The Employee Compensation Act also has a provision to provide compensation to the employees if the employee contracts an Occupational Disease. Occupational Disease means a Disease which is peculiar to a particular form of employment only.

What are the Conditions under which an Employer is Not Liable to pay Compensation under the Workmen’s Compensation Act 1923?

According to Workmen’s Compensation Act, the employer is liable to pay compensation when the injury or accident occurs during the course of employment. However, the employer is not liable for compensation under the Act if:

->An injury that doesn’t’ result in partial or total disablement for a period of more than 3 days

->An accident which caused permanent disability or death occurred when the employee was under the influence of drugs or alcohol

->The employee sustained injuries because wilfully ignoring the safety protocols which were specifically framed to ensure the safety of the employee

What is the amount of Compensation under Workmen’s Compensation Act 1923?

The calculation of the compensation amount is done as per the provisions listed under Section 4 of the Workmen’s Compensation Act as follows:

->In Case of Accident Resulting in Death: An amount equal to 50% of the monthly wages of the deceased employee multiplied by the relevant factor or Rs.1,20,000 whichever is more.

->In Case of Accident That Results in Permanent Total Disablement: An amount equal to 60% of the monthly wages of the injured employee multiplied by the relevant age factor or Rs.1,40,000 whichever is more.

->In Case of Accident That Results in Permanent Partial Disability: The amount payable is the percentage of the loss of the earning capacity due to injury multiplied by the relevant age factor

Who is eligible to claim Compensation under the Workmen’s Compensation Act 1923?

->a widow, a minor (legitimate or adopted) son, an unmarried (legitimate or adopted) daughter or a widowed mother; and

->if wholly dependent on the earnings of the workman at the time of his death, a son or a daughter who has attained the age of 18 years and who is infirm;