OBJECTIVE OF THE ACT

Giving the workers compensation in case the

are injured during work hrs. in the premises.

It applies to the whole of India including J&K

It came in to effect in 1924.







DEFINATIONS
Dependent- One who is dependent on another for
livelihood.

Employer- A body corporate/ a legal representative of the
employer/ an agent of the body corporate.

Disablement- Loss of earning capacity. It could be:
a. Permanent- through out the life the worker has his
earning capacity. It could be:
Total: 100% of earning capacity is lost.
Partial: Only some earning capacity is lost.


b. Temporary- Earning capacity is lost for a
few days.
Schedule 1 of the Act determines the % of
earning capacity that is lost.
Monthly wages Wages paid for 1 months
service.
Workman A person defined in this Act.
There has to be a master- servant
relationship.
RULES REGARDING WORKMENS
COMPENSATION
There should be an injury due to an accident.
It should occur during the course of
employment.
Accident- Something that is forseen.
Injury- Even psychological injury is taken into
consideration.
Out of and during the course of employment-
When the worker uses the employers transport
for the purpose of commuting and he has an
accident, the employer has to compensate him.


If the worker has come early and injures
himself, the employer will compensate him
as he was preparing for his work.
If the worker is on duty an d has gone out,
the employer will compensate him.
Even during rest interval as it is included in
the time of employment.

OCCUPATIONAL DISEASES
These are incurred/ contracted due to the
employment.
These diseases are given in Schedule III of this
Act.
It is divided into Part A, Part B and Part C.
Part A- Employer will compensate the worker
immediately.
Part B- The worker Should have worked for at
least 6 months.
Part C- Depends on the Central Government.
CASES WHERE EMPLOYER IS NOT LIABLE TO
PAY.


1. Injury doesn't occur during or out of
employment.
2. When the worker files a civil suit.
3. Disablement doesnt last for more than 3 days.
4. Worker is under the influence of drugs.
5. Wilful disobedience and negligence of the
worker.
6. When proper safety measures have been
adopted by the worker.


AMOUNT OF COMPENSATION
DEATH
50*Monthly wages* Relevant Factor/100
OR
Rs. 80,000 which ever is more.
PERMANENT DISABLEMENT
Schedule I will give the nature of the injury.
Schedule IV will give the compensation amount.

60*Monthly wages* Relevant Factor/100
OR
Rs. 90,000 which ever is more.

TEMPORARY DISABLEMENT
Half monthly wage will be given.
This will be paid on the 16
th
day of every month
is disablement is more than 28 days.
If It is less than 28 days then compensation will
be given on the expiry of the 3
rd
day.
Lump sum- Commutation of half months
payment.
Commissioner has the right to revise the wages
only after receiving an application from the
employee.




GENERAL PROVISIONS REGARDING
COMPENSATION

Deposit the compensation amount with the commissioner who will make the
payment.

Once the employer gets the receipt from the commissioner his liability is over.

The compensation amount given to the dependents will be only after deducting
the funeral expense.

If there are more than 1 dependent, the proportion is decided by the
commissioner.

He can make any variation in the payment.

In case of disablement, It is paid only to the workers and not to the dependents.
If there is no dependent, the amount is refunded.


TIME LIMIT FOR PAYMENT
Payment is made as soon as it is due.
If there is a delay of 30 days then the
employer has to pay a simple interest of 6%.
If there is further delay then he has to pay a
penalty of 50% of the compensation.

NOTICE AND CLAIM (SEC-10)
Employer will compensate only-
If he receives a notice from the employee.
This notice can be given by the injured
person / anybody else on his behalf.
It can be given in person or by post.
It should contain full details of the injury.
Employer will maintain a register of the list of
accident.

EXCEPTIONS TO THE ABOVE (NO NOTICE YET
COMPENSATION)
Death of the worker.
Employer already knowing about the injury
from some other source.
Commissioner finds a valid reason for not
giving a notice.