WORKMENS

COMPENSATION ACT, 1923

LABOUR LAWS
P.Aswini MBA 2ND YR

INTRODUCTION
Workmens compensation act 1923 extended to the whole India.
Commissioner means a commissioner for workmens compensation appointed
under sec 20 .
And compensation means provided for by this act;
This is a fantastic piece of legislation, till then burden of proof for claim of
compensation lay with the workman, this Act reversed the position, now the
employer is to prove if he denies claim

DEPENDANT(i) widow, minor legitimate or adopted son, unmarried legitimate or adopted

daughter and widowed mother
(ii) if wholly dependant on the earnings of the workman at the time of death,
son or daughter who has attained the age of 18 years and who is infirm
(iii) if wholly or in part dependant on the earnings of the workman at the time
of death,
(a) widower
(b) parent other than widowed mother

PARTIAL DISABLEMENT- means

where the disablement is of temporary nature, such disablement as reduces
the earning capacity of a workman in the employment he was engaged at
the time of accident resulting in the disablement, and

where the disablement is of permanent nature, such disablement as

reduces the earning capacity in every employment which he was capable of
undertaking at that time provided that every injury specified in Part II of
Schedule I is deemed to result in permanent partial disablement
TOTAL DISABLEMENT- means
such disablement, whether of a temporary or permanent nature, as
incapacitates a workman for all work which he was capable of performing
at the time of accident resulting in such disablement
provided that permanent total disablement is to be deemed to result from
every injury in Part I of Schedule I or combination of injuries specified in
Part II where the aggregate percentage of loss of earning capacity amounts
to one hundred percent or more

WORKMAN- means any person who is

(i) railway servant not permanently employed in any office and not
employed in any capacity as is specified in Schedule II
(ii) crew of a ship, aircraft, motor vehicle, a person recruited for work
abroad by a company and employed in capacity specified in Schedule II
and it is registered in India, or
(iii) employed in any capacity specified in Schedule II

N.B. if workman has died, his dependant(s)

Section 3(1)- 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 in accordance with the provisions of this Chapter

Provided the employer shall not be so liable

(a) if injury does not result in total or partial disablement for a period not
exceeding three days
(b) if injury, not resulting in death or permanent total disablement, caused
by accident directly attributable to
(i) workman having been at that time under the influence of drink or drugs,
or
(ii) wilful disobedience of the workman to order expressly given or rule
expressly framed for securing safety of workmen

(iii) wilful removal or disregard by the workman of safety guard provided

to him
(2) If a workman employed in any employment specified in Part A of
Schedule III contracts any disease specified therein as occupational disease
peculiar to that employment, or
whilst in service of an employer for a continuous period of not less than six
months under him in any employment specified in Part B of Schedule III,
or
whilst in service of one or more employers for a continuous period as Central
Government may specify in any employment specified in Part C of
Schedule III

Section 4- Amount of compensation

(a) where death results- 50% of monthly wages x relevant factor or Rs 80000
whichever is more
(b) where permanent total disablement results- 60% of monthly wages x
relevant factor or Rs 90000 whichever is more
- For relevant factor Sch 4 is to be referred
- If monthly wages > Rs 4000
where permanent partial disablement results- if injury specified in Part II of
Sch I compensation for permanent total disablement x % loss of earning
capacity
- if injury not specified in Sch I compensation for permanent total
disablement x % loss of earning capacity as assessed by qualified medical
practitioner
- Aggregate of compensation not to exceed compensation for permanent total
disablement
- loss of earning capacity is to be correctly assessed

Where temporary disablement results from injury- half monthly payment of sum equivalent
to twenty five per cent of monthly wages, to be paid in accordance to Section (2) i.e.
Half monthly payment is to be payable on the sixteenth day
(i) from date of disablement where disablement lasts for a period of twenty eight days or
more, or
(ii) after the expiry of waiting period of three days from date of disablement where
disablement lasts for a period of less than twenty eight days; and thereafter half monthly
during the disablement or during a period of five years whichever period is shorter
provided from lump sum or half monthly payments, payment and allowance received during
period of disablement prior to receiving lump sum or first half monthly payment is to be
deducted, and half monthly payment is not to exceed difference of half of monthly payment
before accident and half of monthly payment after accident ) On ceasing of disablement
before the date half monthly payment falls due, proportional payment is to be paid for that
half month
(4) If injury results in death, employer is to, in addition to compensation, deposit with the
Commissioner Rupees two thousand five hundred towards the expenditure of the funeral of
the workman

Thank

you !!!