The Workmen Compensation Act 1923
The Workmen Compensation Act 1923 allows for the payment of compensation to employees and their families in the event of an injury or accident (including certain occupational diseases) arising out of and in the course of employment, resulting in disability or death. The Act covers railway servants and those engaged in any of the roles listed in Schedule II of the Act. Persons working in factories, mines, plantations, mechanically propelled vehicles, construction, and several other hazardous activities are included in Schedule II.
The amount of compensation due is determined by the type of the damage, average monthly pay, and the workers’ age.
The minimum and maximum rates of compensation payable for death (in such cases, it is paid to workmen’s dependents) and disability have been established and are subject to periodic revision.
Under the Ministry of Labour and Employment, a Social Security Division has been established to deal with the formulation of social security policy for employees as well as the execution of different social security programmes. It is also in charge of enforcing the Act. The Act is administered by state governments via Workmen’s Compensation Commissioners.
The Workmen Compensation Act 1923
An employer is liable to pay compensation: I if a workman suffers personal injury as a result of an accident occurring during and in the course of his employment; and (ii) if a workman employed in any occupation contracts any disease designated by the Act as an occupational disease peculiar to that occupation.
However, under the following situations, the employer is not responsible to pay compensation:-
If the worker is not completely or partially disabled for more than three days as a consequence of the accident.
If the injury is caused by an accident that is directly attributable to: I the workman being under the influence of drink or drugs at the time of the accident; or (ii) the workman’s willful disobedience to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen; or (iii) the workman’s willful removal or disregard of any safety guard or other deviant; or I
The State Government may designate any individual to be a Commissioner for Workmen’s Compensation for such region as may be indicated in the notice by publication in the Official Gazette. Any Commissioner may appoint one or more people with specific knowledge of any issue relevant to the matter under investigation to assist him in conducting the inquiry for the purpose of considering any matter brought to him for determination under this Act.
Compensation must be paid as quickly as possible when it becomes due. If the employer refuses to accept obligation for compensation to the level claimed, he must make a temporary payment based on the amount of liability he acknowledges, which must be lodged with the Commissioner or paid to the workman, as the case may be.
If a question arises in any proceeding under this Act as to the liability of any person to pay compensation (including whether a person injured is or is not a workman) or the amount or duration of compensation (including any question as to the nature or extent of disablement), the question shall be settled by a Commissioner, unless the parties agree otherwise. No Civil Court has jurisdiction to settle, determine, or deal with any dispute that is required to be solved, decided, or dealt with by a Commissioner by or under this Act, or to enforce any responsibility incurred as a result of this Act.
The State Government may direct that every person employing workmen, or any specified class of such persons, send a correct return at such time, in such form, and to such authority, as may be specified in the notification, specifying the number of injuries for which compensation has been paid by the employer during the previous year and the amount of such compensation, as well as such other particulars as may be specified in the notification.
Whoever fails to keep a notice book as needed; or fails to transmit to the Commissioner a statement as necessary; or fails to send a report as required; or fails to make a return as required is subject to a fine.
The Act’s Key Features
The “Workers Compensation Act, 1923” is a law that requires employers to compensate employees for any injuries they sustain in the course of their employment. This Act was formerly known as the Workmen Compensation Act of 1923. When the employer is not responsible for compensating the employee:
If the employee is not completely or partially disabled for more than three days as a result of the accident.
If the harm does not result in death or permanent complete disability, and it is caused by an accident that is directly caused by:
Employee who was under the influence of alcohol or drugs at the time of the accident;
The employee’s wilful disobedience to an order if the rule is clearly stated or specifically formulated for the aim of ensuring employee safety; or
Willful removal or disobedience by an employee of any safety guard or other device installed for the aim of ensuring employee safety.
Compensation Policies and Procedures
On behalf of the dead, who will get compensation?
- Compensation is due to a widow, a minor who is a legal son or daughter, or a widowed mother.
- If the deceased’s family is entirely reliant on the employee’s wages at the time of his death, or if a son or daughter has reached the age of eighteen
- A widowed man
- a parent who isn’t the bereaved mother
- If married and a minor, or if widowed and a minor, an illegitimate son, an unmarried illegitimate daughter, or a daughter legitimate or illegitimate or adopted
- If a minor, a minor brother, an unmarried sister, or a widowed sister
- a daughter-in-law who is widowed
- A minor son of a dead father
- A minor child of a predeceased daughter who has no living parents, or
- If none of the employee’s parents are living, a paternal grandparent.
Liability’s Nature
Consider what would happen if an employee who is putting in long hours and receiving excellent perks learned that he or she would not be receiving any. People, after all, are prone to doing something for the sake of receiving something in return. When the vicarious responsibility concept is used, the employer is responsible to pay compensation regardless of his or her own fault. The employer expects it to be compensation for the workers, but it is really a relief for them. When workers are injured as a result of an accident or other unavoidable circumstances while on the job, the employer is held accountable.
Doctrine of increased risk
When an employee goes above and beyond what is expected of him in his job and puts himself in risk, the employer cannot be held accountable for the harm he causes. Devidayal Ralyaram vs. Secretary of State is a case in point. The notion of additional risk was invoked as a defence, and the employer was not accountable for the compensation, according to the ruling.
Compensation adjudication
The commissioner makes the decision on the amount of compensation to be paid. The amount of compensation is computed from the accident date.
Self-inflicted Injury is a kind of self-inflicted injury that occurs
A self-inflicted injury occurs when a worker injures himself or herself. The injury could be deliberate or unintentional, but the employer is not liable. There are several occupations that have a significant risk of self-inflicted injuries, such as:
- Officers of the law
- Employees in the medical field
- Farmers
- Teachers
- Salespeople
Negligence on the part of the contributor
Employees owe their employers an obligation to do their duties with reasonable care in order to prevent accidents and injuries. Employers are vicariously accountable for their workers’ carelessness, although they have the right to seek a contribution or indemnification from the negligent employee in certain instances. So, if both the employee and the employer are negligent, the employer will be responsible for compensation to the amount of his own carelessness, not the employee’s. As a result, the compensation amount may be reduced because the employer will not be liable for the employee’s negligence.
Compensation for Employees
Section 3: Compensation Liability of the Employer
- In the event of an occupational sickness, the employer is liable.
- Certain jobs expose individuals to illnesses that are inherent in the work environment.
- Radiations in the infrared range;
- Chemical or leather processing units cause skin problems;
- Noise-induced hearing damage;
- Lung cancer caused by asbestos dust, as well as diseases induced by harsh weather conditions.