WORKMEN’S COMPENSATION ACT, 1923

PRESENTED BY- 1 4 0 1 0 56 1 4 0 1 0 69 1 4 0 1 0 75 1 4 0 1 0 86 1 3 0 1 0 95
ABOUT -

The Workman's Compensation Act, 1923 is one of the important

social security legislations.
Social Security Legislations- Laws enacted by government for the security of public/ individual.

• Measures providing protection to working class against contingencies like retirement, resignation,
retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions.

• Constitution of India mentioned issues like- Welfare of Labor including conditions of work, provident
funds, employers' liability, workmen's compensation, invalidity and old age pension and maternity benefits
come under SOCIAL SECURITY LEGISLATIONS.

• Some of the social legislations include- Employee’s State Insurance Act, 1948, Workman’s Compensation
Act, 1923, Employees' Provident Fund and Miscellaneous Provisions Act, 1952
INTRODUCTION -

• The Indian Workmen's Compensation Act of 1923, put into effect on 1st July 1924, provides social and employment injury
security for Indian workmen, employed in hazardous industries such as mining, factories, plantations, etc.
• Workmen may claim damages unless damages were caused under influence of drugs or alcohol, or the workman is claiming
damages in a civil court.

How and why it started:

• The growing complexity of industry in this country, with the increasing use of machinery and consequent danger to
workmen, along with the comparative poverty of the workmen themselves, rendered it advisable that they should be
protected, as far as possible from hardship arising from accidents.
• After a detailed examination of the question by the Government of India, Local Governments were addressed in July 1921,
along with employers‘ and workers‘ associations , the Government of India believed that public opinion generally is in favor
of legislation.
• In June, 1922 a committee was convened to consider the question.
• On the recommendations of the committee the Workmen‘s Compensation Bill was introduced in the Legislature.
• The Workmen‘s Compensation Bill having been passed by the Legislature received its assent on the 5th March, 1923.
• It came into force on 1st day of July, 1924.
AIMS / OBJECTIVES-

The Workmen's Compensation Act, 1923,

• aims at providing financial protection to workmen and their
dependents in case of accidental injury by means of payment of
compensation by the employers.
• aims to provide workmen and/or their dependents some relief in
case of accidents arising out of and in the course of employment and
causing either death or disablement (partial or total) of workmen.
SCOPE AND LIMITATIONS -

• Workmen’s Compensation Act is different in different nations.

• It is present in Australia, Brazil, Canada, Germany, India, Japan, Malaysia, Mexico, New Zealand, United Kingdom,
United States.
• In India, this act was introduced on 5 March, 1923 and came into force on 1 July, 1924.
• It includes Employer’s liability for compensation and amount of compensation.
• Every employee (including those employed through a contractor but excluding casual employees), who is
engaged for the purposes of employers business and who suffers an injury in any accident arising out of and in
the course of his employment, shall be entitled for compensation under the Act.
• Workers employed in any capacity specified in Schedule II of the Act which includes Factories, Mines,
Plantations, Mechanically Propelled Vehicles, Construction Work and certain other Hazardous Occupations and
specified categories of Railway Servants.
• The Act extends to the whole of India except the States/Union Territories of Arunachal Pradesh, Mizoram,
Nagaland, Sikkim and Daman & Diu and Lakshadweep.
• The coverage of this Act is also to cooks employed in hotels and restaurants.
• The Act does not apply to members of the Armed Forces of the Union & workmen who are covered by the ESI
Act.
DEFINITIONS-

Workman/ Employee-
Any person (other than the person whose employment is of a casual nature and who is employed otherwise than for the
purposes of employer’s trade or business) who is-
i. railway servant, persons who work with steam propelled machines.
ii. persons who stay or work in premises of manufacturing process.
iii. loading or unloading goods.
iv. workers in premises of mechanical and electrical power
v. workers involved in making and ornamenting or detailing.
vi. Manufacturing and handling of explosives.
vii. Employed in mines, mining operations and premises.
viii. Employed as master of seaman.
ix. Employed in fueling, constructing, painting and other finishes.
x. Handling of transport and discharging.
xi. Repairing or handling electric, telegraph, telephone or other cable lines.
xii. Construction, working, repair and demolition of sewers and water lines.
xiii. Involved in blasting operations.
xiv. Involve in fire brigade.
Employer-
Anybody of persons whether incorporated or not and any managing agent of an employer and the legal representative of the
deceased employer, and, when the services of the workman are temporarily lent or let on hire to any person by the person
with whom the workman has entered into the contract of service or apprentice means such other person while the workman
is working for him.

Managing Agent-
Any person appointed or acting as a representative for another person for the purpose of carrying on such other persons but
does not include an individual manager, subordinate to an employer.

Dependent-
Dependent means any of the following relatives of a deceased workman, namely:
(I) a widow, a minor legitimate or adopted son and unmarried legitimate or adopted daughter, or a widowed mother.
(II) 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.
(III) and any of the following were wholly or partly dependent on the workman at the time of his death- a widower, a parent
other than a widowed mother, a minor illegitimate son, a unmarried illegitimate daughter or a daughter legitimate or
illegitimate or adopted if married & a minor or if widowed & minor, a minor brother or an unmarried sister or a widowed
sister if a minor, a widowed daughter-in-law, a minor child of pre-deceased son & daughter where no parent of the child is
alive & a paternal grandparent if not the parent of the workman is alive.
Wages-
Wages includes any privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the
value of any travelling concession or a contribution paid by the employer to a workman towards any pension or provident fund
or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment.

Compensation-
Something (typically money), awarded to someone in recognition of loss, suffering or injury.
 Disablement-
Disablement means loss of capacity to work or to move.
Disablement of workman may result in loss or reduction of his earning capacity.
In the later case, he is not able to earn as much as he used to earn before his disablement.
Disablement may be- partial or total.
Further it may be- permanent or temporary.

Partial Disablement- Total Disablement-

This means any disablement as reduces the earning capacity
of a workman as a result of some accident. It may be
temporary or permanent.
Permanent partial disablement is one which reduces the
earning capacity of a workman in every employment which
he was capable of undertaking at that time of injury.
‘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 the accident resulting in such disablement.

Occupational Diseases-
Workers employed in certain types of occupations are exposed to the risk of contracting certain diseases which are peculiar
and inherent to those occupations.
A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment
and the employer is liable to pay compensation for the same.

different types of disablement and their compensations are mentioned in the act- Workman’s Compensation Act, 1923
WORKMAN’S LIABILITY FOR COMPENSATION-

To compensate any workman,

• Who has suffered an accident arising out of and in the course of his employment, resulting into:
(i) death, (ii) permanent total disablement, (iii) permanent partial disablement, (iv) temporary disablement whether total or
partial,
• Who has contracted an occupational disease.

WORKMEN NOT LIABILITY FOR COMPENSATION-

Workman,
• in respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding
three days.
• in respect of any injury not resulting in death, caused by an accident which is directly attributable to-the workmen having
been at the time there of under the influence of drugs or
• the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of
securing the safety of workmen, or
• the willful removal or disregard by the workmen of any safeguard or other device which he knew to have been provided for
the purpose of securing the safety of workmen.
• when the workman has contacted a disease which is not directly attributable to a specific injury caused by the accident or
to the occupation; or
• when the employee has filed a suit for damages against the workman or any other person, in a Civil Court.
CONDITIONS FOR RECEIVING COMPENSATION-

The 3 tests for determining whether an accident arose out of employment are-
• At the time of injury workman must have been engaged in the business of the employer and must not be doing something
for his personal benefit.
• That accident occurred at the place where he was performing his duties.
• Injury must have resulted from some risk incidental to the duties of the service, or inherent in the nature or condition of
employment.

GENERAL PRINCIPLES-

• There must be a causal connection between the injury and the accident and the work done in the course of employment.
• The onus is upon the applicant to show that it was the work and the resulting strain which contributed to or aggravated
the injury.
• It is not necessary that the workman must be actually working at the time of his death or that death must occur while he
was working or had just ceased to work.
• Where the evidence is balanced, if the evidence shows a greater probability which satisfies a reasonable man that the work
contributed to the causing of the personal injury it would be enough for the workman to be entitled.
• But where the accident involved a risk common to all humanity and did not involve any peculiar or exceptional danger
resulting from the nature of the employment or where the accident was the result of an added peril to which the workman
by his own conduct exposed himself, which peril was not involved in the normal performance of the duties of his
employment, then the employer will not be liable.
ADMINISTRAIVE AUTHORITY-

Jurisdiction of Commissioner- Any matter under this Act, to be done by or before a Commissioner, shall be done
by or before the Commissioner for the area in which
(a) the accident resulting in the injury, took place or
(b) the workman, or his dependent, claiming the compensation ordinarily resides, or
(c) the employer has his registered office.
where a Commissioner is satisfied that any proceedings can be more conveniently disposed of by any other
Commissioner, he may transfer the matter to such other Commissioner.
STATEMENT OF FATAL ACCIDENTS-

Where a commissioner receives information from any source that a workman has died as a result of an accident
arising out of and in the course of his employment, he may require the employer, by serving upon him a registered
notice, to submit within 30 days of its service, a statement in the prescribed form ;
(a) Giving the circumstances attending the death of the workman, and
(b) Indicating whether he is or, is not, liable to pay accident compensation. If the employer feels that he is liable to
pay compensation, he shall make the deposit within 30 days of the service of the notice. If the employer disclaims
his liability, he should indicate the grounds for such disclaimer.
ACCIDENT REPORT-

• Where the accident results in death or serious bodily injury, the employer should send a report to the
Commissioner, within 7 days of the accident, in the prescribed form giving the circumstances attending the
death or serious bodily injury.
• A ‘notice of accident' should be sent to the Commissioner, by the concerned workman as soon as practicable
after the happening thereof. The notice should contain such particulars as the name and address of the person
injured, the date and cause of accident, etc.
• A Copy of the notice should also be sent to the establishment wherein he was employed.
• The notice of accident may be served either personally or by registered post or by means of an entry in the
notice-book maintained by the employer.
• The employer may get the concerned workman examined by a qualified medical practitioner, within 3 days from
receiving the notice of accident.
• The workman must present himself for such examination otherwise he shall loose his right to the
compensation.
• Failure of employer to have the workman medically examined does not debar him from challenging the medical
certificate produced by the workman.
COMPENSATIONS ACCORDING TO DISABLEMENTS-
The type of compensation is divided into four areas:
Death:
The amount compensated is calculated by multiplying 50% of last wages by a relevant factor or Rs. 60,000 whichever is more.
Permanent total disablement:
The amount compensated is calculated by multiplying 60% of wages by a relevant factor or Rs. 60,000 whichever is more.
Permanent partial disablement:
The amount of compensation is totaled for multiple injuries.
Temporary disablement (Partial/Total):
Compensation is paid as a bimonthly sum equivalent of 1/4th of the employee's monthly income.

PAYMENT OF COMPENSATION TO CONTRACT LABOUR-

• The principal employer is liable to pay compensation to contract labor in the same manner as his departmental labor.
• He is entitled to be indemnified by the contractor.
• The principal employer shall not however be liable to pay any interest and penalty leviable under the Act.
MODE OF PAYMENT :
• The employer becomes liable to pay the compensation as soon as the personal injury was caused to the workman by the
accident which arose out of and in the course of the employment.
• The amount of compensation should be paid as soon as it falls due. It will be computed on the date of accident. If the
amount is not paid within one month from the date it fell due, the Commissioner may after giving reasonable opportunity
of being heard, direct the employer to pay simple interest @ 12% p.a.
• Besides, if there is no justification for the delay, the Commissioner may after giving reasonable opportunity of being heard,
direct the employer to pay a further sum not exceeding 50% of the compensation, by way of penalty. The amount of penalty
and also interest shall be paid to the workman or his dependent .
• The half-monthly installments of compensation (payable in case of temporary disablement) should be paid within the time
specified.
• The half-monthly installments can be converted into a lump sum payment, by an agreement between the employer and the
employee or by applying to the Commissioner.

* Schedule-II consists of amount of payment for specific disablements.

CONCLUSION-

• India's welfare programs are welfare oriented. However, the Workmen's Compensation Act - 1923 very useful.
• Many of these laborers have families dwelling in rural areas, nevertheless, these laborer's venture out into the
cities looking for work so that they can send their children to better schools and provide better healthcare to
their elderly.
• These laborer's overcome the language and cultural barrier, and have moved away from their families to live in
big modernized cities that may seem foreign to them.
• They do all this so that they can have a better life.
• It should be noted that many times, the male industrial workers may be the only working member of the family,
and their injury at work could give rise to drastic consequences.
• Forcing the laborer's other dependents to look for menial work or even resort to begging.
• Hence, the Workmen's compensation act was a huge turning point benefiting the working sector.
SOURCES-

Workman’s Compensation Act, 1923- pdf

http://www.rahulgladwin.com/noteblog/business/LW/workmens-compensation-act-of-1923.php
http://shodhganga.inflibnet.ac.in/bitstream/10603/28179/12/12_chapter%204.pdf