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I. Applicability
a) Basis of applicability
Q. How to determine the applicability of Workmen's Compensation Act?
A. The applicability is to be inferred from the definition of'workman' u/s. 2(n) of
the Act, Sec. 2(n) specifies certain classes of persons as well as occupations and
establishments listed in Schedule II. To whom the Act is applicable.
b) Employees of Shops & Establishments

Q. Whether the Act applies to Employees of Shops & Establishments in

Maharashtra?
A. In case of Maharashtra, the Workmen's Compensation Act is applicable to
all shops and establishments by virtue of Sec. 38-A of the Bombay Shops and
Establishments.

c) Apprentices

Q. Whether the Act is applicable to apprentices appointed under

Apprentices Act, 1961?
A. Sec. 16 of the Apprentices Act extends the application of the Workmen's
Compensation Act to the apprentices appointed under Apprentices Act, 1961
rendering the employers liable to pay compensation for any personal injury or
accident arising out of and in the course ofemployment caused to the a
apprentices.

d) Inter-state migrant workman

Q. Is the Workmen's Compensation Act applicable to inter-state migrant
workmen?
A. Sec. 2! of the Inter-state migrant (Regulation of Employment and Conditions of
Service) Act, 1979, renders the Workmen's Compensation Act applicable to Inter-
state migrant workmen also.

II. Contracting out - whether rights can be relinquished by workman under

an agreement
Any agreement or contract by which a workman gives up his right to
compensation or which removes or reduces the liability of a person to pay
compensation is void. (Sec. 17)

III.Key expressions and meaning

a) Dependant - who can be

Q. What is essential to treat a claimant as dependant of the deceased

workman?
A. There should be an element of dependency on the earnings of the
workman at the time of death.
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Q. Whether a widow looses the status of 'dependant' on re-marriage?

A. She does not loose the states on remarriage [Veerappan v. Muthamma,
1999 III LLJ 451 (Ker.DB)

Q. Whether adopted child is dependant?

A. An adopted child is a dependant u/s. 2(1 )(d) and is thus entitled to
compensation (Sec. 2(1 )(d))

Q. Whether foster mother is treated as dependant?

A. Foster mother is not covered by the definition of dependant u/s. 2( 1 )(d).. Q.
Whether heirs of the dependant who dies can be treated as dependant?
A. They can not be treated as dependants [8.M. Habeebuliah Marker v.
Periasuwami & On., 1997 II LLJ 322 (Mad.HC)]

Q. Whether unborn child in mother womb is dependant?

A. An unborn child is not considered as dependant [Smt. Pappammal v.
Subbaiah Therar, 1973 (43) FJR 271 (Mad.HC)]

b) Partial disablement - what can be

Q. How many types can the partial disablement be classified?

A. The partial disablement can be of two types:
(a) Temporary partial disablement
(b) Permanent partial disablement (Sec. 2(g))

Q. What is temporary partial disablement?

A. If the disablement reduces the earning capacity of a workman in any
employment in which he was engagedatthe time of the accident resulting in such
disablement, it is called temporary partial disablement. (Sec. 2(g))

Q. What is permanent partial disablement?

A. If the disablement reduces the earning capacity of the workman in every
employment which he was capable of undertaking at the time of the accident, it is
called permanent partial disablement and includes every injury specified in Part II
of Sch. I. (Sec, 2(g))

For instance, if a driver is not able to drive because the free movement of his
hand is restricted by an accident but he is able to perform other works other than
driving, it is called permanent partial disablement.

c) Workman - whom it includes

Q. Who is a workman?

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A. Workman under the Act includes:

(1) a railway servant as defined in clause 34 of the Sec. 2 of the Railway Act,
1989 or
(2) a master, sea man or other member of the crew of a ship, or a capiain or
other members of the crew of an air craft or
(3) a driver, helper, mechanic, cleaner or in any other capacity in connection
with a motor vehicle and such ship, air craft and motor vehicle is registered in
India or
(4) it includes a person employed for work abroad by a company in any capacity
as specified in Sch. II or
(5) a person, employed in any such capacity as specified in Sch. II
The Central or State Government, by notification, can include persons employed
in hazardous occupations to the list in Sch. II (Sec. 2(n))

1. Clerk of Maharashtra State Electricity Board -whether can claim

compensation

Q. Schedule II to the Act excludes a clerk employed in an electricity

distribution company at Item No. XIX from the definition of workman u/s.
2(n) if so, whether a clerk working in Maharashtra State Electricity Board
can claim compensation under Workmen's Compensation Act?

A. The clerk working in the office of the Maharashtra State Electricity Board can
claim compensation under Workmen's Compensation Act, since Sec, 38A of the
Bombay Shops Act extends the application of W.C. Act to Shops and
Establishment in the State of Maharashtra. Vasudev Anant Kuikarni v. Executive
Engineer, MSEB, 1995 I LLJ 496 (Bom.DB)

2. Painter

i) Of a house

Q. Whether a worker who is under a contract to paint a house can claim

compensation?

A. He cannot claim compensation since he is not covered as employee under

the Act.
Lakshmi Naravana Shetty v, Shanta & Author, 2002 (94) FLR 658(S.C.2J) '
ii) Of a shop or a factory
A person whitewashing of the factor)' or painting the premises of a shop carrying
on trade or business is a workman under the Act since such work canbe
construed as repair within the meaning of item (viii) of schedule II.
Kamal Devi v. Bengal National Textile Mills Ltd. Calcutta, 1975 II LLJ 81
(P&H.HC)
Smt. Raja Rani w/o Jagdev Dutt v. Firm Narsing Das Mela Ram
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&Anr., 1964 AIR (Pun.HC)3l5

3. Child Labour

Q. Whether a child worker aged 13 can claim compensation under the Act
for any injury sustained by him in employment?

A. In the case of Mis. New India Assurance Co. Ltd. v. Rachaiah Basaiah
Gangachan, 2001 IV LLN 1227 (Karn.HC) it was held that the Child Labour
(Prohibition and Regulation) Act, 1986 prohibits employment of children who
have not attained the age of 14 years only in occupations/Workshops, specified
in part A and part B of the schedule appended to the Act implying there by that a
child can be employed in other occupations. Further the Workmen's
Compensation Act, 1923 does not prohibit employment of children. Therefore a
child thus employed in any occupation or processes other than those specified in
part A or part B of the Schedule sustains an injury, he can claim compensation
unde.r the Workmen's Compensation Act. >. ../.

4. Casual workman

Q. Whether a workman like a mechanic who is employed for a short period

or casually can claim compensation under the Act?

A. Even though a workman is employed for a short period or casually, he can still
claim compensation if the workman is employed for the purpose of employer's
work and the work itself is of regular nature. Asst. Executive Engineer
Bhadravathi v. H.S. Sunanda & Anr., 1994 II LLJ 12043 (Karn.DB)
Patel Engineering Co. Ltd. v. Commissioner for Workmen's Corporation
Hyderabad & Ors., 1978 I LLJ 147 (AP.DB)
The Amendment Act 46 of 2000 however omitted that part which excluded casual
workman from the definition of worker u/s. 2(n).

5. Badli Worker

Q. Whether budli worker can claim compensation?

A. He can claim compensation, if he is engaged for the trade or business of the

employer and as a substitute for regular workman.
Secretary Trivandntm Port & Hood Land Workers Co-operative Society Ltd. v.
Dhanesh Kumar Abas Thampi, 2001 I LLJ 1629 : 2000 IVLLN 453 (Ker.DB)

6. Contract Labour
Q. Is Contractor's Workman employed on the premises of principal
employer's company can claim compensation?

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A. Yes. He can claim compensation, if he performs the work of or connected with

that of principal employer as specified in any of the items under Sch. II. [Jowala
Prasad Agarwalla v. Bhola Routh, AIR 1963 Air (Ass.DB)] Further what is
important is the nature of duties of the workman and whether these duties fall
under any of the descriptions of employments mentioned in Sch. II and whether
the person is working for employer's trade or business as held in the case of
[Secretary Trivandrum Port & Hood Land Workers Co-operative Society Ltd. v.
Dhanesh Kumar Abas Thampi, 2001 I LLJ 1629 : 2000 IV LLN 453 (Ker.DB)]
Besides, The Act also renders principal employer liable to pay compensation to a
contractor workman by virtue of Sec. 12(2), Sarjerao Unkar Jadhav v. Gwinder
Singh & Am., 1992 I LLJ 156 (Bom.HC)

7. Electric repairer who is self employed

Q. Whether a person called to repair an electric defect on payment of a
small lump-sum amount is entitled to claim compensation under the Act?
A. He can not claim compensation since it is not a contract of service but is only
a contract for service and therefore does not fall within the definition of workman
under the Act.
Ganesh Foundry Works v. Bhagvati & Ors., 1985 II LLJ 95 (P&H.HC)

d) Wages
Q. What do "Wages" include under the Act?
A. 'Wages' includes any privilege or benefit which can be estimated in money
but does not include the following:
(a) Travelling allowance or the value of traveling concession
(b) PF or pension contribution
(c) any amount paid to the workman to meet any special expenses incurred by
him by the nature of employment. (Sec, 2(m))

Q. Whether the Act prescribes any wage limit for entitling a workriian to
compensation?
A. The Act does not prescribe any wage limit unlike other beneficial labour
legislation like PF Act of ESIC Act.

Q. How the definition of wages under Workmen Compensation Act differs

from that under other Acts?
A. The Scope and ambit of definition of wages under Workmen's Compensation
Act is much wider than that under other labour laws in that the former includes
not only remuneration paid for the work done but also other privileges and
benefits payable to a workman. Thus benefits like bonus or overtime allowance
are included while all most all other labour laws excluded bonus or the value of
amenity of service provided to a workman.

1. Bonus - whether a wage

Q. Is bonus is a wage under the Act?
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A. The definition as may be observed, does not limit the meaning of 'wages' but
seeks to include bonus.
Maharashtra Sugar Mills Ltd. v. Ashru Jcqwant Tribhuvan, 1966 I LLJ 84
(Bom.DB)

2. Overtime allowance
Even overtime benefit is considered as part of wages under the Act. Bharat
HeavyPlates & Vessels Ltd, v. Commissioner for Workmen's Compensation &
Ors., 1983 I LLJ 477 (All.HC)

3. Daily food allowance or value of free meals

Daily food allowance paid to a workman is part of wages. Similarly, if free meals
is supplied to him as part of terms and conditions of workmen, it is part as wages.
Sampuran Singh v. Mukhliar Singh, I993 I LLJ 45 (P&H.HC)

4. Daily batta
Whether daily batta is included in wages or not depends upon the purpose for
which the batta is paid. There is however no clear demarking line that separates
which kind of batta falls under inclusive part and which will fall under exclusive
part. If batta is paid as food allowance, it forms part of wages and if batta is paid
as traveling allowance', it is excluded. [Divisional Manager, Oriental Insurance
Co. Ltd v. Girewal Transport Corporation, 1995 II LLJ 169 (Ori.HC)] or to meet
special expresses incurred by an employee on account of is employment it is
excluded from wages [Oriental Insurances Co. Ltd. Vijayawada Branch v.
Koruingi Kondal, 2001 I LLJ 527 (AJP.HC)].

e) Total disablement
Q. What is total disablement?
A. Total disablement is a disablement which incapacitates a workman for all work
which he was capable of performing at the time of the accident resulting in such
disablement. Sec. 2(1).
Q. Into how many types the Act classifies total disablement?
A. Total disablement may temporary or permanent.
Q. What injuries, result in permanent total disablement?
A. The Act specifies such injuries which cause total disablement. All those
injuries specified in Part I of Sch. 1 or from any combination of injuries specified
in part II of the Sch. I where the aggregate percentage of the loss of earning
capacity as specified in the said Part II against those injuries amounts to one
hundred percent or more (proviso to Sec. 2(e)).
IV. Accident
Q, What is accident?
A. The Act did not define the expression 'accident' but the meaning of the word
'accident1 occurring in Sec. 3 of the Act as extracted from various case laws has
to be understood in the ordinary sense of the meaning In that it means a 'mishap'

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or an untoward unforeseen event or an event not expected causing an injury or

resulting in the death of a workman.

Q. Is the employer liable to pay compensation to the workman in case of

every accident?
A. It is not that every kind of accident renders the employer liable for
compensation to the workman. In order to make him liable, the accident should
arise out of and in the course of his employment (Sec. 3(1)).
a) Accident arising out of employment (Sec. 3(1))

Q. How to determine whether or not an accident is arising out of

employment?
A. An accident is said to be arising out of employment when there exists a causal
connection between employment and injuries or death. For instance an accident
on the road in which a truck driver of accompany was injured while driving a
truck, is said to be arising out of employment, since an accident is incidental to
driving. Similarly when a workman having a heart trouble, lifts and removes
heavy bales through out night and dies of heart attack, the death is deemed to
arise out of employment as it was deemed to have been caused by stress and
fatigue. It means where the heart attack which caused the death is relatable to
the strain of work, it is deemed to be an accident arising out of employment
Mackiman Mackenzie & Co. (P) Ltd. v. Rita Fernande (Smt), 1969 II LLJ 812
(S.C.3J)

b) Accident in the course of employment (Sec. 3(1))

Q. When an accident is said to arise 'in the course of employment?

A. When the circumstances are such that the workman would not have been
involved in the accident, had he not been in employment at that time or at that
place or he would not have been involved in the accident but for the action he
had taken either because of his employment or pursuant to his employment
Incidents like death of workers while travelling to work in employer's vehicle like
iorry or death of a workman during the performance of his work prior to his
scheduled time of commencement at the instance of employer or death of
workman by an accident while going to answer nature calls during his duty hours
etc are all considered in various case laws as accidents arising in the course of
employment.

Therefore an accident is said to arise in the course of employment when the

circumstances are such that he would not been at that particular time or place
when or where the accident took place but for his employment, though such
circumstances are not the direct consequences of employment.

c) Accidents arising out of employment and in the course of employment -

distinction
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Q. What is the difference between an accident arising out of employment

and in the course of employment?

A. In the case of accidents arising out of employment, there exists a causal

connection between employment and injury. It means the cause for injury directly
relates to the employment as explained by various examples cited ■ above while
in the case of accidents arising in the course of employment, there exists
circumstantial connection between the accident and the employment in that the
cause for accident may not have any direct relationship with his employment but
the circumstances that involve the workman in the accident would not have
arisen but for his employment.

d) Doctrine of notional extension - What it is

Q. What is the doctrine of notional extension and how to apply it?

A. The Apex Court has clearly explained the doctrine of notional extension in the
case of Saurashtra Salt Mfg. Co. v. Bai Vain Raja, 1958 II LLJ 249 : 1958 AIR
(SC) 881 (S.C.3J). It is apt to quote the relevant para below which clears the
concept of notional extension.

"As a rule, the employment of a workman does not commence until he has
reached the place of employment and does not continue when he has left the
place of employment being excluded. It is now well settled, however, that this is
subject to theory of notional extension of the employer's premises so as to
include an area which the workman passes and re-passes in going to and
leaving the actual place of work. There shall be some reasonable extension in
time and place and a workman may be regarded as in the course of his
employment even though he had not reached or had left his employers premises.
The facts and circumstance of each case will have to be examined very carefully
in order to determine whether the accident arose out of and in the course of
employment of a workman, keeping in view at all times, this theory of notional
extension" (Page: 251, Para: 1} 1958 II LLJ 249

Thus a bus driver who is availing a free transport service provided by the
corporation to go home and is traveling by bus after discharge from his duties at
depot and dies in the bus accident, is entitled to compensation on the principle of
notional extension.

Best Undertaking, Bombay v. Mrs. Agness, 1963 II LLJ 615 : 1963 (7)
FLR3I0(S.C.3J)

1. Death due to bomb explosion at work place

Death caused due to bomb explosion at work place is said to be an
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accident arising in the course of employment.

Trustees of the Port of Bombay v. Smt. Yamvnabai, 1952-53 (4) FJR
190(Bom.DB)
2. Death due to electrocution
While taking shelter in a nearly building during duty hours is an
accident causing in the course of employment.
Sarat Chandra Rout (In all) v. Hrusti Batra, 2000 III LLJ 952 (Ori.HC)
3. Death of budli substituting regular worker
Death of budli substituting for regular worker due to injuries is said to
have been caused by accident in the course of employment.
Traffic manager, New Manglore Trust Reg. Cargo Handling
Worker's Adam Wing v. Radha B. & Ors., 19998 II LLJ 764
(Karn.HC)
4. Death in communal riots while going to work place
The above instance alls falls under accident arising in the course of
employment.
TNCS Corporation Ltd. v. S, Poomalan, 1995 I LLJ 378 (Mad.HC)

V. Compensation
a) Employer-when liable
Q. What kind of injuries render the employer liable for payment of
compensation to a workman? Or when employer is liable for
compensation?
A. An employer is liable to pay compensation to a workman if a personal injury is
caused to him by an accident arising out of employment and in the course of
employment. The Act provides for a list of injuries resulting in permanent total
disablement in part I and for a list of injuries resulting in permanent partial
disablement in part II of Schedule I and a list of occupational diseases specified
in Parts A, B, C of Sch. Ill for which an employer is liable to pay compensation to
the empioyee in the event of an employee incurring/contracting them. (Sec. 3)

b) Occupational diseases

The occupational diseases, specified in A, B & C of Schedule III, when

contracted by a workman during the specified period of employment are deemed
to arise out of and in the course of employment. (Sec. 3(2))

A decease to be an occupational decease is to be contracted by a number of

employees as a common phenaminon but not an isolated case of ailment by a
single employee. Shridhar Dhondhiraj Kelapure v. G.M.S.E. Railway, Calcutta,
2008 (118) FLR43I (Bom.HC)

c) Employer - when not liable

Q. When an employer is not liable for compensation?

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A. An employer conditions is not liable for compensation under the following

conditions:

(1) If the total or partial disablement as a result of injury does not exceed three
days. (Sec. 3(1 )(a))
(2) If the accident is directly attributable to the influence of drink or drugs of the
workman and the injury does not result in death or permanent total disablement.
(Sec. 3(J)(b)(i))
(3) If the accident is caused due to willful disobedience of the workman of an
order expressly given or of a rule expressly framed for the purpose of securing
the safely of workman are the accident does not lead to any injury which does
not result in death or permanent total disablement. (Sec. 3(1 )(b)(ii))
(4) If the accident is caused by willful removal or neglect of any safety guard or
device by a workman and the accident does not lead to an injury which does not
result in death or permanent total disablement. (Sec3(l)(b)(iii))
(5) The employer is also not liable ID pay compensation under the Act if the
workman has instituted a civil suit for damages against the employer or any other
for the injury caused to him. (Sec. 3(5))
(6) If the workman either refuses as to submit himself for medical examination or
obstructs the same, his right to compensation stands suspended during the
period of refusal. (Sec. 11(2))

d) Computation of compensation - procedure

Q. Is there any wage limit for computing compensation for death or
permanent total disablement?
A. Yes, the explanation II to Sec. 4 stipulates that the monthly wages for the
purpose of computing compensation for death and permanent total disablement
shall be deemed to be Rs. 4000 only.

Q. What is the procedure to be followed for computing compensation for

death or disablement?
A. The compensation is computable on the basis of monthly wages and the
relevant factor, specified in the second column of Sch. IV.

(1) Calculation of monthly wages

Monthly wages are to be calculated as under :

Graded Tenure of service Computation of monthly wases

(a) Monthly wages in case of workman is 1/12 of the total wages due for
in continuous service for not less payment in the twelve months
than twelve months preceding the accident (Sec. 5(a))
immediately preceding the Ex. A workman's total wages in the
accident. preceding 12 months is Rs. 40,800.
His monthly wages in this case will

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be : 40000 = 3,400 12

(b) Monthly wages in case of workman is the average monthly amount

whose whole of the continuousearned by any other workman doing
period imediateiy preceding the the same work during the twelve
accident is less than a month, months immediately preceding the
accident. Or in his absence, by a
workman employed in similar work
in the same locality. (Sec. 5(b))
Ex.: A workman doing the same work earns a total of Rs. 33,600 as
wages during the preceding 12 months. Average monthly amount = Rs.
33,600 = 2800 12
(c) Monthly wages in any The total wages earned in respect of the
other case where it is not last continuous period immediately
possible to calculate it for preceding the accident multiplied by thirty
want of information times and divided by No. of days of such
continuous period.
Graded Tenure of service Computation of monthly wages

Ex. A workman drawing in toto wages of

Rs. 4000 is in continuous period for 60
days immediately preceding the accident.
The monthly wages can be arrived at:
400Q X 30 =2000
60 (Sec. 5(c))

After having determined the monthly wages, the Compensation will be

computed as under:
compensation in case of 5O% (fifty percent) of monthly wages of
death the deceased workman (if the monthly
wages exceed 4000 the monthly wages
are to be taken Rs. 4000 only) x the
relevant factor specified in the second
column of Sch. IV
Or
An amount of Rs. 80,000 which ever is
more Sec. 4(a)
E.g. A workman draws monthly wages of
Rs. 5000 (worked out as above) dies of
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burn injuries while working at a furnace

and his age is 42 years.
In terms of Sec. 4(a) his monthly wages is
to be taken as Rs. 4000 only and 50% of it
is Rs 2000
Thus compensation Payable
= 2000 x 178.49 = Rs. 3,56,980

Compensation in the case of 60% (sixty percent) of monthly wages of

permanent total disablement the deceased workman (If the monthly
wages exceed Rs. 4000 the monthly
wages are to b taken Rs. 4000 only)
multiplied by the relevant factor specified
in the second column of Sch. IV
Or
Rs. 90,000 whichever is more Sec. 4(b)
E.g. In the above example, if the injur;
resuits in permanent total disablement, th
compensation payable will be as under
2400 (60% of 4000) x 178.49 = Rs.
428376

Graded Tenure of service Computation of monthly wages

(0 In case of permanent Compensation will be calculated as in the
partial disablement case of permanent total disablement on
resulting from injury, the basis of the percentage loss of
specified in part 11 of the earning capacity, specified against each
Sch. 1 injury in part 11 of Sch. I

E.g. A workman's monthly wages is Rs.

4,000 and he suffered an injury of loss of
three fingers of left hand. The percentage
loss of earning capacity specifted in Part II
of Sch. I against the said injury is 30%.
The workman's age is 45 years. The
compensation is worked out as under:

(1) Compensation that would have

been payable in total
permanent disablement 2400 (60% of
4000) x 169.44 = Rs. 406656

(2) Compensation payable for loss of

three fingers 406656 x 30% - Rs.

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121996.80

(g) In case of injury not Compensation will be equal to such

specified in Sch. I percentage of compensation payable for
permanent total disablement as
proportionate to the loss of earning
capacity as assessed by the qualified
medical practitioner, permanently caused
by the injury. (Sec.'4(c))
00 In case of more injuries The amount of compensation payable for
than one are caused by the all injuries shall be aggregated but it shall
same accident resulting in not exceed the amount payable, in the
permanent partial case of permanent total disablement 4(c)
disablement. (Explanation I)
E.g. A workman iost his right hand as weli
as four fingers of left hand by an accident.
His monthly wages are Rs. 4000 His age
is 45 years. The compensation is worked
out as under:
Graded Tenure of service Computation of monthly wages

Compensation for permanent

total disablement in his case will be = Rs.
406656
(A) Compensation incase of loss of hand
406656 x 70% = 284659
(B) Compensation in case of loss of four
fingers of left hand
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406656x50% = 203328
Aggregate of A+B = 487987
The compensation payable is restricted to
Rs. 4.06,656

In case of temporary A half monthly payment of the sum

disablement whether equivalent to 25% of the monthly wages of
total or partial the workman. (Sec. 4(1 )(d))
disablement Ex, A workman is temporarily disabled
and his monthly wages is Rs. 4000
Compensation in this = 4000 x 25/100 =
1000 case will be-
This amount is to be paid on half monthly
basis
As specified in sub-sec. (2) of Sec. 4(c)
(See procedure for payment of
compensation)

In the absence of any evidence as to the wages drawn by workman, the

minimum wages applicable to him at the relevant time shall be taken as the basis
for determining the amount of compensation. New India Insurance Co. Ltd.
Bangalore v. Smt. Channamma & Ors., 2007 LLR 1149 (Karn.DB)

e) Claim for compensation - Procedure

Q. What are the procedural steps involved in processing the claim for
compensation?
A. (1) Notice of accident
No claim for compensation shall be entertained by the commissioner unless
notice of the accident is given. Any defect in notice is not bar to entertaining a
ciaim preferred in case of death of the employee or the employer or his
authorized representative has knowledge of the accident. (Sec. 10(1))

Employer who receives information of an accident may present a memorandum

along with an affidavit made by himself or any person having knowledge of the
accident to the commissioner incorporating results of investigation or inquiry, if
any. (Rule 12)
(2) Limitation for claim
The claim should be preferred within two years of occurrence of the accident.
(Sec. 10(1))

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In case of occupational diseases, the accident is deemed to have occurred on

the first of the days on which the employee remains absent due to disablement.
(Sec. 10(1))

In case of an employee who ceased to be in employment but contracts

occupational disease thereafter, he is deemed to have contracted the said
disease on the day the developed symptoms within the period of two years. (Sec.
10(1))

In case of partial disablement, the two year period is to be computed from the
day on which the workman gives notice of accident to the employer. (Sec. 10(1))

(3) The application has to be submitted in Form F (Sec. 22 r/w Rule 20)
If the applicant is illiterate, the same can be prepared under the direction of the
commissioner. (Sec. 22)

(4) The application can be sent by registered post or presented to him. (Rule
20)

(5) It shall be accompanied by a certificate signed by the applicant stating that

the facts stated in the application are true to his best of his knowledge and belief.
(Rule 20)

(6) If the claim is based on documents the necessary documents be

(7)The employer, if he is required, under any law to give notice of accident

occurring in his premises to any authority, is also required to send a report of the
accident resulting in death or serious bodily injury (as specified in explanation to
the section) to the commissioner in Form EE or to such authority if so stipulated
by the State Government. (Sec. SOB r/w rule 11)

(8) If the commissioner receives from any source information about the death of
a workman he may send a notice by registered post to the employer asking him
to submit details thereof within 30 days along with his acceptance or refusal of
the claim with reasons for refusal. (Sec. 10A)

(9) If he accepts the liability, he shall deposit the compensation with the
commissioner (Sec. 10A)

(10)The Commissioner has the discretion to entertain claim irrespective

whether or not the notice is given or the claim is preferred. (Sec. 10( I))

f) Payment of compensation - mode and procedure

Q. Did the Act prescribe any procedure for payment of compensation?

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A. (I) Compensation for death has to be paid by employer as soon as it falls

due. (Sec.4A(l))
(2) In cases where employer does not accept the liability for compensation to
the extent claimed, he is bound to make provisional payment to the extent of his
liability he acknowledges and deposit it with the Commissioner. (Sec. 4A(!))
(3) Compensation for death of the workman payable to the dependent shall be
deposited with the commissioner along with a statement in Form A against his
receipt in Form B but not to be paid directly to him/her by the employer. However
he can make advance to the dependent, which can be deducted by the
commissioner from the compensation and refunded to the employer. (Sec. 8 r/w
Rule 6)
(4) In other cases compensation shall be deposited along with Form AA. And
the receipt is to be given in Form E. (Sees. 81, 2 & 3 r/w Rule 9)
(5) The commissioner may serve a notice on the dependent to appear before
him on the date fixed and apportion the compensation among the dependents in
the proportion he considers proper or be allotted to any one dependent in his
discretion. ]n the absence of any dependant, he may refund the money to the
employer. (Sec. 8(4 & 5))
(6) The commissioner is required to furnish details of disbursements made in
Form C. (Sec. 8(4) r/w Rule 6)
(7) In case of a woman or a person under legal or in the case of neglect of
children or for any other sufficient case, disability, the commissioner can direct
that the money shall be so invested as in Government securities etc or applied as
to benefit such woman or person.
(Sec. 8(7 & 8) r/w Rule 10)
(8) Mode of payment of half monthly payment in case of temporary
disablement-total or partial
(a) The half monthly payments shall be paid by the employer on the
sixteenth day from the date of disablement if the disability lasts for a
period of twenty eight days or more (Sec. 4(2))
(b) If the disablement lasts less than twenty eight days, the half monthly
payments shall be made after the lapse of three days from the date of
disablement. (Sec. 4(2))
(c) All payments or allowances made to the employee by the employer
as compensation prior to the payment of half monthly payments can be
deducted from the half monthly payment payable to the (Sec, 4(2)(ii)(a))
(d) The commissioner can review the half monthly payments on account
of increase or decrease in wages or change in the condition of the
workman or error in calculating the compensation etc. on an
application made either by the employer or by the workman and
accordingly pass an order reducing or discontinuing the half monthly
payment. (Sec. 6 r/w Rule 4(3))
(e) Commutation of half monthly payments
The right to receive haif monthly payments can be redeemed and paid by
way of lump-sum, if the parties agree to that effect (by way of an
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agreement in Form K or L or M under Rule 48) or in the event of them not

agreeing, it can be redeemed by either party making an application in
Form H or Form G by dependents. If there is any such agreement, a copy
of thereof shall be sent to the commissioner for recording it in a register
which then becomes enforceable under the Act failing which the employer
is required to pay full compensation (not lumpsum) and not to deduct more
than half of the amount paid to the workman as compensation. (Sec. 7. 28
& 29 r/w Rule 20, 48, 49 & 50)

g) Limitation for payment

Q. Is there any time- limit for payment of compensation?
A. The employer shall pay the compensation as soon as it falls due or at least
within one month. (Sec. 4A( 1) & (3))

h) Interest incase of default

If employer fails to pay compensation within one month from the date it falls due,
he is required to pay interest @ 12% per annum or at the rate of any scheduled
bank on the arrears or if the delay is found totally unjustified, the commissioner
may levy penalty amounting to 50% of the arrears. The interest and penalty are
payable to workman or his dependant as the case may be. (Sec. 4A(3))

i) Compensation for accident abroad

In case of accident occurring outside India, the compensation is to be determined
as per the laws of that country. (Sec. 4(1 A))

j) Protection of compensation from attachment etc.

The compensation payable under the Act either as lump-sum or half monthly
payments is not liable to attachment nor can be assigned to any person nor any
claim can be set off against it. (Sec. 9)

VI. Gist of the obligations of the employer

(1) The employer is required to submit a report of accident resulting in the death
of the workman in Form EE to the commissioner within 7 days of the accident.
(Sec. 10B r/w Rule 11)
(2) Employer who receives information of an accident may present a
memorandum along with an affidavit made by himself or any person having
knowledge of the accident to the commissioner incorporating results of
investigation or inquiry, if any. (Rule 12)
(3) Employer to submit a statement in the prescribed form to the commissioner
within 30 days of receiving notice indicating the reasons for death and his
willingness to deposit compensation for the same. (Sec. I0A)
(4) To deposit compensation payable to the workman or his legal representative
as directed by the commissioner.
(5) To maintain a notice book in the prescribed form.

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(6) To submit an annual return of compensation mentioning the number of

injuries for which compensation has been paid during the year and the amount of
compensation paid etc. (Sec. 16)
(7) To register agreements for commutation of half month ly payments with
Commissioner. (Sec. 28 & 29 r/w Rules 48,49 & 50)

VII. Compensation to contract labour- Principal employer's right against

contractor
Q. Is principal employer liable to pay compensation for any accident
causing disablement to the contract labour engaged by him?
A. The principal employer is liable to pay compensation for any accident causing
disablement to a contract labour as if he were his employee and thereafter
recover the amount from the contractor. In the alternative, the workman can also
directly recover the compensation from the contractor. (Sec. 12)
a) Indemnity - claim by Principal employer against contractor -
procedure
(1) The employer seeking indemnity of compensation payable by him from the
contractor has to give notice to the commissioner where up on the Commissioner
wil! issue notice to the contractor in Form J. (Sec. I2-Cr/wRule39)
(2) The Contractor can appear before the commissioner and contest the claim of
the employer. (Rule 39)
(3) The contractor can also claim himself to be the principal employer and the
opposite party to be the contractor in which event he has to issue notice to the
commissioner and the commissioner whereupon has to issue notice in Form JJ
to the party standing against the contractor, who too thereafter can contest the
contractor's claim. (Rule 39)
(4) The commissioner while awarding compensation has to record his finding on
the liability of each of such persons to indemnify the other. (Rule 39)

b) Indemnity - principal employer's claim against a stranger

The Principal too is entitled to recover compensation paid by him to a workman

for any injury sustained by him from a stranger who is legally liable to pay such
compensation. (Sec. 13)

VIII. Recovery of Compensation

(1) Incase of insolvency of employer
Incase of insolvency of the employer or the winding of employer's company, the
workman can recover the same from the insurers. (Sec. 14)
(2) Incase of transfer of assets by the employer, compensation will be the first
charge on those assets that were transferred as consisting of immovable
property. (Sec. 14)
(3) Civil suit
A civil suit for damages for injury against the employer can be filed only when no
compensation is made under the Act. (Sec. 3(5))
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(4) Revenue Recovery Act

The commissioner may recover the compensation due from the employer as
arrears of land revenue u/s. 5 of Revenue Recovery Act 1890. (Sec. 31)

IX. Returns and registers

Q. What are the returns and registers to be maintained by employer?
A. The following returns and registers are to be maintained
(1) To maintain a notice book in the prescribed form
(2) To submit an annual return of compensation mentioning the number of
injuries for which compensation has been paid during the year and the amount of
compensation paid etc. (Sec. 16)
(3) To register agreements for commutation of half monthly payments with
Commissioner. (Sec. 28 & 29 r/w Rules 48,49 & 50)
(4) To submit an annual return in the format mentioned in the schedule in terms
of Notification No. L-l 189 dt, 28-03-1935.

X. Contraventions ~ Penalties
a) Time limit for filing a complaint

Q. Is there any time limit for filing a complaint against any breach of the
provisions of the Act?
A. Yes. The complaint is to be filed within six months from the date on which the
offence came to the notice of the commissioner. (Sec. 18A)

Q. What are the contraventions and penalties under the Act?

A. The following contraventions renders the employer liable to fine extending
upto Rs. 5000 (Sec. 18A)
(1) Failure to maintain a notice book u/s. 10(3)
(2) Failure to send a statement to the commissioner u/s. 10A(l) indicatory
details of the accident or and his liability to deposit compensation with the
commissioner.
(3) Failure to send report of the accident u/s. 10B.
(4) Failure to send a return specifying the number of injuries for which
compensation was paid during the previous year u/s. 16.

b) Limitation for prosecution

Q. Is there any limitation period for prosecution?

A. Yes. No court can take a cognizance of an offence under the Act unless a
compliant is filed within six months from the date on which the offence came to
the notice of the commissioner. (Sec. I8A)

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