WORKMEN

COMPENSATION ACT 1923

By
Bizzy Solution
OBJECT OF THE ACT
 The Workmen’s Compensation Act, 1923 provides for
payment of compensation to workmen and their
dependants in case of injury and accident (including
certain occupational disease) arising out of and in the
course of employment and resulting in disablement or
death.
APPLICABILITY OF THE ACT
 The Workmen Compensation Act, 1923 extends to
whole of India.
 It applies to workmen employed in factories, mines,
plantations, mechanically propelled vehicles,
construction works and certain other hazardous
occupations in any such capacity as is specified in
schedule II of the Act.
 Persons recruited for working abroad.
 Person recruited as driver, helper, mechanic,
cleaner(connection with motor vehicle) and crew of an
aircraft.
EMPLOYEE/EMPLOYER/WORKME
N
 Employer – Any body of persons whether incorporated or not; Any
managing agent of an employer; The legal representative of a deceased
employer
 “Employee" is a general reference to anyone employed as provided in
different act and outside of the act has no particular significance beyond
that. “Worker" is defined under the Factories Act and includes virtually
everyone who enters the factory premises. "Workman" is defined under
the Industrial Disputes Act and specific import for labor legislation. So
depending upon the issue on hand, one will have to look in to the
concerned to learn about the rights and obligations of the subject
individual.
 Workmen- a railway servant as defined in clause (34) of section 2 of the
Railways Act, 1989 (24 of 1989), not permanently employed in any
administrative, district or sub-divisional office of a railway and not
employed in any such capacity as is specified in schedule II; a master,
seaman or other member of a crew, etc; It does not include a person
whose employment is of casual nature.
NOMINEES
 Dependants 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 dependant on the earnings of the workman at the time of
death, son or a daughter who attained age 18 yrs and infirm
iii) If wholly or in part dependant on the earnings of the workman at
the time of his death –
a) A widower; b) A parent other than a widowed mother; c) A minor
illegitimate son, an unmarried illegitimate daughter or a married
daughter (legitimate, illegitimate or adopted) and a minor or if
widowed and a minor; d) A minor brother or an unmarried sister or
a widowed sister if a minor; e) A widowed daughter in law; f) A
minor child of a pre-deceased son; g) A minor child of a pre-
deceased daughter where no parent of the child is alive; or h) A
paternal grandparent if no parent, of the workman is alive.
CONTRIBUTION –
EMPLOYEE/EMPLOYER
 The workmen’s compensation policy is the primary
method by which employers can show their ability to
satisfy the obligations imposed by the worker’s
compensation statutes. As employers pay for this
insurance, no contribution is required to be made by
employees.
BENEFITS UNDER THE ACT
 Legal liability coverage
 Vocational rehabilitation
expenses
 Covers for occupational
diseases
 Calculation of income lost
and corresponding
compensation
 Inclusion of special covers
 Comprehensive inclusion
of all employees
 Medical benefits
 Disability/Indemnity
benefits
 Temporary partial
 Temporary total
 Permanent partial
 Permanent total
 Death benefits
 Their family get the timely
monetary compensation
ELIGIBILITY AND NON
ELIGIBILITY
 Employer must be covered
by Worker’s compensation
 You must be an Employee
 Injury or Illness must be
work-related
 Reporting and filling
deadlines
Eligibility
 Any incident which is not
recognized under the
common law or rules
 An injury which has
occurred anywhere not
recognized
 An injury caused by war or
associated perils
 An injury which does not
lead to fatality or partial
disability after 3 days is
not covered
Non Eligibility
NON ELIGIBILITY
 Any liability towards contractual employees unless
contractual employee cover is purchased by an employer
 Any unspecified liability towards employees on contractual
basis
 Any health risk under the influence of drugs or alcohol
 Any intentional act of misconduct by the employee
 Any injury inflicted due to personal reasons by an employee
 Any injury to an employee after he/she voluntary
participates in off-duty recreational activity
 If it is proven that the safety measure was not adhered to or
tampered with
 If an employee is noted for disobedience on-duty
 There is no coverage of mental disorders arising out of work,
like doing monotonous work
AUTHORITIES UNDER THE ACT
 These sections provides for appointment of
commissioners for the enforcement of provisions of
the Act.
 Sec 20 authorizes the State Government to appoint
commissioners under the Act.
PENAL PROVISION
(1) Whoever -
 (a) fails to maintain a notice-book which he is required to maintain
under sub-section (3) of section 10 or
 (b) fails to send to the Commissioner a statement which he is required
to send under sub-section (1) of section 10A or
 (c) fails to send a report which he is required to send under section 10B
or
 (d) fails to make a return which he is required to make under section 16
shall be punishable with fine which may extend to five thousand
rupees.
(2) No prosecution under this section shall be instituted except by or with
the previous sanction of a Commissioner and no Court shall take
cognizance of any offence under this section unless complaint thereof
is made within six months of the date on which the alleged
commission of the offence came to the knowledge of the
Commissioner.