Program- Mechanical Engineering

Code- 22509
Unit Outcome 4- Explain the main
provisions
Dr. Shrikant Gorane, of Workmen Compensation
Act
Lecturer in Mechanical Engineering,
Government Polytechnic, Nashik
4th July 2020

MSBTE LEAD
 Management
22509
The main provisions of
Workmen Compensation Act
MSBTE LEAD

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 OBJECTIVES

 To know the objectives, scope and coverage of the Act

 To understand the major features of act

 To have knowledge about employer’s liability in case of occupational diseases

 Able to calculate amount of compensation under the act

 To understand the procedure of medical Examination

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 INTRODUCTION

 The Workmen's Compensation Act,1923 has been renamed as the Employees‟ Compensation
Act, 1923.

 The Act was amended subsequently in 1933, 1938, 1939, 1946, 1958, 1962, 1976 and 1986,
2009

 Before this act, it was a lengthy and costly process for a worker who had got injured in the
course of employment to get proper compensation from the employer.

 Originally the act covered workers of certain specified industries, not drawing more than Rs.
300 p-m.

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 MAJOR FEATURES OF THE ACT

 The worker or his dependents can claim compensation, if the injury has been caused by an
accident during work

 Provided he was not under the influence of drink or drug and

 The accident was not due to his wilful disobedience of the rules.

 The amount of compensation depends upon the type of the injury and the nature of
disablement.

 All the accidents are to be brought to the notice of the labour commissioner

 Employer shall deposit the amount of compensation with the commissioner within 30 days.

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 IMPORTANT DEFINITIONS

 Dependents- A widow, a minor son, unmarried daughter which are wholly or partially
dependent on the earnings of the worker at the time of his or her death

 Minor- A person below 18 years of age.

 Partial disablement- Disablement of temporary nature and which reduces the earning
capacity of an employee.

 Total disablement- implies such disablement which (temporarily or permanently)

incapacitates an employee for all work and he cannot earn at all (for a period or forever).

 Workman- worker working in the organisation and is other than one whose employment is
of casual nature

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 EMPLOYER'S LIABILITY FOR COMPENSATION
 The employee is liable to compensate if injury has been caused by accident and has resulted in
employee's death ; permanent or temporary disablement.

 The employer is not liable to pay compensation if

• The injury disables a employee for less than 3 days

• The injury is caused by an accident which occurred while the employee was under the
influence of drink or drugs

• The injury is caused due to wilful disobedience of the rules

• The injury is caused due to removal of any safety guard by the employee.

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 EMPLOYER’S LIABILITY IN CASE OF OCCUPATIONAL
DISEASES
 If the disease is an occupational disease peculiar to the employment (eye disease due to welding,
Asthma in humidified environment), the employer shall give compensation to the employee.

 The list of the occupational diseases is contained in Schedule III of the Act.

 Schedule III is divided into three parts, A, B and C

 Any claim for compensation in case of occupational disease in Part A, no specified period of
employment is necessary

 For diseases in Part B, the workman must be in continuous for a period of six months

 For diseases in Part C, the period of employment would be such as is specified by the Central
Government

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 AMOUNT OF COMPENSATION
 Where death results from the injury- An amount equal to 40% of the monthly wages of the
employee multiplied by the relevant factor (Schedule IV) or an amount of 20,000 rupees, whichever
is more.

 Where permanent disablement results from the injury- An amount equal to 50% of the monthly
wages of the injured employee multiplied by the relevant factor or an amount of 24000 rupees,
whichever is more.

 Payment of compensation in respect of death of a employee or under legal disability shall be

deposited by the employer with the labour commissioner.

 An employer of course can give advance to any dependent on account of compensation not
exceeding Rs. 100.

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 NOTICE AND CLAIMS OF ACCIDENT
 An employee injured in an accident should give in written a notice of the accident to the employer.

 The purpose of giving a notice is to enable the employer to check the facts of the accident and also
to enable the employee to take steps to reduce the consequences of the accident.

 The notice should contain particulars of the employee, date of accident and cause of accident.
claim for compensation must be made within two years of the occurrence of the accident or within
two years of the date of employee.

 In case of occupational diseases the period of two years is counted from the day the employee
gives notice of the disablement to his employer.

 Where the commissioner receives information about fatal accident, he may send notice to employer
asking the circumstances which led to employee's death, about deposition of compensation, etc.

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 MEDICAL EXAMINATION
 An injured employee who has submitted a notice, shall present himself for the medical examination,
if the employer wants

 Such an offer by the employer must be free of charge and within 3 days from the time of notice by
the employee

 If an employee does not present him for the medical examination, his right for compensation shall
be suspended

 He will get full compensation only after he provides sufficient cause for not presenting himself for
the medical examination.

 If an employee whose right to compensation has been suspended, dies without presenting himself
for the medical examination, the commissioner may direct the amount of compensation to the
dependents
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 CONCLUSIONS

 The workman compensation act came into force from first July 1924

 The act aims to provide workmen and their dependent some relief in case of accident arising
during the employment and causing death or temporary or permanent disablement

 The act imposes legal liability upon employer to provide compensation to employee when
they suffered from death, physical disabilities or occupational disease

 The amount of compensation depends upon the result of the injury and the nature of
disablement.

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 THANK YOU

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