EMPLOYEE COMPENSATION

ACT 1923
Workman compensation act 1923

 It extends to whole of India

 name of the ACT revised and called

 “ EMPLOYEE COMPENSATION

(AMENDMENT) ACT 2009 (RBE

61/2011)
 introduction
1. Exploitation by the employer

2. Struggle between labour and capital

3. Increasing the cost of living, unrest among the masses

4. Frequent Strike and lock out

5. Employer attention for maintenances, technical know how and labour were neglected

6. Labour problem a serious challenge

7. illiterate ,poor labour cannot represent before court of law

8. No industry will flourish-----------------------

9.
 Need for labour legislation

1. Inadequate wages and meets bare need

2. Exposed to serious accidents
3. No right for compensations
4. Removal ,dismissal without reason
5. Hazardous working ,without rest and
relaxations
 Before the passing the Act condition of labour
-
a) injury was as result of an accident.

b) Employer was not responsible.

c) No amount of compensation due to his injury.

d) more litigations
 Classification of labour law
a) General law---Factory Act 1948
b) S law --- Mines Act 1952, Indian Merchant Shipping act 1923
Law related to specific matter
WC Act 1923,(EMP compensation ACT)
P W ACT1936,
MW ACT 1948, etc

V V GIRI “Worker dominant partner-----without co operation---no

effective results---machine ----- neglect -human element refuse ---
industry bound to fail---profit ,share
 Applicable
Applies to employee in Not apply to

Factory MEMBERS OF ARMED FORCE

Mine s EMPLOYEES COVERD UNDER

E.S.I.ACT
Railways -

TRANSPORT ESTABLISHMENT -

SHIPS -

CONSTRUCTIONS -
ESTABLISHMENT
 Salient feature of the ACT
1. Employer ,s obligation to pay compensation.
2. Workman or dependent can claim .
3. Accident arising out of and in the course of
employment.
4. no compensation for willful disobeyance of
rules.
5 Amount of compensation –schedule IV.

6 Commissioner under the ACT

7 But in case of death, employer is liable

to pay compensation .
 8)"17A.
 Every employer shall immediately at the
time of employment of an employee, inform
the employee of his rights to compensation
under this Act, in writing as well as through
electronic means, in English or Hindi or in
the official language of the area of
employment, as may be understood by the
employee.".
 Key Amendments to Workmen’s Compensation Act 1923

S.NO Section Pre-amended position Post-amended position

1 Title Workmen’s Tile of the Act amended to

Compensation Act 1923 “Employees Compensation
Act 1923”.

2 Words and Refer to the words They are substituted by the

expressions ‘workman’ or ‘workmen’ in words ‘employee’ or
the Act ‘employees’ wherever they
occur.

3 Schedule II Clerks were not covered Clerks are now covered for
for compensation under compensation. Please refer
the Act. to  schedule-II for specified
employments.
-
4 Sec.4 (a) The minimum
ceiling limit of
Now it has been revised to
Rs1,20,000/-
compensation for
death was
Rs.80000/-
5 Sec.4(b) The minimum ceiling Now it has been revised to
limit of compensation Rs1,40,000/-
for permanent total
disablement was
Rs.90000/-

6 Sub-Sec.2A of Non-existent This sub-section was added after sub-

sec.4 section(2).This entitles an employee to
reimbursement of actual medical
expenditure incurred by him for injuries
caused during the course of
employment.
7 - Explanation II to Explanantion –II prescribes
clauses(a)&(b) of the maximum wage limit at
Sec.4 of Sec.4 Rs.4000/- p.m for the
purpose of computing
compensation for death
and permanent disablement
8 Sub-sec.(4) of Sec.4 The existing limit of funeral
expenses is Rs.2500/-
9 Sec.25A Non-existent
The Explanation
was omitted and a
new sub-section
(IB) has been added
after Sub-section IA
of sec.4 whereby
the maximum wage
limit has been
revised to Rs.8000/-
p.m
It has been revised to
Rs.Rs.5000/-
A new section has
been added which
fixes 3 months time
limit for disposal of
claims from the date
of reference.
 Schedule I

THIS SCHEDULE INDICATES THE PERCENTAGE OF

LOSS OF EARNING CAPACITY OF A WORKMEN FOR THE

VARIOUS TYPES OF INJURIES. IT CERTIFIES BY THE

RAILWAY DOCTOR
 LIST OF INJURIES DEEMED TO RESULT IN PERMANENTTOTAL
DISABLEMENT

1 Loss of both hands or amputation at higher sites 100%

2 Loss of a hand and a foot 100 %

3 Double amputation through leg or thigh, or amputation 100%
4 Loss of sight to such an extent as to render the claimant

unable to perform any work for which eye sight is essential 100 %

5 Very severe facial disfigurement 100%

6 Absolute deafness 100%

 LIST OF INJURIES DEEMED TO RESULT IN PERMANENT
PARTIAL DISABLEMENT]

 Loss of thumb and its metacarpal bone 40 %

 Loss of four fingers of one hand 50 %
 Loss of three fingers of one hand 30 %
Loss of two fingers of one hand 20 %
Loss of terminal phalanx of thumb 20 %
 SCHEDULE II

INDICATS THE LIST OF PERSON

WHO ARE INCLUDED IN THE

CATEGORY OF WORKMEN

ENTITLED FOR THE PAYMENT OF

COMPENSATION
 SCHEDULE III

 INDICATES THE LIST OF OCCUPATIONAL

DISEASES

 i infectious and parasite disease----

 ii -health of labotary worker

 SCHEDULE IV

INDICATES THE FACTORS

ACCORDING TO COMPLETED YEARS OF

AGE FOR AMOUNT OF COMPENSATION

PAYABLE TO WORKMEN.
 RELEVANT FACTOR
 COMPLETED
 YEAR OF AGE FACTOR

 16 YEARS 228.54

 20 YEARS 224.00

 25 YEARS 216.91

 29 YEARS 209.92

 40 YEARS 184.1

 45 YEARS 169.44

 54 YEARS 139.13
 definitions
EMPLOYEE: who is
1 Railway servant as defined in RAILWAY
ACT 1989 section( 2) clause 34 ,
a) Not permanently employed in administrative,
district, OR sub divl office of railway
b) employed in any capacity as specified in
schedule II ’and include ministerial employee
c) Any worker defined under Factory ACT 1948
-

ii) A sea man ,crew, driver ,cleaner of motor

vehicle.
Iii) recruited for working at abroad also
 employer
 includes any body of persons whether incorporated or not and
 any managing agent of an employer and
 the legal representative of a deceased employer,
 and, when the services of a *[employee] are temporarily lent
or let on hire to another person by the person with whom the
*[employee] has entered into a contract of service or
apprenticeship, means such other person while the
*[employee] is working for him;
 Type of disablement
DISABLEMENT

PERMANENT TEMPERORY

PARTIAL TOTAL
 Permanent disablement

 where the disablement is of a permanent

nature, such disablement as reduces his earning

capacity in every employment which he was

capable of undertaking at that time:


 Partial disablement
 where the disablement is of a temporary nature, such

disablement as reduces the earning capacity of a *[employee]

in any employment in which he was engaged at the time of the

accident resulting in the disablement, and, provided that every

injury specified [in Part II of Schedule I] shall be deemed to

result in permanent partial disablement;

 Total Disablement
 whether of a temporary or permanent
nature, as incapacitates a *[employee] for
all work which he was capable of
performing at the time of the accident
resulting in such disablement:
-
 Provided that permanent total disablement shall be
deemed to result from every injury specified in
Part I of Schedule I
 or
 from any combination of injuries specified in Part
II thereof where the aggregate percentage of the
loss of earning capacity, as specified in the said
Part II against those injuries, amounts to one
hundred per cent or more
 - Compensation
If personal injury is caused to a workman by accident arising out of and in the course of his employment,

his employer shall be liable to pay compensation in accordance with the provision of this act.
 provided that the employer shall not be so liable .

 a) in respect of any injury which does not

result in total or partial disablement of the
workman for a period exceeding three
days.

b) in respect of any injury not resulting in

death or permanent total disablement
caused by an accident which is directly
attributable to:
-

 i) The workman having seen at the time there

of under the influence of drink or drugs.

 ii) The willful disobedience of the workman to

an order expressively given or to a rule
expressively framed, for the purpose of
securing the safety of workman or

 iii) The willful removal or disregard by the

workman of any safety guard or other device
he knew to have been provided for the purpose
of securing the safety of workman
 But exclude the following

a) Employment of casual nature.

b) Other than employer business or trade.
c) Member of Armed Forces of union
d) Person employed administrative
capacity.
 Employers liability for compensation
1 Personal injury to the employee
2 Injury must have been caused by accident,
3. Accident must have been arisen out of and
in the course of employment.
4. Injury resulted to death , permanent or
temporary ,total or Partial disablement.
5. Injury must be exceeding 3 days.
6. Occupational disease schedule III
7. If duration of more than one employer
Employer not liable to pay compensation.

1. workman under influence of drink or drug

2 Willful disobeyance of order/rule

3 willful removal of safety guard.

Note- Burden of proof lies with employer.

example: lost of an eye-spark---notice in
English
use goggle----stock available ---
accident happens
Pleading of employer and workman
‘Arising out of’ EMPLOYMENT
1 A casual connection is necessary.
2 occupational diseases
for example
1 a bomb.
2 aircraft.—crashing machinery
3 truck driver, tank leaking ,with
permission
4 Bhaiya bhai v/s Central Railway( clock –
stabbed)
. 5. Sourastra salt mfg v Bai balu raja ---mill,
attack
 In the course of employment.
 A)Time during employment continues.
 B) transport provided by employer.
 c) workman present but not working.( E.RLY)

 THEORY OF NOTIONAL EXTENSION OF EMPLOYMENT by HON,BLE SC in

sourastra salt mfg co v/s bai balu raja


 IMPORTANT CASE

Works manager and wagon shop v mahavir

Workshop is away from rly stn,---

workman by spl train -----crossing rly
track,-----met with accident run over by
shunting engine resulted to imputation of
both leg
 Medical examination

1 notice within 3 days from an accident

2. Examination free of charge

3. Refusal for medical examination

4. Suspension of right for compensation

5. if died ,commissioner decision shall final

 Amount of compensation

1 Death

2 Permanent total disablement.

3.Permanant partial disablement

4. temporary disablement total or partial

 1 death

 50% of average wages of last 12 month.

 Multiply by relevant factor
 Rs 1,20,000 or whichever is more.
 Only Rs 15,000/wage is counted for
calculation.
  . DRM VS. SHAMSADI – 1988
-

WORKMAN ON DUTY BITTEN BY SCORPION AND DURING

OPERATION AND WHILE UNDER TREATMENT AS INDOOR

PATIENT IN THE HOSPITAL, DEVELOPED TETANUS AND

ULTIMATELY DIED.
 IT WAS HELD BY THE COURT
THAT COMPENSATION IS
PAYABLE.
2 Permanent total disablement
 60% of average wages x relevant factor
or
Rs1,40,000/or more.
 3 Permanent partial disablement

 i) schedule I -------part II
ii) if not specified in schedule , Proportionate
of 2 above but not exceeding, as admissible in the
permanent total disablement
iii) if more than one injury caused, in the same
accident, payable as above
 4.Temporary total or partial disablement

 A) 25 % of monthly wages due

 B) half monthly pay from 16th day from date of disablement

 (medical allowance received for medical will not adjusted.)

 c)where disablement last up to 28 days or more half monthly

pay during the disablement or 5 year which ever is shorter.
 Where accident occurred out side India,

b) compensation shall be paid as per

existed rate minus compensation paid by
that country.
c) if death occurs as result of injury ,
employer shall deposit Rs 5000/ as for
funeral expenditure
 Procedure for payment
 Payment within one month.
 Penalty & interest
 Distribution of compensation.
 Not to be attached/charged
 Where civil suit filed by workman, have
no right under ACT or VICE VERSA
 Claim with in two year
 Leave and leave salary
 Hospital leave
 Leave salary of half monthly pay
 In case medical decaterise ,stopped pay.
 G M has full power to sanction hospital
leave
 Penalties

 Whoever fails to
 A) maintain a notice book
 B) send a report
 C) make a return
 D) send to the commissioner a statement.
 FINE may extend Rs 5000/.
 NO prosecution except with prior permission of
commissioner
 No court shall take cognizance with in six month and
without knowledge of commissioner
12% interest or 50% of compensation as penalty
 appeal
 An appeal shall lie before HIGH COURT Against
order of commissioner
 A) substantial question of law
 B) both parties agreed to abide the order
 C)unless employer had deposited amount payable.
Cannot file an appeal
 Limitation of appeal is sixty days.
-

 25A. Time limit for disposal of cases relating

to compensation.- The Commissioner shall
dispose of the matter relating to compensation
under this Act within a period of three months
from the date of reference and intimate the
decision in respect thereof within the said
period to the employee.]
  -----------------------------------------------
 thanks
Provision under Medical manual
CHAPTER-XV of medical manual

 OCCUPATIONAL HEALTH

Section A

Workmen's Compensation Act and

Medical Examination and Certification
under the Workmen's Compensation
Act
 This Section deals with only the duties of Railway

doctors regarding examination, certification and

assessment of injury and/or loss in earning capacity

of the workmen for purposes of payment of

compensation under the Workmen's Compensation

Act, 1923.
 1503. All injury cases to be examined
carefully
(1) It is essential that all Railway doctors should be conversant with the Workmen's

Compensation Act as they are likely to be called upon in the

discharge of their duties to examine, certify and assess the loss of earning
capacity and the consequent compensation to be paid there for to Railway

employees injured on duty and governed by the said Act.

-

 2) Besides this, a Railway doctor may have to

appear before a Commissioner appointed under the
Act to give evidence in cases of dispute between
the administration and the employee.
 It is, therefore, necessary that every case of
injury coming under the Workmen's Compensation
Act should be viewed as a potential case likely to
be brought before a Commissioner and every care
should be taken to note down all particulars of such
cases
- 1504. Medical Examination of injured workmen

 :- If a workman sustains injury while on duty,

his immediate superior will either arrange for
the injured workman to be examined by the
nearest Railway Medical Officer at the site of
the accident, or will arrange for the injured
workman to proceed, or to be conveyed, to the
authorised medical officer with a memo on the
prescribed form as given in Annexure I to this
Chapter.
- - The Railway medical officer, after
examination of the injured workman, will
issue, if the workman is not fit to return to
work immediately, a sick certificate in the
prescribed form (Sick certificate) as given
in Annexure XI to chapter V with a rubber
stamp bearing the words:
 -

 "This injury is consistent with the statement that it

was caused by accident", as well as a certificate in
the prescribed form as given in Annexure II to this
Chapter giving particulars of the part of the body
injured, the nature of the injury - whether simple or
grievous - and the probable period of disablement,
and forward the same to the immediate superior of
the injured workman.
 - 1505. Injury Report Register


1 accident register 
 The entry in the accident register must be made as soon as possible after the patient

is seen for this first time and thus becomes an extremely valuable record of the first

clinical examination.

 Sufficient space should be left below the entry so that additional information

obtained later on such as X-ray reports, admission to hospital, or subsequent death

of the patient during the period of treatment for the injuries can be entered neatly

and without encroachment on the next entry.

-

 3) Records of injuries to employees "on or off duty", family

members of employees and members of the general public
must be kept each in a separate section of the register.

 There should be diagrammatic figures on the reverse of

the injury report, on which the details of injuries are to be
shown.
-  The Railway medical Officer at the time of examination will
note carefully the list of injuries on the prescription slips
which should not be destroyed as they may be required at
any future date for assessing the extent of disablement for
purposes of payment of compensation claimed by the injured
workman.
 Prescription slips should also be treated as confidential
documents.


RTI ?
-
 .1506 Disposal of claim for an injury when no sign of injury,
is found:- 

 If a patient claims that he is injured and clinical examination

shows no sign of injury, these facts must be recorded in the
accident register, but all such cases are to be referred to the
CMS/MS in-charge of the division.
-

 1507. Caution where no sign of injury is seen.

- Attending Medical Officer must make a clear
distinction between the complaints of the patient and
the physical signs of injuries observed. Doubtful
cases should be referred to the CMS/ MS in-charge
of the Division, postponing a diagnosis and issue of
certificate until his advice has been received. Pre-
existing disease and deformities must be noted.
 -

 1508. Case Sheets:-

 1509. Certification and attendance of injured employees:-
 1510. Medical obstruction certificat
 1511. Medical review certificate
 1512. Injury resulting in immediate death  
 1513 Injury resulting in subsequent death:
 1514. Resumption of duty by injured workman:
 1515 Issue of fresh certificate when the injury of the injured employee
have healed but he acquires any other illness:-
-
 1516. Assessment of loss of earning capacity
and issue of certificate:-

(1) Before the injured workman is issued a fit

certificate for his original post or in an alternative
employment, the attending Medical Officer will
refer the case to the CMS/MS in-charge of the
Division concerned with the full history of the
case and recommendation for change of
employment, if any, for assessing the loss of
earning capacity for permanent, partial or total
disablement which may have resulted from the
injury.
-  The CMS/MS in-charge of the Division will,
after personal examination of the case, advise
the Medical Officer concerned to issue the
necessary fit certificate if the employee is
considered by him fit to resume duty in his
original post.
 When it is considered that the employee is
not fit to resume duty in his original post and is
to be recommended alternative employment,
the CMS/ MS in-charge of the division will
follow the procedure laid down for the offer of
alternative employment
-
 The CMS/MS in-charge of the division/hospital after personal
examination of the case referred by the attending Medical Officer, will
assess and certify the loss of earning capacity according to Schedule 1 of
the Workmen's Compensation Act, reproduced in Annexure VIII to this
Chapter.
 Such a certificate should be issued in the prescribed form as given in
Annexure X in triplicate. Two copies should be sent to the department
superior concerned.

********************************************************
-
If D.M.O is in independent charge of a hospital or
division the certificate issued assessing the loss of
earning capacity according to Schedule I of
Workmen's Compensation Act should be submitted
to C.M.D for counter signature. Where CMS/MS is
in-charge of the Division/hospital it will suffice if
the certificate is counter-signed by the CMS/MS in-
charge of the division/hospital

++**********************************++
-  1517. Non-Schedule injuries:-
 In case of injuries not included in Schedule I as reproduced
in Annexure VIII. the CMS/MS in-charge of the division
will refer the case to the Medical Board for assessment of
loss of earning capacity. The Medical Board after
assessment of the Loss of Earning capacity will send their
recommendation to the C.M.D for acceptance.


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