Worker’s Compensation Act 1923

Employees or Worker’s Compensation Act, 1923 is one of the most important social security law. The act’s main aim is to provide financial protection and assistance to employees and their dependents through compensation in case of any accidental injury occurs during the course employment. It is generally applicable to the cases where such incidents lead to either death or disablement of the worker. In this article, we view the various aspects of the Worker’s Compensation Act in detail.

Applicability of the Act

• It applies to all employees working in mines, factories, plantations, construction establishments, oilfields, etc. Moreover, it applies to establishments which are under Schedule II of the Worker’s Compensation Act.
• The act applies to persons who are working abroad or outside India as per Schedule II of the Act.
• It applies to a person recruited as the mechanic, helper, driver, etc. in connection with a motor vehicle. It also applies to a captain or members of the crew of an aircraft.
• Moreover, the act does not cover the members of armed forces of the U&W who are already under ESI (Employee State Insurance) Act.

Employer’s Liability

(A) Cases where they have to pay

• Injury by accident during employment
• Diseases in occupation

(B) Cases where they do not have to pay

• In case of any injury or damage which does not lead to the semi or total disablement of the workers for a period exceeding 3 days.
• In case of any injury which does not result in death or permanent total disablement under the following circumstances:
  • the workman present at the time of the work under the control of drink or drugs.
  • when the worker deliberately disobeys the rule which ensures their safety.
  • non-application of the devices which are especially for the safety of the workers.

Compensation Determination

(A) In case of injury leading to Death

An amount equal to Fifty Percent of the monthly salaries of the dead employee multiplied by the appropriate factor or with the amount of Rs.80,000 or more.

(B) In case of injury leading to permanent total disablement

An amount equal to 60% of the monthly wages of the injured workmen multiplied by the relevant factor or an amount of 90,000 or more.

(C) In case of an injury occurring in permanent partial disablement

In this case of permanent disablement due to injury, an amount equal to the percentage of loss of earning capacity is given to the disabled.

(D) In case of injury leasing to temporary disablement

According to Section 4(2), Half-monthly payments is given which is equal to 25% of the worker’s compensation.

Questions on Worker’s Compensation

Question: What are the provisions related to the ‘Half-monthly Payments’ and ‘Registration of the Agreements’?

Solution: A Commissioner reviews the Half-monthly payment on the application by the Employer or employee. A certificate of qualified medical expert should go with the application. It states that there are changes in the condition of the employee. On review, the act can extend, decrease, continue or end or convert the Half-monthly payments. Generally, they convert it into lump-sum payments under the Worker’s Compensation Act, 1923.

The amount payable as compensation can be adjusted in the manner or means of agreement. The employer needs to send a memorandum to the Commissioner. The commissioner will verify and if satisfied, record the memorandum in a properly registered manner.