1
•Gracy Jayaraj (316)      pG ro u    •Poonam Kadam (319)    4          •Lisha Murali (320)          •Ahlm Khan (322)      ...
What Is the Objectives of Employee’s          Compensation? The Employees Compensation Act, 1923, aims to provide workmen ...
Scope and Coverage :Scope and Coverage The Act extends to the whole ofIndia.To the persons engaged in cleaning, spraying o...
Changes - Update• W.e.f 18th Jan 2010 the Workmen’s  compensation Act, 1923. the word  ‘workman’ has been changed to  ‘emp...
Employees Entitled• Employees who suffers an injury in any accident  arising out of and in the course of his  employment, ...
Whether Contractor is a Workman?• An independent contractor lies in this that while the  former agrees himself to work, an...
Administrative Authority• Administrative Authority The State  Governments administer the provisions of  this Act through t...
DefinitionsDependantDependant means any of the following:Relatives of a deceased workman (namely a widow, a minorlegitimat...
Definitions cont…DisablementInjury caused to a workman by an accidentordinarily results in the loss of the earningcapacity...
Definitions cont…   Monthly Wages:Monthly wages means:(c)Where the employee hass been in a continous   service(d)Where the...
Definitions cont…Wages: It include any benefit or perquisiteexpressible in terms of money but excludestravelling allowance...
Silent provision• Accident Compensation-when payable?  When payable the employer of any establishment covered  under this ...
Silent provision cont…     •    What are the condition for receiving          compensation for Personal Injury caused     ...
Silent provision cont…When is an Employer not liable to pay compensation?BUT, the employer shall not be liable to paycompe...
Doctrine of Notional Extension The expression in the course of his employment, connotes not only actual work but also any ...
Payment of Compensation to     Contract LabourPayment of Compensation to ContractLabour The principal employer is liable t...
Occupational DiseasesWorkers employed in certain types ofoccupations are exposed to the risk ofcontracting certain disease...
Compensation-when not payable  statement of fatal AccidentsAs per this section, compensation has to paid as soon as itis d...
Accident Report• Accident Report where the accident results  in death or serious bodily injury, the  employer should send ...
Amount of                  Compensation• Section 4 The amount of compensation payable  to a workman depends on the nature ...
Table for the compensation                   Cases                                              Compensation              ...
Mode of PaymentMode of Payment The employer becomes liable to pay the compensation assoon as the personal injury was cause...
Compensation to be deposited       with Commissioner   Compensation to be deposited with Commissioner The amount of   comp...
Notice of AccidentNotice of Accident A notice of accident should be sentto the Commissioner, by the concerned employee as ...
Filing of Claims                   26
Medical ExaminationMedical Examination The employer may get theconcerned workman examined by a qualifiedmedical practition...
Attachment and Assignment of       CompensationAttachment and Assignment ofCompensation No compensation payableunder this ...
Obligations of EmployerObligations of Employers is to pay compensation for an accidentsuffered by an employee, in accordan...
Obligations of EmployeesObligations of Employees is to send anotice of the accident in the prescribedform, to the Commissi...
Rights of Employer and            EmployeesCertain important rights of the employer and the employee: To apply to the comm...
Offences and Penalties                     Offences                                                PenaltiesUnjustified De...
Prof. Choudhry    Till the end of calendar                               33
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Workers comp0603training

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Workers comp0603training

  1. 1. 1
  2. 2. •Gracy Jayaraj (316) pG ro u •Poonam Kadam (319) 4 •Lisha Murali (320) •Ahlm Khan (322) •Tanveerali Khan (323) •Mital Patil (336) 2
  3. 3. What Is the Objectives of Employee’s Compensation? The Employees Compensation Act, 1923, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. 3
  4. 4. Scope and Coverage :Scope and Coverage The Act extends to the whole ofIndia.To the persons engaged in cleaning, spraying or dusting,harvesting and traching The Employees Compensation (Amendment) Act, 2000.has brought all the workers within its ambit irrespective oftheir nature of employment.The coverage of this act is also to cooks employed inhotels and restaurants.Establishments which are covered by the Employees StateInsurance Act, are outside the preview of this Act. 4
  5. 5. Changes - Update• W.e.f 18th Jan 2010 the Workmen’s compensation Act, 1923. the word ‘workman’ has been changed to ‘employee’ in all respect 5
  6. 6. Employees Entitled• Employees who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.• A person employed in a factory which is yet to commence production would also be entitled for the benefit of the Act.• Any person engaged in manufacturing premises who is contributing for the intended manufacturing process would be deemed to be workman for the purpose of the Act 6
  7. 7. Whether Contractor is a Workman?• An independent contractor lies in this that while the former agrees himself to work, and latter agrees to get other persons to work.• A person who agrees himself to work and does so is an employee.• Where a person entered into a construction contract and agreed to work himself and also to employ his own labour, while construction material was to be supplied by the owner, and the contractor died while working himself, it was held that the dependents of the deceased were entitled to compensation. 7
  8. 8. Administrative Authority• Administrative Authority The State Governments administer the provisions of this Act through the Commissioners appointed for specified areas. The State Governments also make rules for ensuring that the provisions of the Act are complied with. 8
  9. 9. DefinitionsDependantDependant means any of the following:Relatives of a deceased workman (namely a widow, a minorlegitimate or adopted son and unmarried legitimate or adopteddaughter, or a widowed mother, and if wholly dependant on theearnings of the workman at the time of his death, a son or a daughterwho has attained the age of 18 years and who is infirm, And any ofthe following wholly or partly dependent on the workman at the timeof his death— a widower, a parent other than a widowed mother, aminor illegitimate son, a unmarried illegitimate daughter, a widoweddaughter in law, a minor child of the deceased son & daughter & apaternal grandparent if not the parent of the workman is alive. 9
  10. 10. Definitions cont…DisablementInjury caused to a workman by an accidentordinarily results in the loss of the earningcapacity of the workman concerned and this lossof earning capacity is technically "disablement".Disablements can be classified as (a) Total, and{b) Partial. It can further be classified into (i)Permanent, and {ii) Temporary.., 10
  11. 11. Definitions cont… Monthly Wages:Monthly wages means:(c)Where the employee hass been in a continous service(d)Where the employee has been in continuous service f he employer for a period of less than 12 months.(e)In any other case. 11
  12. 12. Definitions cont…Wages: It include any benefit or perquisiteexpressible in terms of money but excludestravelling allowance, employers contributionto a pension or PFIt also includes bonus, night out allowance,dearness allowance, gratuity overtime, etc. 12
  13. 13. Silent provision• Accident Compensation-when payable? When payable the employer of any establishment covered under this Act, is required to compensate an employee: who has suffered an accident arising out of and in the course of his employment, resulting into (i) death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement who has contracted an occupational disease accident arising out of and in the course of Employment Accident arising out of and in the course of Employment An accident arising out of employment implies a casual connection between the injury and the accident and the work done in the course of employment. 13
  14. 14. Silent provision cont… • What are the condition for receiving compensation for Personal Injury caused by the accident ? The three tests for determining whether an accident arose out of employment are : At the time of injury workman must have been engaged in the business of the employer and must not be doing something for his personal benefit; That accident occurred at the place where he was performing his duties; and Injury must have resulted from some risk incidental to the duties of the service, or inherent in the nature or condition of employment. 14
  15. 15. Silent provision cont…When is an Employer not liable to pay compensation?BUT, the employer shall not be liable to paycompensation in the following cases: if the injury did notresult in total or partial disablement of a workman for aperiod exceeding three days, if the workman was at thetime of the accident under the influence of drink of drug,or if the workman willfully disobeyed an order expresslygiven or a rule expressly framed for the purpose ofsecuring safety of workman, or If the workman willfullyremoved or disregarded any safety guard or other devicewhich to his knowledge was provided for the purpose ofsecuring his safety. 15
  16. 16. Doctrine of Notional Extension The expression in the course of his employment, connotes not only actual work but also any other engagement natural and necessary thereto, reasonably extended both as regards work-hours and work- place. It refers to the time during which the employment continues. . However, this is subject to the theory of notional extension of the employers premises so as to include an area which the workman passes and re-passes in going to and in leaving the actual place of work. There may be some reasonable extension in both 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. This is also called as the Doctrine of Notional Extension. The doctrine of notional extension could not be placed in a strait jacket; it was merely a matter of sound common sense as to when and where and to what extent this doctrine could be applied. 16
  17. 17. Payment of Compensation to Contract LabourPayment of Compensation to ContractLabour The principal employer is liable topay compensation to contract labour in thesame manner as his departmental labour.He is entitled to be indemnified by thecontractor. The principal employer shallnot however be liable to pay any interestand penalty leviable under the Act 17
  18. 18. Occupational DiseasesWorkers employed in certain types ofoccupations are exposed to the risk ofcontracting certain diseases which arepeculiar and inherent to those occupations.A worker contracting an occupationaldisease is deemed to have suffered anaccident out of and in the course ofemployment and the employer is liable topay compensation for the same. 18
  19. 19. Compensation-when not payable statement of fatal AccidentsAs per this section, compensation has to paid as soon as itis due In case the employer does not accept the liabilityof paying the compensation, he is bound to makeprovisional payment to the extent of the liability heaccepts. Such amount has to be deposited with thecommissioner or paid to the workman. If he defaults, thecommissioner may order: the payment of the amount withinterest at12 % per year if the default to be unjustifiablethen the commissioner may order payment of a furthersum not exceeding 50% of the amount due, by way ofpenalty. 19
  20. 20. Accident Report• Accident Report where the accident results in death or serious bodily injury, the employer should send a report to the Commissioner, within 7 days of the accident, in the prescribed from giving the circumstances attending the death or serious bodily injury 20
  21. 21. Amount of Compensation• Section 4 The amount of compensation payable to a workman depends on the nature of injury caused by accident, the monthly wages of the workman concerned, and the relevant factor for working out lump sum equivalent of compensation amount as specified in Schedule IV. There is no distinction between an adult and a minor worker with respect to the amount of compensation. 21
  22. 22. Table for the compensation Cases Compensation 50% if the monthly wages x Relevant factor or Rs[1,20,000], whichever is more.In case of death And [not less than Rs. 5000] for funeral expenses.In case of total permanent disablement 60% of the monthly wages x Relevant Factor or Rs. specified under Schedule I [1,40,000], whichever is more. Such percentage of the compensation payable in cae (b)In case of partial permanent disablement above, as is proportionate to the loss of earning capacity specified under schedule I. (specified in Schedule). Such percentage of the compensation payable in cae (b)In case of partial permanent disablement not above, as is proportionate to the loss of earning capacity specified under schedule I. (as assessed by a qualified medical practitioner). A half-monthly installment equal to 25% of the monthlyIn case of temporary disablement (Weather wages, for the period of disablement or 5yrs, which ever total or partial). is shorter.For treatment of injuries caused in the course of employment. Actual medical expenditure incurred by him. 22
  23. 23. Mode of PaymentMode of Payment The employer becomes liable to pay the compensation assoon as the personal injury was caused to the workman by the accidentwhich arose out of and in the course of the employment. The amount ofcompensation should be paid as soon as it falls due. It will be computed onthe date of accident. If the amount is not paid within one month from thedate it fell due, the Commissioner may after giving reasonable opportunityof being heard, direct the employer to pay simple interest @ 12% p.a. or atsuch higher rate as may be specified not exceeding the. Maximum lendingrate of any scheduled bank. Besides, if there is no justification for the delay,the Commissioner may after giving reasonable opportunity of being heard,direct the employer to pay a further sum not exceeding 50% of thecompensation, by way of penalty. The amount of penalty (earlier payable tothe Government) and also interest shall be paid to the workman or hisdependent as the case may be The half-monthly installments ofcompensation (payable in case of temporary disablement) should be paidwithin the time specified. The half-monthly installments can be convertedinto a lump sum payment, by an agreement between the employer and theemployee or by applying to the Commissioner. 23
  24. 24. Compensation to be deposited with Commissioner Compensation to be deposited with Commissioner The amount of compensation is not payable to the workman directly. It is generally deposited along with the prescribed statement, with the Commissioner who will then pay it to the workman. Any. payment made to the workman or his dependents, directly, in the following cases will not be deemed to be a payment of compensation :2. In case of death of the employee.3. In case of sump sum compensation payable to a woman or a minor or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability. Besides, compensation of Rs. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto. The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employers liability. 24
  25. 25. Notice of AccidentNotice of Accident A notice of accident should be sentto the Commissioner, by the concerned employee as soonas practicable after the happening thereof. The noticeshould contain such particulars as the name and addressof the person injured, the date and cause of accident, etc.A Copy of the notice should also be sent to theestablishment wherein he was employed. The notice ofaccident may be served either personally or by registeredpost or by means of an entry in the notice-bookmaintained by the employer. 25
  26. 26. Filing of Claims 26
  27. 27. Medical ExaminationMedical Examination The employer may get theconcerned workman examined by a qualifiedmedical practitioner, within 3 days fromreceiving the notice of accident. The employeemust present himself for such examinationotherwise he shall loose his right to thecompensation. Failure of employer to have theworkman medically examined does not debarhim from challenging the medical certificateproduced by the workman. 27
  28. 28. Attachment and Assignment of CompensationAttachment and Assignment ofCompensation No compensation payableunder this Act, whether in lump sum onhalf-monthly payments, can be attached,charged or passed on to any person otherthan the workman by operation of law, norcan it be set-off against any other claim. 28
  29. 29. Obligations of EmployerObligations of Employers is to pay compensation for an accidentsuffered by an employee, in accordance with the Act. To submit astatement to the Commissioner (within 30 days of receiving thenotice) in the prescribed form, giving the circumstances attending thedeath of a workman as result of an accident and indicating whetherhe is liable to deposit any compensation for the same. To submitaccident report to the Commissioner in the prescribed form within 7days of the accident which results in death of a workman or a seriousbodily injury to a workman. To maintain a notice book in theprescribed from at a place where it is readily accessible to theworkman. To submit an annual return of accidents specifying thenumber of injuries for which compensation has been paid during theyear, the amount of such compensation and other prescribedparticulars. 29
  30. 30. Obligations of EmployeesObligations of Employees is to send anotice of the accident in the prescribedform, to the Commissioner and theemployer, within such time as soon as it ispracticable for him. This notice isprecondition for the admission of the claimfor compensation. To present-himself formedical examination, if required by theemployer. 30
  31. 31. Rights of Employer and EmployeesCertain important rights of the employer and the employee: To apply to the commissioner for the half monthly review. To refer any dispute as to liability to pay compensation. To appeal against an order of the commissioner to the high court. 31
  32. 32. Offences and Penalties Offences PenaltiesUnjustified Delay in the payment of the Up to 50% of the amount of compensation besidesCompensation, beyond one month. interest.Failure to maintain a notice book u/s 10(3) Fine upto Rs. 5000Failure to submit a statement of fatal accidents u/s10-A. Fine up to Rs. 5000Failure to submit an accident report u/s 10-B Fine up to Rs. 5000Failure to file annual return of compensation u/s 16 Fine up to Rs. 5000 32
  33. 33. Prof. Choudhry Till the end of calendar 33
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