combooo (1) (3).pptx

Workmen's compensation act,1923
PRESENTED BY,
ASWANA SAHADEVAN
ATHIRA T
ROSE MARIA
SRUTHI RAJ
1

INTRODUCTION
 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.
 The act imposes statutory liability up on an employer to provide payment to
employees when they suffer from physical disabilities & diseases during
course of employment.
2

DEFINITION
 The Workmen’s Compensation Act, 1923 is one of the important social
security legislations which aims at providing financial protection to workmen
and their dependents in case of accidental injury by means of payment of
compensation by the employees.
 Workmen’s Compensation Act, 1923
- It extends to whole of India.
- It came into force on the first day of July 1924.
3

GENERAL PRINCIPLES
 There must be a casual connection between the injury/accident and the work
done in the course of employment.
 The onus is upon the applicant to show that it was the work and the resulting
strain which contributed to or aggravated the injury.
 It is not necessary that the workman must be actually working at the time of his
death or that death must occur while he was working or had just ceased to work.
4

OBJECTIVES
 The main objective is to provide compensation to employees or their dependents
in case of injury, illness or death caused due to employment.
 It provides compensation to those employees :
a) Died in accident
b) Partially handicapped
c) Fully handicapped
d) Temporary handicapped
5

Applicability of the act
 The act extends to the whole of India except the States/Union Territories of
Arunachal Pradesh, Mizoram, Nagaland, Sikkim and Daman & Diu and
Lakshadweep.
 The act applies to workers employed in any capacity specified in Schedule II of
the Act which includes Factories, Mines, Plantations, Mechanically Propelled
Vehicles, Construction Work and certain other Hazardous Occupations and
specified categories of Railway Servants.
6

Main provisions and Scope of the Act
 Under the Act, the State Governments are empowered to appoint Commissioners
for Workmen's Compensation for :
(i) Settlement of disputed claims
(ii) disposal of cases of injuries involving death
(iii) revision of periodical payments.
7

DEFINITIONS (section 2)
 COMMISSIONER
 DEPENDANT
 EMPLOYER
 DISABLEMENT
 WAGES
 WORKMAN
8

COMMISSIONER (section 2)
 A Commissioner means a commissioner for Workmen’s Compensation appointed under section 20.
 The state Government may, by notification in the official gazette, appoint any person to be a
Commissioner for Workmen's Compensation for such area as may be specified in the notification.
 Any Commissioner may, for the purpose of deciding any matter referred to him for decision under
this Act, choose one or more persons possessing special knowledge of any matter relevant to the
matter under inquiry to assist him in holding the inquiry.
9

DEPENDANT
 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; and
(ii) If wholly dependent on the earnings of the workman at the time of his death, a son or a daughter who
has attained the age of 18 years and who is infirm;
(iii) If wholly or in part dependent 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 daughter legitimate
(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,
10

EMPLOYER {sec2(1)e}
 Any body of persons whether incorporated or not.
 Any managing agent of an employer and the legal representative of a deceased
employer .
 When the services of a workman are temporarily lent or let on hire to another person
by the person with whom the workman has entered into a contract of service or
apprenticeship means such other person while the workman is working for him.
11

DISABLEMENT
 Disablement means any loss of capacity to work or move.
 May result in loss or reduction of his earning capacity.
 Disablement may be ;
 Total {sec.2.1(g)}
 Partial {sec 2.1(l)}
 Temporary
 Permanent
12

 Partial disablement
• The disablement is of a temporary nature, such disablement reduces the earning
capacity of a workman in any employment in which he was engaged at the time of
the accident resulting in the disablement
• Where the disablement is of a permanent nature, such disablement reduces his
earning capacity in every employment which he was capable of undertaking at that
time.
 Total Disablement : It means such disablement, whether of a temporary or
permanent nature, that incapacitates a workman for all work which he was capable of
performing at the time of the accident resulting in such disablement.
13

WAGES {Sec.2.1}
 “Wages” includes any privilege or benefit which is capable of being estimated in
money, other than travelling concession or a contribution paid by the employer to
the workman towards any pension or provident fund or a sum paid to a workman
to cover any special expenses entailed to him by the nature of his employment.
14

WORKMAN {SEC 2.1}
 A railway servant as defined in clause (34) of section 2 of The Railways Act 1989
not permanently employed in administrative, district or sub- divisional office of a
railway and employed in any such capacity as is specified in schedule II or,
 A master, seaman, or other member of the ship or crew .
It does not include a person whose employment is of a casual nature
15

Employers liability for compensation{sec3}
 OCCUPATIONAL DISEASES
1. Part A of schedule III
2. Part B of schedule III
3. Part C of schedule III
 PERSONAL INJURY
1. Personal injury
2. Accident
3. Arising out of employment & in course of employment
 EMPLOYER IS NOT LIABLE WHEN
1. Disablement not exceeding 3 days
2. Accident due to influence of drink, drugs or disobeyed orders.
16

Conditions for Compensation For Personal Injury
 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.
17

Employer is not liable to pay compensation in the
following cases;
 In respect of any injury which does not result in the total or partial disablement
of the workmen for a period exceeding 3 days.
 The workmen having been at the time if the accident under the influence of
drinks or drugs.
 The willful disobedience of the workmen to an order expressly given.
 The willful removal of any safety guard or other device provided for the purpose
of safety of workmen.
18

Does not apply under employee’s compensation act ;
 Person’s working in armed forces.
 Indirect labours in factory and persons engaged on daily wages.
 Temporary employees of any business or business or trading company.
 Employees covered under “Employees State Insurance Act, 1948”.
19

OCCUPATIONAL DISEASES
 Workers employed in certain types of occupations are exposed to the risk of
contracting certain diseases which are peculiar and inherent to those
occupations.
 A worker contracting an occupational disease is deemed to have suffered an
accident out of and in the course of employment and the employer is liable to
pay compensation for the same.
20

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 form giving
the circumstances attending the death or serious bodily injury.
Notice of accident
 Should be sent to the Commissioner, by the concerned employee as soon as practicable
after the happening thereof. The notice should contain such particulars as the name and
address of the person injured, the date and cause of accident, etc.
• A Copy of the notice should also be sent to the establishment wherein he was employed.
22

Medical examination
 The employer may get the concerned workman examined by a qualified
medical practitioner, within 3 days from receiving the notice of accident. The
employee must present himself for such examination otherwise he shall loose
his right to the compensation.
 Failure of employer to have the workman medically examined does not debar
him from challenging the medical certificate produced by the workman.
23

Amount of compensation (section 4)
Where death of a workman results from the injury:
 An amount equal to 50% of the monthly wages of the deceased workman
multiplied by the relevant factor or an amount of 80000 Rupees, whichever is
more.
Where permanent total disablement results from the injury:
 An amount equal to 60% of the monthly wages of the injured workman multiplied
by the relevant factor or an amount of 90000 Rupees, whichever is more
24

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
- the relevant Factor is specified in schedule IV for working out the lump sum
amount of compensation
 There is no distinction between an adult and a minor worker with respect to the
amount of compensation
25

Factors considered for compensation under Employees
Compensation Act, 1923
1. Extend of loss caused by an accident
Loss of fingers, hand, eye, leg etc.
2. Nature of injury
Temporary, permanent or death
3. Average income of the employee
It is considered that the loss will be more when the income is more of the employee
4. Period of loss - age factor
The remaining years of service will be considered in deciding compensation.
26

Compensation For Death
 In case of death resulting from injury, the amount of compensation shall be equal
50% of the monthly wages of the deceased workmen multiplied by the relevant
factor or an amount of Rs 1,40,000/- whichever is more
 Example:
 A workman is employed in a factory on a monthly wage of Rs 3000. While
working he met with an accident and dies on oct 2000. His date of birth is July 18 ,
1970. The amount of compensation payable to his dependent would be
27

.
 (50* monthly wages* Relevant factor of age 30)/ 100
= 50* 3000* 207.98/100 = 3,11,970
Or 1,40,000 whichever is higher
 Since Rs 3,11,970 is more than 1,40,000 the compensation payable to
him shall be Rs 3,11,970
28

Compensation for Temporary disablement
(Total or Partial)
 If the temporary disablement (total or partial) results from the injury, the amount of
compensation shall be a half monthly payment of the sum equivalent to 25% of the
monthly wages of the workman to be paid in accordance with the provisions.
 The half monthly payment shall be payable on the sixteenth day from the date of
disablement.
 In cases where such disablement lasts for a period of 28 days or more compensation is
payable from the date of disablement.
 In other cases after the expiry of awaiting period of three days from the date of
disablement.
29

REGISTRATION FOR AGREEMENTS
 Where the amount payable as compensation has been settled by agreement a memorandum thereof
shall be sent by the employer to the Commissioner, who shall, on being satisfied about its genuineness,
record the memorandum in a registered manner
 .However where it appears to the Commissioner that the agreement ought not to be registered by
reason of the inadequacy of the sum or amount,, or by reason that the agreement has been obtained by
fraud or undue influence or other improper means he may refuse to record the agreement and may
make such order including an order as to any sum already paid under the agreement as he thinks just in
the circumstances.
 An agreement for payment of compensation which has been registered shall be enforceable under this
act notwithstanding anything contained in the Indian Contract Act, or any other law for the time being
in force.
30

FAILURE TO REGISTER AGREEMENT
 When a memorandum of any agreement is not sent to the Commissioner for registration,
the employer shall be liable to pay the full amount of compensation, which he is liable to
pay under the provisions of this Act
31

FILING OF CLAIMS
 No claim for compensation shall be entertained by the Commissioner unless the notice of
accident has been given by the workman in the prescribed manner, except in the following
circumstances:
 in case of death of workman resulting from an accident which occurred on the premises of the
employer, or at any place where the workman at the time of the accident was working died on
such premises or such place or in the vicinity of such premises or place;
 in case the employer has knowledge of the accident from any other source, at or about the
time of its occurrence; in case the failure to give notice or prefer the claim, was due to
sufficient cause
32

LIMITATIONS
 Workman, to the Commissioner, may file the claim for accident compensation in the
prescribed form, within 2 years from the occurrence of the accident or from the date of
death. The claim must be preceded by
 (i) a notice of accident, and(ii) the claimant-employee must present himself for medical
examination if so required by the employer.
33

DUTIES OF EMPLOYERS
 Pay compensation for an accident suffered by an employee, in accordance with the Act.
 To submit a statement to the Commissioner (within 30 days of receiving the notice) in the
prescribed form, giving the circumstances attending the death of a workman as result of an
accident and indicating whether he is liable to deposit any compensation for the same.
 To submit accident report to the Commissioner in the prescribed form within 7 days of the
accident, which results in death of a workman or a serious bodily injury to a workman?
 To maintain a notice book in the prescribed from at a place where it is readily accessible to the
workman
34

 To submit an annual return of accidents specifying the number of injuries for which
compensation has been paid during the year, the amount of such compensation and other
prescribed particulars.
 To send a notice of the accident in the prescribed form, to the Commissioner and the
employer, within such time as soon as it is practicable for him. The notice is
precondition for the admission of the claim for compensation.
 To present himself for medical examination, if required by the employer
35
DUTIES OF EMPLOYERS

AMENDMENTS AND CHANGES
 The Act is now known as "Employee's Compensation Act
 Throughout the Act where 'workman' or 'workmen' occur, the words 'employee' and 'employees' shall
be substituted
 Clerical employees are included in the definition of 'employee’
 Compensation for death raised from 80,000 to 120000
 Compensation for permanent total disablement raised from 90,000 to 140000
 New subsection is added for medical reimbursement
 The employee shall be reimbursed the actual medical expenditure incurred by him for treatment of
injuries caused during the course of employment"
 Funeral expenses amount is increased from s 2500 to "not less than RS .5000
36

CONTI…
 No changes in definition of "wages
 it reserves the right for Central Government to enhance the amount of compensation
 Explanation II: Where the monthly wages of a workman exceed four thousand rupees,
his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be
four thousand rupees only
 Now the above explanation has been revised as: Where the monthly wages of a workman
exceed Eight thousand rimees, his monthly wages for the purposes of clause (a) and
clause (b)shall be deemed to be Eight thousand rupees only
37

39
YEAR TITLE AUTHOR CONTENT
2014 Status of provision
of the factories
Acts,1948-A study
at penna cement
industries limited
(PCIL),Tadipatri
Keerthi Sriya A Aim of study
• Evaluate the implementation and effectiveness of the Factories
Act, 1948 within Penna Cement Industries Ltd, Tadipatri.
• Assess compliance to various labor standards as established by
this Act, such as limits on work hours, safety regulations, and
protection of worker rights.
Research Methodology
• Literature Review: An extensive review of legal documents and
related studies was carried out to gain a theoretical
understanding.
• Inspections and Interviews: Researchers conducted inspections
and interviewed both employees and management at the Penna
Cement Industries Ltd.
• Data Analysis: The data collected from inspections and
interviews were analyzed both quantitatively and qualitatively
for a comprehensive understanding. qualitatively for a
comprehensive understanding

40
2014 Status of provision
of the factories
Acts,1948-A study
at penna cement
industries limited
(PCIL),Tadipatri
Keerthi Sriya A Findings
• Compliance: Penna Cement Industries Ltd. generally adheres
to the Factories Act's regulations.
• working Hours: Instances were identified where the limitation
on working hours as per the Factories Act was breached.
• Safety Measures: Some lapses were noted in the compliance
with safety protocols.
• Inspection Importance: The significance of regular inspections
by factory inspectors from the State Labour Department was
highlighted. –
• Balancing Approach: The study emphasized the necessity for
an approach that appropriately balances worker welfare and
organizational productivity.

41
2010 A study on the
various welfare
measures and their
impact on
QWLprovided
by the Textile
Mills with
reference to Salem
District, Tamil
Nadu, India
Maharajan &
arjun
Aim of study
• To understand the role and effectiveness of welfare measures on
the quality of work life (QWL) among employees in the textile
mills of Salem District in Tamil Nadu, India. Particularly, it
focuses on employee satisfaction related to these welfare
measures.
Research methodology
• Descriptive research was conducted to find out the
information about the factor and to spotlight the areas that need
the management’s attention.
• sampling unit as textile mills of Salem district, Tamil Nadu, in
that selected 10 textile units, 25 participants from each unit.
Total number of sample participants is
250.
• Analysis involved estimating the value of unknown parameters
of the population and
testing of hypothesis for drawing inferences.

42
2010 A study on the
various welfare
measures and their
impact on
QWLprovided
by the Textile
Mills with
reference to Salem
District, Tamil
Nadu, India
Maharajan
&arjun
Finding
• Welfare measures are recreational, medical, educational,
housing, sanitation and
so on.
• Every organization provides the statutory welfare measures but
some organization.
• Provides some more welfare facilities to the employees so that
they may retain the employees
and their quality of work life.
• By the result of improved quality of work life among the
employees their involvement in job gets increased and results in
increased productivity of the
organization.

43
YEAR TITLE AUTHOR STUDY AREA
2014 A Study on
Compensation
Management at
Sri Steel
Industries
Limited,
Coimbatore
Uthra V Aim of study
• To study the compensation management practices in the organization
and also to identify the type of compensation and analyze the
satisfaction of workers with regard to compensation
• The study assumes the nature of descriptive research. The sample size
considered for the study is 50.
• The sampling technique used is Strata sampling. The data is collected
from the sample through Questionnaire method.
• The statistical tools used for analysis are chi-Square and mean score.
The mathematical tool used is percentage analysis
Findings
• It is found that most of the employees are satisfied with the
compensation policy followed at their organization & also satisfied with
the non-monetary benefits provided, basic pay, house rent allowance,
dearness allowance ,conveyance allowance, medical benefits provided,
over time allowance, travelling allowance.
• The employees are dissatisfied with the leave rules laid.& observed that
there is a significant relationship between the work performance of the
employee and the kind of compensation.

44
2019 A study on
compensation
management
with reference to
IDBI federal life
insurance
company private
limited
P.Harikagoud
Rama devi
Aim of study
• The present study explores the valued dimensions of
compensation management at IDBI federal life insurance
company limited. It focuses on types, issues, importance and
improvements of compensation management.
• The sample selected for the research purpose consists of 50
employees. A random sampling method was applied to collect
the data from various resources.
• A specific questionnaire was personally administered to collect
the data towards the purpose of the data collection.
• The necessary data and information have been collected from
two important sources(Primary data &Secondary data).
Findings
• Most of the employees are interested in monetary
compensation.
• The Compensation in IDBI was found average
• Most of the employees are satisfied by the policies and
procedures of the organization

45
YEAR TITLE AUTHOR STUDY AREA
2015 Implementati
on of
Factories Act
1948 at
Gulbarga
Division:
Providing
Amenities &
Benefits
Kalyanrao K Aim of study
• This study was done to know the amenities of factories act provided at
gulbarga division & satisfaction level of the employees on the facilities
provided by the companies and how the Health, Safety and Welfare
measures boost the employees morale.
• Descriptive method is used for research design, Research approach was
by survey method, Contact method was personal , The Sample size 200
respondents of various companies, The Sample units were the
Employees. Both primary and secondary data collection was made.
Findings
• Acquired much more knowledge regarding employees health, safety,
and welfare and how it contributes towards the organization success.
• Health and safety measures helped in reducing industrial accidents
• The increase the productivity level of employees the organization
should have to provide all safety and welfare measures. The growth and
success of the organization depends on employees.

46
2010 Workers compensation and
the challenges posed by
changing patterns of work:
evidence from Australia
Michael Quinlan Aim of study
• Study was undertaken of the problems and policy
responses to changing work arrangements in eight
of nine Australian workers’ compensation
jurisdictions.
• The study was based on focus groups and
individual interviews with 63 agency officials and
40 union and employer representatives, as well as
analysis of agency guidance material, reports and
statistics.
Findings
• It was found that changing work arrangements
posed serious problems for workers’ compensation
regimes in terms of coverage, utilization, claims
handling, return-to-work programmes and
premium compliance

47
2021 A Critical
Study on
Workers
Compensati
on in India.
Padmarajagopalan.M,
Mr. Hariraman.B
Aim of study
• To know about how the compensation is implemented in
companies and the Benefits of the workers compensation
Act,1923.
• The study was based on empirical research. Collect the
legal facts of a particular area and to test hypotheses of a
cause -effects relationship between variables. The sample
size was 1499.
• Questionnaire is used as the primary data collection and
the articles, journals, reports, newsletters are considered as
the secondary sources.
• The analysis is carried out for demographic statistics and
hypothesis testing correlation and cross tabulation is used.
Findings
• Workers' compensation advantages cover almost every one
of the workers who are occupied with occupations and
awards the individuals who are harmed or become sick
because of cause of work.

48
2016 A study on
employee job
satisfaction in aqua
industry with
respect to
workmen’s
compensation act,
1923 in SPSR
Nellore district of
Andhra Pradesh
A.M. Mahaboob
Basha
Aim of study
• To find out the opinions of employees concerning
compensation policy in Aquaculture Industry, Nellore,
A.P.
• To know the factors which increase the employee
satisfaction of employees in the organization.
• The data for this study was, collected from primary and
secondary data. The primary source was questionnaire of
close end type. The sample size chosen was 50.
Findings
• There is no relationship between the departments and The
benefits employee receive is as good as most available in
private sector.
• There is a pressing need to review and rationalize the pay
structure to improve employee efficiency.
• The current pay system has a positive effect on employee
productivity

REFERENCES
 Padmarajagopalan.M, Mr. Hariraman.B (2021)A Critical Study on Workers Compensation in India.
 P.HarikagoudRama devi(2019)A study on compensation management with reference to IDBI federal life insurance
company private limited
 A.M. Mahaboob Basha(2016)A study on employee job satisfaction in aqua industry with respect to workmen’s
compensation act, 1923 in SPSR Nellore district of Andhra Pradesh
 Kalyanrao K (2015)Implementation of Factories Act 1948 at Gulbarga Division: Providing Amenities & Benefits
 Keerthy Surya (2014) ‘Status of Provisions of the Factories Act, 1948 – A study at Penna Cement Industries Limited
(PCIL), Tadipatri’
 Uthra.V(2014)A study on the various welfare measures and their impact on QWL provided by the Textile Mills with
reference to Salem District, Tamil Nadu, India
 Michael Quinlan(2010)Workers compensation and the challenges posed by changing patterns of work: evidence from
Australia
 Meharajan & Arun (2010)’ A study on the various welfare measures and their impact on QWL provided by the Textile
Mills with reference to Salem District, Tamil Nadu, India.
51

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