The Workmen's Compensation Act was passed in 1923 to provide financial and social security to employees injured during employment in hazardous industries like mining, factories, and transportation. The Act requires employers to pay compensation for injuries arising from accidents that occur in the course of employment. It covers most types of employees except those in clerical roles or covered under other acts. The Act defines key terms, sets rules for claiming and distributing compensation, and establishes authorities to administer the Act and settle disputes.

1. Workmen Compensation Act
-1923
-By
V Santhosh Kumar

2. When? Whom? & Why?
● Workmen’s Compensation Act was passed in the year 1923 and
came into force from 1924.
● The provisions of this Act were made keeping in mind the
hazardous nature of the job of miners, factory workers,
transporters, railway servants, etc.
● This Act was made to ensure the financial and social security of
the employees who might get injured due to an accident
caused during the course of their employment
WCA
1923 - SK

3. Objectives Of the act
● The object of the Act is to impose an obligation upon
employers to pay compensation to workers for accidents
arising out of and in the course of employment.
● The scheme of the Act is not to compensate the workman
in lieu of wages, but to pay compensation for the injury
sustained to him.
WCA
1923 - SK

4. Scope and coverage
● The Act extends to whole of India and applies to any person who is
employed otherwise than in a clerical capacity, in railways, factories,
mines, plantations, mechanically propelled vehicles, loading &
unloading work on ship, construction, maintenance and repairs of
roads, bridges etc.,
● cinemas(stunt man), catching or training wild animals , circus & other
hazardous employments specified in Schedule II to the Act.
● It does not apply to defense personnel and those covered under ESI
Act.
WCA
1923 - SK

5. Definitions Of the Act
Workman : A person who is employed and in employment that is not
seasonal; and employed for the purposes of the employer’s trade or
business and lastly in a capacity set out in schedule II to the Act.
Dependants : Those who are considered dependants without any proof –
a widow, a minor legitimate son, an unmarried legitimate daughter or a
widowed mother.
WCA
1923 - SK

6. Definition of the Act contd..
Dependants : Those who must prove they are dependants– a
widower, a parent other than a widowed mother, a minor
illegitimate son, an unmarried illegitimate daughter or a
married and minor daughter legitimate or illegitimate, etc.
Grandparents or grant children, nephews and nieces are also
included under certain conditions.
These relations have to prove that they were wholly or partially
dependant on worker’s earnings at the time of his death.
WCA
1923 - SK

7. Distribution of Compensation
● The compensation shall be paid by the employer to a workman for any
personal injury sustained by him in an accident arising out of and in the
course of employment.
● Compensation is determined by % loss of earnings indicated in the Schedule
I to the Act.
● Compensation is not payable for a disablement [ except death] which does
not continue for more than three days, or is caused due to workman being
under influence of drug or drink.
● Compensation is not payable if workman does not show up for required
medical examination or fails to take proper medical treatment.
WCA
1923 - SK

8. Authority
● All cases of fatal accidents should be reported to the Commissioner
for workmen’s Compensation, and if the employer admits the liability,
the amount of compensation shall be deposited with him.
● Where the employer disputes the amount of claim, he shall make
payment for the liability he accepts to the Commissioner or the
workman.
● Employer is required to file an annual return providing details of
compensation paid, the number of injuries & other particulars.
● Commissioner of Workmen’s Compensation has authority to
distribute the amount of compensation deposited with him to the
deceased’s dependants in such a proportion as he thinks fit.
WCA
1923 - SK

9. Contracting Out
A contract or an agreement , whereby the workman
relinquishes his right to claim compensation from
employer for the personal injury arising out of and during
course of employment is null and void.
The compensation payable to the workman or dependants
cannot be assigned , attached or charged.
WCA
1923 - SK

10. Claims
In case the compensation is not paid by the employer,
the workman or his dependant may claim the same
by filing an application before the Commissioner for
workmen’s Compensation.
The claim has to be filed within two years from the
date of injury or death.
WCA
1923 - SK

11. Obligations of Workmen
[1] Give notice of the accident and the occupational disease in
the prescribed form for claiming compensation.
[2] Submit to medical examination by a qualified medical
practitioner and follow the treatment & instruction provided
by him
WCA
1923 - SK

12. Obligations of Employers
● Pay compensation for employment injury or deposit the amount
with the Commissioner for Workmen’s Compensation as soon as it
falls due.
● Do not deduct from compensation any amount of expenses
incurred for medical treatment of injured workman.
● Notify within seven days , to the Commissioner all fatal and
serious accidents arising out of or in course of employment.
WCA
1923 - SK

13. Administration
The Act is administered by the State Governments which are required to
appoint Commissioners for Workmen’s Compensation.
Their functions :-
(i)Settlement of disputed claims
(ii)Disposal of cases of injuries involving death; and
(iii) Revision of periodical payments.
The Act has made provision for the framing of rules by the State and
central Governments and also for their publication.
WCA
1923 - SK

14. Latest Amendments
Employee’s Compensation Act rule change 2020: Here’s good news for workers.
The Central government has changed the amount of wages to be considered for
calculation of compensation to workers under the Employee’s Compensation Act
1923 vide notification S.O.71 (E) dated January 3, 2020.
The amount of wages considered previously for the calculation of compensation
was just Rs 8,000. Now, it will be Rs 15,000, according to the notification by the
Ministry of Labour and Employment.
:Source Financial Express

15. Thank You :-)
-sk