The Workmen’s Compensation Act, 1923 (now known as the Employees’ Compensation Act, 1923), is a crucial piece of legislation in India aimed at providing financial protection and compensation to employees and their dependents in the event of work-related injuries, disabilities, or fatalities.
Important Features to Achieve its Objectives
- Compulsory Compensation:
- The Act mandates that employers are legally obligated to provide compensation to their employees or their dependents in the event of work-related injuries, disabilities, or fatalities. This compensation is provided on a “no-fault” basis, meaning that negligence on the part of the employer need not be proven for an employee to receive compensation.
- Absolute Liability:
- Employers are held absolutely liable for compensation, regardless of their fault or negligence. This principle ensures that injured employees or their dependents receive financial support without having to establish employer negligence.
- Scope of Coverage:
- The Act covers employees working in specified hazardous occupations or establishments, including industrial and non-industrial sectors. It applies to both permanent and temporary employees, including casual and contractual workers.
- Compensation for Injuries and Disabilities:
- The Act provides compensation for various types of injuries, disabilities, or fatalities arising out of and during the course of employment. The compensation amount is determined based on the nature and severity of the injury, the employee’s monthly wage, and the specific provisions of the Act.
- Compensation for Fatalities:
- In case of an employee’s death due to a work-related accident or injury, the Act provides for compensation to be paid to the deceased employee’s dependents, such as the spouse, children, or parents.
- Medical Expenses:
- Employers are also responsible for reimbursing medical expenses incurred by the injured employee for the treatment of work-related injuries. This ensures that employees receive proper medical care.
- Schedule of Compensation:
- The Act includes a detailed schedule of compensation that outlines the compensation amounts payable for various types of injuries and disabilities, including temporary and permanent disablement, loss of limbs, and more.
- Appeals Process:
- The Act provides a mechanism for both employers and employees to appeal decisions related to compensation. If either party is dissatisfied with the commissioner’s decision, they can appeal to higher authorities or courts.
- Insurance:
- Employers can fulfill their liability under the Act by obtaining an insurance policy known as “Workmen’s Compensation Insurance” or “Employer’s Liability Insurance.” This insurance coverage helps employers meet their financial obligations in case of compensation claims.
- Reporting and Records:
- Employers are typically required to maintain records and documentation related to workplace accidents and compensation claims. They may also be required to submit periodic reports to relevant authorities.
- Timely Disbursement:
- The Act emphasizes the timely disbursement of compensation to injured employees or their dependents, ensuring that they receive financial support promptly.
- Amendments and Revisions:
- The Act has been subject to amendments and revisions over the years to account for changing circumstances and evolving needs. These changes aim to provide better protection and compensation to employees.
