The Employees Compensation Act, 1923
The Employees’ Compensation Act, 1923
Overview:
The Employees’ Compensation Act, 1923 is a legislation enacted in India to provide compensation to employees or their dependents in case of injury, disablement, or death arising out of and in the course of employment. The Act applies mainly to employees who suffer occupational hazards or accidents during their work.
Purpose:
To ensure financial compensation for workers who are injured or incapacitated due to work-related accidents or diseases.
To protect employees and their families against the economic hardships caused by work-related injuries.
To impose liability on employers to compensate employees or their dependents in case of workplace injuries.
Key Provisions:
Scope and Applicability:
Applies to factories, mines, plantations, railways, and other specified industries.
Covers employees earning wages up to a certain limit (usually specified in the Act).
Injuries must arise out of and during the course of employment.
Types of Injuries Covered:
Partial disablement (temporary or permanent)
Total disablement (temporary or permanent)
Death caused by occupational accidents or diseases.
Compensation Calculation:
Depends on the nature of the injury or disablement.
Calculated as a percentage of the wages, usually linked to the extent of disablement.
For death, compensation is paid to dependents based on the employee's wages.
The Act specifies a maximum limit on the amount of compensation payable.
Employer’s Liability:
Employers are liable to pay compensation regardless of fault.
The compensation amount is decided by the Commissioner appointed under the Act.
Failure to pay compensation can result in penalties.
Process and Authorities:
Claims are made to the Commissioner of Employees’ Compensation.
The Commissioner investigates and decides on compensation.
The Act provides for appeals against the Commissioner’s orders.
Medical Examination and Proof:
Medical reports and evidence are essential to prove injury or disablement.
The Act allows the Commissioner to appoint medical examiners.
Exemptions:
Injuries due to employee’s own misconduct or intoxication.
Injuries not related to employment.
Injuries during unauthorized absence or while committing a crime.
Summary Table: The Employees’ Compensation Act, 1923
| Aspect | Details |
|---|---|
| Objective | Provide compensation for work-related injuries, disablement, or death |
| Applicability | Employees in factories, mines, plantations, railways, and other notified industries |
| Covered Injuries | Partial disablement, total disablement, death |
| Compensation Basis | Percentage of wages depending on injury severity and type |
| Liability | Employer liable regardless of fault |
| Maximum Compensation | Limited as per the Act (varies based on injury and wages) |
| Authorities | Commissioner of Employees’ Compensation |
| Claim Process | Filing claim with Commissioner, investigation, compensation order, and appeal option |
| Exemptions | Injuries due to misconduct, intoxication, unauthorized absence, or crime |
| Penalties | For failure to pay compensation or comply with orders |
Example Compensation:
Permanent total disablement: Compensation can be up to 60 months' wages or a lump sum as per the schedule.
Permanent partial disablement: Compensation proportionate to the percentage of disability.
Death: Compensation up to 50 months' wages paid to dependents. Do write to us if you need any further assistance.
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