Introduction

?A beginning of social security in India was made with the passing of the Workmen's Compensation Act in 1923.

Prior to 1923, it was almost impossible for an injured workman to recover damages or compensation for any injury sustained by him in the 'ordinary course of his employment.

The dependants of a deceased workman could, in rare cases, claim damages under the Fatal Accidents Act, 1855; if the accident was due to a wrongful act, neglect or fault of the person who caused the death.

In 1921, the government formulated some proposals for the grant of compensation and circulated them for opinion. The proposals received general support.

As a result, the Workmen's Compensation Act was passed in March 1923 and was put into force on July 1, 1924.

Subsequently, there were a number of amendments to the Act. The Act contains 36 sections and four Schedules.

Object of the Act

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.  

Scope and Coverage

Extends to the whole of India and applies to any person-who is employed, otherwise than in a clerical capacity, in employments specified in Schedule II to the Act.

Under sub'-section (3) of section 2 of the Act, the state governments are empowered to extend the scope of the Act to any class of persons whose occupations are considered hazardous after giving three months notice in the Official Gazette.

The Act, however, does not apply to members serving in the Armed Forces of the Indian Union, and employees covered under the provisions of the Employees' State Insurance Act, 1948 as disablement and dependants' benefit are available under this Act.

Definitions

Workman

• within the meaning of section 2(1)(n) of the Workmen's Compensation Act, a person should :
• first be employed;
• second, his employment should not be of a casual nature;
• third, he should be employed for the purposes of the employer's trade or business; and,
• lastly, the capacity in which he works should be one set out in the list in Schedule II of the Act. This definition has been amended very recently. Dependants For the purposes of the Act dependants have been grouped into two classes :

i) Those who are considered dependants without any proof; and

ii) Those who must prove that they are dependants. The first group includes a widow, a minor legitimate son, an unmarried legitimate daughter or a widowed mother.

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 his employment.

In Schedule I to the Act, the percentage loss of earning capacity or disablement caused by different types of injuries has been listed.

The “Employees Compensation Act, 1923” is an Act to provide payment in the form of compensation by the employers to the employees for any injuries they have suffered during an accident. Earlier this Act was known as the Workmen Compensation Act, 1923. When the employer is not liable to pay compensation-

1. If the injury does not end in the entire or partial disablement of the employee for a period exceeding three days.
2. If the injury, not leading in death or permanent total disablement, is caused by an accident which is directly attributable to:
   1. The employee having at the time of the accident is under the influence of drink or drugs;

1. The willful disobedience of the employee to an order if the rule is expressly given or expressly framed, for the purpose of securing the safety of employees; or
2. The willful removal or disregard by the employee of any safety guard or other device which has been provided for the purpose of securing the safety of employees.

S0, the employer will not be liable to pay compensation for any kind of disablement which\does not continue for more than three days,

if the injury is caused when the workman was under the influence of drink or drugs or

• wilfully disobeyed a clear order or violated a rule expressly framed for the purpose of securing his safety or
• wilfully removed or disregarded a safety device.

A workman is-also not entitled to compensation if he does not present himself for medical examination when required, or if he fails to take proper medical treatment which aggravates the injury or disease.

Principles Governing Compensation

Who will be receiving the compensation on behalf of the deceased?

1. A widow or a minor who is a legitimate son or unmarried daughter or a widowed mother is entitled to compensation;
2. If the family of the deceased is wholly dependant on the earnings of the employee at the time of his death or a son or daughter who has attained the age of eighteen years;
3. A widower;
4. A parent other than a widowed mother; 
5. A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or illegitimate or adopted if married and a minor or if widowed and a minor; 
6. A minor brother or an unmarried sister or a widowed sister if a minor; 
7. A widowed daughter-in-law;
8. A minor child of a predeceased son;
9. A minor child of a predeceased daughter where no parent of the child is alive, or; 
10. A paternal grandparent if no parent of the employee is alive.

Section 3: Employer’s liability for Compensation

Employer’s liability in case of occupational diseases

There are certain occupations which expose employees to particular diseases that are inherent-

1. Infra-red radiations;
2. Skin diseases due to chemical or leather processing units;
3. Hearing impairment caused by noise;
4. Lung cancer caused by asbestos dust and Diseases due to effect of extreme climatic conditions.

Provided that the employer shall not be liable:

(a) if any injury does not result in the total or partial disablement of the employee for a period exceeding three days; 

(b) if any injury does not result in death or permanent total disablement caused by an accident which is directly attributable to- 

1. if the employee is under the influence of drink or drugs at that time, 
2. the willful disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employees, 
3. the wilful removal by the employee of any safety guard or other devices which he knew to have been provided for the purpose of securing the safety of employees.

In case it is not fatal, an employment injury may' cause any injury resulting in permanent total disablement, permanent partial disablement, or temporary disablement (Section 3).

If the workman contracts any occupational disease peculiar to that employment, that would be deemed to be an injury by accident arising out of and in-the course of his employment for purposes of this Act.

In the case of occupational diseases, the compensation will be payable only if the workman has been in the service of the employer for more than six months.

Some of the occupational diseases listed in Schedule III to the Act are anthrax, poisoning by lead, phosphorous or mercury, telegraphist’s cramp, silicosis, asbestosis, and bagassosis (Section 3).

Authority

It is provided that all cases of fatal accidents should be brought to the notice of the Commissioner for Workmen's Compensation; and if the employer admits the liability, the amount of compensation payable should be deposited with him.

Where the employer disclaims his liability for compensation to the extent claimed, he has to make provisional payment based on the extent of liability which he accepts; and such payment must be deposited with the Commissioner or paid to the workman.

Advances by the employers against compensation are permitted only to the extent of an amount equal to 3 months' wages. He is also empowered to deduct an amount not exceeding Rs. 50 from the amount of compensation iii order to indemnify the person who incurred funeral expenses.

The employer is required to file annual, returns giving details of the compensation in order to indemnify tie person who incurred funeral expenses. (Sections 2 and 8).

If an employer is in default, in paying the compensation within one month from the  date it fell due, the Commissioner may direct the recovery of not only the amount of the arrears but also a simple interest at the rate of six per cent per annum on the amount due. If, in the opinion of the Commissioner, there is no justification for the delay, an additional sum, not exceeding 50 per cent of such amount, may be recovered from the employer by way of penalty (Section 4-A).

Contracting Out

A contract or agreement, whereby the workman relinquishes his right to compensation is null and void to the extent to which such contract or agreement purports to remove or reduces, the liability for, the payment of compensation. The compensation payable to the workman or to his dependants cannot be assigned, attached or charged (Section 9 and 17).

 Claims and Appeals

In case the compensation is not paid by the employer, the workman concerned or his dependants may claim the same by filing an application before the Commissioner for Workmen's Compensation.

The claim shall be filed within a period of two years of the occurrence of the accident or death.

An appeal will lie to the High Court against certain orders of the Commissioner if a substantial question of law is involved.

An appeal by an employer against an award of compensation is incompetent unless the memorandum of appeal is accompanied by a certificate that the employer has deposited the amount of such compensation. The period of limitation for an appeal under Section 30 is sixty days (Sections 10 and 30).

 Administration

The Act is administered by state governments which are required to appoint Commissioners for Workmen's Compensation.

The functions of the Commissioner include:

i) Settlement of disputed claims;

ii) Disposal of cases of injuries involving death; and

iii) Revision of periodical payments (Section 20). The Commissioner may recover as an arrear of land revenue any amount payable by any person under this Act, whether under an agreement for the payment of compensation or otherwise (Section 31):

The Act made provision for the framing of the rules by the State and Central Government and also their publication (Section 32-36).