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Employees Compensation Act 1923
Employees Compensation Act 1923
●
personal injury by
●
accident
event
Sec 3(1) Exclusions
employer not liable
for any injury not exceeding three days of disablement
;
for any injury ( not leading to death or Permanent
total disablement) where the worker is under the
influence of drugs or alcohol ; or there is willful
disobedience and disregard of safety rules ; removal of
safety guards /devices…
Some obvious questions
Who …. Employee
By whom…. Employer
What is the compensation or how is it
calculated..
When does it arise
Employee - 1
(1)Employee means a person employed in any
such capacity as mentioned in Schedule 2 to be
read along with the state amendments. The list is
vast and has 32 sub parts detailing different types
of employments. State amendments add to this list.
The contract of employment may be oral or in
writing; express or implied. In case of death of
workman the dependant can apply the provisions
of this act on his behalf.
(2) Employees of the railways other than those
permanently employed in the administrative and
district offices.
Employee -2
(3) Employees working on the crew
(including Captain) of a ship/aircraft in any
capacity on a motor vehicle.
(4) employees outside India in any capacity
mentioned in Schedule 2 and the ship,
aircraft, motor vehicle or company is
registered in India.
contd…
Employee - 3
(5) Excludes the Armed Forces because
they are covered by their own Acts and the
nature of their injuries is in combat and
compensation is also determined according
to the provisions of the Act.
(6) exercise and performance of the powers
and duties of a local authority or
government department will be deemed to
be the trade or business of such authority.
Employee - 4
IMP: Both central and State Government
can add to the list of Sch 2 where it believes
they are subject to hazardous tasks.
Pose Q : Is domestic employee covered ?
Why ?
Employer- 1
Employer includes body or persons whether
incorporated or not ; their managing agent;
their legal representative in case of death of
employer . When the services of a workman
are lent by one employer to another employer
then the employer with whom the workman is
working becomes the employer.
cont..
Employer -2
Employees engaged through contractor. Where
employees are engaged through a contractor in the
trade and business of the employer (principal),
then the Act in terms of Section 12 places the
liability of compensation on the principal employer
and the principal employer in turn can be
indemnified by the contractor. Of course the
employee is not prevented from claiming from the
contractor directly.
cont..
Employer -3
Also in case a liability for damages lies on a
person (other than the employer) then the
employer can be indemnified from such
person after having paid (as per Section 12)
the employee the compensation.
Section 17 makes any contract null and void
which removes or reduces the liability of the
employee under the provisions of this Act.
Calculation of Compensation
What would be the factors that would go into this
calculation?
(TPD)
Occupational Schedule 3 – list of Separate box item on Infectious diseases
industries and Occupational diseases contracted in an
Diseases treated occupational diseases . placed below. occupation. Diseases
as injury by caused by chemicals.
accident
Monetization- 1
Type of Injury Compensation Limits Additional points
calculation
Medical Reimbursement of
Expenditure actual
expenditure by
the employer.