Transcript
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Gracy Jayaraj (316)Poonam Kadam (319)Lisha Murali (320)Ahlm Khan (322)Tanveerali Khan (323)Mital Patil (336)

Group

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What Is the Objectives of Employee’s Compensation?

The Employee's Compensation Act, 1923, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen.

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Scope and Coverage :

Scope and Coverage The Act extends to the whole of India.To the persons engaged in cleaning, spraying or dusting, harvesting and traching The Employee's Compensation (Amendment) Act, 2000. has brought all the workers within its ambit irrespective of their nature of employment.The coverage of this act is also to cooks employed in hotels and restaurants.Establishments which are covered by the Employees State Insurance Act, are outside the preview of this Act.

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Changes - Update

W.e.f 18th Jan 2010 the Workmen’s compensation Act, 1923. the word ‘workman’ has been changed to ‘employee’ in all respect

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Employees Entitled

Employees who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.A person employed in a factory which is yet to commence production would also be entitled for the benefit of the Act. Any person engaged in manufacturing premises who is contributing for the intended manufacturing process would be deemed to be workman for the purpose of the Act

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Whether Contractor is a Workman?

• An independent contractor lies in this that while the former agrees himself to work, and latter agrees to get other persons to work.

• A person who agrees himself to work and does so is an employee.

• Where a person entered into a construction contract and agreed to work himself and also to employ his own labour, while construction material was to be supplied by the owner, and the contractor died while working himself, it was held that the dependents of the deceased were entitled to compensation.

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Administrative Authority

• Administrative Authority The State Governments administer the provisions of this Act through the Commissioners appointed for specified areas. The State Governments also make rules for ensuring that the provisions of the Act are complied with.

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Definitions

Dependant Dependant means any of the following: Relatives of a deceased workman (namely a widow, a minor

legitimate or adopted son and unmarried legitimate or adopted daughter, or a widowed mother, and if wholly dependant on the earnings of the workman at the time of his death, a son or a daughter who has attained the age of 18 years and who is infirm, And any of the following wholly or partly dependent on the workman at the time of his death— a widower, a parent other than a widowed mother, a minor illegitimate son, a unmarried illegitimate daughter, a widowed daughter in law, a minor child of the deceased son & daughter & a paternal grandparent if not the parent of the workman is alive.

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Definitions cont…

Disablement

Injury caused to a workman by an accident ordinarily results in the loss of the earning capacity of the workman concerned and this loss of earning capacity is technically "disablement". Disablements can be classified as (a) Total, and {b) Partial. It can further be classified into (i) Permanent, and {ii) Temporary..,

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Definitions cont…

Monthly Wages:

Monthly wages means:

(a)Where the employee hass been in a continous service

(b)Where the employee has been in continuous service f he employer for a period of less than 12 months.

(c)In any other case.

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Definitions cont…

Wages:

It include any benefit or perquisite expressible in terms of money but excludes travelling allowance, employers contribution to a pension or PF

It also includes bonus, night out allowance, dearness allowance, gratuity overtime, etc.

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Silent provision

Accident Compensation-when payable? When payable the employer of any establishment covered

under this Act, is required to compensate an employee: who has suffered an accident arising out of and in the course of his employment, resulting into (i) death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement who has contracted an occupational disease accident arising out of and in the course of Employment Accident arising out of and in the course of Employment An accident arising out of employment implies a casual connection between the injury and the accident and the work done in the course of employment.

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Silent provision cont…

What are the condition for receiving compensation for Personal Injury caused by the accident ?

The three tests for determining whether an accident arose out of employment are : At the time of injury workman must have been engaged in the business of the employer and must not be doing something for his personal benefit; That accident occurred at the place where he was performing his duties; and Injury must have resulted from some risk incidental to the duties of the service, or inherent in the nature or condition of employment.

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Silent provision cont…

When is an Employer not liable to pay compensation? BUT, the employer shall not be liable to pay

compensation in the following cases: if the injury did not result in total or partial disablement of a workman for a period exceeding three days, if the workman was at the time of the accident under the influence of drink of drug, or if the workman willfully disobeyed an order expressly given or a rule expressly framed for the purpose of securing safety of workman, or If the workman willfully removed or disregarded any safety guard or other device which to his knowledge was provided for the purpose of securing his safety.

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Doctrine of Notional Extension

The expression in the course of his employment', connotes not only actual work but also any other engagement natural and necessary thereto, reasonably extended both as regards work-hours and work-place. It refers to the time during which the employment continues. . However, this is subject to the theory of notional extension of the employer's premises so as to include an area which the workman passes and re-passes in going to and in leaving the actual place of work. There may be some reasonable extension in both time and place and a workman may be regarded as in the course of his employment even though he had not reached or had left his employer's premises. This is also called as the Doctrine of Notional Extension. The doctrine of notional extension could not be placed in a strait jacket; it was merely a matter of sound common sense as to when and where and to what extent this doctrine could be applied.

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Payment of Compensation to Contract Labour

Payment of Compensation to Contract Labour The principal employer is liable to pay compensation to contract labour in the same manner as his departmental labour. He is entitled to be indemnified by the contractor. The principal employer shall not however be liable to pay any interest and penalty leviable under the Act

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Occupational Diseases

Workers employed in certain types of occupations are exposed to the risk of contracting certain diseases which are peculiar and inherent to those occupations. A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment and the employer is liable to pay compensation for the same.

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Compensation-when not payable statement of fatal Accidents

As per this section, compensation has to paid as soon as it is due In case the employer does not accept the liability of paying the compensation, he is bound to make provisional payment to the extent of the liability he accepts. Such amount has to be deposited with the commissioner or paid to the workman. If he defaults, the commissioner may order: the payment of the amount with interest at12 % per year if the default to be unjustifiable then the commissioner may order payment of a further sum not exceeding 50% of the amount due, by way of penalty.

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Accident Report

• Accident Report where the accident results in death or serious bodily injury, the employer should send a report to the Commissioner, within 7 days of the accident, in the prescribed from giving the circumstances attending the death or serious bodily injury

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Amount of Compensation

• Section 4 The amount of compensation payable to a workman depends on the nature of injury caused by accident, the monthly wages of the workman concerned, and the relevant factor for working out lump sum equivalent of compensation amount as specified in Schedule IV. There is no distinction between an adult and a minor worker with respect to the amount of compensation.

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Table for the compensation

Cases Compensation

In case of death

50% if the monthly wages x Relevant factor or Rs[1,20,000], whichever is more.And [not less than Rs. 5000] for funeral expenses.

In case of total permanent disablement specified under Schedule I

60% of the monthly wages x Relevant Factor or Rs. [1,40,000], whichever is more.

In case of partial permanent disablement specified under schedule I.

Such percentage of the compensation payable in cae (b) above, as is proportionate to the loss of earning capacity (specified in Schedule).

In case of partial permanent disablement not specified under schedule I.

Such percentage of the compensation payable in cae (b) above, as is proportionate to the loss of earning capacity (as assessed by a qualified medical practitioner).

In case of temporary disablement (Weather total or partial).

A half-monthly installment equal to 25% of the monthly wages, for the period of disablement or 5yrs, which ever is shorter.

For treatment of injuries caused in the course of employment. Actual medical expenditure incurred by him.

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Mode of Payment

Mode of Payment The employer becomes liable to pay the compensation as soon as the personal injury was caused to the workman by the accident which arose out of and in the course of the employment. The amount of compensation should be paid as soon as it falls due. It will be computed on the date of accident. If the amount is not paid within one month from the date it fell due, the Commissioner may after giving reasonable opportunity of being heard, direct the employer to pay simple interest @ 12% p.a. or at such higher rate as may be specified not exceeding the. Maximum lending rate of any scheduled bank. Besides, if there is no justification for the delay, the Commissioner may after giving reasonable opportunity of being heard, direct the employer to pay a further sum not exceeding 50% of the compensation, by way of penalty. The amount of penalty (earlier payable to the Government) and also interest shall be paid to the workman or his dependent as the case may be The half-monthly installments of compensation (payable in case of temporary disablement) should be paid within the time specified. The half-monthly installments can be converted into a lump sum payment, by an agreement between the employer and the employee or by applying to the Commissioner.

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Compensation to be deposited with Commissioner

Compensation to be deposited with Commissioner The amount of compensation is not payable to the workman directly. It is generally deposited along with the prescribed statement, with the Commissioner who will then pay it to the workman. Any. payment made to the workman or his dependents, directly, in the following cases will not be deemed to be a payment of compensation :

1. In case of death of the employee.2. In case of sump sum compensation payable to a woman or a minor

or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability. Besides, compensation of Rs. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto. The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employer's liability.

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Notice of Accident

Notice of Accident A 'notice of accident' should be sent to the Commissioner, by the concerned employee as soon as practicable after the happening thereof. The notice should contain such particulars as the name and address of the person injured, the date and cause of accident, etc. A Copy of the notice should also be sent to the establishment wherein he was employed. The notice of accident may be served either personally or by registered post or by means of an entry in the notice-book maintained by the employer.

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Filing of Claims

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Medical Examination

Medical Examination The employer may get the concerned workman examined by a qualified medical practitioner, within 3 days from receiving the notice of accident. The employee must present himself for such examination otherwise he shall loose his right to the compensation. Failure of employer to have the workman medically examined does not debar him from challenging the medical certificate produced by the workman.

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Attachment and Assignment of Compensation

Attachment and Assignment of Compensation No compensation payable under this Act, whether in lump sum on half-monthly payments, can be attached, charged or passed on to any person other than the workman by operation of law, nor can it be set-off against any other claim.

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Obligations of Employer

Obligations of Employers is to pay compensation for an accident suffered by an employee, in accordance with the Act. To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed form, giving the circumstances attending the death of a workman as result of an accident and indicating whether he is liable to deposit any compensation for the same. To submit accident report to the Commissioner in the prescribed form within 7 days of the accident which results in death of a workman or a serious bodily injury to a workman. To maintain a notice book in the prescribed from at a place where it is readily accessible to the workman. To submit an annual return of accidents specifying the number of injuries for which compensation has been paid during the year, the amount of such compensation and other prescribed particulars.

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Obligations of Employees

Obligations of Employees is to send a notice of the accident in the prescribed form, to the Commissioner and the employer, within such time as soon as it is practicable for him. This notice is precondition for the admission of the claim for compensation. To present-himself for medical examination, if required by the employer.

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Rights of Employer and Employees

Certain important rights of the employer and the employee:To apply to the commissioner for the half monthly review.To refer any dispute as to liability to pay compensation.To appeal against an order of the commissioner to the high court.

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Offences and Penalties

Offences Penalties

Unjustified Delay in the payment of the Compensation, beyond one month.

Up to 50% of the amount of compensation besides interest.

Failure to maintain a notice book u/s 10(3) Fine upto Rs. 5000

Failure to submit a statement of fatal accidents u/s 10-A. Fine up to Rs. 5000

Failure to submit an accident report u/s 10-B Fine up to Rs. 5000

Failure to file annual return of compensation u/s 16 Fine up to Rs. 5000

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Till the end of calendar

Prof. Choudhry


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