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2. Gracy Jayaraj (316)pG ro uPoonam Kadam (319)4Lisha Murali (320)Ahlm Khan (322)Tanveerali Khan (323)Mital Patil (336) 2 3. What Is the Objectives of EmployeesCompensation? The Employees 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. 3 4. Scope and Coverage :Scope and Coverage The Act extends to the whole ofIndia.To the persons engaged in cleaning, spraying or dusting,harvesting and traching The Employees Compensation (Amendment) Act, 2000.has brought all the workers within its ambit irrespective oftheir nature of employment.The coverage of this act is also to cooks employed inhotels and restaurants.Establishments which are covered by the Employees StateInsurance Act, are outside the preview of this Act. 4 5. Changes - Update W.e.f 18th Jan 2010 the Workmenscompensation Act, 1923. the wordworkman has been changed toemployee in all respect5 6. Employees Entitled Employees who suffers an injury in any accidentarising out of and in the course of hisemployment, shall be entitled for compensationunder the Act. A person employed in a factory which is yet tocommence production would also be entitled forthe benefit of the Act. Any person engaged in manufacturing premiseswho is contributing for the intendedmanufacturing process would be deemed to beworkman for the purpose of the Act6 7. Whether Contractor is a Workman? An independent contractor lies in this that while theformer agrees himself to work, and latter agrees to getother persons to work. A person who agrees himself to work and does so is anemployee. Where a person entered into a construction contract andagreed to work himself and also to employ his ownlabour, while construction material was to be supplied bythe owner, and the contractor died while working himself,it was held that the dependents of the deceased wereentitled to compensation.7 8. Administrative Authority Administrative Authority The StateGovernments administer the provisions ofthis Act through the Commissionersappointed for specified areas. The StateGovernments also make rules for ensuringthat the provisions of the Act are compliedwith.8 9. DefinitionsDependantDependant means any of the following:Relatives of a deceased workman (namely a widow, a minorlegitimate or adopted son and unmarried legitimate or adopteddaughter, or a widowed mother, and if wholly dependant on theearnings of the workman at the time of his death, a son or a daughterwho has attained the age of 18 years and who is infirm, And any ofthe following wholly or partly dependent on the workman at the timeof his death a widower, a parent other than a widowed mother, aminor illegitimate son, a unmarried illegitimate daughter, a widoweddaughter in law, a minor child of the deceased son & daughter & apaternal grandparent if not the parent of the workman is alive.9 10. Definitions contDisablementInjury caused to a workman by an accidentordinarily results in the loss of the earningcapacity of the workman concerned and this lossof 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.., 10 11. Definitions cont Monthly Wages:Monthly wages means:(c)Where the employee hass been in a continous service(d)Where the employee has been in continuous service f he employer for a period of less than 12 months.(e)In any other case.11 12. Definitions contWages: It include any benefit or perquisiteexpressible in terms of money but excludestravelling allowance, employers contributionto a pension or PFIt also includes bonus, night out allowance,dearness allowance, gratuity overtime, etc. 12 13. Silent provision Accident Compensation-when payable?When payable the employer of any establishment coveredunder this Act, is required to compensate an employee:who has suffered an accident arising out of and in thecourse of his employment, resulting into (i) death, (ii)permanent total disablement, (iii) permanent partialdisablement, or (iv) temporary disablement who hascontracted an occupational disease accident arising out ofand in the course of Employment Accident arising out ofand in the course of Employment An accident arising outof employment implies a casual connection between theinjury and the accident and the work done in the courseof employment. 13 14. Silent provision cont What are the condition for receivingcompensation for Personal Injury causedby the accident ? The three tests for determining whether anaccident arose out of employment are : Atthe time of injury workman must have beenengaged in the business of the employer andmust not be doing something for his personalbenefit; That accident occurred at the placewhere he was performing his duties; andInjury must have resulted from some riskincidental to the duties of the service, orinherent in the nature or condition ofemployment. 14 15. Silent provision contWhen is an Employer not liable to pay compensation?BUT, the employer shall not be liable to paycompensation in the following cases: if the injury did notresult in total or partial disablement of a workman for aperiod exceeding three days, if the workman was at thetime of the accident under the influence of drink of drug,or if the workman willfully disobeyed an order expresslygiven or a rule expressly framed for the purpose ofsecuring safety of workman, or If the workman willfullyremoved or disregarded any safety guard or other devicewhich to his knowledge was provided for the purpose ofsecuring his safety. 15 16. 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 employers 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 employers 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. 16 17. Payment of Compensation to Contract LabourPayment of Compensation to ContractLabour The principal employer is liable topay compensation to contract labour in thesame manner as his departmental labour.He is entitled to be indemnified by thecontractor. The principal employer shallnot however be liable to pay any interestand penalty leviable under the Act 17 18. Occupational DiseasesWorkers employed in certain types ofoccupations are exposed to the risk ofcontracting certain diseases which arepeculiar and inherent to those occupations.A worker contracting an occupationaldisease is deemed to have suffered anaccident out of and in the course ofemployment and the employer is liable topay compensation for the same.18 19. Compensation-when not payablestatement of fatal AccidentsAs per this section, compensation has to paid as soon as itis due In case the employer does not accept the liabilityof paying the compensation, he is bound to makeprovisional payment to the extent of the liability heaccepts. Such amount has to be deposited with thecommissioner or paid to the workman. If he defaults, thecommissioner may order: the payment of the amount withinterest at12 % per year if the default to be unjustifiablethen the commissioner may order payment of a furthersum not exceeding 50% of the amount due, by way ofpenalty.19 20. Accident Report Accident Report where the accident resultsin death or serious bodily injury, theemployer should send a report to theCommissioner, within 7 days of theaccident, in the prescribed from giving thecircumstances attending the death orserious bodily injury20 21. Amount ofCompensation Section 4 The amount of compensation payableto a workman depends on the nature of injurycaused by accident, the monthly wages of theworkman concerned, and the relevant factor forworking out lump sum equivalent ofcompensation amount as specified in ScheduleIV. There is no distinction between an adult and aminor worker with respect to the amount ofcompensation. 21 22. Table for the compensation CasesCompensation 50% if the monthly wages x Relevant factor or Rs[1,20,000], whichever is more.In case of death And [not less than Rs. 5000] for funeral expenses.In case of total permanent disablement 60% of the monthly wages x Relevant Factor or Rs. specified under Schedule I[1,40,000], whichever is more. Such percentage of the compensation payable in cae (b)In case of partial permanent disablement above, as is proportionate to the loss of earning capacity specified under schedule I. (specified in Schedule). Such percentage of the compensation payable in cae (b)In case of partial permanent disablement not above, as is proportionate to the loss of earning capacity specified under schedule I. (as assessed by a qualified medical practitioner). A half-monthly installment equal to 25% of the monthlyIn case of temporary disablement (Weather wages, for the period of disablement or 5yrs, which ever total or partial). is shorter.For treatment of injuries caused in thecourse of employment.Actual medical expenditure incurred by him. 22 23. Mode of PaymentMode of Payment The employer becomes liable to pay the compensation assoon as the personal injury was caused to the workman by the accidentwhich arose out of and in the course of the employment. The amount