Workmen's Compensation Act,

1923
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 Workmen's Compensation Act
1) This Act may be called the Workmen's Compensation Act, 1923.
(2) It extends to the whole of India.
(3) It shall come into force on the first day of July, 1924.
The Workmen's Compensation Act, 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.
This act is a central legislation which provides for payment of compensation for injuries
suffered by a workman in the course of and arising out of his employment according to the
nature of injuries suffered and disability incurred, where death results from the injury, the
amount of compensation is payable to the dependants of the workmen.
WORKMAN
Workman means any person (other than a person whose employment is of a casual nature
and who is employed otherwise than for the purposes of the employers trade or business)
who is- a railway servant as defined in section 3 of the Indian Railways Act, 1890 not
permanently employed in any administrative, district or sub-divisional office of a railway and
not employed in any such capacity as is specified in Schedule II, or employed in any such
capacity as is specified in Schedule II,
Whether the contract of employment was made before or after the passing of this Act and
whether such contract is expressed or implied, oral or in writing.
The provisions of the Act have been extended to cooks employed in hotels, restaurants using
power, liquefied petroleum gas or any other mechanical device in the process of cooking.
 EMPLOYEES ENTITLED TO COMPENSATION
• Every employee (including those employed through a contractor but excluding casual employees),
who is engaged for the purposes of employers business and 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.
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 whether total or partial, or
Who has contracted an occupational disease.

"partial disablement" means, where the disablement is of a temporary nature, such disablement as
reduces the earning capacity of a workman in any employment in which he was engaged at the
time of the accident resulting in the disablement, and, where the disablement is of a permanent
nature, such disablement as reduces his earning capacity in every employment which he was
capable of undertaking at that time .

"total disablement" means such disablement, whether of a temporary or permanent nature, as

incapacitates a workman for all work which he was capable of performing at the time of the
accident resulting in such disablement .

Provided that permanent total disablement shall be deemed to result from every injury specified in
Part I of Schedule I or from any combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity, as specified in the said Part II against those
injuries, amounts to one hundred per cent or more;
 EMPLOYER'S LIABILITY FOR COMPENSATION. -
•

(1) If personal injury is caused to a workman by accident arising out of and in the course of his employment, his
employer shall be liable to pay compensation in accordance with the provisions of this Chapter :
Provided that the employer shall not be so liable -
(a) in respect of any injury which does not result in the total or partial disablement of the workman for a period
exceeding three days;
(b) in respect of any injury, not resulting in death or permanent total disablement, caused by an accident which is
directly attributable to -
(i) the workman having been at the time thereof under the influence of drink or drugs, or
(ii) the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the
purpose of securing the safety of workmen, or
(iii) the willful removal or disregard by the workman of any safety guard or other device which he knew to have
been provided for the purpose of securing the safety of workmen,

(2) If a workman employed in any employment specified in Part A of Schedule III contracts any disease specified
therein as an occupational disease peculiar to that employment, or if a workman, whilst in the service of an
employer in whose service he has been employed for a continuous period of not less than six months (which
period shall not include a period of service under any other employer in the same kind of employment) in any
employment specified in Part B of Schedule III, contracts any disease specified therein as an occupational disease
peculiar to that employment, or if a workman whilst in the service of one or more employers in any employment
specified in Part C of Schedule III, for such continuous period as the Central Government may specify in respect of
each such employment, contracts any disease specified therein as an occupational disease peculiar to that
employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of
this section and, unless the contrary is proved, the accident shall be deemed to have arisen out of, and in the
course of, the employment :
 contd

• (2A) If a workman employed in any employment specified in Part C of Schedule III contracts any
occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by
accident within the meaning of this section, and such employment was under more than one employer, all
such employers shall be liable for the payment of the compensation in such proportion as the
Commissioner may, in the circumstances, deem just.

(3) The Central Government or the State Government, after giving, by notification in the Official Gazette,
not less than three months' notice of its intention so to do, may, by a like notification, add any description
of employment to the employments specified in Schedule III, and shall specify in the case of employments
so added the diseases which shall be deemed for the purposes of this section to be occupational diseases
peculiar to those employments respectively, and thereupon the provisions of sub-section (2) shall apply In
the case of a notification by the Central Government, within the territories to which this Act extends or, in
case of a notification by the State Government, within the State as if such diseases had been declared by
this Act to be occupational diseases peculiar to those employments.

(4) Save as provided by Sub-sections (2), (2A) and (3), no compensation shall be payable to a workman in
respect of any disease unless the disease is directly attributable to a specific injury by accident arising out
of and in the course of his employment.

(5) Nothing herein contained shall be deemed to confer any right to compensation on a workman in
respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against
the employer or any other person; and no suit for damages shall be maintainable by a workman in any
Court of law in respect of any injury -
(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or
(b) if an agreement has been come to between the workman and his employer providing for the payment
of compensation in respect of the injury in accordance with the provisions of this Act.
 The general principles that are evolved are:
1. 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;
2. That accident occurred at the place where he as performing his duties; and
3. Injury must have resulted from some risk incidental to the duties of the service, or
inherent in the nature condition of employment.
4. There must be a casual connection between the injury and the accident and the work
done in the course of employment;
5. The onus is upon the applicant to show that it was the work and the resulting strain
which contributed to or aggravated the injury;
6. It is not necessary that the workman must be actually working at the time of his death
or that death must occur while he was working or had just ceased to work; and
7. Where the evidence is balanced, if the evidence shows a greater probability which
satisfies a reasonable man that the work contributed to the causing of the personal
injury it would be enough for the workman to succeed. But where the accident involved
a risk common to all humanity and did not involve any peculiar or exceptional danger
resulting from the nature of the employment or where the accident was the result of an
added peril to which the workman by his own conduct exposed himself, which peril was
not involved in the normal performance of the duties of his employment, then the
employer will not be liable.
 AMOUNT OF COMPENSATION. -

Subject to the provisions of this Act, the amount of compensation shall be as follows, namely :-
(a) where death results an amount equal to fifty from the injury cent of the monthly wages of the
deceased workman multiplied by the relevant factor; or an amount of fifty thousand rupees,
whichever is more;
(b) Where permanent total an amount equal to disablement results from sixty the injury per cent of
the monthly wages of the injured workman multiplied by the relevant factor, or an amount of sixty
thousand rupees, whichever is more.
(c) where permanent partial disablement results from the injury
(i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation
which would have been payable in the case of permanent total disablement as is specified therein
as being the percentage of the loss of earning capacity caused by that injury, and
(ii) in the case of an injury not specified in Schedule I, such percentage of the compensation
payable in the case of permanent total disablement as is proportionate to the loss of earning
capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;
(d) Where temporary a half monthly payment of the sum disablement, whether equivalent to
twenty-five per cent of total or partial, results monthly wages of the workman, to from the injury
be paid in accordance with the provisions

If the injury of the workman results in his death, the employer shall, in addition to the compensation
under sub-section (1), deposit with the Commissioner a sum of one thousand rupees for payment
of the same to the eldest surviving dependant of the workman towards the expenditure of the
funeral of such workman or where the workman did not have a dependant or was not living with
his dependant at the time of his death to the person who actually incurred such expenditure.
 18A. PENALTIES. -
• (1) Whoever - (a) fails to maintain a notice-book which he is required to
maintain under sub-section (3) of section 10, or
• (b) fails to send to the Commissioner a statement which he is required to
send under sub-section (1) of section 10A, or
• (c) fails to send a report which he is required to send under section 10B, or
• (d) fails to make a return which he is required to make under section 16,
shall be punishable with fine which may extend to five thousand rupees.
• (2) No prosecution under this section shall be instituted except by or with
the previous sanction of a Commissioner, and no Court shall take
cognizance of any offence under this section, unless complaint thereof is
made within six months of the date on which the alleged commission of
the offence came to the knowledge of the Commissioner.
 EMPLOYEES’ STATE INSURANCE ACT, 1948
• Applicability

1) All factories excluding seasonal factories employing 10 or more persons and working with electric
power.

2) All factories excluding seasonal factories employing 20 or more persons and working without electric
power.

3) Any establishment which the Government may specifically notify as being covered.

4) Shop employing 20 or more persons.

Note: As soon as the above conditions are fulfilled the employer should furnish the details in Form-01 to
ESI office for registration under the ESI Act, 1948 & Obtaining of the employer’s Code No.

Eligibility
1) Any person employed for wages (up to Rs. 6,500) in or in connection with the work of a factory or
establishment end.

2) Any person who is directly employed by the employer in a factory or through his agent on work which is
ordinarily part of the work of the factory or incidental to purpose of the factory.
 CONSTITUTION OF CORPORATION.
•
The Corporation shall consist of the following members, namely :-

(a) a Chairman to be appointed by the Central Government;

(b) a Vice-Chairman to be appointed by the Central Government;

(c) not more than five persons to be appointed by the Central Government.

(d) one person each representing each of the States in which this Act is in force to be appointed by the State
Government concerned;

(e) one person to be appointed by the Central Government to represent the Union territories;

(f)persons representing employers to be appointed by the Central Government in consultation with such
organisations of employers as may be recognised for the purpose by the Central Government;

(g) ten persons representing employees to be appointed by the Central Government in consultation with such
organisations of employees as may be recognised for the purpose by the Central Government;

(h) two persons representing the medical profession to be appointed by the Central Government in
consultation with such organisations of medical practitioners as may be recognised for the purpose by the
Central Government;

(i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and
one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the
House of the people and the members of the Council of States; and

(j) the Director General of the Corporation, ex officio.

 .
• Benefits
1) Free medical treatment is offered to covered employees at hospital and dispensaries run by the
ESI Corporation.
2) About 7/12th of employees normal wage will be payable to him by ESI during sickness.
3) Maternity benefit for 12 weeks of which not more than 6 weeks should be preceding
confinement.
4) Injury during/in course of employment resulting in temporary/permanent disablement entitles
the covered employee to a regular payment to substitute his lost wages.
5) Death during course of employment entitles specified dependents to a regular payment.
6) One time payment of Rs. 1,500 to help meet funeral expenses.

• Penal Provisions
1) For employees’ contribution : Imprisonment for minimum 2 yrs. to maximum 5 yrs. and/or fine
of Rs. 25,000/- .
2) For employer’s contribution : Imprisonment for minimum 6 months to maximum 3 yrs. and/or
fine of Rs. 10,000/- .
 The Maternity Benefit Act 1961
• Short title, extent and commencement.-
(1) This Act may be called the Maternity Benefit Act, 1961.
(2) It extends to the whole of India except the State of
Jammu and Kashmir.
(3) It shall come into force on such date as may be notified
in this behalf in the Official Gazette,-(a) in relation to mines
in the territories to which this Act extends, by the Central
Government; and(b) in relation to other establishments in a
State, by the State Government:
 Application of Act.-

• (1) It applies, in the first instance, to every establishment being a factory, mine or plantation including any
such establishment belonging to Government:Provided that the State Government may, with the approval
of the Central Government, after giving not less than two months' notice of its intention of so doing, by
notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to
any other establishment or class of establishments, industrial, commercial, agricultural or otherwise
(2) Nothing contained in this Act shall apply to any factory or other establishment to which the provisions
of the Employees' State Insurance Act, 1948, (34 of 1948) apply for the time being.

Right to payment of maternity benefit.-

(1) For the purpose of this , the average daily wage means the average of the woman's wages payable to
her for the days on which she has worked during the period of three calendar months immediately
preceding the date from which she absents herself on account of maternity, or one rupee a day, which
ever is higher.
(2) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of
the employer from whom the claims maternity benefit, for a period of not less than one hundred and sixty
days in the twelve months immediately preceding the date of her expected delivery.
3) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks,
that is to say, six weeks up to and including the day of her delivery and six weeks immediately following
that day.Provided that where a woman dies during this periods, the maternity benefit shall be payable
only for the days up to and including the day of her death:Provided further that where a woman, having
been delivered of a child, dies during her delivery or during the period of six weeks immediately following
the date of her delivery, leaving behind in either case the child, the employer shall be liable for the
maternity benefit case the child, the employer shall be liable for the maternity benefit for the entire
period of six weeks immediately following that day of her delivery but if the child also dies during the said
period, then, for the days up to and including the day of the death of the child.
 Misc provisions-
• Payment of maternity benefit in case of death of a woman.- If a woman entitled to
maternity benefit or any other amount under this Act, dies before receiving such maternity
benefit or amount, or where the employer is liable for maternity benefit , the employer shall
pay such benefit or amount to the person nominated by the woman in the notice given
under section 6 and in case there is no such nominee, to her legal representative.

Leave for miscarriage.- In case of miscarriage, a woman shall, on production of such proof as
may be prescribed, be entitled to leave with wages at the rate of maternity benefit, for a
period of six weeks immediately following the day of her miscarriage.

Leave for illness arising out of pregnancy, delivery, premature birth of child, or
miscarriage.- A woman suffering from illness arising out of pregnancy, delivery, premature
birth of child or miscarriage shall, on production of such proof as may be prescribed, be
entitled, in addition to the period of absence allowed to her under section 6, or, as the case
may be, under section 9, to leave with wages at the rate of maternity benefit for a maximum
period of one month.

Protection of action taken in good faith.- No suit, prosecution or other legal proceeding shall
lie against any person for anything which is in good faith done or intended to be done in
pursuance of this Act or of any rule or order made there under.