Employees’ Compensation Act, 1923:
The Employees’ Compensation Act, 1923, is a significant piece of legislation in India that provides for compensation to employees and their dependents in case of injury or death arising out of and in the course of employment. It is aimed at providing financial security to workers and their families in the event of work-related accidents or injuries.
Key Provisions of the Employees’ Compensation Act:
- Employer’s Liability for Compensation: The Act makes it obligatory for employers to pay compensation to employees for injuries caused by accidents arising out of and during the course of employment.
- Eligibility for Compensation:
- Covers all employees, including temporary, casual, and part-time workers, who suffer injuries or death due to accidents at the workplace.
- The Act also covers certain occupational diseases specified under the law.
- Amount of Compensation:
- The amount of compensation is based on the nature and extent of the injury, the wages of the employee, and other factors.
- In case of death, the Act provides for compensation to be paid to the dependents of the deceased employee.
- Notice of Accident and Claim: The Act requires both the employer and employee to provide notice of any accident resulting in injury or death within a specified time frame.
- Medical Expenses: The Act also covers the cost of medical treatment and hospitalization for injured employees.
- Employer’s Defenses: The Act outlines certain defenses available to employers, such as contributory negligence on the part of the employee or the existence of a willful disobedience of safety rules.
- Adjudication of Claims: The Act establishes a mechanism for the adjudication of claims, which may involve the Employees’ Compensation Commissioner or the appropriate authority.
- Penalties: It prescribes penalties for non-compliance with the provisions of the Act.
Amendment in 2016: In 2016, the Act was amended to change its name from the “Workmen’s Compensation Act” to the “Employees’ Compensation Act.” This change reflects a more inclusive approach, acknowledging that compensation is provided to all employees, irrespective of their gender.
It’s important for both employers and employees to be aware of the provisions of the Employees’ Compensation Act to ensure that their rights and responsibilities are upheld in cases of work-related injuries or accidents.