Workmen’s Compensation Workmen’s Compensation Act, 1923Act, 1923

Team 2Team 2

Jisha & AmitabhJisha & Amitabh

Object & ScopeObject & Scope Enacted in Enacted in 19231923.. A social security legislation.A social security legislation. Imposes statutory liability upon an employer to discharge Imposes statutory liability upon an employer to discharge

his moral obligation towards his employees when they his moral obligation towards his employees when they suffer from suffer from physical disabilitiesphysical disabilities and and diseasesdiseases during during the course of employment in hazardous working the course of employment in hazardous working conditions.conditions.

Also seeks to help the Also seeks to help the dependantsdependants of the workmen .of the workmen . Provides for cheaper and quicker mode of disposal of Provides for cheaper and quicker mode of disposal of

disputes relating to compensation through special disputes relating to compensation through special proceedings than possible under the civil law.proceedings than possible under the civil law.

Extends to the whole of India.Extends to the whole of India.

Employers’ Liability for Employers’ Liability for CompensationCompensation

In the case of :In the case of :

Occupational diseaseOccupational disease

Personal injury or deathPersonal injury or death

Occupational DiseaseOccupational Disease

The employer is liable even when the disease The employer is liable even when the disease was contracted after the workman ceased to was contracted after the workman ceased to be in the service of the employer, if such be in the service of the employer, if such disease disease arose out of the employmentarose out of the employment..

Where the employment was under Where the employment was under more than more than one employerone employer, all such employers shall be , all such employers shall be liable for the payment of the compensation in liable for the payment of the compensation in such proportion as the Commissioner may in such proportion as the Commissioner may in circumstances deem just.circumstances deem just.

Personal InjuryPersonal Injury

InjuryInjury Physical or bodily injury. Physical or bodily injury.

Nervous breakdown.Nervous breakdown.

EXAMPLE: EXAMPLE:

Mr. Lazarus, an electrician working for Indian Mr. Lazarus, an electrician working for Indian News Chronicle (1961) News Chronicle (1961) Pneumonia. Pneumonia.

Personal Injury (Contd.)Personal Injury (Contd.)

ACCIDENT ACCIDENT a mishap or an a mishap or an untoward event which is not expected or untoward event which is not expected or designed.designed.

EXAMPLE: EXAMPLE:

A workman falls from the ladder and suffers A workman falls from the ladder and suffers injuries.injuries.

????????

Was it a part of the injured persons Was it a part of the injured persons employment to hazard, to suffer or to do employment to hazard, to suffer or to do that which caused his injury?that which caused his injury?

YES YES the accident arose out of his the accident arose out of his employment.employment.

NO NO it did not. it did not.

Theory of notional extension of employmentTheory of notional extension of employment

A workman returning home after duty was A workman returning home after duty was murdered within the premises of the murdered within the premises of the employer. (1920, Lodhne Colliery)employer. (1920, Lodhne Colliery)

His wife Naima Bibi was entitled to His wife Naima Bibi was entitled to Compensation.Compensation.

When employer is not liable?When employer is not liable?

When the injury does not result in When the injury does not result in disablement beyond a period of 3 days.disablement beyond a period of 3 days.

When the injury is due to:When the injury is due to:The workman being under the influence of The workman being under the influence of

drink or drugs.drink or drugs.The workman willfully disobeying any order The workman willfully disobeying any order

given, or rule framed.given, or rule framed.The workman willfully disregarding or The workman willfully disregarding or

removing any safety guards or safety devices.removing any safety guards or safety devices.

Claiming compensationClaiming compensation

Amount of compensationAmount of compensation is not dependent is not dependent on the suffering or expenses incurred by the on the suffering or expenses incurred by the workman but on the difference between his workman but on the difference between his wage earning capacitywage earning capacity before and after the before and after the accident.accident.

The compensation can be claimed byThe compensation can be claimed by In case of injury – the workman himself.In case of injury – the workman himself. In case of injury resulting in death – his dependants.In case of injury resulting in death – his dependants.

Reference:Reference:

ECONOMIC, LABOUR AND ECONOMIC, LABOUR AND

INDUSTRIAL LAWS…INDUSTRIAL LAWS…

Directorate of Studies & Research, The Directorate of Studies & Research, The institute of Company Secretaries of India.institute of Company Secretaries of India.

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