THE WORKMENS COMPENSATION ACT, 1923.

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AMENDMENT ACT- 2000 now changed as EMPLOYEES COMPENSATION ACT 1923.

(RBE 61/2011 dated 11-05-2011)

Workman is substituted by Employee means any person who is

(i)

a railway servant not permanently employed in any administrative, district or sub-

divisional office of a railway and or not employed in any such capacity as specified in Schedule II, or

(ii) a master, seamen or other member of the crew or a ship,

(iii) a captain or other member of the crew of an aircraft,

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iv)

a person recruited as driver, helper, mechanic, cleaner or in any other

capacity in connection with a motor vehicle.

(v)

A person recruited for work abroad by a company,

Workmen's Compensation Act, 1923

It is one of the important social security legislations.

It aims at providing financial protection to workmen and their dependants in case of accidental injury by means of payment of compensation by the employers. The Act extends to the whole of India except the States/Union Territories of Arunachal

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Pradesh, Mizoram, Nagaland, Sikkim and Daman & Diu and Lakshadweep.

The Act applies to workers employed in any capacity specified in Schedule II of the Act

which includes Factories, Mines, Plantations, Mechanically Propelled Vehicles,

Construction Work and certain other Hazardous Occupations and specified categories of Railway Servants. Compensation

(a)

Where the death results from the injury :

An amount equal to 50% of the wages of the deceased workman multiplied by the relevant factor or an amount of Rs.80000 whichever is more.

(b) where permanent or total disablement results from the injury

An amount equal to 60% of the wages of the deceased workman multiplied by the relevant factor or an amount of Rs.90000 whichever is more.

Calculation of Compensation under WCA:

(1) Monthly Wages : is the amount of wages deemed to payable for a months service duly taking the average for 12 months. ( presently max is 8,000/-)

(2) Factor for lump sum payment is based on completed years of age.

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Completed age = 46 Years, ( Age factor 166.29

Compensation= 8000 X 50/100 X 166.29

= Rs 6,65,160/-

In the case of death, maximum compensation payable is Rs 10 lakhs.

Permanent Partial Disablement - According to incapacity caused

Temporary Disablement - Rs. 2000 per month up to a period of 5 years

Employer's liability for compensation

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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

the workman having been at the time thereof under the influence of drink or drugs