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Key Amendments to Workmens Compensation Act 1923

In continuing with our effort to present the various labour laws in a laymans language, a brief
update is provided on Workmens Compensation act 1923.



Pre-amended position
Post-amended position
Workmens Compensation Act Tile of the Act amended to
Employees Compensation Act
Words and
Refer to the words workman They are substituted by the words
or workmen in the Act
employee or employees
wherever they occur.
Schedule II
Clerks were not covered for
Clerks are now covered for
compensation under the Act.
compensation. Please refer to
schedule-II for specified
Sec.4 (a)
The minimum ceiling limit of Now it has been revised to
compensation for death was
The minimum ceiling limit of Now it has been revised to
compensation for permanent
Rs1,40,000/total disablement was
Rs.90000/Sub-Sec.2A of
This sub-section was added after
sub-section(2).This entitles an
employee to reimbursement of
actual medical expenditure
incurred by him for injuries caused
during the course of employment.
Explanation II to Explanantion II prescribes the The Explanation was omitted and
clauses(a)&(b) of maximum wage limit at
a new sub-section (IB) has been
Sec.4 of Sec.4
Rs.4000/- p.m for the purpose added after Sub-section IA of sec.4
of computing compensation for whereby the maximum wage limit
death and permanent
has been revised to Rs.8000/-p.m
Sub-sec.(4) of
The existing limit of funeral
It has been revised to Rs.Rs.5000/Sec.4
expenses is Rs.2500/Sec.25A
A new section has been added
which fixes 3 months time limit
for disposal of claims from the
date of reference.

Key amendments of the Employees State Insurance Act 1948


Section/Rule/Reg Position before amendment

Position after amendment
The Appropriate Government
Now, the Appropriate (central or
(central or state government) can state government) Government can
extend the application of the Act extend the application of the Act to
to any establishment by giving any establishment by giving one
six months notice by notifying month notice by notifying it in
it in Official Gazette
Official Gazette.
The definition of dependant
However, the scope of the
included only a minor legitimate definition has been widened to
or adopted son.
include legitimate or adopted son
who has not attained the age of
twenty five years.
The definition of employee
The definition of employee now
excluded apprentices appointed includes apprentices appointed
under standing orders also
under standing orders but
besides the apprentices appointed excludes only the apprentices
under the Apprentices Act 1961 appointed under the Apprentices
Act 1961.
The definition of family included The definition of family now
only those parents who are
includes also those parents who
dependant of the insured person. have some source of income
it excluded a minor brother or subject to a limit prescribed by the
sister even though they were
Central government as well as a
wholly dependent up on the
minor brother or sister if their
earnings of the insured person. parents are not alive and the
insured person is not married and
they are wholly dependent up on
the earnings of the insured person.
The definition of factory has
This distinction has been removed
segregated factories in two
and all those factories are covered
categories for coverage. Those if they employ ten or more
running with power and those
persons irrespective whether run
without power. Those with
with power or without power.
power were included even
though they employed ten or
more persons but those running
without power were included
only when they employ twenty
or more persons.

Sec. 45





Rule 59



It provides for appointment of

Now these Inspectors are called
Inspectors for implementing the Social Security Officers.
provisions of the Act
A new section has been added to
enable employers to appeal to an
Appellate Authority against an
order passed by the Corporation in
respect of payment of contribution
within sixty days of the date of
such order. Thus this provides a
remedy to the employers against an
order passed under Sec.45-A.
A new section has been added to
cover accidents occurring to an
employee while commuting to
and from office to residence and
vice versa for duty, provided there
is nexus between the circumstances
and employment. Thus it sets at rest
doubts to a large extent about such
accidents arising out of and in the
course of employment.
New sections 31-D and 31-E have
been added after 31-C . As per
Sec.31-E, if an employer succeeds
in the appeal u/Sec.45-AA, the
amount deposited by him with
ESI Corporation in full or in part as
decided by the Appellate Authority
shall be refunded to the employer
with simple interest specified in
Regulation 31-A.Thus this affords a
relief to the employer from
financial hardship.
Existing limit of funeral expenses Revised to Rs.10000/is Rs. 5000/Under the un-amended
The existing Reg.10(C) has been
Regulation, the employer has to substituted by new 10(C)as per
furnish information in Form 01- whichany change in the
A by 31st of January every year. particulars furnished at the time of
registration shall be intimated in
Form 01 to the Regional or Subregional Office of the Corporation
within two weeks of such change.

Note :- Since it is well known to every one by now that the wage limit of an employee has been
revised from Rs.10000/-p.m to Rs.15000/p.m , this amendment has not been included it in the
table of amendments above.