DEFINATIONS Dependent- One who is dependent on another for livelihood.
Employer- A body corporate/ a legal representative of the employer/ an agent of the body corporate.
Disablement- Loss of earning capacity. It could be: a. Permanent- through out the life the worker has his earning capacity. It could be: Total: 100% of earning capacity is lost. Partial: Only some earning capacity is lost.
b. Temporary- Earning capacity is lost for a few days. Schedule 1 of the Act determines the % of earning capacity that is lost. Monthly wages Wages paid for 1 months service. Workman A person defined in this Act. There has to be a master- servant relationship. RULES REGARDING WORKMENS COMPENSATION There should be an injury due to an accident. It should occur during the course of employment. Accident- Something that is forseen. Injury- Even psychological injury is taken into consideration. Out of and during the course of employment- When the worker uses the employers transport for the purpose of commuting and he has an accident, the employer has to compensate him.
If the worker has come early and injures himself, the employer will compensate him as he was preparing for his work. If the worker is on duty an d has gone out, the employer will compensate him. Even during rest interval as it is included in the time of employment.
OCCUPATIONAL DISEASES These are incurred/ contracted due to the employment. These diseases are given in Schedule III of this Act. It is divided into Part A, Part B and Part C. Part A- Employer will compensate the worker immediately. Part B- The worker Should have worked for at least 6 months. Part C- Depends on the Central Government. CASES WHERE EMPLOYER IS NOT LIABLE TO PAY.
1. Injury doesn't occur during or out of employment. 2. When the worker files a civil suit. 3. Disablement doesnt last for more than 3 days. 4. Worker is under the influence of drugs. 5. Wilful disobedience and negligence of the worker. 6. When proper safety measures have been adopted by the worker.
AMOUNT OF COMPENSATION DEATH 50*Monthly wages* Relevant Factor/100 OR Rs. 80,000 which ever is more. PERMANENT DISABLEMENT Schedule I will give the nature of the injury. Schedule IV will give the compensation amount.
60*Monthly wages* Relevant Factor/100 OR Rs. 90,000 which ever is more.
TEMPORARY DISABLEMENT Half monthly wage will be given. This will be paid on the 16 th day of every month is disablement is more than 28 days. If It is less than 28 days then compensation will be given on the expiry of the 3 rd day. Lump sum- Commutation of half months payment. Commissioner has the right to revise the wages only after receiving an application from the employee.
GENERAL PROVISIONS REGARDING COMPENSATION
Deposit the compensation amount with the commissioner who will make the payment.
Once the employer gets the receipt from the commissioner his liability is over.
The compensation amount given to the dependents will be only after deducting the funeral expense.
If there are more than 1 dependent, the proportion is decided by the commissioner.
He can make any variation in the payment.
In case of disablement, It is paid only to the workers and not to the dependents. If there is no dependent, the amount is refunded.
TIME LIMIT FOR PAYMENT Payment is made as soon as it is due. If there is a delay of 30 days then the employer has to pay a simple interest of 6%. If there is further delay then he has to pay a penalty of 50% of the compensation.
NOTICE AND CLAIM (SEC-10) Employer will compensate only- If he receives a notice from the employee. This notice can be given by the injured person / anybody else on his behalf. It can be given in person or by post. It should contain full details of the injury. Employer will maintain a register of the list of accident.
EXCEPTIONS TO THE ABOVE (NO NOTICE YET COMPENSATION) Death of the worker. Employer already knowing about the injury from some other source. Commissioner finds a valid reason for not giving a notice.