Workmen’s Compensation Act

Purpose & Object

The Workmen’s Compensation Act, 1923 has been enacted to provide payment of compensation to workmen or their dependants in case of injury / accident arising out of and in the course of employment and resulting in disablement or death.

Workmen’s Compensation Act, 1923 has been remaned as ‘Employees’ Compensation Act, 1923′ vide Workmen’s Compensation (Amendment) Act, 2009

Applicability

The Workmen’s Compensation Act, 1923 extends to whole of India.
It applies to workmen employed in factories, mines, plantations, mechanically propelled vehicles, construction works and certain other hazardous occupations in any such capacity as is specified in Schedule II of the Act;
It applies to persons recruited for working abroad and who is employed outside India in any such capacity as is specified in Schedule II of the Act.
It also applies to a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle and to a captain or other member of crew of an aircraft.

Eligibility

The workmen or their dependants shall be entitled for compensation under the Act in case of injury / accident arising out of and in the course of employment and resulting in:
Death or
Permanent Total Disablement or
Permanent Partial Disablement or
Temporary Disablement (whether total or partial)

Determination of Compensation

Subject to provisions of this Act, the amount of compensation depends upon nature of the injury, average monthly wages and age of the workmen and the same is determined on the following basis:

Death resulting from injury

Amount equal to 60% of the monthly wages of the injured workman multiplied by the relevant factor or an amount of 90,000/-whichever is more.

Permanent Total Disablement resulting from injury

In case of injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury, and
in case of injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury.

Temporary Disablement, whether total or partial, resulting from injury

Half-monthly payment of the sum equivalent to 25% of monthly wages of the workman, to be paid in accordance with the provisions of section 4(2).

EXPERTISE

Services We Offer

We are Labour Law Consultants and at PCS, we provide following services in compliance to the provisions of Workmen’s Compensation Act, 1923: