Introduction
With the advent of British laws in India, legislation related to employee compensation used to prevail. The Workmen’s Compensation Act, 1923 was the first legislation enacted to deal with this concept. After the industrial revolution, there is an increase in the use of electricity, steam powers, dangerous machines. This often led to certain accidents at the place of work. Due to such accidents, these employees become poor and they have no other option but to starve themselves and their families.
Employee’s Compensation Act, 1923
Employee’s Compensation protects employees in such cases of accidents. The main objective of this act is to provide benefits to employees who suffer personal injury by accidents occurring during the course of employment. For the applicability of this act, negligence and fault are largely immaterial. Employees are entitled to certain rights even when they are themself negligent. Rights under this act depend on whether you are an employee or a simple contractor.
Cash wage benefits, hospitals, and medical expenses are generally provided to the employee. In case of death, benefits to the dependants are provided. This act provides compensation to a certain class of employees for injury by accident. This act is applicable to employees in factories, plantations, mechanically propelled vehicles, railways, maintenance, constructions, employees in work of road building, cinemas, working with wild animals, and other hazardous occupations.
However, this act does not apply to employees in Armed forces, administrative or clerical capacity, receiving wages exceeding Rs. 3,500 per month or other employees who are claiming under the Employees State Insurance Act.[1] Section 2(1)(d) of the act defines ‘Dependant person’. Dependant persons are those who are considered as dependant without any proof or persons who are dependant on a proof.
Employer’s liability for Compensation
Section 3 of the act deals with this concept. It provides conditions only under which the employee is entitled to the compensation. The employer shall not be liable to pay compensation
- where the injury does not result in total or partial disablement for a period exceeding three days.
- In case of wilful removal of safety guard by the employee
- Willful disobedience of any safety rule by the employee
Also, the employer is liable to pay compensation in case of personal injury to employees arising in the course of employment.
Employer’s Liability in case of personal Injury
Section 3(1) of the said Act deals with the liability of an employer to pay compensation when a personal injury to an employee is caused by an accident in the course of employment.
Essentials to invoke this section
- There must be a personal Injury
This act does not define the expression ‘Personal Injury’, However, in common personal injury means any bodily injury which also includes the unusual mental condition. It also includes psychological and physiological injury. The term personal injury has a wider scope than bodily Injury.
- The accident must be the reason behind the Personal Injury
There must be an accident arising out of a course of employment in order to invoke section 3(1). An accident can be defined as an unwanted event that is not expected. Personal Injury must be a direct result of the accident.
- The accident must have arisen in the course of employment
In order to avail compensation, there must an accident which occurred in the course of his employment. The course of employment includes a course of work that the employee is assigned to perform.
Sources:
[1] Section 2 of Employees Compensation Act
This blog is written by Riddhi Chadha, Fairfield Institute of Management & Technology.
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