Current PPT Talks About Workmen's Compensation Act,1923 & It's Important Provisions...

1. The Workmen’s Compensation Act,1923
By-Subodh Shahare
M.Sc.(Biotech) & M.B.A(HRM)
Indian Institute Of Cost & Management
Studies & Research, Pune.

2. Scope & Objectives
 It is a social security law for employees and workers/labours.
 The act implies to whole of India.
 Applicable to factories,mines,olifields,construction establishments, and
other establishments listed in schedule II & III to the act.
 Not applicable for Armed Forces.
 Employers have to provide compensation to the employees for the
industrial injury results in disablement(partial/permanent)due to
accidents or in case of Death in course of employment.
 Amount of compensation to be given for injuries in course of
employment were subject to nature of injury and percentage of
disablement.

3. Continued…
 Every employee including those employed through a contractor and
who suffers injury in any accident arising out of and in the course of
his employment shall be entitled for compensation under this act.
 2 ways of claming the compensation by workmen were-
1. Workmen can claim the compensation as per the provisions of
WCA,1923
2. Can file a suit in a court claming compensation.
[Note- Workmen can choose only any one of the above mentioned options
for claming the compensation. If a workmen opts for one the other
option can’t be availed of.]
 The act is not limited to physical injuries but extends to the reduction
in the earning capacity of the workmen.

4. Important Concepts Of WCA,1923
 If a personal injury is caused to a workmen by accidents arising out of and in
the course of his employment his employer shall be liable to pay
compensation in accordance with the provisions of the WCA,1923.
 Out of Employment- When an individual runs a risk incidental to his
employment & is thereby injured, then the injury arises called to be Out of
Employment Injury.
 In the course of Employment- In the course of employment includes the
time during which the employment continues. This includes not only the
actual period of work but also the time when he stays there for his work.

5. Continued….
 The tests for determining whether an accident arose out of employment
are related to the following-
a) At the time of injury the workman must have been engaged in the
business of the employer.
b) The accident occurred at the place where Workman is performing
his duties.
c) The injury must have resulted from some risk incidental to his
duties or the nature of condition of employment.
d) There must be a casual connection between the injury & the accident
& the work done in the course of employment.
e) It is not necessary that the workman must be actually working at
the time of his death or that the death must occur while he was
working or had just ceased to work.

6. Continued….
 Dependent- (Section 2[d])- must be ;
i. A widow, a minor legitimate son, and unmarried legitimate daughter, or a
widowed mother.
ii. If wholly dependent on the earning of the workman at the time of his death,
a son or a daughter who has attained the age of 18 years.
 Wages- (Section 2[m])- All remuneration paid or payable in cash to an
employee if the terms of the contract of employment express or implied
were fulfilled by employee in respect of any period of authorized leave,
lockout, strike which is not illegal.
This does not include,
i. Travelling Allowance,
ii. Contribution paid by the employer towards pension or provident fund,

7. Continued….
 The term ‘ privilege or benefit’ were closely related with term Wage. Some of
the payments made by an employer which are covered under the term Wages
were given below;
i. Dearness Allowance
ii. Share of profit or bonus
iii. Overtime wages, free meals, free or cheap housing.
iv. Free accommodation.
 Partial Disablement-(Section2[g])-
a) Temporary Partial Disablement- Reduces earning capacity of a workman
in any employment in which he was engaged at the time of the accident.
b) Permanent partial Disablement- Reduces earning capacity in every
employment which workman capable of undertaking.

8. Continued….
 Total Disablement-(Section2[l]
Disablement whether of a temporary or permanent nature, that unable a
workman for all work which he was capable of performing at the time
of the accident resulting in such disablement.
 Section 3 of the WCA,1923 provides the following provisions as regards
to employers liability for compensation,
a) If personal injury is caused to a workman by accident arising out of
and in the course of his employment.
b) In case of disablement due to industrial injury in course of
employment whether permanent or partial in nature have an effect
on workman’s earning capacity.
c) In case of Death of an employee or workman due to industrial
injury in course of employment at work premise.

9. Non Liability of Employer To Pay Compensation-
The employer shall not be liable to pay compensation under the following
circumstances.
a) Injury not result in the total or partial disablement of the workman for a
period exceeding three(3) days
b) In respect of any injury, not resulting in death, caused by an accident
which is directly due to-
i. Workman under the influence of drink or drugs.
ii. Wilful disobedience of the workman to an order expressly given.
iii. Wilful removal by the workman of any safety guard or other device.
iv. No compensation for diseases excluding those caused due to industrial
injury due to an accident arising out of and in the course of his
employment.

10. Compensation Payable Under WCA,1923
 The amount of compensation payable to a workman depends upon the nature
of injury, his monthly wages with respect to his completed years of age.
Such compensation may be for death, disablement whether total or partial or
temporary or permanent.
 As per section 4 of the WC Act,1923 the amount of compensation shall be as
follows:
1. In Case of Death- An amount equal to 50% of the monthly wages
multiplied by the relevant factor or an amount of Rs.80,000 whichever is
more.
2. In Case of Permanent Total Disablement- An amount equal to 60% of
the monthly wages multiplied by the relevant factor, or an amount of
Rs.90,000 whichever is more.
3. In Case of Permanent Partial Disablement-Where permanent partial
disablement results from injury compensation is provided by the
percentage of loss of earning capacity caused by that injury.

12. THANK YOU!!!