Page 115 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Act and distribution of compensation. A beginning of social security in India was made with the
passing of the Workmen’s Compensation Act in 1923. Prior to 1923, it was almost impossible for
an injured workman to recover damages or compensation for any injury sustained by him in the
‘ordinary course of his employment. Of course, there were rare occasions when the employer
was liable under the common law for his own personal negligence. The dependants of a deceased
workman could, in rare cases, claim damages under the Fatal Accidents Act, 1855; if the accident
was due to a wrongful act, neglect or fault of the person who caused the death. In 1921, the
government formulated some proposals for the grant of compensation and circulated them for
opinion. The proposals received general support. As a result, the Workmen’s Compensation Act
was passed in March 1923 and was put into force on July 1, 1924. Subsequently, there were a
number of amendments to the Act. The Act contains 36 sections and four Schedules. The purpose
of this Unit is to enable the students to comprehend basic expressions. At the end of this unit you
should be able to understand various concepts regarding the Workmen’s Compensation Act.

7.1 Genes of the Act

The Workmen’s Compensation Act, 1923 provides for payment of compensation to workmen and
their dependants in case of injury and accident (including certain occupational disease) arising
out of and in the course of employment and resulting in disablement or death. The Act applies
to railway servants and persons employed in any such capacity as is specified in Schedule II of
the Act. The schedule II includes persons employed in factories, mines, plantations, mechanically
propelled vehicles, construction works and certain other hazardous occupations. The amount of
compensation to be paid depends on the nature of the injury and the average monthly wages and
age of workmen. The minimum and maximum rates of compensation payable for death (in such
cases it is paid to the dependents of workmen) and for disability have been fixed and is subject
to revision from time to time. A Social Security Division has been set up under the Ministry of
Labour and Employment, which deals with framing of social security policy for the workers and
implementation of the various social security schemes. It is also responsible for enforcing this
Act.

Notes The Act is administered by the State Governments through Commissioners for
Workmen’s Compensation.

7.1.1 Object of the Act

The object of the Act is to impose an obligation upon employers to pay compensation to workers
for accidents arising out of and in the course of employment. The scheme of the Act is not to
compensate the workman in lieu of wages, but to pay compensation for the injury sustained to
him. The Workmen’s Compensation Act, aims to:

l z Provide workmen and/or their dependents some relief or to consider compensation
payable by an employer to his workmen in case of accidents arising out of and in the course
of employment and causing either death or disablement of workmen as a measure of relief
and social security.
l z Provide for payment by certain classes of employers to their workmen compensation for
injury by accident.
l z To enable a workmen to get compensation irrespective of his negligence.
l z It lays down the various amounts payable in case of an accident, depending upon the type
and extent of injury. The employer now knows the amount of compensation he has to
pay and is saved of many uncertainties to which he was subject before the Act came into
force.

110 LOVELY PROFESSIONAL UNIVERSITY