Page 116 - DCOM207_LABOUR_LAWS

Unit 7: Definitions under Workmen’s Compensation Act, 1923

7.1.2 Scope and Coverage Notes

The Act extends to the whole of India and applies to any person-who is employed, otherwise
than in a clerical capacity, in the railways, factories, mines, plantations, mechanically propelled
vehicles, loading and unloading work on a ship, construction, maintenance and repairs of roads,
bridges, etc., electricity generation, cinemas, catching or training of wild elephants, circus, and
other hazardous occupations and employments specified in Schedule II to the Act.

Did u know? Under sub-section (3) of section 2 of the Act, the state governments are
empowered to extend the scope of the Act to any class of persons whose occupations are
considered hazardous after giving three months notice in the Official Gazette.

The Act, however, does not apply to members serving in the Armed Forces of the Indian Union,
and employees covered under the provisions of the Employees’ State Insurance Act, 1948 as
disablement and dependants’ benefit are available under this Act.

7.1.3 Calculation of Compensation

The amount of compensation payable by the employer shall be calculated as follows:

(a) In case of death - 50% of the monthly wages X Relevant Factor or ` 50,000, whichever is
more and ` 1000 for funeral expenses.
(b) In case of total permanent disablement Specified under Schedule I - 60% of the monthly
wages X Relevant Factor or ` 60,000, whichever is more.
(c) In case of partial permanent disablement specified under Schedule I - Such percentage
of the compensation payable in case (b) above as is the percentage of the loss in earning
capacity (specified in Schedule I)
(d) In case of partial permanent disablement not specified under Schedule I. Such percentage
of the compensation payable in case (b) above, as is proportionate to the loss of earning
Capacity (as assessed by a qualified medical practitioner).
(e) In case of temporary disablement (whether total or partial). - A half-monthly instalment
equal to 25% of the monthly wages, for the period of disablement or 5 years, whichever is
shorter.



Caselet Registration of Agreements and consequences of not
doing so (Section 29)
he Law requires that the employer registers such agreements with the Commissioner.
Failing which, the employer will be responsible to pay the full amount and not
Tthe reduced amount if any under the settlement/agreement. If the employer fails
to register such a memorandum, the Commissioner may order the employer to pay the
entire amount of compensation that the provisions of the Act provide for. In the agreement
entered into the employer cannot pay less then the principle sum due as per the provisions
of the Act. If s/he does the agreement will not be registered. A compromise can only be
made in terms of the interest and penalty due from the employer.

In practice, in Karnataka several times the principle amount it self is not paid and as such
agreements are not submitted for registration to the Commissioner, they do not also come
up for scrutiny. The practice is common in the construction industry. In cases where the
Contd...

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