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Unit 2: Definitions under Workmen’s Compensation Act, 1923

vehicles, loading and unloading work on a ship, construction, maintenance and repairs of roads, Notes
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.
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 dependents’ benefit are available under this 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.

2.1.3 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 installment
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
T amount and not the 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 than 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 itself 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 agreement is placed before the Commissioner in Bangalore, no compromise is allowed

Contd....

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