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

When Compensation to be Deposited with Commissioner? Notes

The amount of compensation is not payable to the workman directly. It is generally deposited
along with the prescribed statement, with the Commissioner who will then pay it to the workman.
Any payment made to the workman or his dependents, directly, in the following cases will not
be deemed to be a payment of compensation:
(i) in case of death of the employee;

(ii) in case of lump sum compensation payable to a woman or a minor or a person of unsound
mind or whose entitlement to the compensation is in dispute or a person under a legal
disability.
Besides, compensation of 10 or more may be deposited with the Commissioner on behalf of
the person entitled thereto. The receipt of deposit with the Commissioner shall be a sufficient
proof of discharge of the employer’s liability.

2.2.2 Workman

The definition of the term workman is important because only a person coming within the
definition is entitled to the relieves provided by the Workmen’s Compensation Act. “Workman”
is defined in Section 2(n) read with Schedule II to the Act.
In Schedule IT, a list (consisting of 32 items) is given of persons who come within the category
of workmen.

Example: Persons employed otherwise than in a clerical capacity or in a railway to
operate or maintain a lift or a vehicle propelled by steam, electricity or any mechanical power;
person employed otherwise than in a clerical capacity in premises where a manufacturing
process is carried on; seamen in ships of a certain tonnage; persons employed in constructing or
repairing building or electric fittings; persons employed in a circus or as a diver; etc.
Subject to the exceptions noted below, the term workman means:
(a) a railway servant as defined in Section 3 of the Indian Railways Act of 1890 who is not
permanently employed in any administrative, district or sub-divisional office of a railway and
not employed in any capacity as is specified in schedule II; or
 A master seaman or other member of the crew of a ship.

 A captain or other member of the crew of an aircraft.
 A person recruited as driver, helper, mechanic, cleaner, or in any other capacity in
connection with a motor vehicle.

 A person recruited for work abroad by a company and who is employed outside India in
any such capacity as is specified in Schedule II and the ship aircraft or motor vehicle or
company as the case may be is registered in India; or
(b) employed on monthly wages not exceeding 1000 in any such capacity as is mentioned in
Schedule II.

whether the contract of employment was made before or after the passing of this Act and
whether the contract is expressed or implied oral or in writing; but does not include any person
working in the capacity of a member of the Armed Forces of the Union; and any reference to a
workman who has been injured shall where the workman is dead includes a reference to his
dependents or any of them.

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