Page 41 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes From 1st April 1976, the limit of monthly wages for purposes of this Act was raised from 500
to 1000. The words used in clause (b) mean that the wages must not exceed on average (now
1000) a month. The contract of employment may be expressed or implied, oral or in writing.
The exercise and performance of the powers and duties of a local authority or of any department
acting on behalf of the Government shall, for the purposes of the Act, unless a contrary intention
appears be deemed to be the trade or business of such authority or department. The State
Government has been given power to add to the list in Schedule II any hazardous occupation or
specified injuries in such an occupation. The addition may be made by notification in the official
Gazette, with not less than 3 months’ notice.

There is legal decision regarding the question who is a workman. The general rule is that there
must be the relationship of master and servant between the employer and the workman. Workman
is a person whom the employer can command and control in the manner of performing the
work Yewen v. Noakes. According to Wills, the following points are to be taken into consideration
in determining the question whether a person is a workman:
(a) The term of engagement
(b) The payment of wages
(c) The power of control over the work the power of dismiss

2.2.3 Disablement

Disablement means loss of capacity to work or to move. Disablement of a workman may result
in loss or reduction of his earning capacity. In the latter case, he is not able to earn as much as he
used to earn before his disablement. Disablement may be partial, or total. Further Partial
disablement may be permanent, or temporary. Disablement, in ordinary language, means loss
of capacity to work or move. Such incapacity may be partial or total and accordingly there are
two types of disablement, partial and total. In the Act both types of disablement are further
subdivided into two classes, temporary and permanent. By Section 2 (g) Temporary Partial
Disablement means such disablement as reduces the earning capacity of a workman in any
employment in which he was engaged at the time of the accident, and Permanent Partial
Disablement means such disablement as reduces his earning capacity in every employment he
was capable of undertaking at that time. The Act is not limited only to physical.

1. Partial Disablement [Section 2(1)(g)]
This means any disablement as reduces the earning capacity of a workman as a result of some
accident. Partial disablement may be temporary or permanent.
 Temporary partial disablement means any disablement as reduces the earning capacity of
a workman in any employment in which he was engaged at the time of accident which
resulted in such disablement.

 Permanent partial disablement is one which reduces the earning capacity of a workman in
every employment which he was capable of undertaking at the time of injury.

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Caution In a case of Partial Disablement it is necessary that (a) there should be an accident,
(b) as a result of the accident the workman should suffer injury, (c) which should result in
permanent disablement and (d) as a result whereof his earning capacity must have decreased
permanently.

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