Page 230 - DMGT516_LABOUR_LEGISLATIONS

Unit 9: Social Security Legislations

(c) Any sum paid to a workman to cover any special expenses incurred on him by the Notes
nature of his employment
(d) Leave carried forward to next year.

Annual leave with wages is certainly a privilege, but this privilege only means that no wages
due for that period shall be deducted from the wages. It does not mean that the workman can
claim an equivalent amount in lieu of such leave. Thus, in calculation of wages, an addition to
wages for the period of leave a workman was entitled to after working for one year is not
justified, unless there is in the contract of service an express provision for such amount of wages
in lieu of the leave earned for the year.

Applicability

Every employer of a factory, an establishment or a circus etc., is liable to compensate any of his
employees who has suffered an accident in the course of his employment, under the Workmen's
Compensation Act. The Workmen's Compensation (Amendment) Act, 1995, has extended the
scope of the Act to cover newspaper establishments, drivers, cleaners, etc. working in connection
with a motor vehicle, workers employed by Indian companies abroad, persons engaged in
spraying or dusting of insecticides/pesticides and doing other mechanical jobs. The provisions
of the Act have been extended to the cooks employed in hotels, restaurants using power, liquefied
petroleum gas or any other mechanical device, in the process of cooking. If the provisions of ESI
Act have become applicable to the factory/establishment, its employer shall cease to be liable
under the Workmen's Compensation Act.

Employees Entitled

Any employee, including those employed through contractor but excluding a casual employee,
employed for the purposes of employer's business in any such capacity as is specified in Schedule
II of the Act, and who has suffered an accident in the course of his employment is entitled to
receive compensation for the injury/disablement/loss of life.

Compensation – When not Payable

The employer is not liable to pay any compensation for the injury to an employee under
following circumstances:
1. When injury does not cause total/partial disablement for more than 3 days;
2. When injury, not resulting in death (or permanent total disablement) is directly attributable
to employees' willful disobedience of the safety rules, or disregard of the safety devices,
or the employee having been under the influence of drink or drugs;
3. Where the employee has contracted a disease, which is not directly attributable to a
specific injury caused by an accident in the course of his employment;
4. When the employee has filed a suit for damages against the employer or any other person
in a civil court.
Amount of Compensation

The amount of compensation payable by the employer shall be as follows:
(a) In case of death- 50% of the monthly wages × Relevant factor OR 80, 000, whichever is
more, and 2500 for funeral expenses.

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