Page 237 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes section, unless complaint thereof is made within six months of the date on which the
alleged commission of the offence came to the knowledge of the Commissioner.

Appraisal of the Act

The Act places the entire liability for the compensation on the employer with no obligation on
him to insure his liability. In case of fatal accidents, many employers in small industry find it
difficult to pay compensation to workmen. The Act makes no provision for the medical care and
treatment in case of injury to a worker.

Case Study Workman’s Accident

he workman was residing in the quarters provided to him at a distance of three
furlongs from the work premises. When he went out to light a coal oven in the
Tbackyard, he came in contact with a live electric wire and got electrocuted and died.
His legal heir claimed compensation for the accident.

Question: Is it an accident arising out of and in the course of employment? Justify?
Answer: It cannot be considered accidental just because residential quarters were provided
and the employee had to stay there. The accident arose when he was attending to his own
household work. Moreover, his duty hours were over and so also the employer was not
responsible for it, since there was no nexus or casual connection between the accident and
employment, the theory of notional extension cannot be stretched so as to bring the
accident under its scope. "In the course of employment" means in the course of work,
which is incidental to it. "Arising out of employment" means that during the course of
employment, injury has resulted from some risk incidental to the duties which if not
engaged in, the workman would not have suffered.
Source: Labour Laws for Managers, Dudjei Jena vs. Deulbera Colliery 1976 49 FJR 414.

9.5 The Employees' State Insurance Act, 1948

The Employees' State Insurance Act, 1948 is social welfare legislation for providing the medical
help & unemployment insurance to industrial workers during illness.

Objective and Scope

It is enacted primarily with the object of providing certain benefits to employees in case of
sickness, maternity and employment injury and also to make provisions for certain other matters
incidental thereto. The Act tries to attain the goal of socio-economic justice enshrined in the
Directive Principles of State Policy under Part IV of the Constitution, in particular articles 41, 42
and 43, which enjoin the State to make effective provision for securing the right to work, to
education and public assistance in cases of unemployment, old age, sickness and disablement,
and in other cases of any undeserved want to make provision for securing just and human
conditions of work, and maternity relief and to secure, by suitable legislation or economic
organisation or in any other way, to all workers, work, a living wage, decent standard of life and
full enjoyment of leisure and social and cultural activities.

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