WORKMEN’S COMPENSATION ACT 1923
BY :SABA SHAMIM
SHAHRIYAR EHTESHAMI FERD
SHAHINA ALI
TANAZ NASRIN
SHIVANGNI GAUR
AGENDA
• OBJECTIVES
1
2 • AMOUNT OF COMPENSATION DECIDED
• SCOPE AND COVERAGE
3
• TYPES OF COMPENSATION AND RESPECTIVE
4 AMOUNTS
• EMPLOYER LIABILITY FOR COMPENSATION
5
• DOCTRINE OF NOTIONAL EXTENSION
6
7 • EMPLOYER NOT LIABLE
• DUTIES OF EMPLOYESS
8
• CASE STUDY
9
OBJECTIVE
• Aims at providing financial protection to workmen
and their dependents in case of accidental injury.
• Provides social security.
• Aims to see workmen have a sustainable life.
• Aims to curb the chances of disputes.
HOW IS THE WORKER’S
COMPENSATION AMOUNT DECIDED?
• Depends upon the monthly wages.
• Nature of injury.
• Depends upon the age of employee.
SCOPE & COVERAGE
• Implies to whole of India.
• Applicable to factories,mines,oilfields etc.
• Act does not apply to members of armed forces.
• Coverage is also to cooks.
TYPES OF COMPENSATION AND THE
RESPECTIVE AMOUNTS
Death
Disablement-
-permanent total disablement
-permanent partial disablement
-temporary disablement
Penalty for default and delay
Insurance for workmen compensation liability
RESPECTIVE AMOUNTS
Causes of compensation Amount one Amount two
Death Rs 140,000 50% of monthly wages
*relevant factor
Permanent total disability Rs 120,000 60% of monthly wages
*relevant factor
Permanent partial Estimated on pro-rata
disability basis
Temporary disability 25% of monthly wages
EMPLOYER’S LIABILITY FOR
COMPENSATION
• Personal injury by accident.
• If he dies due to accident while on duty and during
course of his employment.
• Occupational Diseases.
Example in case of death-
• A workmen employed in a factory on a monthly wage
of Rs 5000. While working he met with an accident
and dies on 0ctober 2016. His birth of date is July 18
1976. The amount of compensation payable to his
dependent would be:
50*monthly wages*Relevant factor of age 40
100
50*5000*184.17
100
=460,425
CONDITIONS FOR RECEIVING
COMPENSATION FOR PERSONAL INJURY-
• Workmen must have been engaged in the business of
the employer.
• Accident occurred at the place where he was
performing.
• Injury must have resulted from some risk incidental
to the duties.
DOCTRINE OF NOTIONAL
EXTENSION
• The principle behind compensation to injured worker
under workmen’s compensation act 1923 is considered
according to Doctrine of notional extension.
• Section 3(1)WCA ,1923 provides that injury must be
caused to workman by an accident arising out of and in
the course of employment.
• As a rule the employment of workmen does not
commence until he has reached the place of employment
and does not continue when he has left the place.
• Various judgements laid by Supreme Court and different
High courts have considered the concept.
EMPLOYER IS NOT LIABLE WHEN-
• Disablement not exceeding 3 days.
• Accident due to influence of drink,drugs or disobeyed
orders, disregards of safe guards.
• Accidents occurred due to perils or war.
DUTIES OF EMPLOYERS
Pay compensation for an accident.
To submit a statement to the commissioner(within 30
days of receiving the notice).
To submit accident report to the commissioner.
To maintain a notice book in the prescribed from at a
place.
To submit an annual return.
Case study