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Monday, May 24, 2010

Workmen's Compensation Act, 1923 becomes Employees with enhanced compensation limits, full medical expenses reimbursement, case disposal within 3 months, etc..& also applicable to casual & clericals

Workmen’s Compensation Act is now Employees Compensation Act, 1923 and the definition of employee includes clerical employees & casual employees also.  Further,

  • the minimum compensation limits on no-fault basis are increased to Rs.1,20,000 & 1,40,000 (erstwhile limits being Rs. 80,000 & 90,000).
  • under the maximum compensation limit, the monthly wage limit of Rs.4,000/ is removed. hence, the maximum compensation can go UPTO 50% of Total Monthly Wages now, irrespective of limits [now a new ceiling of Rs.8000/- is introduced].
  • Funeral expenses limit extended to Rs.5000 (from Rs.2,500)
  • The employee shall be reimbursed the actual (full) medical expenditure incurred by him for treatment of injuries caused during the course of employment.
  • Time limit for disposal of cases relating to compensation introduced- The Commissioner shall dispose of the matter relating to compensation within 3 months of reference.

Old definition: "workman" means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business) who is….

New definition: Section 2

“(dd) “employee” means a person, who is—

(i) a railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not permanently employed in any administrative district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II; or

(ii) (a) a master, seaman or other members of the crew of a ship,

(b) a captain or other member of the crew of an aircraft,

(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle.

(d) 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

(iii) employed in any such capacity as is specified in Schedule II, whether the contract of employment was made before or after the passing of this Act and whether such 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 any employee who has been” injured shall, where the employee is dead, include a reference to his dependants or any of them;’;

Source: The Workmen’s Compensation (Amendment) Act, 2009


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hey! i am from kolkata,i have a issue,my father worked in union bank of India for 30+ yrs then died in 2011(8th feb)at the age of 57,3yrs before retirement,in our family he was the only breadwinner,there are four defendant of out family,my grandmother(80),mother(50),brother(24),elder sister(marriageable age25)and me(23),my brother only works in a private company salary.8000/,any one of our family is eligible for a compensatory job in the bank,in 2009 September my father felt some health problem then applied for leave for medical checkup,but due work pressure of year ending he was father continued with his illness ,and then in feb 2010 sadly diagnosed with stomach cancer and then died in 2011 feb,due high expenditure of treatment we are now in financial crisis,in spite of our situation bank decided not to giving compensatory job to any one of our family members,and they want us to sign in a bond paper giving rs.8,00000(8Lkh)in lieu of compensatory appointment.and all the amount of the education loans of my sister n brother,they want to deduct it from my fathers gratuity,just giving us merely 4-5 lkhs in our hand.I think Bank is ruthlessly behaving with us and trying to avoid their responsibilities.Plz.. help me what should i do.should we sign the bond paper or will file a legal action. here is my e-mail id -

rudrasen patil said...

works men act is under ESIC

rudrasen patil said...

works men act is under ESIC

Anonymous said...

after half an hour our regular employee met heart attack outside the plant,will he eligible to employee compensation act.

Anonymous said...

Hello. I could go through the Gazette Notification of the Government of India dt.31.05.2010 in which a specific amount of Rs.8000/- has been fixed for calculation of compensation in respect of an employee u/s 4(1) of the Employee's Compensation Act. There is neither any word such as "maximum" nor "minimum" mentioned in the said Notification. In this situation how can it be said that the earlier maximum limit of the monthly wages has been enhanced from Rs.4000/- to Rs.8000/-? Am I weak in interpreating correctly the languages used in the Gazette Notification? Please clarify and post a line in my mail ID -

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