Ministry of Labour and Employment
The Employee’s Compensation Act, 1923, is a fundamental piece of legislation that provides for the payment of compensation to employees for injuries sustained during employment. It outlines the employer’s liability, the amount of compensation payable, and the procedures for claiming and receiving compensation. The Act aims to protect employees from the financial consequences of work-related accidents and occupational diseases.
1: Act Background and ministry under which this act is:
The Employee’s Compensation Act, 1923, was enacted to provide for the payment of compensation by certain classes of employers to their employees for injury by accident. This act falls under the purview of the Ministry of Labour and Employment, Government of India. It is designed to ensure that employees receive compensation for work-related injuries.
2: Enactment date, number of chapters, number of sections:
The Act was enacted on 5th March 1923. It is divided into four chapters and has 36 sections, along with four schedules.
3: Act Governed By:
The Act is primarily governed by the Commissioners for Employee’s Compensation, who are appointed by the State Governments. The Ministry of Labour and Employment oversees the implementation of the Act and provides policy guidance. The Act also involves qualified medical practitioners for assessing the nature and extent of injuries.
4: On Whom it is applicable:
This Act applies to all employers and employees engaged in industries and occupations specified in Schedule II of the Act. This includes a wide range of professions, from railway workers and seamen to those employed in factories, mines, and construction sites. The Act aims to protect employees from the financial consequences of work-related accidents.
5: Penalties/Punishments:
The Act prescribes penalties for various offenses, including:
-
Failure to maintain a notice-book.
-
Failure to send a statement or report regarding fatal accidents.
-
Failure to make returns as to compensation.
-
Failure to inform employees of their rights.
Penalties range from monetary fines to imprisonment, depending on the nature and severity of the offense.
6: Important Pointers:
-
The Act provides for compensation for injuries resulting from accidents arising out of and in the course of employment.
-
It outlines the amount of compensation payable in cases of death, permanent total disablement, and permanent partial disablement.
-
It includes provisions for half-monthly payments during temporary disablement.
-
The Act also covers occupational diseases specified in Schedule III.
-
It establishes a system for the appointment of Commissioners for Employee’s Compensation to adjudicate disputes.
-
The Act provides for medical examinations and the review of compensation payments.
-
It also includes provisions for the recovery of compensation and the protection of employees’ rights.
7: Act Copy: