An Overview of the Workers Compensation Act, 1923

Saptaswara Chakraborty| North Eastern Hill University| 5th June 2020

Introduction

Every worker has the right to claim compensation for the losses that he/she incurred during his/her employment. Can we imagine a workplace where no measures are taken for the worker’s well-being? The answer to this is a probable no, but over the years various incidents ranging from industrial accidents to diseases acquired during the employment has surfaced, but for such accidents, due provision is present which thus provides for compensation to the workmen. Prior to 1923, no such act or legislation was available which rendered them to suffer from various misfortunes, disabilities and accidents. As the country advanced, so did the industries and with that the dangers faced by the workmen. They were prone to diseases and various occupational hazards which the then laws failed to address. It was only in 1921 that the Government realised the general need for laws protecting the workers and therefore the Workmen’s Compensation Act, 1923 came into existence. The Act was amended in the year 2009 changing the title from Workmen’s Compensation Act to Employees Compensation Act and substituting the word “workman” or “workmen” to “employee” or “employees” wherever it was deemed to be necessary along with some other changes. This Act came into force from the 1^st of July 1924 and was applied to the whole of India. 

Objective

The Workmen’s Compensation Act, 1923 came into existence to impose a statutory liability upon the employer so that it discharges his moral obligation when they suffer from any such injuries. This Act was one of the earliest labour welfare laws to have been passed with the prime objective of providing compensation to the workers in the event of an accident during the course of the employment. The Worker’s Compensation Act, 1923 identifies itself as social security legislation which aims at providing compensation to even those dependants including daughter or a son who has not attained the age of 18 years, a widow, and others who has been included u/s 2(1)(d) of the Workmen’s Compensation Act. 1923. It prioritises the fast-paced compensational process with a motive of the minimal rate at which the dispute can be disposed of.

Scope of this Act

As has been previously mentioned, this Act applies to the whole of India and covers all such persons including a railway servant, construction workers, factory workers, loading & unloading work on a ship, maintenance and repairs of roads and bridges, circus and other employments which have been listed under Schedule II of the Workmen’s Compensation Act, 1923. Upon the amendment of the Workmen’s Compensation Act in the year 1995, the Act extended its scope to the workers of newspaper establishments, drivers, cleaners, motor vehicle workers, persons occupying horticultural jobs and various other mechanical jobs. A person who has been employed through contract is also liable to receive compensation under this specified Act. This means that an employee has the right to be indemnified by the contractor, but the principal liability lies on the employer. This was held in the case of Managing Director, Orissa State v. Smt. Gitarani Seal and Anr. [II (1991) ACC 649]

However, this present Act does not apply to the members serving under the Armed Forces, which is under the Indian Union and also the employees covered under the Employees State Insurance Act, 1948.

Employer’s Liability under The Workmen’s Compensation Act, 1923

Section 3 of The Workmen’s Compensation Act, 1923 provides for the circumstances where an employer would be liable to pay the compensation:

• If the employee suffered a personal injury
• The injury was caused by an accident
• The accident must have arisen in the course of the employment
• The injury must have resulted in the death of the employee or his/her total or partial disablement for a period exceeding 3 days.

This section, however, points out the instances when the employer is not liable. They are:

• If the injury did not result in partial/ total disablement of the employer for a period exceeding 3 days
• The employee was under the influence of drugs.
• Employee wilfully disobeyed the order expressly given or framed for the security of the employee.

Subject to this, Schedule I of this Act provides for the list of injuries under which the employer would be responsible. They are:

1. Partial disablement
2. Total disablement

Under Partial Disablement, it is divided into two types; temporary and permanent disablement. Partial disablement reduces the earning capacity of the employee because of the accident which he/she incurred during the course of the employment.

• Temporary disablement- This type of disablement is temporary in nature which thus reduces the earning capacity of the workman because of the accident incurred during the employment.
• Permanent disablement- This type of disablement is permanent and reduces the earning capacity of the workman for every employment because of the accident incurred during the employment.

Total disablement refers to disablement, whether of temporary or permanent nature which incapacitates the workman for all the works which he was previously capable of performing during the employment.

Conclusion

Workmen’s Compensation Act has been instrumental in safeguarding the rights of the workmen. Such an Act is a boon for the workmen as it provides several benefits for their well-being. A workman contributes immensely towards the development of an employer’s occupation, thus rendering it towards success. This article aimed to provide a comprehensive yet concise outline of The Workmen’s Compensation Act, 1923 with a focus on the compensation being provided to the workmen.