ASSIGNMENT 1: SALIENT FEATURES OF WORKMEN COMPENSATION ACT, 1923
Submitted by MOKSHA NAIR
WORKMEN COMPENSATION ACT, 1923
Objective of the Act:
The objective of the Act is to provide compensation to workmen for injury or an accident.
It was the first Labour Law Act enacted to provide one time compensation to a workman injured on company’s premises or shop floor.
Salient Features of the Act: 1. An employer is obligated to pay compensation to a workman in case of an employment injury
An employment injury must fulfil the following conditions: * Must be an injury * Due to an accident * Must cause personal injury to a person * Should take place in the course of employment, i.e., during working hours, and * Out of employment, referring to the national extension of premises. But the workman should not be: * Intoxicated * Violating safety guidelines * Disregarding safety appliances 2. According to this Act, a workman is any person, other than a casual worker and employed in terms other than the employer’s business, who is i. A railway servant, not employed in an administrative capacity ii. A master seaman or a crew member iii. A captain or a crew member of an aircraft iv. Driver, helper or mechanic of a motor vehicle v. A worker employed for an Indian company abroad.
But does not include persons employed in the Armed Forces and their dependants. 3. The amount of compensation payable to the workman depends on the extent of his injury and his disablement.
The disability of the employee can be classified four categories: 1) Death – In case of death, the amount of compensation payable is equal to fifty percent of the monthly wages of the workman multiplied by the relevant factor, or Rs. 80,000 whichever is more. The factor is determined by considering the completed years of age of the workman. 2) Total