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Workmen compensation act 1923

The Workmen Compensation act is an important act for all people who are going to set up factories in manufacturing sector.

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Workmen compensation act 1923

  1. 1. By Banu Sujith Bizcraft Solutions
  2. 2.  The Workmen’s Compensation Act, 1923 provides for payment of compensation to workmen and their dependants in case of injury and accident (including certain occupational disease) arising out of and in the course of employment and resulting in disablement or death.
  3. 3.  The Workmen Compensation Act, 1923 extends to whole of India.  It applies to workmen employed in factories, mines, plantations, mechanically propelled vehicles, construction works and certain other hazardous occupations in any such capacity as is specified in schedule II of the Act.  Persons recruited for working abroad.  Person recruited as driver, helper, mechanic, cleaner(connection with motor vehicle) and crew of an aircraft.
  4. 4.  Employer – Any body of persons whether incorporated or not; Any managing agent of an employer; The legal representative of a deceased employer  “Employee" is a general reference to anyone employed as provided in different act and outside of the act has no particular significance beyond that. “Worker" is defined under the Factories Act and includes virtually everyone who enters the factory premises. "Workman" is defined under the Industrial Disputes Act and specific import for labor legislation. So depending upon the issue on hand, one will have to look in to the concerned to learn about the rights and obligations of the subject individual.  Workmen- 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; a master, seaman or other member of a crew, etc; It does not include a person whose employment is of casual nature.
  5. 5.  Dependants means any of the following relatives of a deceased workman, namely: i) A widow a minor (legitimate or adopted) son and unmarried (legitimate or adopted) daughter or a widowed mother ii) If wholly dependant on the earnings of the workman at the time of death, son or a daughter who attained age 18 yrs and infirm iii) If wholly or in part dependant on the earnings of the workman at the time of his death – a) A widower; b) A parent other than a widowed mother; c) A minor illegitimate son, an unmarried illegitimate daughter or a married daughter (legitimate, illegitimate or adopted) and a minor or if widowed and a minor; d) A minor brother or an unmarried sister or a widowed sister if a minor; e) A widowed daughter in law; f) A minor child of a pre-deceased son; g) A minor child of a pre- deceased daughter where no parent of the child is alive; or h) A paternal grandparent if no parent, of the workman is alive.
  6. 6.  The workmen’s compensation policy is the primary method by which employers can show their ability to satisfy the obligations imposed by the worker’s compensation statutes. As employers pay for this insurance, no contribution is required to be made by employees.
  7. 7.  Legal liability coverage  Vocational rehabilitation expenses  Covers for occupational diseases  Calculation of income lost and corresponding compensation  Inclusion of special covers  Comprehensive inclusion of all employees  Injured employees or their family get the timely monetary compensation
  8. 8. Eligibility Non Eligibility  Employer must be covered by Worker’s compensation  You must be an Employee  Injury or Illness must be work-related  Reporting and filling deadlines  Domestic workers  Agricultural and farm workers  Leased or loaned employees  Casual or seasonal workers  Undocumented workers
  9. 9.  These sections provides for appointment of commissioners for the enforcement of provisions of the Act.  Sec 20 authorizes the State Government to appoint commissioners under the Act.
  10. 10. (1) Whoever -  (a) fails to maintain a notice-book which he is required to maintain under sub-section (3) of section 10 or  (b) fails to send to the Commissioner a statement which he is required to send under sub-section (1) of section 10A or  (c) fails to send a report which he is required to send under section 10B or  (d) fails to make a return which he is required to make under section 16 shall be punishable with fine which may extend to five thousand rupees. (2) No prosecution under this section shall be instituted except by or with the previous sanction of a Commissioner and no Court shall take cognizance of any offence under this section unless complaint thereof is made within six months of the date on which the alleged commission of the offence came to the knowledge of the Commissioner.