| Details | Information |
|---|---|
| Act Year | 1923 |
| Enactment Date | March 5, 1923 |
| Short Title | The Employees’ Compensation Act, 1923 |
| Long Title | An Act to provide for the payment of compensation to workers for injury by accident. |
| Department | Department of Labour |
| Enforcement Date | July 1, 1924 |
| Type | Central Act (Ministry of Labour and Employment) |
Section 1: Short Title, Extent, and Commencement
This Act is called the Employee’s Compensation Act, 1923.
It applies to the entire country of India.
The Act came into effect on July 1, 1924.
Section 2: Key Definitions
This section defines important terms used in the Act:
1. Commissioner: A person appointed under Section 20 of the Act to oversee compensation matters.
2. Compensation: Refers to the benefits provided under this Act for injuries or death caused due to employment.
3. Dependant: Includes relatives of a deceased employee, such as:
- A widow, minor legitimate or adopted children, unmarried daughters, or a widowed mother.
- Other family members (like widowers, parents, siblings, or grandchildren) who were dependent on the employee’s earnings at the time of death.
4. Employee: Refers to individuals employed in specific capacities, such as:
- Railway workers, ship crew, aircraft crew, drivers, and others mentioned in Schedule II of the Act.
- Excludes members of the Armed Forces.
5. Employer: Includes any individual, organization, or body hiring the employee, and any legal representative of a deceased employer.
6. Partial Disablement: A condition where the employee’s ability to earn is reduced temporarily or permanently due to an accident at work.
7. Total Disablement: A condition where the employee is unable to work completely, either temporarily or permanently.
8. Wages: Includes monetary payments and benefits given to an employee, excluding travel allowances, pension contributions, or any special expenses.
Other Provisions
- The Act ensures the rights of employees injured or killed in the course of their employment are protected.
- It mandates employers to compensate employees or their dependents for workplace injuries or death.
- The Government may include additional categories of workers in hazardous occupations under this Act.
Section 3: Employer’s Liability for Compensation
1. General Liability: Employers must compensate employees for injuries caused by accidents arising during the course of employment.
2. Exceptions to Liability:
1. Injury Exclusions:
- Injuries not causing disablement for more than three days.
- Injuries not leading to death or permanent total disablement due to:
- Employee under the influence of drugs/alcohol.
- Willful disobedience to safety rules or orders.
- Removal or disregard of safety devices.
2. Occupational Diseases:
- If an employee contracts a disease listed in Schedule III:
- The disease is treated as injury by accident.
- Liability is determined based on the duration of employment with the employer.
3. Multiple Employers:
If the disease occurs under multiple employers, compensation is proportionately shared.