Workmen's Compensation Act, 1923 Amended - Workmen Compensation - CiteHR
Industrial Relations And Labour Laws
Sr. Manager-hr &ir
Talent Acquisition / Consultant - Catalis
Narendra Baraiya
Not Knonw To Me
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Dear All,

Kinldy make note that the Workmen's Compensation Act, 1923, has been amended by Act 45 of 2009, whereby the name has been changed from Workmen's Compensation Act, 1923 to Employee's Compensation Act, 1923.

The salient feature of the amendment is the Omission of Schedule II of the Act, where the class of workman covered is omitted, and hence the Act becomes applicable for all employees irrespective of the nature of work done and the no. of employees engaged by an Industry / establishment.

The Major Changes are as under:

S No
Provision prior to amendment
Provision after amendment
Name of the Act – Workmen’s Compensation Act, 1923
Name of the Act – Employee’s Compensation Act, 1923
Definition – ‘Workman’ omitted
Definition – ‘Employee’ inserted. But no change in the content of definition
Death compensation – Maximum Rs.80,000/-
Death compensation – Maximum Rs.1,20,000/-
Permanent total disablement compensation – Maximum Rs.90,000/-
Permanent total disablement compensation – Maximum Rs.1,40,000/-
Funeral payment – Rs.2500/-
Funeral payment – Not less than Rs.5000/-
Schedule II – employed, otherwise than in a clerical capacity [wherever mentioned in the scheduled employments]

(which means, all the employees are covered under this Act)
Schedule II – employed……premises wherein or within the precincts where of 20 or more persons are so employed [wherever mentioned in the scheduled employments]

(which means, no ceiling based on the strength of the employees)

The employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment

Under this act, in case of accident, if illness / hospitalisation continues for a longer period, how long hospital expenditure to be born by employer ?
Second question, natural death during & in the course of job occurs, is he eligible to get compensation under this act ? Pl revert

Anish has missed to incorporate the revised salary for the purpose of computation of compensation. As per the amended Act, it has been fixed as Rs 8000. Accordingly, the compensation will be equal to 50% of salary subject to a maximum of Rs 8000(that means 4000) multiplied by the relevant factor fixed based on the age of the deceased. This will be 60% in case of disablement.
The Act has not put a time limit for hospitalisation whereas it has made it obligatory on the part of the employer to bear all hospital expense.
In case of death or disablement which occurs not while on duty, the provisions of the Act will not apply.

In the amendment which took place in 2009, a new sub section (2A) has been added to section 4 that " employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment". Since it is clearly stated in the Act, I think no need to get a court verdict about it.

Thanks Mr Madhu, It means if hopsitalisation contined for a longer period, the employer is responsible to reimburse actual expenditure. Thanks. Regards
Please let me know whether an employee is covered under WC Act when he/she is on way to office/factory and sustain grevious injuries due to it a part of Notional Extension of employment.
Few cases if cited will be highly appreciated. Thanks

It will be treated as notional extension provided the time of accident also matches with the usual time of his commuting. If there is wide variation in the time he is expected to reach the place of accident after his leaving the office either on regular timing or after performing overtime or staying back for any additional work which will any how be available in the time office/bio matric or other device, the employer (or ESIC) will not be under any obligation to pay compensation.

Can some one please post the link to the newly ammended act?
It becomes a ready reference. I tried to search it, but I couldn't get. So if there is a document that states all this will be really great to act further.
Thanking you

I want all formulas Compensation amount?
1.Where death results from injury.
2. Where permanent total disablement results from the injury.
3. Where permanent partial disablement results from the injury.
4. Where temporary disablement, whether total or partial results from the injury.

Please note that Minimum compensation enhanced from 80 K to 120 K for death and 90K to 140K for permanently disabled.
He have mention that Maximum is not correct that is minimum compensation , please reply if I am wrong
V K Rao

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