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
1
Name of the Act – Workmen’s Compensation Act, 1923
Name of the Act – Employee’s Compensation Act, 1923
2
Definition – ‘Workman’ omitted
Definition – ‘Employee’ inserted. But no change in the content of definition
3
Death compensation – Maximum Rs.80,000/-
Death compensation – Maximum Rs.1,20,000/-
4
Permanent total disablement compensation – Maximum Rs.90,000/-
Permanent total disablement compensation – Maximum Rs.1,40,000/-
5
Funeral payment – Rs.2500/-
Funeral payment – Not less than Rs.5000/-
6
Schedule II – employed, otherwise than in a clerical capacity [wherever mentioned in the scheduled employments]
Omitted

(which means, all the employees are covered under this Act)
7
Schedule II – employed……premises wherein or within the precincts where of 20 or more persons are so employed [wherever mentioned in the scheduled employments]
Omitted

(which means, no ceiling based on the strength of the employees)
8

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

From India, Pune
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Under this act, in case of an accident, if illness/hospitalization continues for a longer period, how long should hospital expenditure be borne by the employer?

Second question: If a natural death occurs during the course of the job, is the individual eligible to receive compensation under this act? Please revert.

From India
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Anish has missed incorporating the revised salary for the computation of compensation. As per the amended Act, it has been fixed at Rs 8000. Accordingly, the compensation will be equal to 50% of the salary subject to a maximum of Rs 8000 (that means 4000) multiplied by the relevant factor based on the age of the deceased. In the case of disablement, this will be 60%.

The Act does not specify a time limit for hospitalization; however, it obligates the employer to bear all hospital expenses.

In the event of death or disablement occurring outside of duty hours, the provisions of the Act will not apply.

Regards, Madhu.T.K

From India, Kannur
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In the amendment that took place in 2009, a new subsection (2A) has been added to section 4 stating that "an employee shall be reimbursed the actual medical expenditure incurred by him for the treatment of injuries caused during the course of employment." Since it is clearly stated in the Act, I believe there is no need to seek a court verdict on this matter.

Regards, Madhu.T.K

From India, Kannur
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Thanks Mr Madhu, It means if hopsitalisation contined for a longer period, the employer is responsible to reimburse actual expenditure. Thanks. Regards
From India
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Please let me know whether an employee is covered under the WC Act when he/she is on the way to the office/factory and sustains grievous injuries due to an accident. Is it a part of the Notional Extension of employment?

Few cases, if cited, will be highly appreciated. Thanks

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

Madhu.T.K

From India, Kannur
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Can someone please post the link to the newly amended act? It would be a ready reference. I tried to search for it, but I couldn't find it. If there is a document that outlines all of this, it would be really helpful to proceed further.

Thank you.

From India, Mumbai
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I want all formulas for calculating compensation amounts:

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.

From India, Nasik
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Please note that the minimum compensation has been enhanced from 80K to 120K for death and from 90K to 140K for permanent disability. It has been mentioned that the maximum is not correct; it should be minimum compensation. Please reply if I am wrong.

V K Rao

From India, Guntur
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