Dear All Seniors and HR Team,

For your kind information here is the new Amendments in The Workmen Compensation Act - 1923.

The Lok Sabha on Tuesday passed The Employees Compensation (Amendment) Bill, 2016, as Union Labour Minister Bandaru Dattatreya said a large number of workforce in the organised sector will benefit.

The bill provides for higher compensation in case an employee is injured in industrial accident and has a provision for hefty penalty in case of violation by employers, officials said.

"A large number of organised workforce will be benefited by it.... Labour is a big component in the nation-building activity as their participation is very high. India has got a huge human resource. That is why labourers or workers play a significant role in building the nation," the minister said while piloting the draft legislation in the lower house of Parliament.

At the end of the debate which saw participation of several members, Dattatreya said the new legislation provides for payment of compensation of Rs 50,000 to Rs 1 lakh to employees and their dependents in case of injury in industrial accidents and also occupational diseases.

Besides, Rs 50,000 compensation, there will be "penalty for failure to display the Act" by the employers. Penalty from Rs 5,000 to Rs 50,000, that may be later raised to Rs 1 lakh. " he said, adding, "wherever an establishment or factory is there, they have to display the Act in Hindi or English or in regional languages for the information of the workers".

Section 30 of the Employees' Compensation Act 1923 provides for appeal in high courts whenever the disputed amount of compensation is more than Rs 300. The bill seeks to raise this to Rs 10,000, which may be further increased through a notification later.
The Employees' Compensation Act, 1923, provides for payment of compensation to workmen and their dependants in the case of injury by industrial accidents, including certain occupational diseases arising out of and in the course of employment resulting in death or disablement.
The Bill also proposes to impose penalty for failure to display provisions of the Act. It provides for making it obligatory on the employer to inform the employee of his rights to compensation under the Act.
The Act provides under section 30A that the labour commissioner could exercise discretion to withhold payment of an employee whenever an appeal in a high court is filed.

The legislation propose to omit Section 30A. With this omission, the amount can be withheld only when there is a stay or order to that effect by the high court where the appeal has been filed by the employer.

The Law Commission of India, in its reports in 1974 and 1989 related to the Workmen's Compensation Act, 1923, (now known as Employees' Compensation Act, 1923), had recommended to review/amend/repeal various provisions of the Act.


Bhagat R K

From India, Delhi

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