The employer needs to inform an employee of his rights to compensation under the Act in writing as well as through electronic means. Failure to do so will make the employer liable to penalty.
Penalties have been increased from a maximum of Rs. 5000 to a definite penalty of Rs. 50,000 which may extend to Rs. 1 lakh.
The minimum amount involved in a dispute for which an appeal may be filed with the High Court has been increased from Rs. 300 to Rs. 10,000, or such higher amount as the Central Government may, by notification, specify.
Appeals can be made against orders related to compensation, distribution of compensation, award of penalty or interest, etc. only if the amount in dispute is at least three hundred rupees.
Under the original Act, if an employer has appealed against a Commissioner’s order, any payments towards the employee can be temporarily withheld. The Commissioner may do so only by an order of the High Court, until the matter is disposed of by the Court. The Amendment Act deletes this provision.
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I have read your posts and various threads on the subject. However there is one point which has not been mentioned anywhere.
Could you please help me with the same ?
1. Is employee compensation act is mandatory under Factories Act ?
2. If yes, can Finance, HR, Quality team, can be covered under the insurance ?
3. Total 7 permanent employees and one Japanese are working in our organisation. Do we need to cover them all in Employee Compensation Act ?
Please help me in getting the answers to above question.
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