The Workmen’s Compensation Act, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen.

It provides for payment by certain classes of employers to their workmen compensation for injury by accident.


Workman means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer’s trade or business) who is-

i. a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or

ii. employed in any such capacity as is specified in Schedule II,

Whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing.

The provisions of the Act have been extended to cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other mechanical device in the process of cooking.


Every employee (including those employed through a contractor but excluding casual employees), who is engaged for the purposes of employer’s business and who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.


The employer of any establishment covered under this Act, is required to compensate an employee:

a. Who has suffered an accident arising out of and in the course of his employment, resulting into (i) death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement whether total or partial, or

b. Who has contracted an occupational disease.


a. In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days;

b. In respect of any injury not resulting in death, caused by an accident which is directly attributable to-

i. the workmen having been at the time thereof under the influence or drugs, or

ii. the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or

iii. The willful removal or disregard by the workmen of any safeguard or other device which he knew to have been provided for the purpose of securing the safety of workmen.

The burden of proving intentional disobedience on the part of the employee shall lie upon the employer.

iv. when the employee has contacted a disease which is not directly attributable to a specific injury caused by the accident or to the occupation; or

v. When the employee has filed a suit for damages against the employer or any other person, in a Civil Court.


Any contract or agreement which makes the workman give up or reduce his right to compensation from the employer is null and void insofar as it aims at reducing or removing the liability of the employer to pay compensation under the Act.


Disablement is the loss of the earning capacity resulting from injury caused to a workman by an accident.

· Disablement’s can be classified as (a) Total, and (b) Partial. It can further be classified into (i) Permanent, and (ii) Temporary, Disablement, whether permanent or temporary is said to be total when it incapacitates a worker for all work he was capable of doing at the time of the accident resulting in such disablement.

· Total disablement is considered to be permanent if a workman, as a result of an accident, suffers from the injury specified in Part I of Schedule I or suffers from such combination of injuries specified in Part II of Schedule I as would be the loss of earning capacity when totaled to one hundred per cent or more. Disablement is said to be permanent partial when it reduces for all times, the earning capacity of a workman in every employment, which he was capable of undertaking at the time of the accident. Every injury specified in Part II of Schedule I is deemed to result in permanent partial disablement.

Temporary disablement reduces the earning capacity of a workman in the employment in which he was engaged at the time of the accident.


An accident arising out of employment implies a casual connection between the injury and the accident and the work done in the course of employment. Employment should be the distinctive and the proximate cause of the injury. The three tests for determining whether an accident arose out of employment are:

1. At the time of injury workman must have been engaged in the business of the employer and must not be doing something for his personal benefit;

2. That accident occurred at the place where he as performing his duties; and

3. Injury must have resulted from some risk incidental to the duties of the service, or inherent in the nature condition of employment.

The general principles that are evolved are:

· There must be a casual connection between the injury and the accident and the work done in the course of employment;

· The onus is upon the applicant to show that it was the work and the resulting strain which contributed to or aggravated the injury;

· It is not necessary that the workman must be actually working at the time of his death or that death must occur while he was working or had just ceased to work; and

Where the evidence is balanced, if the evidence shows a greater probability which satisfies a reasonable man that the work contributed to the causing of the personal injury it would be enough for the workman to succeed. But where the accident involved a risk common to all humanity and did not involve any peculiar or exceptional danger resulting from the nature of the employment or where the accident was the result of an added peril to which the workman by his own conduct exposed himself, which peril was not involved in the normal performance of the duties of his employment, then the employer will not be liable.


Workers employed in certain types of occupations are exposed to the risk of contracting certain diseases, which are peculiar and inherent to those occupations. A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment and the employer is liable to pay compensation for the same.

Occupational diseases have been categorized in Parts A, B and C of Schedule III. The employer is liable to pay compensation:

a. When a workman contracts any disease specified in Part B, while in service for a continuous period of 6 months under one employer. (Period of service under any other employer in the same kind of employment shall not be included),

b. When a workman contracts any disease specified in Part C, while he has been in continuous service for a specified period, whether under one or more employers. (Proportionate compensation is payable by all the employers, if the workman had been in service under more than one employer).

If an employee has after the cessation of that service contracted any disease specified in the said Part B or Part C, as an occupational disease peculiar to the employment and that such disease arose out of the employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of the Act.


The amount of compensation payable by the employer shall be calculated as follows:

(a) In case of death. - 50% of the monthly wages X Relevant Factor or Rs. 50,000, whichever is more and Rs.1000 for funeral expenses.

(b) In case of total permanent disablement Specified under Schedule I - 60% of the monthly wages X Relevant Factor or Rs. 60,000, whichever is more.

(c) In case of partial permanent disablement specified under Schedule I - Such percentage of the compensation payable in case (b) above as is the percentage of the loss in earning capacity (specified in Schedule I)

(d) In case of partial permanent disablement not specified under Schedule I .-Such percentage of the compensation payable in case (b) above, as is proportionate to the loss of earning Capacity (as assessed by a qualified medical practitioner).

(e) In case of temporary disablement (whether total or partial). - A half-monthly installment equal to 25% of the monthly wages, for the period of disablement or 5 years, whichever is shorter


The amount of compensation is not payable to the workman directly. It is generally deposited along with the prescribed statement, with the Commissioner who will then pay it to the workman. Any payment made to the workman or his dependents, directly, in the following cases will not be deemed to be a payment of compensation:

i. in case of death of the employee;

ii. in case of lump sum compensation payable to a woman or a minor or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability.

Besides, compensation of Rs. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto.

The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employer’s liability.


Following amounts may be paid directly to the workman or his dependents:

a. In case of death of the workman, any advance on account of compensation up to [an amount equal to three months’ wages of such workman] may be paid to any dependent.

b. In case of lump sum compensation payable to an adult male worker not suffering from any legal disability.

In case of half-monthly payments payable to any workman.


1. Where the amount payable as compensation has been settled by agreement a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on being satisfied about its genuineness, record the memorandum in a registered manner.

2. However where it appears to the Commissioner that the agreement ought not to be registered by reason of the inadequacy of the sum or amount, or by reason that the agreement has been obtained by fraud or undue influence or other improper means he may refuse to record the agreement and may make such order including an order as to any sum already paid under the agreement as he thinks just in the circumstances.

3. An agreement for payment of compensation which has been registered shall be enforceable under this act notwithstanding anything contained in the Indian Contract Act, or any other law for the time being in force.


When a memorandum of any agreement is not sent to the Commissioner for registration, the employer shall be liable to pay the full amount of compensation, which he is liable to pay under the provisions of this Act.


A claim for the compensation shall be made before the Commissioner.

No claim for compensation shall be entertained by the Commissioner unless the notice of accident has been given by the workman in the prescribed manner, except in the following circumstances:

a. in case of death of workman resulting from an accident which occurred on the premises of the employer, or at any place where the workman at the time of the accident was working died on such premises or such place or in the vicinity of such premises or place;

b. in case the employer has knowledge of the accident from any other source, at or about the time of its occurrence;

c. in case the failure to give notice or prefer the claim, was due to sufficient cause.


Workman, to the Commissioner, may file the claim for accident compensation in the prescribed form, within 2 years from the occurrence of the accident or from the date of death. The claim must be preceded by

(i) a notice of accident, and

(ii) the claimant-employee must present himself for medical examination if so required by the employer.


· To pay compensation for an accident suffered by an employee, in accordance with the Act.

· To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed form, giving the circumstances attending the death of a workman as result of an accident and indicating whether he is liable to deposit any compensation for the same.

· To submit accident report to the Commissioner in the prescribed form within 7 days of the accident, which results in death of a workman or a serious bodily injury to a workman.

· To maintain a notice book in the prescribed from at a place where it is readily accessible to the workman.

· To submit an annual return of accidents specifying the number of injuries for which compensation has been paid during the year, the amount of such compensation and other prescribed particulars.


· To send a notice of the accident in the prescribed form, to the Commissioner and the employer, within such time as soon as it is practicable for him. The notice is precondition for the admission of the claim for compensation.

· To present himself for medical examination, if required by the employer.


An appeal against and order of the Commissioner lies to the High Court, within 60 days of the order. The employer is required to deposit the compensation before filing the appeal.

No right to compensation in respect of any injury shall exist under this act if he has instituted in Civil Court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall be maintainable by a workmen in any Court of law in respect of any injury -

a. if he has instituted a claim to compensation respect of the injury before a Commissioner; or

b. if an agreement has come to between the workman and his employer providing for the payment of compensation in respect of the injury in accordance with the provisions of his Act.

By: Nitin Parijaat

From India, New Delhi
Dilip Giri
Hr Executive
Hr-pms,manpower, Payroll, Ir
It Recruiter For Us
+3 Others

hi can any one give some light regarding the relivant factor, and how it is clculated ( In case of death. - 50% of the monthly wages X Relevant Factor or Rs. 50,000,)
From India, Delhi

A trainee specified under Standing Orders is eligible for Compensation for partial disablement under the Act or not
From India, Kakinada

ESI Act 1948 is applicable to all employees irrespective of the grade( Workers, Supervisors, Manager...) . So is the case with the Maternity Benifit Act 1961. Need to have a clarification on the applicability of Employees Compensation Act . Whether - Employment of Supervisory nature is covered or the Employees earning 10, 000 - 15000 are covered?
From India, Kochi

Please refer to the clause no 53b of ESI Act, which specifies that if the workmen is receiving the compensation under ESI act, then he or his dependents are not eligible to claim any other compensation under similar acts, which means that if a person is covered under ESI, then WC is not applicable. but if his salary is more than 15000 and is not covered under ESI (once a member of ESI, he is always a member - even if the salary is more than the limit), then he is liable to be covered under WC act 1923 (EC act).

From India, Mumbai
May be this could answer your question:
compensation incase of death
50% of monthly wages of the deceased workman (if the monthly wages exceed 4000 the monthly wages are to be taken Rs. 4000 only) x the relevant factor specified in the second column of schedule. IV.
An amount of Rs. 80,000 which ever is more Sec. 4 (a)
Eg: A workman draws monthly wages of Rs. 5000 (worked out as above) dies of burn injuries while working at a furnace and his age is 42 years.
In terms of sec. 4 (a) his monthly wages is to be taken as Rs.4000 only and 50% of it is Rs. 2000.
Thus compensation payable=2000 x 178.49=Rs.3,56,980.
Reference:Pg 466-labour laws for everyday made easy by S.D. puri & sandeep puri's book.
Hope it would be useful for your question.

From India, Panaji
pramod p sanap

Dear all
pls note that there is a recent amendment that in case of death the compensation is 1 lac 20 thousand or which ever is more, in case of permanent total disablement it is 1 lac 40 thousand or which ever is more

From India, Kanpur

Dear Seniors,
My querry is a trainee appointment made under certified standing orders met injury during training period. Shall he comes under workman definition in accordance with WC Act and is he eligible to receive compensation.
Please help me.
Warm Regards,
AVGN Vara Prasad

From India, Kakinada

Any apprentice trainee covered in the Certified standing orders of a company is covered under the ESI Act (As per the new amendment 2010), And as per 53b of ESI act, if any workman is receiving benefits under ESI act, he is barred from receiving similar benefits under any other act (including WC act)

From India, Mumbai
dilip giri

A brief update is provided on Workmen’s Compensation act 1923.

S.NO Section Pre-amended position Post-amended position

1 Title Workmen’s Compensation Act 1923 Tile of the Act amended to “Employees Compensation Act 1923”.

2 Words and expressions Refer to the words ‘workman’ or ‘workmen’ in the Act They are substituted by the words ‘employee’ or ‘employees’ wherever they occur.

3 Schedule II Clerks were not covered for compensation under the Act. Clerks are now covered for compensation. Please refer to schedule-II for specified employments.

4 Sec.4 (a) The minimum ceiling limit of compensation for death was Rs.80000/- Now it has been revised to Rs1,20,000/-

5 Sec.4(b) The minimum ceiling limit of compensation for permanent total disablement was Rs.90000/- Now it has been revised to Rs1,40,000/-

6 Sub-Sec.2A of sec.4 Non-existent This sub-section was added after sub-section(2).This entitles an employee to reimbursement of actual medical expenditure incurred by him for injuries caused during the course of employment.

7 Explanation II to clauses(a)&(b) of Sec.4 of Sec.4 Explanantion –II prescribes the maximum wage limit at Rs.4000/- p.m for the purpose of computing compensation for death and permanent disablement The Explanation was omitted and a new sub-section (IB) has been added after Sub-section IA of sec.4 whereby the maximum wage limit has been revised to Rs.8000/-p.m

8 Sub-sec.(4) of Sec.4 The existing limit of funeral expenses is Rs.2500/- It has been revised to Rs.Rs.5000/-

9 Sec.25A Non-existent A new section has been added which fixes 3 months time limit for disposal of claims from the date of reference.

From India, Noida

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