Understanding the Workmen's Compensation Act: Is It Still Relevant and How Does It Differ from ESIC?

Dear Seniors, I have a doubt regarding the Workmen's Compensation Act:

1. If an organization is not covered under the ESIC Act, will the Workmen's Compensation Act apply to them?

2. Has the WC Act been discontinued since 2010? If yes, why, and what are the reasons and provisions for that?

3. What is the difference between the ESIC and WC Act if applicable now?

Thank you.

Any compensation payable to an employee (earlier it was workmen) who sustained an injury resulting in Temporary Total, Permanent Total, Temporary Partial, or Permanent Partial disability will be governed by the WC Act. The calculation of the compensation is done as per the WC Act.

Coverage Under the ESI Act

The ESI Act covers factories, and it is not possible to establish hospitals everywhere in India. Hence, in the absence of ESI, the employer will have to take care of their employees under the WC Act. If the employee's gross salary is above Rs. 15,000, the employee will be covered under the WC Act, and the ESI Act cannot be applicable.

Applicability of the WC Act

The WC Act is mainly useful for unorganized sectors and temporary establishments that have a floating workforce, with very few permanent workers.

According to the WC Act, the employer has to pay compensation to the injured workmen or the family of deceased workmen. In ESI, the ESIC will take care of the treatment and compensation. However, as per the WC Act, the employer has to bear the cost of compensation and treatment. To reduce the costs involved in treatment and compensation payments, the employer has to obtain the WC Policy or Group Personal Accident Policy.

Regards

The main scope is that the Workers' Compensation (WC) Act will be applicable where Employee State Insurance (ESI) is not covered, and the person who is coming under ESI will not be covered under WC.

Regards,
Murugesan. K
Executive - HR