What Happens if an Employee Covered by ESI & EPF Faces an Accident?

Understanding the Workmen's Compensation Act 1923

I am writing to clear my confusion about the Workmen's Compensation Act 1923. My question is, if an employee has been working in the company for the past year, has completed 240 working days, and is covered under the ESI and EPF acts, what happens in the event of an accident resulting in disability or death? Is the employee entitled to compensation paid under the ESI & EPF acts or from the employer in addition to ESI & EPF benefits? Who will provide the benefits - the ESI & EPF organization or the employer?

Thanks & Regards,
Devendra Mohan Gaur
[Phone Number Removed For Privacy Reasons]

Hi,

He will get benefits under ESI & EPF only, not from the employer. The employer has to report the matter to these authorities and to the Labour Dept depending on the nature of the casualty. Refer to section 53 of the ESIC Act.

Thanks

The only ESIC Act clearly states that the employee concerned and covered under the ESIC Act will not be entitled to compensation from any other acts or schemes for the same thing. However, this does not include any insurance cover the employer may have taken and given as a part of his perks.

Understanding the Workmen's Compensation Act, 1923

Any workman employed, whether on a casual, temporary, or permanent basis, who meets with an accident during the course of employment resulting in temporary or permanent disablement, bodily injury, or fatality, is covered under the Payment of Workmen Compensation Act, 1923. The compensation amount is to be deposited with the Commissioner of Workmen Compensation Act and paid to the injured person or their next of kin in case of a fatality, by completing all the necessary formalities under the Act. This compensation is separate from your EPF, ESI, Gratuity, or Bonus. The entire compensation liability as specified in the Act is that of the employer. No eligibility criteria are specified in the Act, meaning even if a person joins today and unfortunately meets with an accident the next day, they are eligible for compensation.

This practical case was personally encountered during my tenure as a Personnel Officer in the year 1973, involving a fatal accident.

Regards,
Adoni Suguresh
Labour Laws Consultant

Why are HR professionals still referring to the 'Workmen's Compensation Act'? The name of the Act was changed to the Employees' Compensation Act five years ago.

---

Please let me know if you need any further assistance.

Dear Mr. Varghese Sir,

I am aware that the Workmen's Compensation Act, 1923 has been repealed and replaced by the Employees' Compensation Act, 2010. Although the name has changed, the objectives and definitions of the act remain the same with perhaps slight amendments. Since Mr. Gaur sought clarification under the Workmen's Compensation Act, 1923, I provided my opinion accordingly. Otherwise, I would have referred to the new name of the act. Thank you for the correction.

Adoni Suguresh