How Will the Employee's Compensation Bill 2016 Changes Impact Your Rights and Penalties?

Friends, please find attached the Employee's Compensation (Amendment) Bill 2016, which was introduced in Lok Sabha on 5/8/2016. The proposed amendments to the Act include:

a) Making it obligatory for the employer to inform the employee of their rights to compensation under the Act, in writing as well as through electronic means;

b) Enhancing the penalty amount for various violations under the Act from the existing Rs. 5,000 to Rs. 50,000, with a possible extension to Rs. 1 lakh;

c) Making the employer liable to a penalty for failing to inform the employee of their rights to compensation under the Act;

d) Revising the minimum amount involved in a dispute for which an appeal can be filed to the High Court, from the current Rs. 300 to Rs. 10,000 or a higher amount as specified by the Central Government through notification;

e) Omitting Section 30A of the Act, which empowers the Commissioner to withhold payment to an employee of any sum deposited with him when an employer files an appeal in the High Court. This omission aims to provide relief to employees, as the amount can now only be withheld when there is a stay or order from the High Court in cases where the appeal is filed by the employer.

Thank you.

Location: Malappuram, India

Tags: High Court, Central Government, City-India-Malappuram, Country-India

The Employee's Compensation (Amendment) Bill 2016 introduces crucial changes aimed at enhancing the protection and rights of employees under the Act. Here's a breakdown of the key amendments proposed:

a) Employers are now obligated to inform employees in writing, as well as through electronic means, about their rights to compensation under the Act. This ensures that employees are aware of their entitlements.

b) The penalty amounts for violations under the Act will be significantly increased from the current Rs. 5,000 to a range of Rs. 50,000 to Rs. 1 lac. This higher penalty aims to deter non-compliance and ensure stricter adherence to the law.

c) Employers will face penalties for failing to inform employees of their rights to compensation. This provision holds employers accountable for ensuring that employees are informed about their entitlements.

d) The minimum amount required for filing an appeal to the High Court will be revised to Rs. 10,000 or a higher amount specified by the Central Government through notification. This revision aims to streamline the appeal process and align it with current economic conditions.

e) Section 30A of the Act, which allowed the Commissioner to withhold payments to employees during appeals, will be omitted. This change provides relief to employees, as payments can now only be withheld when there is a specific order or stay from the High Court in cases where the employer has filed an appeal.

These amendments signify a positive step towards strengthening employee rights and ensuring fair compensation practices within the workplace. It is essential for employers to be aware of these changes and proactively comply with the revised regulations to avoid penalties and safeguard employee interests.