One of our employees (sales & marketing) met with an accident on a bike while going for a client meeting. He has been absent since then until the end of April 2012. What shall be the provision for his salary according to the law?
Should we pay him for the days he has been absent from work due to the accident?
Hope to receive your valuable inputs as soon as possible.
Regards
From India, Pune
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2Should we pay him for the days he has been absent from work due to the accident?
Hope to receive your valuable inputs as soon as possible.
Regards
From India, Pune
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Workman's Compensation Act Overview
According to the Workman's Compensation Act in lieu of the ESIC Act (Employee State Insurance Corporation Act), every employee engaged for the purposes of an employer's business and who suffers an injury in any accident arising out of and in the course of their employment shall be entitled to compensation under the Act.
The Act applies to any worker employed in a factory, mine, plantation, construction work, or any other hazardous occupation as listed in Schedule II of the Act, irrespective of their salary. Nonetheless, no liability arises for an injury attributable to the fault of the workman, if the worker is under the influence of alcohol or drugs, willful neglect or removal of safety rules or safeguard devices, willful disobedience of orders given, etc.
The amount of compensation is determined by considering the nature of the injury, the average monthly wage of the worker, and the relevant factor as laid down in Schedule IV, pertaining to the age of the worker. However, the maximum monthly wage for the computation of compensation is currently fixed at Rs. 4,000.
The minimum compensation in case of death is Rs. 80,000, and the maximum is Rs. 4.56 lakh. The same is Rs. 90,000 and Rs. 5.48 lakh in case of permanent total disability exceeding three days. If the disability prolongs beyond 28 days, compensation becomes payable from the date of disablement. The employer is obligated to pay the compensation dues within 30 days from the date it fell due.
Formula for Calculating Compensation
Formula for calculating compensation = Monthly wages × age factor × 50/100
http://rajyasabha.nic.in/rsnew/legislation/65OF2009.pdf
<link outdated-removed> (Search On Cite | Search On Google)
You can also go to this link to get Schedule II and other details:
Workmen Compensation Act-1923 – Schedule IV « Novamining <link updated to site home> (Search On Cite | Search On Google)
Regards
From India, Gurgaon
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According to the Workman's Compensation Act in lieu of the ESIC Act (Employee State Insurance Corporation Act), every employee engaged for the purposes of an employer's business and who suffers an injury in any accident arising out of and in the course of their employment shall be entitled to compensation under the Act.
The Act applies to any worker employed in a factory, mine, plantation, construction work, or any other hazardous occupation as listed in Schedule II of the Act, irrespective of their salary. Nonetheless, no liability arises for an injury attributable to the fault of the workman, if the worker is under the influence of alcohol or drugs, willful neglect or removal of safety rules or safeguard devices, willful disobedience of orders given, etc.
The amount of compensation is determined by considering the nature of the injury, the average monthly wage of the worker, and the relevant factor as laid down in Schedule IV, pertaining to the age of the worker. However, the maximum monthly wage for the computation of compensation is currently fixed at Rs. 4,000.
The minimum compensation in case of death is Rs. 80,000, and the maximum is Rs. 4.56 lakh. The same is Rs. 90,000 and Rs. 5.48 lakh in case of permanent total disability exceeding three days. If the disability prolongs beyond 28 days, compensation becomes payable from the date of disablement. The employer is obligated to pay the compensation dues within 30 days from the date it fell due.
Formula for Calculating Compensation
Formula for calculating compensation = Monthly wages × age factor × 50/100
http://rajyasabha.nic.in/rsnew/legislation/65OF2009.pdf
<link outdated-removed> (Search On Cite | Search On Google)
You can also go to this link to get Schedule II and other details:
Workmen Compensation Act-1923 – Schedule IV « Novamining <link updated to site home> (Search On Cite | Search On Google)
Regards
From India, Gurgaon
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Right, thanks Mr. Mohanty for updating me.
The Workmen's Compensation (Amendment) Bill, 2009:
- It also amends Schedule II to increase the list of persons who are included in the definition of workmen. For example, the Act only included those people who were employed in repairing or altering any article in a place with more than 20 employees. The Bill includes all persons employed in such work by omitting the requirement that the place should have 20 employees.
- The compensation to employees in case of injury or death is a percentage of their monthly wage or a specified amount, whichever is more. The Bill increases the specified amount in case of death from Rs 80,000 to Rs 1.20 lakh. In case of permanent disablement, the amount is increased from Rs 90,000 to Rs 1.40 lakh.
- The Bill allows the central government to revise the monthly wage from time to time.
- The employee shall be reimbursed for any medical expense incurred for treatment of injuries during the course of employment.
- The funeral expense of the deceased workman has been increased from Rs 2,500 to Rs 5,000. It also allows the central government to modify the amount from time to time.
- The state government may appoint any person to be a Commissioner for Workmen's Compensation. The Bill stipulates that the person should be a member of a State Judicial Service for a minimum of five years or an advocate or pleader for a minimum of five years or a Gazetted officer with a minimum of five years of service having educational qualification and experience in personnel management, human resource development, and industrial development.
- The Commissioner shall dispose of cases related to compensation within a period of three months from the date of reference.
From India, Gurgaon
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The Workmen's Compensation (Amendment) Bill, 2009:
- It also amends Schedule II to increase the list of persons who are included in the definition of workmen. For example, the Act only included those people who were employed in repairing or altering any article in a place with more than 20 employees. The Bill includes all persons employed in such work by omitting the requirement that the place should have 20 employees.
- The compensation to employees in case of injury or death is a percentage of their monthly wage or a specified amount, whichever is more. The Bill increases the specified amount in case of death from Rs 80,000 to Rs 1.20 lakh. In case of permanent disablement, the amount is increased from Rs 90,000 to Rs 1.40 lakh.
- The Bill allows the central government to revise the monthly wage from time to time.
- The employee shall be reimbursed for any medical expense incurred for treatment of injuries during the course of employment.
- The funeral expense of the deceased workman has been increased from Rs 2,500 to Rs 5,000. It also allows the central government to modify the amount from time to time.
- The state government may appoint any person to be a Commissioner for Workmen's Compensation. The Bill stipulates that the person should be a member of a State Judicial Service for a minimum of five years or an advocate or pleader for a minimum of five years or a Gazetted officer with a minimum of five years of service having educational qualification and experience in personnel management, human resource development, and industrial development.
- The Commissioner shall dispose of cases related to compensation within a period of three months from the date of reference.
From India, Gurgaon
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Dear Seniors,
Again, I would like to rephrase what Kaushambi has asked. The person is an employee, not a worker. I understand that the act is revised to the Employee Compensation Act. But does it cover an employee drawing a salary of Rs. 1 lakh a month? I asked this question as the maximum ceiling of reimbursement under the act is Rs. 8000 per month. If an employee is drawing a monthly salary of 50k or 1 lakh, it defeats the purpose of providing compensation.
Please share your insights.
Thanks
Best regards,
Kriti
From India, New Delhi
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Again, I would like to rephrase what Kaushambi has asked. The person is an employee, not a worker. I understand that the act is revised to the Employee Compensation Act. But does it cover an employee drawing a salary of Rs. 1 lakh a month? I asked this question as the maximum ceiling of reimbursement under the act is Rs. 8000 per month. If an employee is drawing a monthly salary of 50k or 1 lakh, it defeats the purpose of providing compensation.
Please share your insights.
Thanks
Best regards,
Kriti
From India, New Delhi
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Employee's Compensation Act-2009.pdf
THE EMPLOYEE COMPENSATION ACT.docx