Ever since India became independent, our government has been doing all that is possible to ensure that the weaker sections of society or economy get the benefits they deserve. For workers hired in factories, mills, or other workplaces, there’s been the Workmens’ Compensation Act 1923, or Employee’s Compensation Act. This act aims to provide compensation to the workers in case of an injury or death due to an accident at their workplace, while also protecting the employers from facing lawsuits and unrealistic claims. It also defines the extent of compensation owed by an employer to an injured worker.
In the recent past, the central legislature amended this Act to provide more benefits to the targeted beneficiaries. Here is what you need to know about the amendments made in the Employee’s Compensation Act in 2017:
Employees Awareness About Their Compensation Rights
Earlier, it was found that some workers couldn’t get the deserved compensation in case of an injury or death at the workplace because they did not know that they can avail of such benefits. Keeping such situations in mind, the recent amendment to the act which received the President’s approval in April 2017 has a new section in it, which is Section 17 A.
Under this new section, employers are given the responsibility of informing their employees of their rights of compensation at the time of hiring them. Employees should have access to this information in writing as well as in electronic form in a language that they can clearly understand.
Higher Limits of Fine Imposed
As per the amendment, employers will have to pay penalties in case they fail to inform their employees about their rights to compensation as per Section 17 A.
According to Section 18 A, the fine on the employers has been increased from INR 5000 to INR 50,000, which can extend up to INR 1,00,000. It implies that employers need to be very careful about following this act to avoid paying the fine.
Limits for Appeal Procedure
Section 30 of the act explains the appeals that can be referred to the High Court by the orders of the commissioner. It specifies that the threshold limit for appeals against an order of the commissioner should be at least INR 300. As per the recent amendments, this limit has been increased to a minimum amount in dispute to be INR 10,000 for it to lie in the High Court.
Deletion of Section 30 A
According to Section 30 A of the Act, the Commissioner may withhold payment payable to the employee as per his discretion or as directed by the High Court. However, this section has been omitted in the 2017 amendment, and the commissioner does not have the power to do this anymore.
When Can a Worker Claim for Compensation?
As per the Act, a worker or his/her dependents can ask for a claim from the employer in case of a critical injury, disability, or death that happened during the work tenure. It also includes occupational diseases or accidents that may occur during the employment period.
Simply put, a worker can ask for compensation in the following situations:
- Occupational disease
- Total or partial disability – permanent
- Total or partial disability – temporary
- Death
Importance of Workmen Compensation Insurance
When at work, the hired workforce may have to deal with tasks that involve a relatively higher level of risk of injury to them. Indeed, accidents at work are not predictable, and the liability falls on employers. To avoid unnecessary legal hassles related to this liability, one can buy workers compensation insurance. It aims to benefit both the employers and the employees in an organization in case of an accident. As per the Employees’ Compensation Act, there is a limit owed by the employer, which can be increased to a higher amount as per the employer’s needs.
