Workmen’s compensation act 1923

WORKMEN’S COMPENSATION
ACT 1923

By
Manisha vaghela

1

INTRODUCTION
• A beginning of social security in INDIA
was the passing of the Workman’s
Compensation Act 1923. In 1921, the
government formulated some proposals for
the grant for compensation and circulated
them for opinion. The proposals received
general support. As a result, the workman’s
Compensation Act was passed in March 1923
and was put into force on July 1, 1924.
subsequently, there were a number of
amendments to the act.
BY:MANISHA VAGHELA vaghela_manisha13@yahoo.com 2

partial disablement, occupational disease, employer
as state in workmen compensation act 1923.
DISABLEMENT:
Disablement means loss of capacity to work or perform. In
case of a workman, loss of capacity results into reduction in
earning capacity. The compensation is, accordingly, given to
a workman to compensate his loss of earning capacity. The
act recognizes two types of disablement.


• Two types of disablement.
• 1. Partial Disablement
• 2. Total Disablement

• 1. Partial Disablement:

As per the section 2(g) “ Partial Disablement” means:
(a) Where the disablement is of temporary nature,
such disablement as reduced the earning capacity
of a workman in employment in which he was
engaged at the time of the accident resulting in the
disablement, and

(b) Where the disablement is of a permanent nature,
such disablement as reduces his earning capacity in
every employment which he was capable of
undertaking at that time.
Partial disablement provided that every injury
specified in part II of schedule I shall be deemed to
result in permanent partial disablement.
• 2. Occupational Diseases:
Section 3(2) provides that if a
workman employed in any employment is engaged
in an occupational, where he is exposed to certain
specified diseases, inherent to the said
occupational, the employer shall be liable to pay
compensation.

• 3. Employer:
Section 2(e) defines “Employer” to
include any body of persons whether
incorporated or not and any managing agent of
an employer and the legal representative of
deceased employer and when the services of a
workman are temporarily lent or let on hire to
another person by the with whom the workman
has entered into a contract of service or
apprenticeship means such other person while
the workman is working for him.
a contractor shall be included in the
definition of employer, similarly, a General
Manager of Railway is an employee.

employees liability for compensation under
workmen compensation act 1923 .

Section 3 makes an employer liable to pay
compensation to a workman in two condition:-

1. For any personal injury caused to him by accident;
&
2. For any occupational diseases contracted by him.


• 1. Personal Injury Caused by Accident:
section 3(1) provides that if personal injury is
caused to a workman by accident arising out of and
on the course of his employment his employer shall
be liable to pay compensation.
Thus, the following conditions need to be
fulfilled to render an employer liable to pay
compensation: –
(a) The workman should have been caused personal
injury,
(b) Such personal injury should have been caused by
an accident, and
(c) The accident should have taken place out of and
in the course of employment.

• What is Personal Injury?
INJURY means damaged caused to a
workman by the result of some accident . An
employer is made liable to pay compensation to a
workman for an injury. The injury must be physical
or mental injury or even psychological &
physiological injury.
It is also essential that the injury must be
‘personal’ . An injury caused to someone
accompanying the workman or injury to the
belongings of the workman shall not be covered
under the expression ‘personal injury’.

Continue………..
• Thus, where a workman, in the course of his
duties, had to frequently enter into a heated
room and from there to a cool room and in
this movement he contracted pneumonia and
died, the death was held to be a personal
injury.


accident arising out of end in he course of
employment.

The expression ‘out of employment’ implies a causal
connection between the accident and the
employment. Employment should be the
distinctive and the proximate cause of the personal
injury, whether physical or mental. A cause remote
to the employment cannot make the employer
liable to compensation.


• In Dennis v Shile, it was laid down that “when a
man runs a risk incidental to his employment and is
thereby injured, then the injury arises out of
employment”.

• Thus, in order to prove that injury arose “out of
employment” two conditions must be fulfilled:

• 1. Injury must have resulted from some risk
incidental to the duties of the inherent in the
nature or condition of employment, and

• 2. At the time of injury worker must have been
engaged in the business of the employer and
must not be doing something for his personal
advantages or benefit.

If a worker does something, which from
its nature, is out side the scope of his
employment, he takes upon himself an added
risk and is not entitled to compensation.


SUMMARY
• The act applies to railways and persons
employed in factories, mines, plantations,
mechanically propelled vehicles, construction
work, and certain other hazardous occupations.
There is no wage limit for covered under the act.
The act, however, is not applicable to the person
who are covered under the Employees’ State
Insurance act, 1948(ESI). It is administration by the
respective state governments/union territory
administration.

Continue…………
• The state governments are required to
appoint commissioners for (a) settlement of
disputed claims; (b) disposal of cases of
injuries involving death; & (c) revision of
periodical payments. The compensation
payable to the employee or to his dependants
cannot be assigned, attached or charged.


Bibliography
ô (1) Industrial Relations & Labour Law,
1st edition – 2010
By A.M.SARMA
Himalaya publishing house

ô (2) Bharats’ Industrial & Labour Law
DR. SANJEEV KUMAR
Forward by D.C. JAIN
(Past president of the institute of company
secretaries of India )


Workmen’s compensation act 1923

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Workmen’s compensation act 1923