Labour Laws Exam Notes Part 3of5

The Workmen’s Compensation Act, 1923

Definitions:

1. “Employer” means any person who has hired the services of a workman with the object of deriving profit or gain from the work done by such workman, and includes any person who, on behalf of the employer, pays or is liable to pay the remuneration to a workman.
2. “Workman” means any person employed in any employment to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.
3. “Compensation” means the amount payable to a workman or his dependents in case of his death due to an accident arising out of and in the course of his employment.
4. “Accident” means any accident arising out of and in the course of the employment of a workman, and includes any occupational disease as defined in the Act.
5. “Employment” means any employment for the purpose of the employer’s trade or business and includes any employment under the Central Government, a State Government, or a local authority.

Objectives:

• To provide a just and fair compensation to workmen and their dependents for any injury or death suffered by the workman in the course of his employment.
• To ensure that the employer is held liable for any injury or death suffered by the workman in the course of his employment.
• To ensure the safety of the workman by providing for safety regulations and standards in the workplace.
• To provide for the payment of medical expenses incurred by the workman as a result of an injury or death.
• To provide for a speedy and effective remedy for the workman’s claim for compensation.

Disablement Benefits:

• Where a workman suffers any disablement as a result of an accident arising out of and in the course of his employment, he shall be entitled to receive compensation for the period of such disablement.
• If the disablement is of a permanent nature, the workman shall be entitled to a lump sum payment as compensation.
• If the disablement is of a temporary nature, the workman shall be entitled to receive weekly payments during the period of such disablement.
• The employer shall also be liable to pay for the medical treatment, including surgical and medical attendance, which may be required for the cure or relief of the workman.

Disablement Meaning and types:

Disablement means any incapacity of a workman caused by an accident arising out of and in the course of his employment. 

There are two types of disablement: permanent and temporary. 

• Permanent disablement is defined as the total or partial loss of the workman’s physical or mental capacity to perform his or her duties and is usually irreversible. 
• Temporary disablement is defined as the total or partial loss of the workman’s physical or mental capacity to perform his or her duties, but is usually reversible.

Employer’s liability for compensation: 

• The employer shall be liable to pay compensation to a workman for any injury or death suffered by the workman in the course of his employment.
• The employer shall also be liable to pay the medical expenses incurred by the workman as a result of the injury or death.
• The employer shall also be liable to pay any disablement benefits that the workman may be entitled to receive.
• The employer shall also be liable to pay an additional amount as compensation for pain and suffering suffered by the workman as a result of the injury or death.
• The employer shall also be liable to pay interest on the amount of compensation due to the workman.

Amount of compensation: 

• The amount of compensation payable to a workman shall be determined by the Commissioner in accordance with the provisions of the Act.
• The amount of compensation payable shall be based on the wages earned by the workman at the time of the accident, the extent of the injury or disability, and any other relevant factors.
• The amount of compensation payable shall not exceed the maximum amount of compensation prescribed by the Act.

Disbursement of compensation: 

• The Commissioner shall disburse the amount of compensation due to the workman or his dependents, as the case may be.
• The Commissioner may also appoint a representative to act in the name of the workman or his dependents, as the case may be, for the purpose of receiving and disbursing the compensation.
• The compensation shall be disbursed in installments, or as a lump sum, depending on the circumstances of the case.

Notice and claims: 

• The workman or his dependents shall give notice of the accident to the employer within a period of 7 days from the date of the accident or as soon as practicable thereafter.
• The workman or his dependents shall file a claim for compensation with the Commissioner within a period of 1 year from the date of the accident or as soon as practicable thereafter.
• The workman or his dependents shall submit all the necessary documents and evidence in support of the claim for compensation.
• The employer shall also be required to submit any documents or evidence in support of his defense.
• The Commissioner shall decide the amount and manner of payment of compensation.
• The Commissioner may also require the employer to pay the necessary medical expenses incurred by the workman as a result of the accident.

Penalties: 

• The employer shall be liable to pay a penalty if he fails to pay the compensation due to the workman or his dependents within the prescribed period.
• The employer shall also be liable to pay a penalty if he fails to comply with any of the provisions of the Act.
• The Commissioner may also impose a penalty for any false statement or concealment of facts made by the employer or his representative in relation to the claim for compensation.
• Any person who contravenes any of the provisions of the Act shall be liable to imprisonment for a term which may extend to six months or to a fine which may extend to one thousand rupees, or to both.

The Employees’ State Insurance Act ,1948

Definitions:

1. “Employee” means any person employed for wages in or in connection with the work of the employer. 
2. “Employer” means any person who employs or has employed any employee for wages.
3. “Wages” means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any bonus or other additional remuneration of the employee.
4. “Contribution” means the contribution payable by the employer in respect of an employee under this Act.
5. “Benefit” means any benefit which the Corporation may provide under the provisions of this Act.

Objectives:

1. To provide social security to employees by ensuring that they are provided with medical care, cash benefits, and other welfare measures. 
2. To provide financial security to families of employees in case of death or disability of the employee due to an employment-related injury or illness.
3. To ensure that employers are held accountable for the well-being of their employees.
4. To provide assistance to employees in case of any sickness, maternity, or employment injury.
5. To ensure that employees receive fair and just compensation in case of any employment-related injury or illness.

Administration of ESI Scheme:

• The Employees' State Insurance Corporation shall administer the Employees' State Insurance Scheme.
• The Corporation shall collect contributions from employers, maintain records of all employees and their contributions, and manage the funds of the Scheme.
• The Corporation shall also provide benefits to employees in case of sickness, maternity, or any employment injury.
• The Corporation shall also provide medical care to the insured employees and their families.
• The Corporation shall also provide assistance to the dependents of an employee who dies due to an employment-related injury or illness.

ESI Fund:

• The Employees' State Insurance Fund shall be maintained by the Corporation for the purpose of providing benefits to employees and their dependents. 
• The Fund shall be financed by the contributions from employers and employees, and from the investment of the Fund.
• The Fund shall be utilized for the payment of benefits and medical care to the employees and their dependents.
• The Fund shall also be utilized for the payment of administrative expenses incurred by the Corporation in the administration of the Employees' State Insurance Scheme.
• The Fund shall also be utilized for the payment of any other expenses incurred by the Corporation in the performance of its duties under the Act.

Duties of ESI Corporation:

• The Corporation shall investigate any complaints relating to the Employees' State Insurance Scheme. 
• The Corporation shall provide medical care to the insured employees and their families.
• The Corporation shall provide benefits to employees in case of sickness, maternity, or any employment injury.
• The Corporation shall provide assistance to the dependents of an employee who dies due to an employment-related injury or illness.
• The Corporation shall collect contributions from employers and manage the funds of the Scheme.

Medical benefit council: 

• The Employees' State Insurance Corporation shall constitute a Medical Benefit Council to advise the Corporation on matters relating to the medical care of the insured employees and their dependents.
• The Medical Benefit Council shall be composed of representatives of the Corporation, the State Government, and the employers and employees, who shall be nominated by the Corporation.
• The Medical Benefit Council shall advise the Corporation on the provision of medical care to the insured employees and their dependents.
• The Medical Benefit Council shall also advise the Corporation on the eligibility criteria for medical benefits and the amount of medical benefits to be provided to the insured employees and their dependents.
• The Medical Benefit Council shall also advise the Corporation on the terms and conditions of the medical benefits to be provided to the insured employees and their dependents.

Benefits under the act:

1. Sickness Benefit – paid to employees in case of sickness or temporary disablement due to an employment-related injury or illness.
2. Maternity Benefit – paid to women employees during the period of pregnancy and confinement.
3. Disablement Benefit – paid to an employee who is permanently disabled due to an employment-related injury or illness.
4. Dependency Benefit – paid to the dependents of an employee who dies due to an employment-related injury or illness.
5. Medical Benefit – provided to employees and their dependents in case of any employment-related injury or illness.

Medical Benefit:

• Medical benefit shall be provided to employees and their dependents in case of any employment-related injury or illness. 
• The medical benefit shall include medical, surgical and hospital expenses.
• The medical benefit shall also cover the cost of medicines, medical appliances, and other medical expenses.
• The medical benefit shall also cover the cost of medical examination of an employee before and after employment.
• The medical benefit shall also cover the cost of transportation of an employee to and from a medical institution.

Rights of ESI Court:

• The ESI Court shall have the power to decide cases arising out of the provisions of the Act.
• The ESI Court shall have the power to issue orders and directions to any person or authority in matters concerning the implementation of the Act.
• The ESI Court shall also have the power to review and modify any orders or directions issued by the Corporation or other authorities.
• The ESI Court shall also have the power to entertain appeals against any orders or decisions of the Corporation or other authorities.

Duties of ESI Court:

• The ESI Court shall ensure that all disputes are settled in a timely and cost-effective manner.
• The ESI Court shall ensure that all orders and directions issued by the Corporation or other authorities are in accordance with the provisions of the Act.
• The ESI Court shall ensure that the interests of all parties involved in the dispute are fully protected.
• The ESI Court shall also ensure that all appeals are decided in a fair and just manner.