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EMPLOYEE'S COMPENSATION ACT, 1923

Ministry of Law and Justice

Act nº 8 of 1923


  • Chapter 1
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Schedules
  • Act nº 8 of 1923

Preamble

THE 2[EMPLOYEES'S] COMPENSATION ACT, 19231

[Act No. 8 of 1923]

[5th March, 1923]

PREAMBLE

An Act to provide for the payment by certain classes of employers to their 3[Employees] of compensation for injury by accident.

Whereas it is expedient to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident;

It is hereby enacted as follows:--

1. For Statement of Objects and Reasons, see Gazette of India, 1922, Pt. V, p. 313, and for Report of Joint Committee, see Gazette of India, 1923, Pt. V, p. 37.

This Act has been extended to Berar by the Berar Laws Act, 1941 (4 of 1941), to Goa, Daman and Diu by Reg. 12 of 1962, sec. 3 and Sch.; to Dadra and Nagar Haveli by Reg. 6 of 1963, sec. 2 and Sch. I, to Pondicherry by Reg. 7 of 1963, sec. 3 and Sch. I, and to Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, sec. 3 and Sch., and has also been declared in force in the district of Khondmals by sec. 3 and Sch. of the Khondmals Laws Regulation, 1936 (4 of 1936) and in the district of Angul by sec. 3 and Sch. of the Angul Laws Regulation, 1936 (5 of 1936). Extended to Sikkim w.e.f. 1-11-1986 vide G.S.R. 529 (E), dt. 30-12-1986.

This Act has been modified in its application to apprentices under the Apprentices Act, 1961 (52 of 1961) by sec. 16 and Sch. to that Act.

2. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- : "WORKMEN'S"

3. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- : "workmen"


Chapter 1

Section 1. Short title, extent and commencement

(1) This Act may be called the 3[Employee's] Compensation Act, 1923.

1[(2) It extends to the whole of India 2[***]].

(3) It shall come into force on the first day of July, 1924.

1. Substituted by the A.O. 1950, for sub-section (2).

2. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971). Earlier the words "except the State of Jammu and Kashmir" were substituted by Act 3 of 1951, sec. 3 and Sch., for the words "except Part BStates".

3. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010.


Section 2. Definitions

(1) In this Act, unless there is anything repugnant in the subject or context,--

1[***]

(b) "Commissioner" means a Commissioner for 25[employee]'s Compensation appointed under section 20;

(c) "compensation" means compensation as provided for by this Act;

2[(d) "dependant" means any of the following relatives of deceased 26[employee], namely:--

(i) a widow, a minor 3[legitimate or adopted] son, an unmarried 3[legitimate or adopted] daughter or a widowed mother; and

(ii) if wholly dependant on the earnings of the 26[employee] at the time of his death, a son or a daughter who has attained the age of 18 years and who is infirm;

(iii) if wholly or in part dependant on the earnings of the 26[employee] at the time of his death,--

(a) a widower,

(b) a parent other than a widowed mother,

(c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter 4[legitimate or illegitimate or adopted] if married and a minor or if widowed and a minor,

(d) a minor brother or an unmarried sister or a widowed sister if a minor,

(e) a widowed daughter-in-law,

(f) a minor child of a pre-deceased son,

(g) a minor child of a pre-deceased daughter where no parent of the child is alive, or

(h) a paternal grandparent if no parent of the 26[employee] is alive;] 5[Explanation.--For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause (iii), references to a son, daughter or child include an adopted son, daughter or child respectively.]

23[(dd) "employee" means a person, who is--

(i) a railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not permanently employed in any administrative district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II; or

(ii) (a) a master, seaman or other members of the crew of a ship,

(b) a captain or other member of the crew of an aircraft,

(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle,

(d) a person recruited for work abroad by a company,

and who is employed outside India in any such capacity as is specified in Schedule II and the ship, aircraft or motor vehicle, or company, as the case may be, is registered in India; or

(iii) employed in any such capacity as is specified in Schedule II, whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of the Armed Forces of the Union; and any reference to any employee who has been injured shall, where the employee is dead, include a reference to his dependants or any of them;]

(e) "employer" includes any body of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a 26[employee] are temporarily lent or let on hire to another person by the person with whom the 26[employee] has entered into a contract of service or apprenticeship, means such other person while the 26[employee] is working for him;

(f) "managing agent" means any person appointed or acting as the representative of another person for the purpose of carrying on such other person's trade or business, but does not include an individual manager subordinate to an employer;

6[(ff) "minor" means a person who has not attained the age of eighteen years;]

(g) "partial disablement" means, where the disablement is of a temporary nature, such disablement as reduces the earning capacity of a 26[employee] in any employment in which he was engaged at the time of the accident resulting in the disablement, and, 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: provided that every injury specified 7[in Part II of Schedule I] shall be deemed to result in permanent partial disablement;

(h) "prescribed" means prescribed by rules made under this Act;

(i) "qualified medical practitioner" means any person registered 8[***] under any 9[Central Act, Provincial Act, or an Act of the Legislature of a 10[State]] providing for the maintenance of a register of medical practitioners, or, in any area where no such last-mentioned Act is in force, any person declared by the State Government, by notification in the Official Gazette, to be a qualified medical practitioner for the purposes of this Act;

11[***]

(k) "seaman" means any person forming part of the crew of any 12[***] ship, but does not include the master of 13[the] ship;

(l) "total disablement" means such disablement, whether of a temporary or permanent nature, as incapacitates a 26[employee] for all work which he was capable of performing at the time of the accident resulting in such disablement:

14[Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of Schedule I or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent. or more;]

(m) "wages", includes any privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the value of any travelling concession or a contribution paid by the employer of a 26[employee] towards any pension or provident fund or a sum paid to a 26[employee] to cover any special expenses entailed on him by the nature of his employment;

24[***]

(2) The exercise and performance of the powers and duties of a local authority or of any department 21[acting on behalf of the Government] shall, for the purposes of this Act, unless a contrary intention appears, be deemed to be the trade or business of such authority or department.

22[(3) The Central Government or the State Government, by notification in the Official Gazette, after giving not less than three months' notice of its intention so to do, may, by a like notification, add to Schedule II any class of persons employed in any occupation which it is satisfied is a hazardous occupation, and the provisions of this Act shall thereupon apply, in case of a notification by the Central Government, within the territories to which the Act extends, or, in the case of a notification by the State Government, within the State, to such classes of persons:

Provided that in making addition, the Central Government or the State Government, as the case may be, may direct that the provisions of this Act shall apply to such classes of persons in respect of specified injuries only.]

1. Clause (a) omitted by Act 8 of 1959, sec. 2 (w.e.f. 1-6-1959).

2. Substituted by Act 8 of 1959, sec. 2, for clause (d) (w.e.f. 1-6-1959).

3. Substituted by Act 30 of 1995, sec. 2, for "legitimate" (w.e.f. 15-9-1995).

4. Substituted by Act 30 of 1995, sec. 2, for "legitimate or illegitimate" (w.e.f. 15-9-1995).

5. Inserted by Act 30 of 1995, sec. 2 (w.e.f. 15-9-1995).

6. Inserted by Act 8 of 1959, sec. 2 (w.e.f. 1-6-1959).

7. Substituted by Act 64 of 1962, sec. 2, for "in Schedule I" (w.e.f. 1-2-1963).

8. Certain words omitted by Act 8 of 1959, sec. 2 (w.e.f. 1-6-1959).

9. Substituted by the A.O. 1950, for the words "Act of the Central Legislature or of any Legislature in a Province of India".

10. Substituted by the A.O. (No. 3) 1956, for "Part A State or Part BState". Earlier the words "Part A State or Part BState" were substituted by Act 3 of 1951, sec. 3 and Sch., for the words "Part A State".

11. Clause (j) omitted by Act 15 of 1933, sec. 2.

12. The word "registered" omitted by Act 15 of 1933, sec. 2.

13. Substituted by Act 15 of 1933, sec. 2, for "any such".

14. Substituted by Act 64 of 1962, sec. 2, for the proviso (w.e.f. 1-2-1963).

15. Certain words omitted by Act 46 of 2000, sec. 2 (w.e.f. 8-12-2000).

16. Substituted by Act 30 of 1995, sec. 2, for "section 3 of the Indian Railways Act, 1890 (9 of 1890)" (w.e.f. 15-9-1995).

17. The words "either by way of manual labour or" omitted by Act 15 of 1933, sec. 2.

18. The words "on monthly wages not exceeding one thousand rupees" omitted by Act 22 of 1984, sec. 2 (w.e.f. 1-7-1984). Earlier the words "five hundred rupees" were substituted by Act 64 of 1962, sec. 2, for the words "four hundred rupees" (w.e.f. 1-2-1963) and the words "one thousand rupees" were substituted by Act 65 of 1976, sec. 2, for the words "five hundred rupees" (w.r.e.f. 1-10-1975).

19. Substituted by the A.O. 1950, for "His Majesty's naval, military or air forces".

20. The words "or of the Royal Indian Marine Service" omitted by the A.O. 1937.

21. Substituted by the A.O. 1937, for "of the Government".

22. Substituted by Act 30 of 1995, sec. 2, for sub-section (3) (w.e.f. 15-9-1995).

23. Inserted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010.

24. Omitted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:-

"(n) "workman" means any person 15[***] who is--

(i) a railway servant as defined in 16[clause (34) of section 2 of the Railways Act, 1989 (24 of 1989)], not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or

5[(ia) (a) a master, seaman or other member of the crew of a ship,

(b) a captain or other member of the crew of an aircraft,

(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle,

(d) a person recruited for work abroad by a company, and who is employed outside India in any such capacity as is specified in Schedule II and the ship, aircraft or motor vehicle, or company, as the case may be, is registered in India, or;]

(ii) employed 17[***] 18[***] in any such capacity as is specified in Schedule II, whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of 19[the Armed Forces of the Union] 20[***]; and any reference to a workman who has been injured shall, where the workman is dead, include a reference to his dependants or any of them."

25. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- "Workmen"

26. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- "workman"


Chapter 2

Section 3. Employer's liability for compensation

(1) If personal injury is caused to a 14[employee] by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter:

Provided that the employer shall not be so liable --

(a) in respect of any injury which does not result in the total or partial disablement of the 14[employee] for a period exceeding 1[three] days;

(b) in respect of any 2[injury, not resulting in death 3[or permanent total disablement] caused by] an accident which is directly attributable to--

(i) the 14[employee] having been at the time thereof under the influence of drink or drugs, or

(ii) the wilful disobedience of the 14[employee] to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of 15[employees], or

(iii) the wilful removal or disregard by the 14[employee] of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of 14[employee], 4[***].

5[***]

6[(2) If a 14[employee] employed in any employment specified in Part A of Schedule III contracts any disease specified therein as an occupational disease peculiar to that employment, or if a 14[employee], whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months (which period shall not include a period of service under any other employer in the same kind of employment) in any employment specified in Part Bof Schedule III, contracts any disease specified therein as an occupational disease peculiar to that employment, or if a 14[employee] whilst in the service of one or more employers in any employment specified in Part C of Schedule III for such continuous period as the Central Government may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the contrary is proved, the accident shall be deemed to have arisen out of, and in the course of, the employment:

7[Provided that if it is proved,--

(a) that a 14[employee] whilst in the service of one or more employers in any employment specified in Part C of Schedule III has contracted a disease specified therein as an occupational disease peculiar to that employment during a continuous period which is less than the period specified under this sub-section for that employment; and

(b) that the disease has arisen out of and in the course of the employment, the contracting of such disease shall be deemed to be an injury by accident within the meaning of this section:

Provided further that if it is proved that a 14[employee] who having served under any employer in any employment specified in Part Bof Schedule III or who having served under one or more employers in any employment specified in Part C of that Schedule, for a continuous period specified under this sub-section for that employment and he has after the cessation of such service contracted any disease specified in the said Part Bor the said Part C, as the case may be, as an occupational disease peculiar to the employment and that such disease arose out of the employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of this section.]

8[(2A) If a 14[employee] employed in any employment specified in Part C of Schedule III contracts any occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by accident within the meaning of this section, and such employment was under more than one employer, all such employers shall be liable for the payment of the compensation in such proportion as the Commissioner may, in the circumstances, deem just.]

(3) 9[The Central Government or the State Government], after giving, by notification in the Official Gazette, not less than three months' notice of its intention so to do, may, by a like notification, add any description of employment to the employments specified in Schedule III and shall specify in the case of employments so added the diseases which shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively, and thereupon the provisions of sub-section (2) shall apply 10[, in the case of a notification by the Central Government, within the territories to which this Act extends or, in case of a notification by the State Government, within the State] 11[***] as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments.]]

(4) Save as provided by 12[sub-sections (2), (2A)] and (3) no compensation shall be payable to a 14[employee] in respect of any disease unless the disease is 13[***] directly attributable to a specific injury by accident arising out of and in the course of his employment.

(5) Nothing herein contained shall be deemed to confer any right to compensation on a 14[employee] in respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall be maintainable by a 14[employee] in any Court of law in respect of any injury--

(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or

(b) if an agreement has been come to between the 14[employee] and his employer providing for the payment of compensation in respect of the injury in accordance with the provisions of this Act.

1. Subs. by Act 8 of 1959, sec. 3, for "seven" (w.e.f. 1-6-1959).

2. Subs. by Act 15 of 1933, sec. 3, for "injury to a workman resulting from".

3. Ins. by Act 30 of 1995, sec. 3 (w.e.f. 15-9-1995).

4. The word "or" omitted by Act 5 of 1929, sec. 2.

5. Clause (c) omitted by Act 5 of 1929, sec. 2.

6. Subs. by Act 8 of 1959, sec. 3, for sub-sections (2) and (3) (w.e.f. 1-6-1959).

7. Ins. by Act 64 of 1962, sec. 3 (w.e.f. 1-2-1963).

8. Subs. by Act 64 of 1962, sec. 3, for sub-section (2A) (w.e.f. 1-2-1963).

9. Subs. by Act 30 of 1995, sec. 3, for certain words (w.e.f. 15-9-1995).

10. Ins. by Act 30 of 1995, sec. 3 (w.e.f. 15-9-1995).

11. Certain words omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971).

12. Subs. by Act 8 of 1959, sec. 3, for "sub-section (2)" (w.e.f. 1-6-1959).

13. The words "solely and" omitted by Act 15 of 1933, sec. 3.

14. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"

15. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "Workmen"


Section 4. Amount of compensation

1[(1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:--

(a) where death results an from the injury

amount equal to 2[fifty per cent.] of the monthly wages of the deceased 14[employee] multiplied by the relevant factor;

or

an amount of 9[one lakh and twenty thousand rupees], whichever is more;

(b) where permanent total disablement results from the injury

an amount equal to 4[sixty per cent.] of the monthly wages of the injured 14[employee] multiplied by the relevant factor;

or

an amount of 10[one lakh and forty thousand rupees], whichever is more;

11[Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount of compensation mentioned in clauses (a) and (b).]

Explanation I.--For the purposes of clause (a) and clause (b), "relevant factor", in relation to a 14[employee] means the factor specified in the second column of Schedule IV against the entry in the first column of that Schedule specifying the number of years which are the same as the completed years of the age of the 14[employee] on his last birthday immediately preceding the date on which the compensation fell due.

12[***]

(c) where permanent partial disablement result from the injury

(i) in the case of an injury specified in Part II of Schedule I, such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury; and

(ii) in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;

Explanation I.--Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.

Explanation II.--In assessing the loss of earning capacity for the purpose of sub-clause (ii), the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;

(d) where temporary disablement, whether total or partial, results from the injury

a half monthly payment of the sum equivalent to twenty-five per cent. of monthly wages of the 14[employee], to be paid in accordance with the provisions of sub-section (2).

7[(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of compensation payable to a 14[employee] is respect of an accident occurred outside India, the Commissioner shall take into account the amount of compensation, if any, awarded to such 14[employee] in accordance with the law of the country in which the accident occurred and shall reduce the amount fixed by him by the amount of compensation awarded to the 14[employee] in accordance with the law of that country.]

11[(IB) The Central Government may, by notification in the Official Gazette, specify, for the purposes of sub-section (I), such monthly wages in relation to an employee as it may consider necessary.]

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the sixteenth day --

(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or more, or

(ii) after the expiry of a waiting period of three days from the date of disablement where such disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the disablement or during a period of five years, whichever period is shorter:

Provided that--

(a) there shall be deducted from any lump sum or half-monthly payments to which the 14[employee] is entitled the amount of any payment or allowance which the 14[employee] has received from the employer by way of compensation during the period of disablement prior to the receipt of such lump sum or of the first half-monthly payment, as the case may be; and

(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the amount of the monthly wages of the 14[employee] before the accident exceeds half the amount of such wages which he is earning after the accident.

Explanation.--Any payment or allowance which the 14[employee] has received from the employer towards his medical treatment shall not be deemed to be a payment or allowance received by him by way of compensation within the meaning of clause (a) of the proviso.

11[(2A) The employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during course of employment.]

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement in that half-month.]

7[(4) If the injury of the 14[employee] results in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of 13[not less than five thousand rupees] for payment of the same to the eldest surviving dependant of the 14[employee] towards the expenditure of the funeral of such 14[employee] or where the 14[employee] did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure.]

11[Provided that the Central Government may, by notification in the Official Gazette, from time to time, enhance the amount specified in this sub-section.]

1. Substituted by Act 22 of 1984, sec. 3, for section 4 (w.e.f. 1-7-1984). Earlier section 4 was amended by Act 8 of 1959, sec. 4 (w.e.f. 1-6-1959) and by Act 64 of 1962, sec. 4 (w.e.f. 1-2-1963).

2. Substituted by Act 30 of 1995, sec. 4, for "forty per cent." (w.e.f. 15-9-1995).

3. Substituted by Act 46 of 2000, sec. 3, for "fifty thousand rupees" (w.e.f. 8-12-2000). Earlier the words "fifty thousand rupees" were substituted by Act 30 of 1995, sec. 4 for the words "twenty thousand rupees" (w.e.f. 15-9-1995).

4. Substituted by Act 30 1995, sec. 4, for "fifty per cent." (w.e.f. 15-9-1995).

5. Substituted by Act 46 of 2000, sec. 3, for "sixty thousand rupees" (w.e.f. 8-12-2000). Earlier the words "sixty thousand rupees" were substituted by Act 30 of 1995, sec. 4, for the words "twenty four thousand rupees" (w.e.f. 15-9-1995).

6. Substituted by Act 46 of 2000, sec. 3, for "two thousand rupees" (w.e.f. 8-12-2000). Earlier the words "two thousand rupees" were substituted by Act 30 of 1995, sec. 4, for the words "one thousand rupees" (w.e.f. 15-9-1995).

7. Inserted by Act 30 of 1995, sec. 4 (w.e.f. 15-9-1995).

8. Substituted by Act 46 of 2000, sec. 3, for "one thousand rupees" (w.e.f. 8-12-2000).

9. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- "3[eighty thousand rupees]".

10. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- "5[ninety thousand rupees]".

11. Inserted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010.

12. Omitted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was :-

"Explanation II.--Where the monthly wages of a workman exceed 6[four thousand rupees], his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be 6[four thousand rupees] only;"

13. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was :-

"8[two thousand and five hundred rupees]"

14. Substituted by the Workmen's Compensation (Amendment) Act, 2009 to be effective from 18.01.2010 vide Notification No. S.O. 101(E) dated 18.01.2010 previous text was:- "workman"


Section 4A. Compensation to be paid when due and penalty for default

1[(1) Compensation under section 4 shall be paid as soon as it falls due.

(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the 4[employee], as the case may be, without prejudice to the right of the 4[employee] to make any further claim.

2[(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall--

(a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent. per annum or at such higher rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government, by notification in the Official Gazette, on the amount due; and

(b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per cent, of such amount by way of penalty:

Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed.

Explanation.--For the purposes of this sub-section, "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).

3[(3A) The interest and the penalty payable under sub-section (3) shall be paid to the 4[employee] or his dependant, as the case may be.]]

1. Ins. by Act 8 of 1959, sec. 5 (w.e.f. 1-6-1959).

2. Subs. by Act 30 of 1995, sec. 5, for sub-section (3) (w.e.f. 15-9-1995).

3. Subs. by Act 46 of 2000, sec. 4, for sub-section (3A) (w.e.f. 8-12-2000).

4. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"


Section 5. Method of calculating wages

1[***] 2[In this Act and for the purposes thereof the expression "monthly wages" means the amount of wages deemed to be payable for a month's service (whether the wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows, namely:--

(a) where the 11[employee] has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the 11[employee] shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period;

3[(b) where the whole of the continuous period of service immediately preceding the accident during which the 11[employee] was in the service of the employer who is liable to pay the compensation was less than one month, the monthly wages of the 11[employee] shall be 4[***] the average monthly amount which, during the twelve months immediately preceding the accident, was being earned by a 11[employee] employed on the same work by the same employer, or, if there was no 11[employee] so employed, by a 11[employee] employed on similar work in the same locality;]

5[(c)] 6[in other cases [including cases in which it is not possible for want of necessary information to calculate the monthly wages under clause (b)]], the monthly wages shall be thirty times the total wages earned in respect of the last continuous period of service immediately preceding the accident from the employer who is liable to pay compensation, divided by the number of days comprising such period.

7[***]

Explanation.--A period of service shall, for the purposes of 8[this 9[section]] be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.

10[***]

1. The brackets and figure "(1)" omitted by Act 9 of 1938, sec. 4. Earlier section 5 was renumbered as sub-section (1) of that section by Act 5 of 1929, sec. 3.

2. Subs. by Act 13 of 1939, sec. 2, for "For the purposes of this Act the monthly wages of a workman shall be calculated" (w.r.e.f. 30-6-1934).

3. Ins. by Act 15 of 1933, sec. 5.

4. The words "deemed to be" omitted by Act 13 of 1939, sec. 2 (w.r.e.f. 30-6-1934).

5. Clause (b) re-lettered as clause (c) by Act 15 of 1933, sec. 5.

6. Subs. by Act 8 of 1959, sec. 6, for "in other cases" (w.e.f. 1-6-1959).

7. Proviso omitted by Act 15 of 1933, sec. 5.

8. Subs. by Act 5 of 1929, sec. 3, for "this section".

9. Subs. by Act 9 of 1938, sec. 4, for "sub-section".

10. Sub-section (2) omitted by Act 15 of 1933, sec. 5. Earlier sub-section (2) was added by Act 5 of 1929, sec. 3.

11. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"


Section 6. Review

(1) Any half-monthly payment payable under this Act, either under an agreement between the parties or under the order of a Commissioner, may be reviewed by the Commissioner, on the application either of the employer or of the 1[employee] accompanied by the certificate of a qualified medical practitioner that there has been a change in the condition of the workman or, subject to rules made under this Act, on application made without such certificate.

(2) Any half-monthly payment may, on review under this section, subject to the provisions of this Act, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent disablement, be converted to the lump sum to which the workman is entitled less any amount which he has already received by way of half-monthly payments.

1. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"


Section 7. Commutation of half-monthly payments

Any right to receive half-monthly payments may, by agreement between the parties or, if the parties cannot agree and the payments have been continued for not less than six months, on the application of either party to the Commissioner, be redeemed by the payment of a lump sum of such amount as may be agreed to by the parties or determined by the Commissioner, as the case may be.

Section 8. Distribution of compensation

1[(1) No payment of compensation in respect of a 8[employee] whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation:

2[Provided that, in the case of a deceased 8[employee], an employer may make to any dependant advances on account of compensation 3[of an amount equal to three months' wages of such 8[employee] and so much of such amount] as does not exceed the compensation payable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer.]

(2) Any other sum amounting to not less than ten rupees which is payable as compensation may be deposited with the Commissioner on behalf of the person entitled thereto.

(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation deposited with him.]

(4) On the deposit of any money under sub-section (1), 4[as compensation in respect of a deceased 8[employee]] the Commissioner 5[***] shall, if he thinks necessary, cause notice to be published or to be served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before him on such date as he may fix for determining the distribution of the compensation. If the Commissioner is satisfied after any inquiry which he may deem necessary, that no dependant exists, he shall repay the balance of the money to the employer by whom it was paid. The Commissioner shall, on application by the employer, furnish a statement showing in detail all disbursements made.

6[(5) Compensation deposited in respect of a deceased 8[employee] shall, subject to any deduction made under sub-section (4), be apportioned among the dependants of the deceased 8[employee] or any of them in such proportion as the Commissioner thinks fit, or may, in the discretion of the Commissioner, be allotted to any one dependant.

(6) Where any compensation deposited with the Commissioner is payable to any person, the Commissioner shall, if the person to whom the compensation is payable is not a woman or a person under a legal disability, and may, in other cases, pay the money to the person entitled thereto.

(7) Where any lump sum deposited with the Commissioner is payable to a woman or a person under a legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman, or of such person during his disability, in such manner as the Commissioner may direct; and where a half-monthly payment is payable to any person under a legal disability, the Commissioner may, of his own motion or on an application made to him in this behalf, order that the payment be made during the disability to any dependant of the 8[employee] or to any other person, whom the Commissioner thinks best fitted to provide for the welfare of the 8[employee].]

7[(8)] Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied that, on account of neglect of children on the part of a parent or on account of the variation of the circumstances of any dependant or for any other sufficient cause, an order of the Commissioner as to the distribution of any sum paid as compensation or as to the manner in which any sum payable to any such dependant is to be invested, applied or otherwise dealt with, ought to be varied, the Commissioner may make such orders for the variation of the former order as he thinks just in the circumstances of the case:

Provided that no such order prejudicial to any person shall be made unless such person has been given an opportunity of showing cause why the order should not be made, or shall be made in any case in which it would involve the repayment by a dependant of any sum already paid to him.

4[(9) Where the Commissioner varies any order under sub-section (8) by reason of the fact that payment of compensation to any person has been obtained by fraud, impersonation or other improper means, any amount so paid to or on behalf of such person may be recovered in the manner hereinafter provided in section 31.]

1. Subs. by Act 5 of 1929, sec. 4, for sub-sections (1) to (3).

2. Subs. by Act 15 of 1933, sec. 6, for the proviso.

3. Subs. by Act 30 of 1995, sec. 6, for certain words (w.e.f. 15-9-1995).

4. Ins. by Act 5 of 1929, sec. 4.

5. Certain words omitted by Act 30 of 1995, sec. 6 (w.e.f. 15-9-1995). Earlier the said words were amended by Act 5 of 1959, sec. 7 (w.e.f. 1-6-1959).

6. Subs. by Act 5 of 1929, sec. 4, for sub-sections (5).

7. Sub-section (6) re-numbered as sub-section (8) by Act 5 of 1929, sec. 4.

8. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"


Section 9. Compensation not to be assigned, attached or charged

Save as provided by this Act no lump sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the 1[employee] by operation of law nor shall any claim be set off against the same.

1. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"


Section 10. Notice and claim

(1) 1[No claim for compensation shall be entertained by a Commissioner unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after the happening thereof and unless the claim is preferred before him within 2[two years] of the occurrence of the accident or in case of death within 2[two years] from the date of death:]

Provided that where the accident is the contracting of a disease in respect of which the provisions of sub-section (2) of section 3 are applicable, the accident shall be deemed to have occurred on the first of the days during which the 14[employee] was continuously absent from work in consequence of the disablement caused by the disease:

3[Provided further that in case of partial disablement due to the contracting of any such disease and which does not force the 14[employee] to absent himself from work, the period of two years shall be counted from the day the 14[employee] gives notice of the disablement to his employer:

Provided further that if a 14[employee] who, having been employed in an employment for a continuous period, specified under sub-section (2) of section 3 in respect of that employment, ceases to be so employed and develops symptoms of an occupational disease peculiar to that employment within two years of the cessation of employment, the accident shall be deemed to have occurred on the day on which the symptoms were first detected:]

4[Provided further that the want of or any defect or irregularity in a notice shall not be a bar to the 5[entertainment of a claim]--

(a) if the claim is 6[preferred] in respect of the death of a 14[employee] resulting from an accident which occurred on the premises of the employer, or at any place where the 14[employee] at the time of the accident was working under the control of the employer or of any person employed by him, and the 14[employee] died on such premises or at such place, or on any premises belonging to the employer, or died without having left the vicinity of the premises or place where the accident occurred, or

(b) if the employer 7[or any one of several employers or any person responsible to the employer for the management of any branch of the trade or business in which the injured 14[employee] was employed] had knowledge of the accident from any other source at or about the time when it occurred:]

Provided further that the Commissioner may 8[entertain] and decide any claim to compensation in any case notwithstanding that the notice has not been given, or the claim has not been 9[preferred], in due time as provided in this subsection, if he is satisfied that the failure so to give the notice or 10[prefer] the claim, as the case may be, was due to sufficient cause.

(2) Every such notice shall give the name and address of the person injured and shall state in ordinary language the cause of the injury and the date on which the accident happened, and shall be served on the employer or upon 11[any one of] several employers, or upon any person 12[***] responsible to the employer for the management of any branch of the trade or business in which the injured 14[employee] was employed.

13[(3) The State Government may require that any prescribed class of employers shall maintain at their premises at which 15[employees] are employed a notice book, in the prescribed form, which shall be readily accessible at all reasonable times to any injured 14[employee] employed on the premises and to any person acting bona fide on his behalf.

(4) A notice under this section may be served by delivering it at, or sending it by registered post addressed to, the residence or any office or place of business of the person on whom it is to be served, or, where a notice-book is maintained, by entry in the notice-book.]

1. Subs. by Act 9 of 1938, sec. 5, for certain words.

2. Subs. by Act 8 of 1959, sec. 8, for "one year" (w.e.f. 1-6-1959).

3. Ins. by Act 64 of 1962, sec. 5 (w.e.f. 1-2-1963).

4. Ins. by Act 15 of 1933, sec. 7.

5. Subs. by Act 9 of 1938, sec. 5, for "maintenance of proceedings".

6. Subs. by Act 9 of 1938, sec. 5, for "made".

7. Ins. by Act 9 of 1938, sec. 5.

8. Subs. by Act 9 of 1938, sec. 5, for "admit".

9. Subs. by Act 9 of 1938, sec. 5, for "instituted".

10. Subs. by Act 9 of 1938, sec. 5, for "institute".

11. Subs. by Act 7 of 1924, sec. 2 and Sch. I, for "any one or".

12. The word "directly" omitted by Act 9 of 1938, sec. 5.

13. Subs. by Act 15 of 1933, sec. 7, for sub-section (3).

14. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"

15. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "Workmen"


Section 10A. Power to require from employers statements regarding fatal accidents

1[(1) Where a Commissioner receives information from any source that a 2[employee] has died as a result of an accident arising out of and in the course of his employment, he may send by registered post a notice to the 2[employee]'s employer requiring him to submit, within thirty days of the service of the notice, a statement, in the prescribed form, giving the circumstances attending the death of the 2[employee], and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death.

(2) If the employer is of opinion that he is liable to deposit compensation, he shall make the deposit within thirty days of the service of the notice.

(3) If the employer is of opinion that he is not liable to deposit compensation, he shall in his statement indicate the grounds on which he disclaims liability.

(4) Where the employer has so disclaimed liability, the Commissioner, after such inquiry as he may think fit, may inform any of the dependants of the deceased 2[employee] that it is open to the dependants to prefer a claim for compensation, and may give them such other further information as he may think fit.

1. Ins. by Act 15 of 1933, sec. 8.

2. Substituted by the Workmen's Compensation (Amendment) Act, 2009 [Act No. 45 of 2009] to be effective from 23rd December, 2009 previous text was:- "workman"