UNIT 2

Laws Related to Health, Safety and Welfare

2.1 The Factories Act, 1948

The factories act 1948 was introduced to give guidelines regarding age of employees working as, and leave rules as well as to provide safety, health and welfare measures at workplace. This act was passed primarily to protect workers employed in factories against industrial and occupational hazards. for this purpose it also impose upon the owner of the occupier certain obligations to protect the workers and to secure for them employment by taking into consideration that health and safety.

Definitions

Adults [Sec. 2(b)]:"Adult" means a person who has completed his 18th year of age.

Adolescent [Sec. 2 (b)]:"Adolescent" means a person who has completed his fifteenth year of age but has not completed his eighteenth year.

Child [Sec. 2(c)]:"Child" means a person who has not completed his fifteen year of age.

Hazardous Process [Sec. 2(cb)]: means any process or activity in relation to an industry specified in the first schedule where, unless special care is taken, raw materials used there in all the intermediate or finished products, by-products, waste or effluents thereof would-

(i) cause material impairment to the health of the persons engaged in or connected therewith, or

(ii) Result in the pollution of the general environment.

Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule.

Young Person [Sec. 2(d)]: "Young person" means a person who is either a child or an adolescent.

Manufacturing Process [Sec. 2(k)]: "Manufacturing process" means any process for-

(i) Making, altering, repairing, ornamenting, finishing, packing, oiling washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use sale, i transport, delivery or disposal; or

(i) Pumping oil, water, sewage or any other substance; or

(iii) Generating, transforming or transmitting power; or

(iv) Composing types for printing, printing by letter press, lithography,

Photogravure or other similar process or book binding; or

(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or

(vi) Preserving or storing any article in cold storage.

Workers [(Sec. 2 (1)]: "Worker" means a person employed, directly or by o through any agency including a contractor with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premise used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the Union factories act.

Factory [Sec. 2(m)]: According to the Factories Act, 1948, a "factory" means any premises including the precincts thereof-

(i) Where on ten or more workers are working. or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, i or is ordinarily so carried on; but this does not include a mine subject to the operation of the Mines Act, 1952, or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place.

Health Measures

• Provisions Regarding Health of Factory Workers

to take care of the health of workers in factories of the Factories Act, 1948 has provided for certain measures which are stated below:

(i) Cleanliness of the Factory Premises (sec. 11): every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance. It is specifically provided that in a factory-

• Accumulation of dirt and refuse shall be removed daily, by sweeping or any other method, from the floors and benches of work rooms and from staircases and passages, and disposed of in a suitable manner;

• The floor of every room shall be cleaned. This shall be done at least once every week by washing, using disinfectant or by some other effective method;

• Where a floor is liable to become wet in the course of any manufacturing process to such an extent as is capable of being drained, effective means of drainage shall be provided.

• All inside wall and partitions, all ceilings or tops of rooms and all walls, sides and tops of passages and staircases shall

(a) be painted or varnished, and repainted and revarnished at least once in a period of five years; where they are painted or varnished, be cleaned at least once in a period of 14 months by such methods as may be prescribed by the Government.

(b) where painting or varnishing is not required, be kept white washed or colour washed, and the white washing or colour washing shall be carried out at least once in every period of 14 months.

(ii) Disposal of Wastes and Effluents (Sec. 12): Effective arrangement shall be made for the disposal of wastes and effluents arising out of manufacturing process in the factories.

(iii) Ventilation and Temperature (Sec. 13): Provision to be made for ventilation and regulation of temperature in the factories. Effective and suitable measures shall be adopted for securing and maintaining in every room

•Adequate ventilation by the circulation of fresh air, and

• Such a temperature as will secure to worker’s reasonable conditions of comfort, and prevent injury to health, and in particular the walls and roofs shall be of such material and so designed that such temperature shall not exceed but kept within reasonable limits.

The state government shall prescribe the standards of adequate ventilation and reasonable temperature for any factory or part thereof.

(iv) Dust and Fume (Sec. 14): In every factory, where due to manufacturing process, dust or fume or other impurity arise which is likely to be injurious to the health of workers employed, effective measures shall be taken to prevent its inhalation, and accumulation in any workroom. If it is necessary to install exhaust appliances, it would be installed near the point of origin of the dust, fumes, or other impurity. Measures shall be taken to enclose such points.

(v) Artificial Humidification (Sec. 15): Artificial creation of humidity is employed in India in cotton textile mills and in cigarette making factories. In respect of factories, where humidity of the air is artificially increased, it is provided to make rules.

•Prescribing standard of humidification;

•Regulating the methods used for artificially increasing the humidity of the air;

•Directing prescribed tests for determining the humidity of the air to be correctly carried out and recorded, and

•Prescribing methods to be adopted for securing adequate ventilation and cooling of the air and the work rooms.

(vi) Overcrowding (Sec. 16): No room in any factory shall be overcrowded to such an extent which becomes injurious to the health of the workers employed therein. The Chief Inspector of factories by order in writing shall fix the maximum member of workers to be employed in each room in the factory.

(vii) Lighting (Sec. 17): The Factories Act provides for sufficient and suitable lighting, natural or artificial where workers are working or passing through. Provision of cleaning of inner and outer surface is provided for all glazed windows and skylights used for the lighting of the workrooms. In every factory, effective provision shall be made for the prevention of:

(a) Glare, either directly from a source of light or by reflection from a smooth or polished surface;

(b) The formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker.

(viii) Drinking Water (Sec. 18): In every factory, effective arrangement shall be made at suitable places for sufficient supply of wholesome drinking water. Such places shall be legibly marked 'Drinking Water' in a language understood by a majority of the workers employed in the factory. In case of factories employing more than 250 workers, provisions shall be made for cooling drinking water during hot weather by effective means, and for its distribution.

(ix) Latrines and Urinals (Sec. 19): The Factories Act requires that provision should be made for-

(a) Sufficient latrine and urinal accommodation conveniently situated and accessible to workers while they are in the factory;

(b) Separate enclosed accommodation for male and female workers;

(c) Such accommodation being adequately lighted and ventilated;

(d) All such accommodation being maintained in a clean and sanitary condition;

(e) Sweepers being employed to clean latrines, urinals and washing;

• Where the number of workers in a factory is more than 250:

(a) Latrines and urinals shall be of prescribed sanitary types;

(b) The floor and internal walls of the latrines and urinals shall be laid with glazed tiles;

(c) Floors and walls and the sanitary pans of latrines and urinals shall be thoroughly washed and cleaned at least once in every seven days with suitable detergents or disinfectants or with both.

(x) Spittoons (Sec. 20): Sufficient number of spittoons must be provided in every factory and maintained in clean and hygienic condition. No person shall spit within the premises of a factory except in the spittoons. A notice containing this provision and the penalty for its violation shall be prominently displayed at suitable places in the factory premises.

Safety Measures

A. Fencing of Machinery (Sec. 21)

(1) In every factory the following, namely,

(i) Every moving part of a prime mover and every flywheel connected to a prime mover whether the prime mover or flywheel is in the engine house or not;

(ii)The headrace and tailrace of every water-wheel and water turbine places

(2) Provided that for the purpose of determining whether any part of machinery is in such position or is of such construction as to be save as aforesaid.

(3) The State Government maybe rules prescribe such for the precaution as it may consider necessary in respect of any particular machinery or part thereof, or exempt, subject to such condition as may be prescribed for securing the safety of the workers, any particular machinery or part there off from the provisions of the section.

B. Work On or Near Machinery in Motion (sec. 22)

1. Where in any factory it becomes necessary to examine any part of machinery referred to in section 21, while the machinery is in motion, or, as a result of set examination.

2. No woman or young person shall be allowed to clean lubricate or adjust any part of a prime works or any transmission machinery while the prime mover or transmission machinery is in motion comics how to clean lubricate or adjust any part of any machine if the cleaning, lubrication or adjustment layer of exposed the women for young person to risk of injury from any moving part either of bread machine or of any adjacent machine.

3. The State Government may, by notification in the Official Gazette, prohibit, in any specified factory or class or description of factories, the cleaning, lubricating or adjusting by any person or specified parts of machinery when those parts are in motion.

C. Employment of Young Persons on Dangerous Machines (sec. 23)

(1) No young person shall be required or allowed to work at any machine to which this section applies, unless he has been fully instructed as to the dangers arising in connection with the machine and the precautions to be observed and-

(a) has received sufficient training in work at the machine, or

(b) is under adequate supervision by a person who has a thorough knowledge and experience of the machine.

(2) Sub-section (1) shall apply to such machines as may be prescribed by the State Government, being machines which in its opinion are of such a dangerous character that young person ought not to work at them unless the foregoing requirements are complied with.

D. Striking Gear and Devices for Cutting off Power (Sec. 24)

(1) In every factory-

(a) Suitable striking gear or other efficient mechanical appliance shall I be provided and maintained and used to move driving belts to and from fast and loose pulleys which form part of their transmission machinery, and such gear or appliances shall be so constructed, placed and maintained as to prevent the belt from creeping back on to the fast pulley;

(b) Driving belts when not in use shall not be allowed to rest or ride upon shafting in motion.

(2) In every factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained in every work-room.

(3) main device coma which can in advertently shift from "off" to "on" position, is provided in a factory to cut off power, arrangement shall be provided for locking the device in safe position to prevent accidental starting of the transmission machinery or other machines to which the device is fitted.

E. Self-acting Machines (Sec. 25)

No traversing part of a self-acting machine in any factory or no material carried their own shall, if the space over which it runs is a space over which any person is liable to pass brother in the course of his employment or otherwise, be allowed to run on its outward or in what traverse within a distance of [forty-five centimeters] from any fixed structure which is not a part of machine.

F. Casing of New Machinery (Sec. 26)

(1) In all machinery driven by power and installed in any factory after

(a) Every set screw, bolt or key on any revolving shaft, spindle, wheel or pinion shall be so sunk, encased or otherwise effectively guarded as to prevent danger;

(b) All spur, worm and other toothed or friction gearing which does not require frequent adjustment while in motion shall bei completely encased, unless it is so situated as to be as safe as it would be if it were completely encased.

(2) Whoever sells or lets on hire or, as agent of a seller or hirer, causes or procures to be sold or let on hire, for use in a factory any machinery driven by power which does not comply with the provisions of sub section (1) or any rules made under sub-section (3), shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both.

(3) The State Government may make rules specifying further safeguards to be provided in respect of any other dangerous part of any particular machine or class or description of machines.

G. Pressure Plant (Sec. 31)

(1) If in any factory, any plant or machinery or any part thereof is operated at a pressure above atmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or part is not exceeded.

(2) The State Government may make rules providing for the examination and testing of any plant or machinery such as is referred to in sub section (1) and prescribing such other safety measures in relation thereto as may in its opinion be necessary in any factory or class or description of factories.

(3) The State Government may, by rules, exempt, subject to such conditions as may be specified therein, any part of any plant or machinery referred to in sub-section (1) from the provisions of this section.

H. Floors, Stairs and Means of Access (Sec. 32)

In every factory-

(a) All floors, steps, stairs, passages and gangways shall be of sound construction and properly maintained and shall be kept free from obstructions and substances likely to cause persons to slip, and where it is necessary to ensure safety, steps, stairs, passages and gangways shall be provided with substantial handrails;

(b) There shall, so far as is reasonably practicable, be provided and maintained safe means of access to every place at which any person is at any time required to work;

(c) when any person has to work at a height from where he is likely to all, provision shall be made, so far as is reasonably practicable, by fencing or otherwise, to ensure the safety of the person so working.

I. Pits, Sumps. Openings in Floors, etc. (Sec. 33)

(1) In every factory every fixed vessel, sump, tank, pit or opening in the ground or in a floor which, by reason of its depth, situation

Construction or contents, 1s or may be a source of danger, shall be either securely covered or securely fenced.

(2) The State Government may, by order in writing, exempt, subject to such conditions as may be prescribed, any factory or class or description of factories in respect of any vessel, sump, tank, pit or opening from compliance with the provisions of this section.

J. Excessive Weights (Sec. 34)

(1) No person shall be employed in any factory to lift, carry or move any load so heavy as to be likely to cause him injury.

(2) The State Government may make rules prescribing the maximum weights which may be lifted, carried or moved by adult men, adult women, adolescents and children employed in factories or in any class or description of factories or in carrying on any specified process.

K. Protection of Eyes (Sec. 35)

In respect of any such manufacturing process carried on in any factory as may be prescribed, being a process which involves-

(a) Risk of injury to the eyes from particles or fragments thrown off in the course of the process, or

(b) Risk to the eyes by reason of exposure to excessive light, the State Government may by rules require that effective screens or suitable goggles shall be provided for the protection of persons employed on or in the immediate vicinity of, the process.

L. Precautions Against Dangerous Fumes, Gases, etc. (Sec. 36)

No person shall be required or allowed to enter any chamber, tank Vat, pit, pipe, flue or other confined space in any factory in which any gas, fume, vapour or dust is likely to be present to such an extent as to involve risk to persons being overcome thereby, unless it is provided with a manhole of adequate size or other effective means of egress.

M. Maintenance of Buildings (Sec. 40A)

If it appears to the Inspector that any building or part of a building in a factory is in such a state of disrepair as is likely to lead to conditions detrimental to the health and welfare of the workers, he may serve on the occupier or manager or both of the factory an order in writing specifying he measures which in his opinion should be taken and requiring the same to be carried out before such date as is specified in the order.

N.  Safety Officers (Sec. 40B)

(1) In every factory-

(i) Wherein one thousand or more workers are ordinarily employed, or

(ii)Wherein, in the opinion of the State Government, any manufacturing process or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the persons employed in the factory, the occupier shall, if so required by the State Government by notification in the Official Gazette, employ such number of Safety Officers as may be specified in that notification.

(2) The duties, qualifications and conditions of service of Safety Officers shall be such as may be prescribed by the State Government.

O. Power to Make Rules to Supplement this Chapter (Sec. 41)

 The State Government may make rules requiring the provision in any factory or in any class or description of factories of such further devices and measures for securing the safety of persons employed therein as it may deem necessary.

Welfare Measures

1. Washing Facilities (Sec. 42): The Factories Act provides for-

(a) Adequate and suitable facilities for washing for the use of workers in the factories. The workers who live in crowded areas have inadequate facilities for washing at their homes, and bathing facilities add to their comfort, health and efficiency.

(b) Separate and adequately screened washing facilities for the use of male and female workers.

(c) Such facilities being conveniently accessible, and being kept clean.

(ii)Facilities for Storing and Drying Clothes (Sec. 43): A suitable place for keeping clothes not worn during working hours shall be provided in every factory. Facilities shall also be provided for the drying of wet clothes.

(iii) Facilities for Sitting (Sec. 44): For workers who are to work in a standing position, suitable arrangement for sitting shall be provided in the factories. This is to enable workers to take advantage of any opportunity for rest which may occur in the course of their work.

(iv) First-Aid Appliances (Sec. 45): First-aid boxes or cupboards equipped l with the required contents should be provided for workers in every factory. This should be readily accessible to them during all working hours. The number of such first aid boxes shall not be less than one for every 150 workers employed in the factory.

Such first-aid box shall be kept in the charge of a responsible person who is trained in first-aid treatment and who shall be available during the working hours of the factory.

In factories employing more than 500 workers, there shall be an ambulance room. It should contain the prescribed equipment’s, and be in the charge of such medical and nursing staff as may be prescribed.

(v) Canteens (Sec. 46): In factories employing more than 250 workers, there shall be a canteen for the use of workers. The government may prescribe the rules in respect of the:

(a) Food stuff to be served in the canteen;

(b) Charges to be made;

(c) Constitution of a managing committee for the canteen; and

(d) Representation of the workers in the management of the canteen.

(vi) Shelters, Restrooms and Lunch Rooms (Sec. 47): Adequate and suitable shelters, rest rooms, and lunch rooms with drinking water facility shall be made in factories employing 150 workers or more. Workers can eat meals brought by them in such rooms. Rest and lunch rooms shall be sufficiently lighted and ventilated. It shall be maintained in cool and clean conditions.

(vii) Crèches (Sec. 48): In every factory, where more than 30 women workers are employed, provision shall be made for suitable and adequate room for the use of children under the age of six years of such women. Such a room shall be adequately lighted and ventilated. It shall be maintained in clean and sanitary conditions under the charge of a woman trained in the care of children and infants.

(viii) Welfare Officer (Sec. 49): The factories Act also provides for employment of welfare officers with prescribed qualification to look into the implementation of various facilities provided for. Such a provision exists in every factory employing more than 500 workers.

This act is very important to regulate condition of work in manufacturing establishments as this act has given provisions for health, welfare and safety measures at workplace. This act has also given provision for age of employees leave rules and working hours. It helps to protect employees from exploitation by employer.

2.2 The Workmen’s Compensation Act, 1923

Employees Compensation Act, 1923 was earlier called as the Workman Compensation Act, 1923. As per the Amendment Act, 2009 word 'workman' from title of the name was replaced with word 'Employee'. The Act is passed with the aim to introduce social security to employees of India. This helps employee, and in case of death of an employee, his dependents to get the compensation from employer for employment injury. So this act provides financial protection to employee.

It imposes statutory liability upon employer to fulfil his moral obligations towards his employees when they suffer from physical disabilities and diseases during the course of employment in hazardous working conditions.

Principles for Employee Compensation

Before passing of The Employees Compensation Act, 1923, the employer was liable to pay compensation to his employees for injury only if employer was proved guilty of negligence. But even if he is negligent, in certain circumstances he can avoid his liability as per following principles-

1. The doctrine of assumed risks: The doctrine is derived from the rule 'volenti non fit injuria which means where there is consent there is no injury'

2. The doctrine of common employment: The doctrine provides that an employer is not liable for the payment of compensation for injury (i) he is working with several persons for a common purpose, and (ii) he is injured by some act or omission of some of the persons of his group.

3. The doctrine of contributory negligence: According to the common law rule of contributory negligence, an employee is not entitled to compensation for injury which has been caused to him by his own negligence. The employees used to plead that where are not responsible for negligence on the part of employees.

4. End of personal action with death: An employer could also availability to pay compensation in case of death of an employee on the ground that the personal action died with the death of the workmen concerned and hence the dependents of the deceased workman were not entitled to claim any compensation.

Definitions

Sec. 2 gives the definition of the term used in the act. Some of the important definitions are as follows:

1. Commissioner [Sec. 2(1)(b)]: Commissioner means a commissioner for employees' compensation appointed under Sec. 20.

2. Compensation [Sec.2(1)(c)]: It means compensation as provided for by this act.

3. Dependent [Sec.2(1)(d)]: Sec. 2(1) defines the term dependent by giving a long list of person covered by the term 'dependent'. In ordinary usage 'dependent' refers to a person who depends upon another for his livelihood.

4. Employee [Sec. 2(dd)]: "Employee" means a person, who is -

(i) A railway servant as defined in clause 34 of section 2 of the Railways Act, 1989.

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

(b) A captain or another member of the crew of an aircraft,

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

(d) a person recruited for work abroad by 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.

5. Employer [Sec. 2(1)(e)]: Employees include - (1) anybody of person whether in corporate or not. (2) any managing agent of an employer; (3) the legal representative of deceased employer.

6. Managing Agent [Sec. 2(1)(f)]: Managing agent means any person appointed or acting as the representative of another person for the purpose carrying on such other person's trade or business but does not include individual manager subordinates to an employer.

7. Minor [Sec.2(1)(f)]: minor means a person who has not attained the age of 18 years.

8. Disablement: disablement means loss of capacity to work or to move. Disablement of an employee may result in loss or reduction of his earning capacity. In the latter case, he is not able to earn as much as he used to earn before his disablement.

• Types of Disablement:

As per this act following are the types of Disablement:

1. Permanent Total Disablement: Permanent total disablement is that condition where an employee becomes unfit for every type of work and is not able to get job anywhere because of that disablement. This disablement is for life time of an employee.

2. Permanent Partial Disablement: Permanent partial disablement is one which reduces the earning capacity of an employee in every employment which was capable undertaking at the time of injury. This disablement is for life time of an employee.

3. Temporary Total Disablement: Temporary total disablement is that condition where an employee becomes unfit for every type of work and is not able to get job anywhere for particular time period because of that disablement. This disablement is for temporary period.

4. Temporary Partial Disablement: Temporary partial disablement means any disablement as reduces the earning capacity of an employee in any employment in which he was engaged at the time of accident which resulted in such disablement. This disablement is for temporary period.

Employer's Liability for Compensation (Sec. 3)

An employer is liable to pay compensation to employee- (1) for personal injury caused to him by accident and (2) for any occupational disease contracted by him.

1. Personal Injury by Accident

An employer is liable to pay compensation to an employee if personal injury is caused to him by accident arising out of an in course of him employment.

Personal Injury: The word injury means damage done to an employee by some accident. The act contemplates compensation for personal injury. It is not necessarily confined to physical or mental injury. It includes psychological and physiological injury as well. Thus nervous shock causing incapacity to work is as much a personal injury as a broken limb.

Accident: The word accident means some unlooked-for mishap or untoward event which is not expected or designed by the injured employee himself even though there may be negligence on his part. If, therefore, an occurrence is unexpected and without any design on the part of their employee, it is accident

Arising out of and in the course of employment: The employer is liable to pay compensation only if personal injury is caused to an employee by an accident arising out of and course of his employment, Sir Ernest Gower's in his book "Plain Words" observes at one that the apparently simple eight words "arising out of and in course of employment used in English Employee’s Compensation Act 1903.

Out of Employment: The expressions "arising out of employment" should be understood mean that "during the course of the employment, injury has resulted from some risk incidental to duties of the service, which, unless engage in the duty oven to the master, it is reasonable to believe the employee would not otherwise have suffered.

2. Occupational Diseases

Workers employed in certain occupation are exposed to certain diseases which are inherent in those occupations. For example, a person engaged in any process involving use of lead tetraethyl is liable to contact poisoning by lead tetraethyl, and a person employed as telegraph operator may contact telegraphic cramp. As such, the employer is liable to pay compensation it the disease can be directly attributable to a specific injury by accident arising out of and in the course of employment.

A detailed list of occupational diseases is given in Schedule III of the Act.

Schedule Ill (Which has been substituted by the Amendment act of 1984) is divided into 3 parts in relation to the liability of employer to pay compensation in case of occupational diseases.

• Employer's Non-liability for Compensation [Sec. 3(1)]:

The employer is not liable to pay compensation for injury to an employee in the following circumstances:

1. If there is no total or partial disablement because of injury to employee for a period exceeding three days.

2. If there is death because of injury to employee and it is because of any of the following reasons

(a) At the time of accident, employee is under the influence of drink or drugs, or

(b) The disobedience of the employee to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of employee, or

(c) The willful removal or disregard by the employee of any safety guard or device which he knew to have been provided for their purpose of securing the safety of employee.

COMPENSATION

Amount of Compensation (Sec. 4)

The amount of compensation to an employee depends on-

(i) The nature of the injury caused by accident,

(ii) The monthly wages of the employee concerned, and

(iii) The relevant factor for working out lump-sum equivalent of compensation amount as specified in schedule IV.

Note: If monthly wages of the deceased or injured employee exceeds 8000/- than his or her monthly wages for the purpose of calculating thei compensation shall be deemed to be t 8,000/-only. (As per the Amendment Act of 2009 is in force from 2010)

Sec. 4 provides for compensation for

(1) Death,

(2) Permanent total disablement,

(3) Permanent partial disablement, and

(4) Temporary disablement, whether total or partial.

For determining the amount of compensation, Sec. 4 has to be read with Schedule IV.

1. Compensation for Death

Where death results from an injury, the amount of compensation shall be equal to 50% of the monthly wages of the deceased employees multiplied by the relevant factor.

The formula for calculating the amount of compensation in case of death resulting from an injury will be as follows:

       50% of monthly wages x relevant factor or

Rupees 1,20,000 whichever is more.

2. Compensation for permanent total disablement [Sec. 4(1)(b)]:

Where permanent total disablement result from an injury, the amount of compensation payable shall be equal to 60 per cent of the monthly wages of the injured employee multiplied by the relevant factor as per the schedule IV or Rupees 1,40,000, whichever is more.

The formula for calculating the amount of compensation in case of permanent total disablement resulting from an injury will be as follows:

     60% of monthly wages x relevant factor

    or Rupees 1,40,000 whichever is more.

The relevant factor shall be ascertained from schedule IV and will depend on the age of the employee on his immediately preceding birthday.

Example:

Amount of compensation = 60% of 8,000 (if monthly wages are exceeding 8,000/- than the monthly wages are to be taken 8,000/-only) x 184.17

=60% of 8000 x 184.17

=8,84,016/-or 1,40,000/-whichever is more.  

Hence, the employee will get 8,84,016/-

3. Compensation for permanent partial disablement [Sec. 4(1)(C)]

Part II schedule I to the act gives a long list of injuries deemed to result in permanent partial disablement along with the percentage of loss of earning capacity which is deemed to result in each case. Sec. 4(1) (c) provides that where permanent partial disablement shall be as follows:

1. In case of permanent partial disablement because of an injury specified in part Il of schedule I, then the amount of compensation shall be payable on the basis of the percentage loss of earning capacity, specified against each injury in part Il of Sch. I.

The formula for calculating the amount of compensation in case of permanent partial disablement resulting from an injury will be as follows:

   60%o of monthly wages x relevant factor of age as per the schedule IV x % loss of earning capacity,

specified against each injury in part II of Sch. I

2. In the case of an injury not specified in schedule 1, the amount of compensation shall be such percentage of the compensation payable. In the case of permanent total disablement as is proportionate to the loss of earning capacity permanently caused by the injury. The loss of earning capacity in such a case, the qualified medical practitioner shall have due regard to the percentage of loss of earning capacity in relation to different injury in schedule 1.

3. Where more injuries than one caused by the same accident, the amount of compensation shall be aggregate. But in no case shall the amount of compensation exceed the amount payable if permanent total disablement had resulted.

4. Compensation for temporary-total or partial where temporary disablement, whether total or partial, result from the injury, their amount of compensation shall be a half-monthly payment of the sum equivalent to 25 percent of the monthly wages of the employee, i.e. 25 percentage of monthly wages of the employee shall be payable every half month. The half-monthly payment shall be payable in accordance with the following provision:

1) The half-monthly payment shall be payable on the 16th day

• From the date of disablement where such disablement lasts for a period of 28 days or more, or

• After the expiry of a waiting period of 3 days from the date of disablement where such disablement lasts for a period of less than 28 days. Thereafter the compensation shall be payable half-month during the disablement or during a period of 5 years, whichever, period is shorter.

2. From any sum or lump-sum or half monthly payment to which the employee is entitled, there shall be the deducted the amount of any payment or allowance which the 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 month payment, as the case may be.

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

For Example:

An employee is temporarily disabled and his monthly wages are 7000/-

Amount of Compensation = 7000 x 25/100 = 1750/-. This amount will be paid for every half monthly till disablement last.

4. Any payment or allowance received by the employee towards his medical treatment shall not be deemed to be a payment received by him by way of compensation.

5. On the ceasing of the disablement before the date on which any half-monthly payment falls due, the sum payable in respect of the half-month shall be the sum proportion to the duration of the disablement in that half-month.

Compensation to be paid when due (Sec. 4A)

• Compensation payable to an employee under sec. 4 shall be paid as soon as it falls due; i.e. when the liability for the payment of compensation is fixed on the employer.

• Provisional Payment- In cases where the employer does not accept the liability for the compensation to the extent claimed, he shall make provisional payment based on the extent of the liability which he accepts. Such payment shall be deposited with the commissioner for employee’s compensation or made to the extent.

• Right of Further Claim- Such provisional payments shall not prejudice the right of the employee to make any further claim.

• Penalty for default- An employer shall pay compensation due under this act within 1 month from the date it falls due. If he defaults, the commissioner shall direct him to pay the amount of arrears, with simple interest at the rate of 12 percent per annum or at such higher rate not exceeding maximum lending rates of any schedule bank as may be specified by the central government by notification in the official gazette, on the amount due. Further, if in the opinion of the commissioner there is no justification for the delay, the further sum up to 50% of the amount due shall be recovered from the employer by way of penalty.

Notice and Claims

• Notice

No claim for compensation shall be entertained by commissioner unless the notice of accident has been given by the employee in writing in the following manner:

1. The notice of the accident shall begin as soon as practicable after the happening of the accident.

2. The notice shall give the name and address of the person injured and state the cause of injury and the date of accident.

3. The notice shall be served on the employer or upon any one of several employers or upon any person responsible to the employer for the management of any branch of the trade or business.

4. The notice may be served by delivering it are, or sending it by registered post addressed to, the residence or any officer place of business of the person on whom it is it be served or by entry in a notice book of such a book is maintained by employer.

5. The State government may require any prescribed class of employers to maintain at the place of employment a notice-book in the prescribed form for keeping the record of accidents. The notice-book shall be readily accessible atoll reasonable times to any injured employee employed on the premised and to any person acting bona fide on his behalf.

Omission to give notice, an omission to give a notice or any defect or irregularity in a notice shall not be a bar to the entertainment of a claim if-

(a) The claim is preferred in respect of detect of a workmen resulting from an accident which occurred in the premises of the employer, or at any place where the employee at the time of the accident was working under the control of employer, and the employee died on such premises or at place, or died without having left the vicinity of the premises or place where the accident occurred;

(b) The employer had knowledge of the accident any other source at or about when it occurred or

(c) The commissioner is satisfied that the failure to give notice was due to sufficient cause.

• Claim

Claim for compensation shall be preferred before the commissioner within two years of the occurrence of the accident, or in case of death within two years from the date of death. The commissioner may entertain and decide any claim to compensation in any case not withstanding that the notice has not been given, or the claim has not been preferred in due time. The commissioner should, however, be satisfied that the failure to the give the notice or prefect the claim, as case may be, was due sufficient cause.

REFERENCE:

1. LABOUR.GOV.IN
2. INDIANKANOON.ORG
3. INDIACODE.NIC.IN
4. CLC,GOV.IN