LexThe EMPLOYEE’S COMPENSATION ACT, 1923
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THE EMPLOYEE’S COMPENSATION ACT, 1923
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
EMPLOYEE’S COMPENSATION
3. Employer’s liability for compensation.
4. Amount of compensation.
4A. Compensation to be paid when due and penalty for default.
5. Method of calculating wages.
6. Review.
7. Commutation of half-monthly payments.
8. Distribution of compensation.
9. Compensation not to be assigned, attached or charged.
10. Notice and claim.
10A. Power to require from employers statements regarding fatal accidents.
10B. Reports of fatal accidents and serious bodily injuries.
11. Medical examination.
12. Contracting.
13. Remedies of employer against stranger.
14. Insolvency of employer.
14A. Compensation to be first charge on assets transferred by employer.
15. Special provisions relating to masters and seamen.
15A. Special provisions relating to captains and other members of crew of aircrafts.
15B. Special provisions relating to employees abroad of companies and motor vehicles.
16. Returns as to compensation.
17. Contracting out.
17A.Duty of employer to inform employee of his rights.
18. [Repealed.].
18A. Penalties.
CHAPTER III
COMMISSIONERS
19. Reference to Commissioners.
20. Appointment of Commissioners.
21. Venue of proceedings and transfer.
22. Form of application.
22A. Power of Commissioner to require further deposit in cases of fatal accident.
2
SECTIONS
23. Powers and procedure of Commissioners.
24. Appearance of parties.
25. Method of recording evidence.
25A. Time limit of disposal of cases relating to compensation.
26. Costs.
27. Power to submit eases.
28. Registration of Agreements.
29. Effect of failure to register agreement.
30. Appeals.
30A. [Omitted.].
31. Recovery.
CHAPTER IV
RULES
32. Power of the State Government to make rules.
33. [Repealed.].
34. Publication of rules.
35. Rules to give effect to arrangements with other countries for the transfer of money paid as
compensation.
36. Rules made by Central Government to be laid before Parliament.
SCHEDULE I.—LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL
DISABLEMENT.
SCHEDULE II.—LIST OF PERSONS WHO, SUBJECT TO THE PROVISIONS OF SECTION 2
(1) (nn),’ ARE INCLUDED IN THE DEFINITION OF EMPLOYEES.
SCHEDULE III.—LIST OF OCCUPATIONAL DISEASES.
SCHEDULE IV.—FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF
COMPENSATION AMOUNT IN CASE OF PERMANENT DISABLEMENT
AND DEATH.
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THE EMPLOYEE’S COMPENSATION ACT, 1923
ACT No. 8 OF 19231
[5th March, 1923]
An Act to provide for the payment by certain classes of employers to their 2[employees] of
compensation for injury by accident.
WHEREAS it is exp edient to provide for the payment by certain classes of employers to their
3[employees] of compensation for injury by accident; It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement .—(1) This Act may be called the 4[Employee’s]
Compensation Act, 1923.
5[(2) It extends to the whole of India 6***.]
(3) It shall come into force on the first day of July, 1924.
2. Definitions.—(1) In this Act, unless there is anything repugnant in the subject or context,—
7* * * * *
(b) “Commissioner” means a Commissioner for Workmen’s Compensation appointed under
section 20;
(c) “compensation” means compensation as provided for by this Act;
8[(d) “dependant” means any of the following relatives of a deceased 9[employee], namely:—
(i) a widow, a minor 10[legitimate or adopted] son, and unmarried 10[legitimate or adopted]
daughter, or a widowed mother; and
(ii) if wholly dependent on the earnings of the 9[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 dependent on the earnings of the 9[employee] at the time of his death,
(a) a widower,
(b) a parent other than a widowed mother,
1. This Act has been extended to—
(1)Goa, Doman and Diu by Reg. 12 of 1962, s. 3 and Sch. (w.e.f. 15-8-1963);
(2) Dadra cud Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I;
(3) Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I; and
(4) Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s. 3 and Sch.
This Act has been modified in its application to apprentices under the Apprentices Act, 1961 (52 of 1961) by s. 16 and to tha t
Act.
2. Subs. by Act 45 of 2009, s. 2, for “workmen” (w.e.f. 18-1-2010 )
3. Subs. by s. 3, ibid., for “workmen” (w.e.f. 18-1-2010).
4. Subs. by s. 4, ibid., for “Workmen’s” (w.e.f. 18-1-2010 )
5. Subs. by the A. O. 1950, for sub-section (2).
6. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and Schedule (w.e.f. 1-9-1971).
7. Clause (a) omitted by Act 8 of 1959, s. 2 (w.e.f. 1-6-1959).
8. Subs. by s. 2, ibid., for the clause (d) (w.e.f. 1-6-1959).
9. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010)
10. Subs. by Act 30 of 1995, s. 2 for “legitimate” (w.e.f. 15-9-1995).
4
(c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter
1[legitimate or illegitimate or adopted] if married and a minor or if widowed and a minor,
(d) a minor brother or a 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 2[employee]is alive.]
3[Explanation.—For the purpose of sub -clause ( ii) and items ( f) and ( g) of
sub-clause (iii), references to a son, dauthter or child include an adopted son, daughter or
child respectively;
4[(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 a ny 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 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
(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 anybody 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
a2[employee] are temporarily lent or let on hire to another person by the person with whom the
2[employee] has entered into a contract of s ervice or apprenticeship, means -such other person while
the 2[employee] is working for him;
(f) “managing agent” m eans 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;
1. Subs. by Act 30 of 1995, s. 2, for “legitimate or illegitimate” (w.e.f. 15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Ins. by Act 30 of 1995, 2 (w.e.f.15 -9-1995).
4. Ins. by Act 45 of 2009, s. 6 (w.e.f. 18-1-2010).
5
1[(ff) “minor” means a person who has not attained the age of 18 years;]
(g) “partial disablement” means, where the disablement is of a temporary nature, such
disablement as reduces the earning capacity of a 2[employee] in any employment in which he was
engaged at the time of the accident res ulting 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 3[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 4* * * under any 5[Central Act,
Provincial Act or an Act of the Legislature of a 6[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;
7* * * * *
(k) “seaman” means any person f orming part of the crew of any 8* * * ship, but d oes not include
the master of9[the] ship;
(l) “total disablement” means such disablement, whether of a temporary or permanent nature, as
incapacitates a 2[employee] for all work which he was capable of performing at the time of the
accident resulting in such disablement:
10[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 H 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 a2[employee] towards any pension or provident fund or a sum paid to a2[employee] to
cover any special expenses entailed on him by the nature of his employment;
11* * * * *
(2) The exercise and performance of the powers and duties of a local authority or of any department
12[acting on beh alf 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.
1. In the application of the Act to Bengal, a new clause (ff) has been ins, here by the Workmen's Compensation (Bengal
Amendment) Act, 1942 (Ben. 6 of 1942), s. 3.
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010 )
3. Subs. by Act 64 of 1962, s. 2, for “in the First Schedule” (w.e.f. 1-2-1963).
4. The words and figures “under the Medical Act, 1858, or any Act amending the same, or” omitted by Act 8 of 1959, s. 2
(w.e.f. 1-61959).
5. Subs. by the A.O. 1950, for “Act of the Central Legislature or of any Legislature in a Province of India”
6. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for “Part A State or Part B State”.
7. Clause (j) rep. by Act 15 of 1933, s. 2.
8. The word “registered” omitted by s. 2, ibid.
9. Subs. by s. 2, ibid. ,for “any such”.
10. Subs. by Act 64 of 1962, s. 2, for the proviso (w.e.f. 1 -2-1963).
11. Clause (n) omitted by Act 45 of 2009, s. 6 (w.e.f. 18-1-2010).
12. Subs. by A. O. 1937, for “of the Govt.”.
6
1[(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 H any class of persons employed in any occupation which it is satisfied is a hazardous
occupation, and the provisions of this A ct 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 person:
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.]
CHAPTER II
WORKMEN’SCOMPENSATION
3. Employer ’s liability for compensation .—(1) If personal injury is caused to a 2[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
2[employee] for a period exceeding 3[three] days;
(b) in respect of any 4[injury, not resulting in death 5[or permanent total disablement], caused by]
an accident which is directly attributable to—
(i) the2[employee] having been at the time thereof under the influence of drink or drugs, or
(ii) thewilful disobedience of the 2[employee] to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of employee’s, or
(iii) thewilful removal or disregard by the 2[employee] of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of 6[employees] 7***
8* * * * *
9[(2) If a [employee] employed in any employment specified in Pat A of Schedule III contracts any
disease specified therei n as an occupational disease peculiar to that employment, or if a 2[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 B of Schedule III, contracts any disease
specified therein as an occupational disease peculiar to that employment, or if a 2[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 tha t employment, the contracting of
the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the
1. Subs. by Act 30 of 1995, s.2, for sub-section (3) (w.e.f. 15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 8 of 1959, s. 3, for “seven” (w.e.f.1 -6-1959).
4. Subs. by Act 15 of 1933, s. 3, for “injury to a workman resulting from”.
5. Ins. by Act 30 of 1995, s. 3 (w.e.f. 15 -9-1995).
6. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010).
7. The word “or” omitted by Act 5 of 1929, s. 2.
8. Clause (c)omitted by s. 2, ibid.
9. Subs. by Act 8 of 1959, s. 3, for sub -sections (2)and (3) (w.e.f. 1-6-1959).
7
contrary is proved, the accident shall be deemed to have arisen out of, and in the course of, the
employment:
1[Provided that if it is proved,—
(a) that a 2[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 acci dent within the meaning of this
section:
Provided further that if it is proved that a 2[employee] who having served under any employer in any
employment specified in Part B of 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 B or 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.]
3[(2A) If a2[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) 4[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 5[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 G overnment, within the State] 6*** as if
such diseases had been declared by this Act to be occupational diseases peculiar to those employments.]
(4)Save as provided by 7[sub-sections ( 2), ( 2A)] and ( 3) no compensation shall be payable to
a2[employee] in respect of any d isease unless the disease is 8*** 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 2[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 maintain able by a 2[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
1. Ins. by Act 64 of 1962, s. 3 (w.e.f. 1-2-1963).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 64 of 1962, s. 3, for sub-section (2A) (w.e.f. 1-2-1963).
4. Subs. by Act 30 of 1995, s. 3, for certain word s (w.e.f. 15 -9-1995).
5. Ins. by s. 3, ibid. (w.e.f. 15-9-1995).
6. Certain words omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
7. Subs. by Act 8 of 1959, s. 3, for “sub-section (2)” (w.e.f. 1-6-1959).
8. The words “solely and” omitte d by Act 15 of 1933, s. 3.
8
(b) if an agreement has been come to between the 1[employee] and his employer providing for the
payment of compensation in respect of the injury in accordance with the provisions of this Act.
2[4. Amount of compensation. —(1) Subject to the provisions of this Act, the amount of
compensation shall be as follows, namely:—
(a) where death results from the injury an amount equal to 3[fifty per cent.] of the
monthly wages of the deceased 1[employee]
multiplied by the relevant factor;
or
an amount of 4[one lakh and twenty thousand
rupees], whichever is more;
(b) where permanent total disablement
results from the injury
an amount equal to 5[sixty per cent.] of the
monthly wages of the injured 1[employee]
multiplied by the relevant factor;
or
an amount of 6[one lakh and forty thousand
rupees],whichever is more:
7[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
a1[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 1[employee] on his last birthday immediately preceding the date on which the
compensation fell due.
8* * * **
(c) where permanent partial disablement
results 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 i njury 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.
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010)
2. Subs. by Act 22 of 1984, s. 3, for s. 4 (w.e.f. 1 -7-1984).
3. Subs. by Act 30 of 1995, s. 4, for “forty per cent.” (w.e.f. 15 -9-1995).
4. Subs. by Act 45 of 2 009, s. 7, for “eighty thousand rupees” (w.e.f. 18 -1-2010). Earlier it was amended by Act 46 of 2000, s. 3
(w.e.f. 8-12-2000).
5. Subs. by Act 45 of 1995, s.4 ,for “fifty per cent.” (w.e.f. 15 -9-1995).
6. Subs. by Act 45 of 2009, s. 7, for “ninety thousand rupees” (w.e.f. 18-1-2010). Earlier it was amended by Act 46 of 2000, s. 3
(w.e.f. 8-12-2000).
7. Ins. by s. 7, ibid. (w.e.f. 18-1-2010).
8. Explanation II omitted by s. 7, ibid. (w.e.f.18-1-2010).
9
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 purposes 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 1[employee], to be paid in accordance w ith
the provisions of sub-section (2).
2[(1A) Notwithsta nding anything contained in sub -section ( 1), while fixing the amount of
compensation payable to a1[employee] in respect of an accident occurred outside India, the Commissioner
shall take into account the amount of compensation, if any, awarded to such 1[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 1[employee] in accordance with the law of that country.]
3[(1B) 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 refe rred 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 dat e 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 deducted from any lu mp sum or half -monthly payments to which the 1[employee]
is entitled the amount of any payment or allowance which the 1[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 1[employee] before the accident execeds half the amount of such
wages which he is earning after the accident.
Explanation.—Any payment or allowance which the 1[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.
3[(2A) The employee shall be reimbursed the actual medical expenditure incurred by him for
treatment of injuries caused during the course of employment.]
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f . 18-1-2010).
2. Ins. by Act 30 of 1995, s. 4 (w.e.f. 15 -9-1995).
3. Ins. by Act 45 of 2009, s. 7 (w.e.f. 18-1-2010).
10
(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.]
1[(4) If the injury of the 2[employee] results his death, the employer shall, in addit ion to the
compensation under sub -section ( 1), deposit with the Commissioner a sum of 3[two thousand and five
hundred rupees] for payment of the same to the eldest surviving dependant of the 2[employee] towards the
expenditure of the funeral of such 2[employee] or where the2[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.]
4[Provided that the Central Government may, by notification in the Official Gazette, from time to
time, enhance the amount specified in this sub-section.]
5[4A. Compensation to be paid w hen due and penalty for default .—(1) Compensation under
section 4 shall be paid as soon as it falls due.
(2) In cases where the employer does not accept t he 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 2[employee], as the case may be,
without prejudice to the right of the 2[employee] to make any further claim.
6[(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 emplo yer 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 Gover nment 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 exce eding 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.
7[(3A) The interest and the penalty payable under sub -section (3) shall be paid to the 2[employee] or
his dependant, as the case may be.]
5.8[Method of calculating wages .—8***9[In this Act and for the purposes thereof the expression
“monthly wages” means me amount of wages deemed to be payable for a month ’s service (whether the
1. Ins. by Act 30 of 1995, s. 4 (w.e.f.15-9-1995).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
3. Subs. by Act 46 of 2000, s. 3, for “one thousand rupees” (w.e.f.8-12-2000).
4. Ins. by Act 45 of 2009, s. 7 (w. e. f. 18-1-2010).
5. Ins. by Act 8 of 1959, s. 5 (w.e.f.1-6-1959).
6. Subs. by Act 30 of 1995, s. 5 for sub-section (3) (w.e.f.15-9-1995),
7. Subs. by Act 46 of 2000, s. 4, for sub-section (3A) (w.e.f.8-12-2000).
8.The brackets and figure “( 1)” omitted by Act 9 of 1938, s. 4. Earlier section 5 was re-numbered as sub -section (1) of that
section by Act 5 of 1929, s. 3.
9. Subs. by Act 13 of 1939, s. 2 (w.e.f. 30 -6-1934), for “For the purposes of this Act the monthly wages of a workman shall be
calculated”. The words in italics subs. by Act 15 of 1933, s. 5, for “section 4”.
11
wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows,
namely:—
(a) where the 1[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 1[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;
2[(b) where the whole of the continuous period of service immediately preceding the accident
during which the 1[employee] was in the service of the employer who is liable to pay the
compensation was less than one month, the m onthly wages of the 1[employee] shall be 3*** the
average monthly amount which , during the twelve months immediately preceding the accident, was
being earned by a 1[employee] employed on the same work by the same employer, or, if there was no
1[employee] so employed, by a1[employee] employed on similar work in the same locality;]
4[(c)] 5[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.
6* * * * *
Explanation.—A period of service s hall, for the purposes of 7[this 8[section]] be deem ed to be
continuous which has not been interrupted by a period of absence from work exceeding fourteen
days.
9* * * * *
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 1[employee] 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 1[employee] is entitled less any amount which he
has already received by way of half-monthly payments.
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 s uch amount as may be agreed to by the parties or determined by the
Commissioner, as the case may be.
1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
2. Ins. by Act 15 of 1933, s. 5.
3. The words “deemed to be” omitted by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934).
4. Clause (b) relettered as clause (c) by Act 15 of 1933, s. 5.
5. Subs. by Act 8 of 1959, s. 6, for “in other cases” (w.e.f. 1-6-1959).
6. The proviso omitted by Act 15 of 1933, s. 5.
7. Subs. by Act 5 of 1929, s. 3, for “this section”.
8. Subs. by Act 9 of 1938, s. 4, for “sub-section”.
9. Sub-section (2) omitted by Act 15 of 1933, s. 5. Earlier it was added by Act 5 of 1929, s. 3.
12
8. Distribution of compensation .—1[(1) No payment of compensation in respect of a 2[employee]
whose injury has resulted in death, and no payment of a lum p 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:
3[Provided that, in the case of a deceased 2[employee], an employer may make to any dependant
advances on account of compensation 4[of an amount equal to three months ’ wages of such 2[employee]
and so much of such amount] as does not exceed the compensation payable to that depend ant 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 a ny money under sub -section (1) 5[as compensation in respect of a deceased
2[employee] the Commissioner 6*** 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.
7[(5) Compensation deposited in respect of a deceased 2[employee] shall, subject to any deduction
made under sub-section (4), be apportioned among the dependants of the deceased 2[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 a ny 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 unde r a legal disability, the Commissioner may, of his
own motion or on an applicati on made to him in this behalf, o rder that the payment be made during the
disability to any dependant of the employee or to any other person, whom the Commissioner thinks best
fitted to provide for the welfare of the 2[employee].]
8[(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 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 d ealt 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:
1. Subs. by Act 5 of 1929, s. 4, for sub-sections (1) to (3).
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
3. Subs. by Act 15 of 1933, s. 6, for the proviso.
4. Ins. by Act 5 of 1929, s. 4.
5. Subs. by Act 30 of 1995, s. 6, for certain words (w.e.f.15-9-1995).
6. Certain words omitted by Act 30 of 1995, s. 6 (w.e.f.15-9-1995).
7. Subs. by Act 5 of 1929, s. 4, for sub-section (5).
8. Sub-section (6) renumbered as sub-section (8) by Act 5 of 1929, s. 4.
13
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.
1[(9) Where the Commissioner varies any order under sub -section ( 8) b y reason of the fact that
payment of compensation to any person has been obtained b y 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].
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 2[employee] by operation of law,
nor shall any- claim be set off against the same.
10. Notice and claim .—(1) 3[No claim for compensation shall be entertained by a Commissioner
unless notice of the accident has been given in the manner hereinafter provi ded as soon as practicable
after the happening thereof and unless the claim is preferred before him within 4[two years] of the
occurrence of the accident or, in case of death, within 4[two years] from the date of death:]
Provided that, where the accident i s 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 2[employee] was continuously absent from work in conse quence of the
disablement caused by the disease:
5[Provided further that in case of partial disablement due to the contracting of any such disease and
which does not force the 2[employee] to absent himself from work, the period of two years shall be
counted from the day the2[employee]gives notice of the disablement to his employer:
Provided further that if a 2[employee] who, having been employed in an employment for a continuous
period, specified under sub -section ( 2) of section 3 in respect of that employm ent, ceasesto 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:]
6[Provided further that the want of or any defect or irregularity in a no tice shall not be a bar to the
7[entertainment of a claim]—
(a) if the claim is 8[preferred] in respect of the death of a 2[employee] resulting from an accident
which occurred on the premises of the employer, or at any place where the 2[employee] at the time of
the accident was working under the control of - the employer or of any person employed by him, and
the 2[employee] died on such premises or at such place, or on any premises belon ging to the
employer, or died without having left the vicinity of the premises or place where the accident
occurred, or
(b) if the employer 9[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 2[employee] was
1. Ins. by Act 5 of 1929, s. 4.
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010).
3. Subs. by Act 9 of 1938, s. 5, for the original words.
4. Subs. by Act 8 of 1959, s. 8, for “one year” (w.e.f. 1-6-1959).
5. Ins. by Act 64 of 1962, s. 5 (w.e.f. 1-2-1963).
6. Ins. by Act 15 of 1933, s. 7.
7. Subs. by Act 9 of 1938, s. 5, for “maintenance of proceedings”.
8. Subs. by s. 5, ibid.
9. Ins. by s. 5, ibid.
14
employed] had knowledge of the accident from any other source at or about the time when it
occurred:
Provided further, that the Commissioner may 1[entertain] and decide any claim to compensation in
any case notwithstanding that the notice has not been given, or the claim has not been 2[preferred], in due
time as provided in this sub -section, if he is satisfied that the fa ilure so to give the notice of 3[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 persons injured and shall state in
ordinary language the cause for the injury and the date on which the accident happened, and shall be
served on the employer or upon 4[any one of] several employers, or upon any p erson 5*** responsible to
the employer for the management of any branch of the trade or business in which the injured 6[employee]
was employed.
7[(3) The State Government may require that any prescribed class of employers shall maintain at their
premises at which 8[employees] are employed a notice -book, in the prescribed form, which shall be
readily accessible at all reasonable times to any injured 6[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.]
9[10A. Power to require from employers statements regarding fatal accidents .—(1) Where a
Commissioner receives information from any source that a 6[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
workman’s employer requiring him to submit, within thirty days of the service of the notice, a statement,
in the prescribed for m, giving the circumstances attending the death of the 6[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 Commission er, after such enquiry as he may
think fit, may inform any of the dependants of the deceased 6[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. Subs. by Act 9 of 1938, s. 5, for “admit”.
2. Subs. by s. 5, ibid., for “instituted”.
3. Subs. by s. 5, ibid., for “institute”.
4. Subs. by Act 7 of 1924, s. 2 and the First Schedule, for “any one or”.
5. The word “directly” omitted by Act 9 of 1938, s. 5.
6. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010).
7. Subs. by Act 15 of 1933, s. 7, for sub-section (3).
8. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010).
9. Ins. by Act 15 of 1933, s. 8.
15
10B. Reports of fatal accidents and serious bodily injuries .—(1) Where, by any law for the time
being in force, notice is required to be given to any authority, by or on behalf of an employer, of any
accident occurring on his p remises which results in death 1[or serious bodily injury], the person required
to give the notice shall, within seven days of the death 1[or serious bodily injury], send a report to the
Commissioner giving the circumstances attending the death 1[or serious. bodilExcerpt shown. Open the full act in Lexace.