The Employee’s Compensation Act, 1923

The Employee’s Compensation Act is one of the most important social security legislations in India. The Act provides financial protection to employees and their dependents through compensation in case of any accidental injury occurs during employment, which results in either death or disablement of the worker. Section 3 of the Act makes an employer responsible for paying compensation to the employee under the following circumstances: 

(1) Personal injury by accident- An employer is responsible for paying compensation to workman if personal injury is let to him by accident arising out during his employment. 

(2) Occupational diseases- workers employed in certain occupations are exposed to certain diseases which are inherent in that occupation. 

An employer who is not liable for paying compensation to workers under the following conditions: (a) In case of any injury which does not result in the partial or total disablement of the workers for a period exceeding three days. (b) In case of any injury, not resulting in death or permanent total disablement, caused by an accident which is directly attributable to the following: 

  • The workman present at the time thereof under the influence of drink or drugs. 
  • The intentional disobedience of the workman to an order expressly given, or to a rule framed, to secure the safety of workers, 
  • The wilful removal or disregard by the workman of any safety guard or other devices which he knew to have been provided for securing the safety of workers. 

Section 4 of the Act provides for an appropriate amount of compensation to be received by an employee as per the conditions. The Act also deals with several matters arising out of compensation, such as, commutation of half-monthly payments, distribution of compensation, Notice and claim, medical examination, etc

The full text of the law and its provisions can be accessed here: