The Workmen Compensation act is an important act for all people who are going to set up factories in manufacturing sector.

1. By
Banu Sujith
Bizcraft Solutions

2.  The Workmen’s Compensation Act, 1923 provides for
payment of compensation to workmen and their
dependants in case of injury and accident (including
certain occupational disease) arising out of and in the
course of employment and resulting in disablement or
death.

3.  The Workmen Compensation Act, 1923 extends to
whole of India.
 It applies to workmen employed in factories, mines,
plantations, mechanically propelled vehicles,
construction works and certain other hazardous
occupations in any such capacity as is specified in
schedule II of the Act.
 Persons recruited for working abroad.
 Person recruited as driver, helper, mechanic,
cleaner(connection with motor vehicle) and crew of an
aircraft.

4.  Employer – Any body of persons whether incorporated or not;
Any managing agent of an employer; The legal representative of a
deceased employer
 “Employee" is a general reference to anyone employed as
provided in different act and outside of the act has no particular
significance beyond that. “Worker" is defined under the Factories
Act and includes virtually everyone who enters the factory
premises. "Workman" is defined under the Industrial Disputes
Act and specific import for labor legislation. So depending upon
the issue on hand, one will have to look in to the concerned to
learn about the rights and obligations of the subject individual.
 Workmen- 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; a master, seaman or other member of a crew, etc; It
does not include a person whose employment is of casual nature.

5.  Dependants means any of the following relatives of a deceased
workman, namely:
i) A widow a minor (legitimate or adopted) son and unmarried
(legitimate or adopted) daughter or a widowed mother
ii) If wholly dependant on the earnings of the workman at the time of
death, son or a daughter who attained age 18 yrs and infirm
iii) If wholly or in part dependant on the earnings of the workman 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 married
daughter (legitimate, illegitimate or adopted) 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 workman is alive.

6.  The workmen’s compensation policy is the primary
method by which employers can show their ability to
satisfy the obligations imposed by the worker’s
compensation statutes. As employers pay for this
insurance, no contribution is required to be made by
employees.

8.  Legal liability coverage
 Vocational rehabilitation
expenses
 Covers for occupational
diseases
 Calculation of income lost
and corresponding
compensation
 Inclusion of special covers
 Comprehensive inclusion
of all employees
 Injured employees or their
family get the timely
monetary compensation

9. Eligibility Non Eligibility
 Employer must be covered
by Worker’s compensation
 You must be an Employee
 Injury or Illness must be
work-related
 Reporting and filling
deadlines
 Domestic workers
 Agricultural and farm
workers
 Leased or loaned employees
 Casual or seasonal workers
 Undocumented workers

10.  These sections provides for appointment of
commissioners for the enforcement of provisions of
the Act.
 Sec 20 authorizes the State Government to appoint
commissioners under the Act.

11. (1) Whoever -
 (a) fails to maintain a notice-book which he is required to maintain
under sub-section (3) of section 10 or
 (b) fails to send to the Commissioner a statement which he is required
to send under sub-section (1) of section 10A or
 (c) fails to send a report which he is required to send under section 10B
or
 (d) fails to make a return which he is required to make under section 16
shall be punishable with fine which may extend to five thousand
rupees.
(2) No prosecution under this section shall be instituted except by or with
the previous sanction of a Commissioner and no Court shall take
cognizance of any offence under this section unless complaint thereof
is made within six months of the date on which the alleged commission
of the offence came to the knowledge of the Commissioner.