Employer’s Liability and Non- liability this topic deals with the when the employer liable to pay compensation, what the nature of injuries to be compensate, employees also pay compensation for occupational diseases, some essential fact need to be proved for getting compensation, amount of compensation not same for all injuries, different amount of compensation fixed for different injuries and time period is fixed for claiming compensation and some limitation also given like compensation not directly given to employee or his heirs. This topic also include who will receiving the amount of compensation on the behalf of deceased and when the liability of employer is not made.

The Employee’sCompensationAct,1923 (Formerly called as the Workmen’s Compensation Act,1923).
This Act is a piece of social security and welfare legislation for employee. This act help the employer to recognise the onus towards his employee and make responsible against the loss caused by the injuries and death while the employee was engaged in his work. This Act not only protect the interest of employee but also employer. This Act applies to any person who is employed otherwise than in a clerical capacity, in railways, factories, mines, plantations, mechanically propelled vehicles, loading and uploading work on ship, construction, maintenance and repairs of roads and bridges, electricity generation, cinema catching or trading of wild elephants, circus and other hazardous occupation and other employment specified in Schedule II to the Act.

Aim and Objectives of this Act:
The “Employees Compensation Act, 1923” is an Act to provide payment in the form of compensation by the employers to the employees for any injuries they have suffered during an accident. Earlier this Act was known as the Workmen Compensation Act, 1923. When the employer is not liable to pay compensation-

  1. Its first and foremost aim to provide compensation in case of accidents arises out in the course of employment.
  2. It imposestatutory liability on employer for injuries suffered by workman and employees out in the course of employment.
  3. This Act sets guidelines for employers to provide compensation for workers and their families in case of employment -related injuries that result in death or disability.
  4. The Act also provides minimum and maximum rate for workers’ compensation payable for death and disability. These minimum rates have been fixed over time various amendments over the year.
  5. This Act specified the amount of compensation in case of death, permanent total disablement, partial disablement and Temporary Compensation.

Employer’s Liability to pay Compensation:
Employee Compensation is the insurance coverage given by an employer to his employees.The Employee’s Compensation Act aim to provide employee and /or dependents some relief in case of accidents arising out in the course of employment and causing either death or disablement of employees. It’sprovidefor payment by employers to their employees, compensation for injury by accident. There must be causal connection between the injury and the accident and the work done in the course of employment.
The scheme of the Act is not to compensate the employee in lieu of wages. the general principle is that a employee who suffer an injury in the course of his employment, which results in a disablement, should be entitled to compensation and in the case of fatal injury his dependents should compensated.
Nature of injuries to be Compensated:
Under this Act, there are four types of eventualities, which can be compensated-

  1. Death
  2. Permanent total disablement – disablement that incapacitates a worker from all kind of work.
  3. Permanent Partial disablement – disablement that reduces the capacity to do work in the employment similar to that the worker was performing at the time of accident.
  4. Temporary disablement- This may be total or partial disablement, which is temporary in nature, which reduces the earning capacity of the worker in any similar employment for the period of disablement.
    When Employer liable to pay Compensation:
    According to Section 3of the Employee’s Compensation Act, 1923 an employer is liable to pay compensation-
    (1) If personal injury is caused to aemployee by accident arising out of and in the course of employment;
    (2) If a employee employed in any employment contracts any disease, specified in the Act as an occupational disease peculiar to that employment.
    Occupational disease- An occupational disease while in service, is a diseases that inflicts employees in that particular occupation in which he was employed in that particular occupation in which he was employed in the resulting from exposure to a hazardous working atmosphere, particular to that employment. If a employee contracts such a disease then the employer is liable to pay compensation provided that the employee was employed by him for continuous period of 6 months.
    Some occupational diseases are:
    • Infectious and parasitic diseases contracted in an occupation where there is particular risk of contamination.
    • Diseases caused by work compressed air.
    • Diseases caused by lead or its toxic compounds.
    • Poisoning by nitrous fumes.
    • Poisoning by organo phosphorus or its toxic compounds.

The Employee’s Compensation Act,1923 is a very old legislation it’s not only provide protection to employees but also give defence to employers. By this way the act makes both employee and employer more responsible towards his work and accountability. This legislation recognizes the fact that, if employee is a victim of accident or occupational diseases in course of employment, he needs to compensated. This Act impose an obligation upon the employers towards employees to pay compensation if any mishappening occur during the course of employment. This Act aim to provide security and monetary support to employee and his family.

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