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Introduction and Definitions of Workmen’s Compensation Act, 1923
Business Environment and Law-Workmen’s Compensation Act, 1923
Introduction and Definitions of Workmen’s Compensation Act, 1923
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The Workmen’s Compensation Act, 1923, was the first social security measure introduced in India prior to independence.
Introduction
The Workmen’s Compensation Act, 1923, was the first social security measure introduced in India prior to independence. The statement of objects and reasons appended to the Bill at the time of its introduction clearly indicates the need to protect workmen from hardship arising from accidents due to the complexity of modern industry.
The Act considers compensation payable by an employer to his workmen in the case of an accident as a measure of relief and social security. It enables a workman to get compensation irrespective of his negligence. It also lays down the various amounts payable in case of an accident depending upon the type and extent of injury. The employer now knows the amount of compensation he has to pay and is saved of many uncertainties to which he was subject before the Act came into force.
Accordingly, payment of compensation is the main object of the Act. But yet, it seeks to reduce the number of accidents, mitigates the effect of accidents by providing suitable medical treatment, makes the industry more attractive to labour, increases labour efficiency and provides for a cheaper and quicker disposal of disputes relating to compensation, through special tribunals.
Definitions
Section 2 gives the definitions of the terms used in the Act. Some of the important definitions are as follows:
Employer includes –
1. Any body of persons whether incorporated or not;
The Workmen’s Compensation Act, 1923, was the first social security measure introduced in India prior to independence. The statement of objects and reasons appended to the Bill at the time of its introduction clearly indicates the need to protect workmen from hardship arising from accidents due to the complexity of modern industry.
Object And Scope Of The Act
The Act considers compensation payable by an employer to his workmen in the case of an accident as a measure of relief and social security. It enables a workman to get compensation irrespective of his negligence. It also lays down the various amounts payable in case of an accident depending upon the type and extent of injury. The employer now knows the amount of compensation he has to pay and is saved of many uncertainties to which he was subject before the Act came into force.
Accordingly, payment of compensation is the main object of the Act. But yet, it seeks to reduce the number of accidents, mitigates the effect of accidents by providing suitable medical treatment, makes the industry more attractive to labour, increases labour efficiency and provides for a cheaper and quicker disposal of disputes relating to compensation, through special tribunals.
Definitions
Section 2 gives the definitions of the terms used in the Act. Some of the important definitions are as follows:
Employer [Sec.2(1)(e)]
Employer includes –
1. Any body of persons whether incorporated or not;
2. Any managing agent of an employer; and
3. The legal representative of a deceased employer.
4. Any person to whom the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship.
The definition of the term ‘employer’ is not exhaustive. It includes a contractor also. Whether a person, is an employer or not, is a question of fact depending on the facts of a particular case.
‘Workman’ means any person who is –
3. The legal representative of a deceased employer.
4. Any person to whom the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship.
The definition of the term ‘employer’ is not exhaustive. It includes a contractor also. Whether a person, is an employer or not, is a question of fact depending on the facts of a particular case.
Workman [Sec.2(1)(n)]:
‘Workman’ means any person who is –
I. A railway servant as defined in
Sec.3(34) of the Railways Act, 1989, who is 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, or
II. Employed in any such capacity as is specified in Schedule II.
But ‘workman’ does not include –
administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or
II. Employed in any such capacity as is specified in Schedule II.
But ‘workman’ does not include –
iii. A person whose employment is of a
casual nature, and who is employed in work not connected with the employer’s
trade or business;
iv. Any person working in the capacity of a member of naval, military or air force.
According to Sec.2(1)(m), the term “Wages” include any privilege or benefit which is capable of being estimated in money, other than a traveling allowance or the value of any traveling concession or a contribution paid by the employer of a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment.
iv. Any person working in the capacity of a member of naval, military or air force.
Wages
According to Sec.2(1)(m), the term “Wages” include any privilege or benefit which is capable of being estimated in money, other than a traveling allowance or the value of any traveling concession or a contribution paid by the employer of a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses entailed on him by the nature of his employment.
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