INTRODUCTION The Workmens Compensation Act, 1923 is one of the earliest labour welfare and social security legislation

n enacted in India. It came into force from 1st July, 1924. It aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. It recognizes the fact that if a workman is a victim of accident or an occupational disease in course of his employment, he needs to be compensated. SCOPE, COVERAGE AND APPLICABILITY The Act extends to the whole of India except the States/Union Territories of Arunachal Pradesh, Mizoram, Nagaland, Sikkim and Daman & Diu and Lakshadweep. The Act applies to workers employed in any capacity specified in Schedule II of the Act which includes Factories, Mines, Plantations, Mechanically Propelled Vehicles, Construction Work and certain other Hazardous Occupations and specified categories of Railway Servants. Basically the Act is confined to industries which are more or less organized. The Workmen's Compensation (Amendment) Act, 2000 has brought all the workers within its ambit irrespective of their nature of employment i.e. whether employed on casual basis or otherwise than for the purposes of the employer's trade or business. Casual labourers are also provided compensation for death or disability. The coverage of this act is also to cooks employed in hotels and restaurants. Establishments which are covered by the Employees State Insurance Act, are outside the purview of this Act. EMPLOYERS LIABILITY FOR COMPENSATION
An employer is liable to pay compensation to workman for-

Personal injury by accident- An employer is liable to pay compensation to workman if personal injury is caused to him by accident arising out of & in the course of his employment. Occupational diseases- He is liable to workers employed in certain occupations who are exposed to certain diseases inherent in those occupations. Death- If a workman dies due to the accident while on duty and during the course of his employment with his employer, his dependents are entitled to receive the amount of compensation from his employer.

DISABLEMENT The definition of disablement is very important in this act as it determines the extent of compensation that can be claimed by the worker injured in the course of his employment. Injury caused to a workman by an accident ordinarily results in the loss of the earning capacity of the workman concerned and this loss of earning capacity is technically "disablement". Disablements can be classified as Total and Partial. It can further be classified into Permanent and Temporary. Disablement, is said to be total when it incapacitates a worker for all work he was capable of doing at the time of the accident. Permanent total disablement is when it incapacitates a worker from all kinds of work. Permanent partial disablement reduces the capacity to

work in any employment similar to that the worker was performing at the time of the accident. Temporary disablement this may be total or partial disablement of temporary nature, which reduces the earning capacity of the worker in any similar employment for the period of disablement. AMOUNT OF COMPENSATION The amount of compensation payable to a workman depends on the nature of injury caused by accident, the monthly wages of the workman concerned, and 'relevant factor'. Relevant factor in relation to workman means the factor specified in schedule IV of the Act against the age of the workman. There is no distinction between an adult and a minor worker with respect to the amount of compensation. Compensation for Death: Where death results from an injury, the amount of compensation shall be equal to 50 percent of the monthly wages of the deceased workman multiplied by the relevant factor, or Rs. 85,000 whichever is more. Compensation for Permanent Total Disablement: Where permanent total disablement results from an injury, the amount of compensation payable shall be equal to 60 percent of the monthly wages of the injured workman multiplied by the relevant factor, or Rs. 90,000, whichever is more. In case of partial permanent disablement: The compensation is a percentage of that payable in the case of total permanent disablement. The earning capacity is determined by a qualified medical practitioner. In case of (total or partial) temporary disablement A sum equal to 25% of the monthly wages of the workman shall be paid half-monthly. COMPENSATION NOT PAYABLE the employer shall not be liable to pay compensation in the following cases: if the injury did not result in total or partial disablement of a workman for a period exceeding three days, if the workman was at the time of the accident under the influence of drink of drug, or if the workman willfully disobeyed an order expressly given or a rule expressly framed for the purpose of securing safety of workman, or If the workman willfully removed or disregarded any safety guard or other device which to his knowledge was provided for the purpose of securing his safety.