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Nature of liability of an employer to redress problems faced by an employee- Employee's Compensation Act, 1923

Every citizen has the right to social security, which is specifically mentioned in the Constitution of India as well as in various internationally recognized forums such as International Labour Organization, United Declaration of Human Rights amongst others. This social security acts like a safeguard when people suffer with sickness, meet with accidents, enter old age, face sickness, experience maternity, etc. 

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The Employee’s Compensation Act, 1923 was earlier named as the Workmen’s Compensation Act, 1923 aiming at providing compensation to all the employees coming under the ambit of the Act in case of temporary or permanent disability, any other personal injury, contacting any occupational disease or death during the court of employment. 


The Act has laid down various salient features that help in fulfilling the purpose of the Act. The Act very well provides the difference between injuries and occupational disease, along with the requisites that are checked by the authority when a claim for compensation is made. 

In cases, where the dispute is not contested and the employer agrees that there has been any mishap caused to the employee during the course of the employment, he shall- 


  • a. Pay for the medical examination and tests of the employee post receiving a notice in the same regard. The examination shall be free for the employee and help in determining the kind of injury. 

     

    b. In case there has been any sort of temporary disablement to the employee, the employer shall pay directly to the employee in form of monthly wages. 

     

    c. In case of a permanent injury, the amount may be paid to a male about 18 and to the commissioner in the case of women and children. The registration of payments shall be done in time. 

     

    d. If the employer disagrees to pay the compensation, leading to a dispute, the employee can write to the Commissioner stating his problems as appointed by the government for Workman’s Compensation. 

     

    e. However, the application should be made within two years of the occurrence of the accident/injury. 

     

    f. In cases where the personal injury/accident/occupational disease led to the death of the employee, which was caused during his employment, the employer shall pay the compensation to the commissioner and not directly to the dependents or legal representatives. 

     

    g. If the employer refuses from paying, there can be an appeal made as per the prescribed form. 

     

    h. Looking at the nature of the employment, people working the agricultural sector, the ambit of the Act has been extended to those taking up hazardous agricultural activities as well. 

     

    i. These people engaged in the field either operate mechanical vehicles and tractors or healing in clearing out wetland jungles. 

     

    j. They could also be working for taking care of the agricultural by spraying fertilizers, maintaining farms and installing other equipment.   

     

The nature of liability of the employer as understood from the Act would be vicarious nature. The reason why the employer is vicariously liable is because it is due to his demand of employment and completion of work that has led to the occurrence of the accident and personal injury to the employee. 


The employer hence shall only be liable to pay when- 


i. There has been injury suffered by the employee. 

Ii. More than 3 consecutive days 

Iii. Leading to total/partial or temporary/permanent disablement or death or an occupational disease 

iv. During the course of employment 


If the above stated conditions are not met with, the employer cannot be held vicariously liable and hence cannot be bound to pay the compensation. 

 

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