Workmen Compensation Act
Workmen’s Compensation Act, 1923
This provides for compensation to workmen or their survivors in cases of industrial accidents and occupational diseases, resulting in disablement or death. The Act was recently amended and renamed as Employee Compensation Act, 1923. It covers persons employed in factories, mines, plantations, mechanically propelled vehicles, construction works and certain other hazardous occupations listed out in schedule II of the Act.
In addition, schedule III contains a list of diseases and persons in occupations where infection is possible. Qualifying persons are eligible to claim compensation under this Act. This law applies to the unorganized sectors and to those in the organized sectors who are not covered by the Employees State Insurance Scheme. The Act is administered by the State Governments through Commissioners for Workmen’s Compensation. The Commissioner is required to dispose of the matter relating to compensation within 3 months of reference.
Minimum Compensation in case of death is Rs. 120,000 and in the case of permanent total disablement is Rs. 140,000. The monthly wage ceiling is at present Rs.8, 000. Maximum compensation can go up to 50% of the monthly wage multiplied by relevant age factor as specified in the act.
Compensation should be paid early. Delay beyond 1 month will attract interest and penalty of up to 50% of the compensation. Certain other offenses attract fine of up to Rs. 5,000.In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts.
Employer is not liable in case the disablement of workman is three or less days, except in case of death when the injury is caused due to influence of drink or drug taken by the workman or upon his willful disobedience to obey safety rules or removal of safety guards by him.
Maternity Benefit Act, 1961
The Maternity Benefit Act, 1961 (MBA) regulates the employment of women in certain establishments for a prescribed period before and after childbirth and provides certain other benefits, including leave, to a woman who has undergone miscarriage, illness arising from pregnancy, and delivery and/or premature birth of a child. This is applicable for organizations not covered under ESI Act.
The Act provides for 12 weeks of paid leave as maternity leave and 6 weeks in case of miscarriage or termination of pregnancy. In addition to the provisions for leave and cash benefits, the Act also makes provisions for matters like light work for pregnant women 10 weeks prior to her delivery, nursing breaks during daily work till the child attends age of 15 months, etc.
The female employee should have served the institution for a minimum period of 80 days in 12 months preceding the date of expected delivery. The benefits are calculated on the basis of daily average wage for the period of absence of the employee. There is no wage limit for coverage under the Act.
The Payment of Gratuity Act, 1972 (PGA)
It provides for the payment of gratuity to all employees earning wages to do any skilled, semi-skilled, unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such employees are employed in a managerial or administrative capacity.
It applies to factories and other establishments employing ten or more persons. On completion of five years service, the employees are entitled to payment of gratuity of 15 days wages for every completed year of service or part thereof in excess of six months subject to a maximum of Rs.1 million. The wage ceiling for coverage under the Act has been removed since 24.05.1994.
