EMPLOYEES COMPENSATION AMENDMENT ACT, 2017

S.1 Short title and commencement

(1) This Act may be called the Employee's Compensation (Amendment) Act, 2017.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

S.2 Insertion of new section 17A

In the Employee's Compensation Act, 1923, (8 of 1923) (hereinafter referred to as the principal Act), after section 17, the following section shall be inserted, namely:-
"17A. Duty of employer to inform employee of his rights : Every employer shall immediately at the time of employment of an employee, inform the employee of his rights to compensation under this Act, in writing as well as through electronic means, in English or Hindi or in the official language of the area of employment, as may be understood by the employee.".

S.3 Amendment of section 18A

       In the principal Act, in section 18A, in sub-section (1),-
       (i) in clause (d), for the word and figures "section 16,", the words and figures
       "section 16, or" shall be substituted;
       (ii) after clause (d), the following clause shall be inserted, namely:-
       "(e) fails to inform the employee of his rights to compensation as required under section 17A,";
       (iii) in the long line, for the words "which may extend to five thousand rupees", the words "which shall not be less than fifty thousand rupees but which may extend to one lakh rupees" shall be substituted.

Legal Commentary on Employees' Compensation Amendment Act, 2017 - Section 3

Introduction

Section 3 of the Employees' Compensation Amendment Act, 2017, primarily codifies the employer's liability for compensation in cases of personal injury caused during the course of employment. The 2017 amendments aimed to strengthen the rights of employees and streamline the process for claiming compensation, including the obligation of employers to inform employees of their rights.

What does Section 3 Say

Section 3 mandates that if personal injury is caused to an employee by an accident arising out of and in the course of employment, the employer shall be liable to pay compensation. It also emphasizes that the liability is absolute, regardless of negligence, and includes provisions for penalties and interest in case of default. The section further reinforces the employer's duty to inform employees of their rights to compensation at the time of employment.

Essential Ingredients

Personal injury caused by accident: The injury must be directly attributable to an accident.
Arising out of employment: The injury must be linked to the employment connection.
In the course of employment: The injury must occur during the period of employment and related activities.
Liability of employer: Absolute liability, irrespective of fault or negligence.
Obligation to inform: Employers must immediately inform employees of their rights under the Act.
Penalties and interest: Penalties for default and interest on delayed payments are prescribed.

Scope of Section

Applies to all persons employed in any capacity other than clerical, including casual and contract workers, following the 2000 amendments.
Covers injuries caused by accidents during work or while traveling in connection with employment.
Extends to injuries resulting from acts of third parties if linked to employment.
Imposes a duty on employers to inform employees of their rights immediately at the time of employment.
Includes provisions for penalties for non-compliance and default.

Punishment for Section

Penalties for employers: Non-compliance with the obligation to inform employees may attract fines, which can extend to Rs. 50,000 or more, depending on the severity and nature of violation [, "KARNATAKA EMPLOYERS' ASSOCIATION"]].
Imprisonment: In certain cases of willful default or violation, imprisonment for up to six months or fine up to Rs. 500 may be imposed.
Penalties for false claims or raising false defenses: Under Section 209 IPC and related provisions, penalties may include imprisonment or fines.

Legal Comments

"Employer liability" - Section 3 establishes strict liability of the employer for injuries during employment, reinforcing the principle that fault is not a precondition for compensation [, "The Employee's Compensation Act, 1923"].
"Arising out of and in the course of employment" - The scope includes injuries caused during work, travel, or incidental activities, broadening the employer's liability [["Branch Manager, United India Insurance Co. Ltd. , Vellore VS Basheer"], "Sivaraman case"].
"Absolute liability" - The section emphasizes that employer's liability is absolute, even if negligence is absent, aligning with the principle of social justice [, "Employer's Liability (Section 3)"].
"Obligation to inform" - The 2017 amendment mandates employers to immediately inform employees of their rights in writing, ensuring awareness and facilitating claims [, "Amendments to Employees' Compensation Act, 1923"]].
"Penalty for non-compliance" - Employers failing to inform employees or defaulting on payments are subject to fines and penalties, promoting compliance [, "Section 17A, Amended"]].
"Coverage of casual workers" - The 2000 amendments broadened coverage to casual and non-permanent workers, ensuring wider protection [["Shri Krishan VS Jasoda Devi"], "Govind Goenka v. Dayawati"]].
"Employer's strict liability" - The Act imposes strict liability, meaning fault or negligence is not a prerequisite for liability, reflecting the social welfare approach [, "Employer's Liability (Section 3)"]].
"Employer's duty to inform" - The employer's statutory duty to inform employees about their rights is crucial for effective enforcement of the Act [, "Amendment Act, 2017"]].
"Interest and penalties" - Section 4A(3) provides for interest at 12% per annum from the date of the accident if compensation is delayed, incentivizing timely payments [["National Insurance Company Ltd. VS Seema Devi"], "Section 4A(3)"]].
"Legal reinforcement" - The 2017 amendments strengthen legal provisions for penalties, including imprisonment and fines, to deter violations [, "Amendments to Employees' Compensation Act, 1923"]].
"Scope expansion" - The amendments extend coverage to a broader class of workers, including casual and contract workers, ensuring social justice [["Shri Krishan VS Jasoda Devi"], "Govind Goenka v. Dayawati"]].
"Employer's liability for third-party acts" - The section covers injuries caused by third parties if linked to employment activities, expanding employer liability [["Branch Manager, United India Insurance Co. Ltd. , Vellore VS Basheer"], "Employer-employee relationship"].
"Injury during travel" - Injuries occurring during travel in connection with employment are covered, emphasizing comprehensive protection [["General Manager, Katras Area of M/s Bharat Coking Coal Ltd. (wrongly described as West Modidih Colliery) vs Sarsatia Devi widow of Late Banshi Beldar"], "Causal connection"].
"Employer's obligation at employment" - Employers must inform employees about their rights immediately at the start of employment, which is enforceable [, "Amendment Act, 2017"]].
"Penalties for false claims" - Raising false claims or defenses can lead to criminal penalties under IPC and the Act, ensuring integrity in claims [["Amna Begum VS Ram Prakash Singh"], "Section 209 IPC"]].
"Retrospective application" - The amendments are generally prospective, but their impact on past injuries is limited, respecting legal principles of non-retroactivity [["02600011201"], "Sivaraman case"]].

Conclusion

Section 3 of the Employees' Compensation Amendment Act, 2017, reaffirms the employer's strict liability for injuries arising out of and during the course of employment, broadens coverage to include casual and contractual workers, and imposes a duty on employers to inform employees of their rights. The amendments aim to strengthen social justice, ensure timely compensation, and enforce penalties for violations, aligning with the welfare-oriented spirit of the legislation.

Note: The references are based on the provided sources, and the commentary synthesizes legal principles, case law, and statutory amendments to provide a comprehensive analysis.

S.4 Amendment of section 30

In the principal Act, in section 30, in sub-section (1), in the first proviso, for the words "three hundred rupees", the words "ten thousand rupees or such higher amount as the Central Government may, by notification in the Official Gazette, specify" shall be substituted.

S.5 Omission of section 30A

Section 30A of the principal Act shall be omitted.