The workmen's compensation act, 1923

S.1 Short title, extent and commencement.

(1) This Act may be called the ¹[Employee's] Compensation Act, 1923.

²[(2) It extends to the whole of India ³***.]

(3) It shall come into force on the first day of July, 1924.

S.2 Definitions.

(1) In this Act, unless there is anything repugnant in the subject or context,--

¹* * * ¹[3. Employer's liability for compensation.--(1) If personal injury is caused to a ²[employee] by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions of this Chapter:

Provided that the employer shall not be so liable--

(a) in respect of any injury which does not result in the total or partial disablement of the ²[employee] for a period exceeding ³[three] days;

(b) in respect of any ⁴[injury, not resulting in death ⁵[or permanent total disablement], caused by] an accident which is directly attributable

S.4 Amount of compensation.

²[4. Amount of compensation.--(1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely:--

(a) where death results from the injury an amount equal to ³[fifty per cent.] of the monthly wages of the deceased ¹[employee] multiplied by the relevant factor; or an amount of ⁴[one lakh and twenty thousand rupees], whichever is more;

(b) where permanent total disablement results from the injury an amount equal to ⁵[sixty per cent.] of the monthly wages of the injured ¹[employee] multiplied by the relevant factor; or an amount of ⁶[one lakh and forty thousand rupees],whichever is more:

²[4A. Compensation to be paid when due and penalty for default.--(1) Compensation under section 4 shall be paid as soon as it falls due.

(2) 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, and, such payment shall be deposited with the Commissioner or made to the¹[employee], as the case may be, without prejudice to the right of the ¹[employee] to make any further claim.

³[(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall--

(a) direct that th

S.5 Method of calculating wages.

5. ¹[Method of calculating wages.--¹*** ²[In this Act and for the purposes thereof the expression "monthly wages" means me amount of wages deemed to be payable for a month's service (whether the wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows, namely:--

(a) where the ³[employee] has, during a continuous period of not less than twelve months immediately preceding the accident, been in the service of the employer who is liable to pay compensation, the monthly wages of the ³[employee] shall be one-twelfth of the total wages which have fallen due for payment to him by the employer in the last twelve months of that period;

⁴[(b)

S.6 Review.

(1) Any half-monthly payment payable under this Act, either under an agreement between the parties or under the order of a Commissioner, may be reviewed by the Commissioner, on the application either of the employer or of the ¹[employee] accompanied by the certificate of a qualified medical practitioner that there has been a change in the condition of the ¹[employee] or, subject to rules made under this Act, on application made without such certificate.

(2) Any half-monthly payment may, on review under this section, subject to the provisions of this Act, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent disablement, be converted to the lump sum to which the ¹[employee] is entitled less any amount which he has already received by way of half-monthly payments.

S.7 Commutation of half-monthly payments.

Any right to receive half-monthly payments may, by agreement between the parties or, if the parties cannot agree and the payments have been continued for not less than six months, on the application of either party to the Commissioner be redeemed by the payment of a lump sum of such amount as may be agreed to by the parties or determined by the Commissioner, as the case may be.

S.8 Distribution of compensation.

⁷⁴[(1) No payment of compensation in respect of a ²[employee] whose injury has resulted in death, and no payment of a lump sum as compensation to a woman or a person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no such payment made directly by an employer shall be deemed to be a payment of compensation:

³[Provided that, in the case of a deceased ²[employee], an employer may make to any dependant advances on account of compensation ⁴[of an amount equal to three months' wages of such ²[employee] and so much of such amount] as does not exceed the compensation payable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer.]

(2) Any other su

S.9 Compensation not to be assigned, attached or charged.

Save as provided by this Act, no lump sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or charged or be liable to attachment or pass to any person other than the ¹[employee] by operation of law, nor shall any- claim be set off against the same.

S.10 Notice and claim.

(1) ²[No claim for compensation shall be entertained by a Commissioner unless notice of the accident has been given in the manner hereinafter provided as soon as practicable after the happening thereof and unless the claim is preferred before him within ³[two years] of the occurrence of the accident or, in case of death, within ³[two years] from the date of death:]

Provided that, where the accident is the contracting of a disease in respect of which the provisions of sub-section (2) of section 3 are applicable, the accident shall be deemed to have occurred on the first of the days during which the ¹[employee] was continuously absent from work in consequence of the disablement caused by the disease:

⁴[Provided further that in case of part

S.10A Power to require from employers statements regarding fatal accidents.

²[10A. Power to require from employers statements regarding fatal accidents.--(1) Where a Commissioner receives information from any source that a¹[employee] has died as a result of an accident arising out of and in the course of his employment, he may send by registered post a notice to the workman's employer requiring him to submit, within thirty days of the service of the notice, a statement, in the prescribed form, giving the circumstances attending the death of the ¹[employee], and indicating whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the death.

(2) If the employer is of opinion that he is liable to deposit compensation, he shall make the deposit within thirty days of the service of the notice.

(3) If the employer is of opinion

S.10B Reports of fatal accidents and serious bodily injuries.

¹[10B. Reports of fatal accidents and serious bodily injuries.--(1) Where, by any law for the time being in force, notice is required to be given to any authority, by or on behalf of an employer, of any accident occurring on his premises which results in death ¹⁰⁰[or serious bodily injury], the person required to give the notice shall, within seven days of the death ¹⁰⁰[or serious bodily injury], send a report to the Commissioner giving the circumstances attending the death ¹⁰⁰[or serious. bodily injury]:

Provided that where the State Government has so prescribed the person required to give the notice may instead of sending such report to the Commissioner send it to the authority to whom he is required to give the notice.

¹⁰⁰

S.11 Medical examination.

(1) Where a ¹[employee] has given notice of an accident, he shall, if the employer, before the expiry of three days from the time at which service of the notice has been effected, offers to have him examined free of charge by a qualified medical practitioner, submit himself for such examination, and any ¹[employee] who is in receipt of a half monthly payment under this Act shall, if so required, submit himself for such examination from time to time:

Provided that a ¹[employee] shall not be required to submit himself for examination by a medical practitioner otherwise than in accordance with rules made under this Act, or at more frequent intervals than may be prescribed.

(2) If a ¹[employee], on being required to do so by the employer under sub-section

S.12 Contracting.

(1) Where any person (hereinafter in this section referred to as the principal) in the course of or for the purposes of his trade or business contracts with any other person (hereinafter in this section referred to as the contractor) for the execution by or under the contractor of the whole or any part of any work which is ordinarily part of the trade or business of the principal, the principal shall be liable to pay to any¹[employee] employed in the execution of the work any compensation which he would have been liable to pay if that ¹[employee] had been immediately employed by him; and where compensation is claimed from the principal, this Act shall apply as if references to the principal were substituted for references to the employer except that the amount of compensation shall be calculated with reference to the wages of the¹[employee] under the employer by whom he is immediately employed.

S.13 Remedies of employer against stranger.

Where a ¹[employee] has recovered compensation in respect of any injury caused under circumstances creating a legal liability of some person other than the person by whom the compensation was paid to pay damages in respect thereof, the person by whom the compensation was paid and any person who has been called on to pay an indemnity under section 12 shall be entitled to be indemnified by the person so liable to pay damages as aforesaid.

S.14 Insolvency of employer.

(1) Where any employer has entered into a contract with any insurers in respect of any liability under this Act to any ¹[employee], then in the event of the employer becoming insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a company, in the event of the company having commenced to be wound up, the rights of the employer against the insurers as respects that liability shall, notwithstanding anything in any law for the time being in force relating to insolvency or the winding up of companies, be transferred to and vest in the ¹[employee], and upon any such transfer the insurers shall have the same rights and remedies and be subject to the same liabilities as if they were the employer, so, however, that the insurers-shall not be under any greater liability to the ²[employee] than they would have been under to the employer.

¹[14A. Compensation to be first charge on assets transferred by employer.--Where an employer transfers his assets before any amount due in respect of any compensation, the liability where for accrued before the date of the transfer, has been paid, such amount shall, notwithstanding anything contained in any other law for the time being in force, be a first charge on that part of the assets so transferred as consists of immovable property.]

S.15 Special provisions relating to masters and seamen.

This Act shall apply in the case of ¹[employees] who are masters of ²*** ships or seamen subject to the following modifications namely:--

(1) The notice of the accident and the claim for compensation may, except where the person injured is the master of the ship, be served on the master of the ship as if he were the employer, but where the accident happened and the disablement commenced on board the ship it shall not be necessary for any seaman to give any notice of the accident.

(2) In the case of the death of a master or seaman, the claim for compensation shall be made within ³[one year] after the news of the death has been received by the claimant or, where the ship has been or is deemed to have been lost with all han

S.15A Special provisions relating to captains and other members of crew of aircrafts.

¹[15A. Special provisions relating to captains and other members of crew of aircrafts.--This Act shall apply in the case of ²[employees] who are captains or other members of the crew of aircrafts subject to the following modifications, namely:--

(1) The notice of the accident and the claim for compensation may, except where the person injured is the captain of the aircraft, be served on the captain of the aircraft as if he were the employer, but where the accident happened and the disablement commenced on board the aircraft it shall not be necessary for any member of the crew to give notice of the accident.

(2) In the case of the death of the captain or other member of the crew, the claim for compensation shall be made withi

S.15B Special provisions relating to employees abroad of companies and motor vehicles.

¹[15B. Special provisions relating to ²[employees] abroad of companies and motor vehicles.--This Act shall apply--

(i) in the case of ²[employees] who are persons recruited by companies registered in India and working as such abroad, and

(ii) persons sent for work abroad along with motor vehicles registered under the Motor Vehicles, Act, 1988 (59 of 1988) as drivers, helpers, mechanics, cleaners or other ³[employees], subject to the following modifications, namely:--

(1) The notice of the accident and the claim for compensation may be served on the local agent of the

S.16 Returns as to compensation.

The ²[State Government] may by notification in the Official Gazette, direct that every person employing ¹[employees], or that any specified class of such persons, shall send at such time and in such form and to such authority, as may be specified in the notification, a correct return specifying the number of injuries in respect of which compensation has been paid by the employer during the previous year and the amount of such compensation together with such other particulars as to the compensation as the ²[State Government] may direct.

S.17 Contracting out.

Any contract or agreement whether made before or after the commencement of this Act, whereby a ¹[employee] relinquishes any right of compensation from the employer for personal injury arising out of or in the course of the employment, shall be null and void in so far as it purports to remove or reduce the liability of any person to pay compensation under this Act.

S.17A Duty of employer to inform employee of his rights.

¹[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.18 [Repealed.].

[Proof of age.] Rep. by the Workmen's Compensation (Amendment) Act, 1959 (8 of 1959), s. 12 (w.e.f. 1-6-1959).

S.18A Penalties.

¹[18A. Penalties.--(1) Whoever--

(a) fails to maintain a notice-book which he is required to maintain under sub-section (3) of section 10, or

(b) fails to send to the Commissioner a statement which he is required to sent under sub-section (1) of section 10A, or

(d) fails to make a return which he is required to make under ²[section 16, or]

S.19 Reference to Commissioners.

(1) If any question arises in any proceedings under this Act as to the liability of any person to pay compensation (including any question as to whether a person injured is or is not a ¹[employee]) or as to the amount or duration of compensation (including any question as to the nature or extent of disablement), the question shall, in default of agreement, be settled by ²[a Commissioner].

(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question which is by or under this Act required to be settled, decided or dealt with by a Commissioner or to enforce any liability incurred under this Act.

S.20 Appointment of Commissioners.

(1) The State Government may, by notification in the Official Gazette, ¹[who is or has been a member of a State Judicial Service for a period of not less than five years or is or has been for not less than five years an advocate or a pleader or is or has been a Gazetted Officer for not less than five years having education qualifications and experience in personnel management, human resource development and industrial relations] appoint any person to be a Commissioner for Workmen's Compensation for such ²*** area as may be specified in the notification.

³[(2)] Where more than one Commissioner had been appointed for any ⁴*** area, the State Government may, by general or special order, regulate the distribution of business between them.]

⁵[(3)] Any Commissioner may, for the pu

S.21 Venue of proceedings and transfer.

¹[(1) Where any matter is under this Act to be done by or before a Commissioner, the same shall, subject to the provisions of this Act and to any rules made hereunder, be done by or before the Commissioner for the area in which--

(a) the accident took place which resulted in the injury; or

(b) the ²[employee] or in case of his death, the dependant claiming the compensation ordinarily resides; or

Provided that no matter shall be processed before or by a Commissioner, other than the Commissioner having jurisdict

S.22 Form of application.

¹[(1) Where an accident occurs in respect of which liability to pay compensation under this Act arises, a claim for such compensation may, subject to the provisions of this Act, be made before the Commissioner.

(1A) Subject to the provisions of sub-section (1), no application for the settlement] of any matter by a Commissioner, ²[other than an application by a dependant or dependants for compensation] shall be made unless and until some question has arisen between the parties in connection therewith which they have been unable to settle by agreement.

(2) ³[An application to a Commissioner] may be made in such form and shall be accompanied by such fee, if any, as may be prescribed, and shall contain, in addition to any particulars which may be prescribed, the following particulars, namely:--

S.22A Power of Commissioner to require further deposit in cases of fatal accident.

¹[22A. Power of Commissioner to require further deposit in cases of fatal accident.--(1) Where any sum has been deposited by an employer as compensation payable in respect of a ²[employee] whose injury has resulted in death, and in the opinion of the Commissioner such sum is insufficient, the Commissioner may, by notice in writing stating his reasons, call upon the employer to show cause why he should not make a further deposit within such time as may be stated in the notice.

(2) If the employer fails to show cause to the satisfaction of the Commissioner, the Commissioner may make an award determining the total amount payable, and requiring the employer to deposit the deficiency.]

S.23 Powers and procedure of Commissioners.

The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on oath (which such Commissioner is hereby empowered to impose) and of enforcing the attendance of witnesses and compelling the production of documents and material objects, ¹[and the Commissioner shall be deemed to be a Civil Court for all the purposes of ²[section 195 and of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].

S.24 Appearance of parties.

¹[24. Appearance of parties.--Any appearance, application or act required to be made or done by any person before or to a Commissioner (other than an appearance of a party which is required for the purpose of his examination as a witness) may be made or done on behalf of such person by a legal practitioner or by an official of an Insurance Company or a registered Trade Union or by an Inspector appointed under sub-section (1) of section 8 of the Factories Act, 1948 (63 of 1948), or under sub-section (1) of section 5 of the Mines Act, 1952 (35 of 1952), or by any other officer specified by the State Government in this behalf, authorised in writing by such person, or, with the permission of the Commissioner, by any other person so authorised.]²

S.25 Method of recording evidence.

The Commissioner shall make a brief memorandum of the substance of the evidence of every witness as the examination of the witness proceeds, and such memorandum shall be written and signed by the Commissioner with his own hand and shall form part of the record:

Provided that, if the Commissioner is prevented from making such memorandum, he shall record the reason of his inability to do so and shall cause such memorandum to be made in writing from his dictation and shall sign the same, and such memorandum shall form part of the record:

Provided further that the evidence of any medical witness shall be taken down as nearly as may be word for word.

S.25A Time limit of disposal of cases relating to compensation.

¹[25A. Time limit of disposal of cases relating to compensation.--The Commissioner shall dispose of the matter relating to compensation under this Act within a period of three months from the date of reference and intimate the decision in respect thereof within the said period to the employee.]

S.26 Costs.

All costs, incidental to any proceedings before a Commissioner, shall, subject to rules made under this Act, be in the discretion of the Commissioner.

S.27 Power to submit eases.

A Commissioner may, if he thinks fit, submit any question of law for the decision of the High Court and, if he does so, shall decide the question in conformity with such decision.

S.28 Registration of Agreements.

(1) Where the amount of any lump sum payable as compensation has been settled by agreement, whether by way or redemption of a half-monthly payment or otherwise, or where any compensation has been so settled as being payable ¹[to a woman or a person under a legal disability] ²*** a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on being satisfied as to its genuineness, record the memorandum in a register in the prescribed manner:

Provided that--

(a) no such memorandum shall be recorded before seven days after communication by the Commissioner of notice to the parties concerned;

³* Where a memorandum of any agreement the registration of which is required by section 28, is not sent to the Commissioner as required by that section, the employer shall be liable to pay the full amount of compensation which he is liable to pay under the provisions of this Act, and notwithstanding an thing contained in the proviso to sub-section (1) of section 4, shall not, unless the Commissioner otherwise directs, be entitled to deduct more than half of any amount paid to the ¹[employee] by way of compensation whether under the agreement or otherwise.

S.30 Appeals.

(1) An appeal shall lie to the High Court from the following orders of a Commissioner, namely:--

(a) an order awarding as compensation a lump sum whether by way of redemption of a halfmonthly payment or otherwise or disallowing a claim in full or in part for a lump sum;

²[(aa) an order awarding interest or penalty under section 4A;]

(b) an order refusing to allow redemption of a half-monthly payment;

(c) an order providing for the distribution of compensation among the dependants of a deceased ¹[employee], or disallowing any claim of a p

S.30A [Omitted.].

[Withholding of certain payments pending decision of appeal].--Omitted by the Employee’s Compensation (Amendment) Act 2017, s. 5 (w.e.f. 15-5-2017).

S.31 Recovery.

The Commissioner may recover is an arrear of land-revenue any amount payable by any person under this Act, whether under an agreement for the payment of compensation or otherwise, and the Commissioner shall be deemed to be a public officer within the meaning of section 5 of the Revenue Recovery Act, 1890 (1 of 1890)¹. .

S.32 Power of the State Government to make rules.

(1) The ¹[State Government] may make rules² to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--

(a) for prescribing the intervals at which and the conditions subject to which an application for review may be made under section 6 when not accompanied by a medical certificate;

(b) for prescribing the intervals at which and the conditions subject to, which a ³[employee] may be required to submit himself for medical examination under sub-section (1) of section 11;

S.33 [Repealed.].

[Power of Local Government to make rules.] Rep. by the A.O. 1937.

S.34 Publication of rules.

(1) The power to make rules conferred by ¹[section 32] shall be subject to the condition of the rules being made after previous publication.

(2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act, 1897 GO of 1897); as that after which a draft of rules proposed to be made under section 32 ²*** will be taken into consideration, shall not be less than three months from the date on which the draft of the proposed rules was published for general information.

(3) Rules so made shall be published in ³*** the Official Gazette ⁴*** and, on suchpublication, shall have effect as if enacted in this Act.

S.35 Rules to give effect to arrangements with other countries for the transfer of money paid as compensation.

¹[35. Rules to give effect to arrangements with other countries for the transfer of money paid as compensation.--²[(1)] The Central Government may by notification in the Official Gazette, make rules for the transfer ³*** ⁴[to any foreign country] of money ⁵[deposited with] a Commissioner under this Act ⁶[which has been awarded to or may be due to], any person residing or about to reside in ⁷[such foreign country] and for the receipt ⁸[distribution] and administration in ⁹[any State] of any money ¹⁰[deposited] under the law relating to Workmen's compensation ¹¹*** ¹²[in any foreign country], ¹³[which has been awarded to, or may be due to] any person residing or about to reside in ⁹[any State]:]

⁸[Provided

S.36 Rules made by Central Government to be laid before Parliament.

¹[36. Rules made by Central Government to be laid before Parliament.--Every rule made under this Act by the Central Government shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in 2[two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]