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Home > News > Labour & Service Law > WC ACT Amended Notified New name for WC is Employees Compensation Act

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WC ACT Amended Notified New name for WC is Employees Compensation Act

By : Ravi Shankar on 06 June 2010 Print Print this Report Abuse

 Workmen's Compensation Act, 1923 becomes Employees with enhanced compensation limits, full medical expenses reimbursement, case disposal within 3 months, etc..& also applicable to casual & clericals

The Workmen’s Compensation (Amendment) Act. Workmen’s Compensation Act is now Employees Compensation Act, 1923 and the definition of employee includes clerical employees & casual employees also.  Further,

  • the minimum compensation limits on no-fault basis are increased to Rs.1,20,000 & 1,40,000 (erstwhile limits being Rs. 80,000 & 90,000).
  • under the maximum compensation limit, the monthly wage limit of Rs.4,000/ is removed. Hence, the maximum compensation can go UPTO 50% of Total Monthly Wages now, irrespective of limits.
  • Funeral expenses limit extended to Rs.5000 (from Rs.2,500)
  • The employee shall be reimbursed the actual (full) medical expenditure incurred by him for treatment of injuries caused during the course of employment.
  • Time limit for disposal of cases relating to compensation introduced- The Commissioner shall dispose of the matter relating to compensation within 3 months of reference.

Old definition: "workman" means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business) who is….

New definition: Section 2 amended

“(dd) “employee” means a person, who is—

(i) a railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not permanently employed in any administrative district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II; or

(ii) (a) a master, seaman or other members of the crew of a ship,

(b) a captain or other member of the crew of an aircraft,

(c) a person recruited as driver, helper, mechanic, cleaner or in any other capacity in connection with a motor vehicle.

(d) a person recruited for work abroad by a company,and who is employed outside India in any such capacity as is specified in Schedule II and the ship, aircraft or motor vehicle, or company, as the case may be, is registered in India; or

(iii) employed in any such capacity as is specified in Schedule II, whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing; but does not include any person working in the capacity of a member of the Armed Forces of the Union; and any reference to any employee who has been” injured shall, where the employee is dead, include a reference to his dependants or any of them;’;





Source : Paper News, WC ACT

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Comments (3)

Sukanta Saha

Sukanta Saha

Wrote on 02 August 2010

Minimum limit for compensation is required to be increased more as in many cases in unorganised sector the workmens/emploees are not able to prove their actual wages or sometimes it is below the minimum wage level.



Wrote on 08 June 2010

Some clear distinction are made with new amendment, like who ever recives directions for the work in which it has to be performed will fall under the definition of workmen... but still scope for litigation good things are enhancing he limits



Wrote on 07 June 2010

It is a welcome decision. I feel the funeral expenses should have been much more and extension should have covered shops and establishments also. Of course, many state governments have extended the provisions to shop and establishment employees also. Further, the government should have made liability insurance a mandatory so that recovery will be more easier.

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