Labour Law: Unit 1.

Q1: Workmen Compensation Act 1923, Objective, Scope, Features

Answer:
Introduction: The Workmen Compensation Act 1923 was enacted as social security
legislation to reimburse workers or employees in the event of an accident due to and during
the course of their employment. It came into force in 1924 and applies to the whole of India.
This Act aims at prioritizing workers’ welfare and preserving their dignity and well-being. It
was implemented keeping in mind the hazardous nature of some labour occupations such as
mining, construction, transportation, Plantations etc. It thus intends to insure workers against
any injury or disease occurring due to their work and pressurized employers to ensure a safe
working environment and a mentally and physically healthy workforce.
#Who are Workmen: Section 2(1)(n)
"workman" means any person who is-
1. 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 (a) a master, seaman or other member 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]
2. 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 a workman who has been injured shall, where the workman is dead,
include a reference to his dependants or any of them
#Who is/are (an) Employer(s)
According to Section 2 (1)(e) of the Workmen Compensation Act 1923, an employer has been
defined as comprising a person or group of persons and any managing agent acting as a
representative on behalf of an employer (in a trade or business) and, any person who hires
the services of employees by entering into a contractual arrangement with the employer.
In the State of Kerala v. KhadeejaBeevi : it was held that even a Government servant, working
as a “Mahout” in the forest department shall be treated as an employee under the Act even if
he is covered by family benefits schemes under the Government.
#Who are dependants?
According to Section 2 (1)(d) of the Workmen Compensation Act 1923, dependants, who are
entitled to monetary compensation include:
 Widow of the departed.
 Widower
 A son who is below 18 years of age
  An unmarried daughter
 Widowed mother
 Parents of the departed
 Paternal Grandparents (If parents of the deceased are not alive)
 A legitimately adopted son or an unmarried daughter
 A minor sibling or a widowed sister
 Widowed daughter-in-law
 A minor child of a pre-deceased son or daughter (if the minor has no parent alive).
#Compensation [section 2 (1) (c)] means compensation as provided for by this Act;
#“Partial disablement” 2(1)g: a.) where the disablement is of a temporary in nature, such
disablement as reduces the earning capacity of a workman in any employment in which he
was engaged at the time of the accident resulting in the disablement, and b.) where the
disablement is of a permanent nature, such disablement as reduces his earning capacity in
every employment which he was capable of undertaking at that time: Provided that every
injury specified in Part II of Schedule I shall be deemed to result in permanent partial
disablement.
#“Total disablement”( Section 2(1)L): means such disablement, whether of a temporary or
permanent nature, as incapacitates a workman for all work which he was capable of
performing at the time of the accident resulting in such disablement. Provided that
permanent total disablement shall be deemed to result from every injury specified in Part I of
Schedule I or from any combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity, as specified in the said Part II against
those injuries, amounts to one hundred per cent or more.
Aims and Objectives of the Act
 The primary aim of this Act is to provide comprehensive coverage to workers for
work-related injuries and disabilities. The Act focuses on providing workmen with a
sustainable life after suffering any injury at the workplace during the course of
employment.
 The second goal is to provide effective protection against loss of income. The cash
incentives are meant to recover a large proportion of the lost wages of the disabled
workers so that the previous quality of life can be maintained.
 Third objective is to provide the injured staff with sufficient medical treatment and
recovery facilities. It requires employers to cover hospital, surgical, and other medical
expenses incurred by injured workers and provide rehabilitation facilities to
employees with disabilities to help them be returned to productive employment.
 Another aim is to promote employers to reduce work-related mishaps and develop
effective safety measures. Organisations with superior accident rates pay
comparatively lower workmen’s compensation premiums as experience ranking is
used to motivate the employers to minimize work-related accidents and illnesses.
 Workmen’s compensation laws are, above all, designed to reduce litigation. Disabled
employees are automatically paid compensation, without having to sue their
employers. The goal is to reduce the number of lawsuits pending in court, which will
help to minimize or eliminate legal fees charged to lawyers.
Scope/Applicability of this Act
  It applies to all employees working in mines, factories, plantations, construction
establishments, oilfields, etc. Moreover, it applies to establishments which are under
Schedule II of the Worker’s Compensation Act.
 The act applies to persons who are working abroad or outside India as per Schedule II
of the Act.
 It applies to a person recruited as the mechanic, helper, driver, etc. in connection with
a motor vehicle. It also applies to a captain or members of the crew of an aircraft.
 Moreover, the act does not cover the members of armed forces of the U&W who are
already under ESI (Employee State Insurance) Act.

Salient Features of the Act

1. Extent and Application: The Workmen’s Compensation Act, 1923 is applicable to the
whole of India. It also extends to the workers recruited by organisations/enterprises
registered in India and sent abroad for work. It applies to:
o All railway employees not permanently employed in any railway
administrative, district, or sub-divisional office and who are not employed
in any capacity as stated in Schedule II to the Act;
o Persons employed in any capacity as stated in Schedule II to the Act.
Schedule II covers people working in factories, mines, plantations, and
mechanically propelled vehicles, building works, and several other
hazardous occupations. A total of 48 jobs are listed in the Schedule; and
o Persons working in jobs assigned by the State Government to Schedule U
in the exercise of the powers bestowed upon them under Section 2(3) of
the Act. A Statement indicating the additions made so far by various state
governments is included in this relation (Annex-I).
o Under the Act, there is no wage cap for coverage. Consequently, all
employees employed in Scheduled employment, including the railway
servants mentioned at point a) above, are covered by the Act.
2. Contingencies in which Compensation is Payable: Compensation is payable in case of
temporary or permanent disability or death resulting from any injury caused during
the course of the employment. The contracting of any disease as specified in Schedule
III to the Act is considered to be an injury caused by accident.
3.  Occupational Diseases:
o If an employee who is employed under the employment specified in Schedule
III to the Act contracts some occupational disease peculiar to that employment,
he is entitled to get the compensation under the Act.
o The occupational diseases should be contracted in the specified employment
while serving an employer. Schedule III divides the occupational diseases into
three specified groups, Part-A, Part-B, Part-C in particular.
o There is no qualifying period of employment for the diseases mentioned in
Part-A. In the case of diseases specified in Part-B, a person should have been
 employed for a continuous period of no less than six months before
contracting the disease in the specified employment.    
o The qualifying period is specified by the Central Government for the diseases
listed in Part-C. The qualifying time for the diseases mentioned in the Part-C of
the Schedule is as follows:
 Pneumoconiosis – 7 years
 Pagassosis – 3 years
 Byssinosis – 7 years
Note:
 Where the monthly wages of an employee exceed Rs. 2000, his monthly wages for the
purpose of a) and b) above shall be considered to be a mere Rs. 2000.
 The minimum amount of compensation for permanent disability and death specified
in the Act is Rs. 60,000 and Rs. 50,000 respectively. The estimated payout amount
works out to Rs. 274,248.00 for permanent disability, and Rs. 228,540.00 for death.
4. Administration:
 The Act does not provide for Inspectors to be appointed. Under Section 32 of
the Act, however, the State Governments/Union Territory Administrations
shall frame rules to implement the purposes of the Act. 
 Originally the rulemaking power under the Act was vested in the Central
Government, and the Workmen’s Compensation Laws, 1924, was formulated
in the exercise of these powers. Subsequently, some state governments
farmed their own laws under the Act. 
 In this relation, a declaration is attached showing the names of the States/UTs,
which to date have framed the required rules under the Act (Annex-II). The
remaining States/UTs are aware of how easily laws are laid down under the
Act.
5. Settlement of Claims under the Act: Compensation claims fall broadly into three
groups, namely (i) uncontested cases of disablement; (ii) disputed cases of
disablement, and (iii) fatal cases. The procedures for settling the three types of cases
are as described below
A. Uncontested Cases:
a. After a workman has given notice of the accident, the employer
is expected to arrange for medical examination of the workman.
It must be free of charge. The medical Examination will indicate
the nature of the disablement.
b. If the disablement is of temporary nature the employer will pay
compensation as half monthly payments, direct to the
workmen.
c. If the disablement is of permanent nature compensation will be
paid in lump sum by the employer to the workman if he is a
male over 18 years of age. In the case of woman and minors, the
employer will deposit the amount of compensation with the
Com missioner, for disbursement.
 d. Where a workman has agreed to accept and has taken a smaller
sum than the amount fixed by the Act his right to bring proceed
ings for the balance are protected.
e. Any agreement with the workman for a lump sum payment
must be registered with the Commissioner by the employer.
B. Disputed Cases:
I. If the employer refuses to pay compensation or does not pay
the full amount due, the workman has to make an application
to the Commissioner for Workman’s Compensation appointed
by the State Government or Union Territory.
o The application has to be made in Form ‘F* prescribed
under the Workman’s Compensation Rules. An illiterate
person can have the application prepared under the
direction of the Commissioner.
II. A claim for compensation must be preferred before the Commis
sioner within 2 years of the occurrence of the accident or in the
case of death within 2 years of the date of death.
o In the case of contracting of a disease the accident is
deemed to have occurred on the first of the day during
which the workman was continuously absent in
consequence of the disablement caused by the disease.
C. Fatal Cases:
i. The amount of compensation due has to be deposited by the
employer with the Commissioner for Workmen’s Compensation.
The Act specifically provided that no payment made directly by the
employer shall be deemed to be a payment of compensation.
ii. The Commissioner shall distribute the lump sum amount of com
pensation to the dependants in such proportion as he may decide.
iii. If the employer does not deposit the compensation the dependant
or dependants have to make an application to the Commissioner in
Form ‘G’ prescribed under the Workmen’s Compensation Rules for
the issue of an order to deposit compensation.
Conclusion: The workmen compensation act provides with the rights of labour. It provides
the duties that labour has to fulfil, e.g. following all the rules and regulations of the
workplace, using all the safety gear provided while doing tasks, etc. The act also provides the
limitation period to bring an employer in the court and the extent of liability that an
employer must face, both penal and fine for any mishappening due to the employer’s
negligence. Thus, making it the employer’s duty to ensure the employee’s safety and security
and make the employer liable to pay compensation to its workers who encountered injury or
died during employment.

#Q2. Compensation to be paid by Employer/Liability of employer for

compensation/provision that attracted and case laws
Answer:
Employee’s liability for compensation (Section 3)
Introduction: The Workmen Compensation Act 1923 was enacted as social security
legislation to reimburse workers or employees in the event of an accident due to and during
the course of their employment. It came into force in 1924 and applies to the whole of India.
This Act aims at prioritizing workers’ welfare and preserving their dignity and well-being. It
was implemented keeping in mind the hazardous nature of some labour occupations such as
mining, construction, transportation, Plantations etc. It thus intends to insure workers against
any injury or disease occurring due to their work and pressurized employers to ensure a safe
working environment and a mentally and physically healthy workforce.
Definition:
#Compensation [section 2 (1) (c)] means compensation as provided for by this Act;

The liability of the Employer for Compensation

Section 3 of the Employee’s Compensation Act deals with ‘Employer’s Liability for
Compensation. This section provides the condition when an employer is liable to pay
compensation to the employees:
A. If a personal injury' has been sustained by an employee: If an employee while
functioning in an establishment has sustained any personal injury (whether physical or
phycological) by an accident, then employer shall be liable to compensate such an
employee. Personal injury has not been defined under the Act. However, a personal
injury is an injury caused to a person's physique, intellect or reputation due to a
person's negligence, remissness or illegitimate conduct. Common examples of such an
injury may include motor vehicle accidents, plane and railway accidents, accidents at
employment, product defects, medical accidents, libel and slander etc. According to
this Act, personal injury also includes occupational diseases.
Case Law: Indian News Chronicle vs. Mrs. Lazarus:  is a celebrated case in which the
Court defined the scope of personal injury caused to any workman while working in an
establishment. In this case, the workmen went to a cooling room from a heating room
and contracted pneumonia and he died within a span of five days. The Court in this
case held that the workmen died due to a personal injury. A personal injury includes a
physical injury.
B. If such a personal injury has been inflicted as a result of an accident: In order to
demand compensation from an employer, an employee must substantiate that those
personal injuries have been resulted out of an accident while executing his
indispensable duties. The term accident also has not been made clear under the Act.
An accident, in normal parlance, can mean as an unexpected event that results in
harm to some person. An accident cannot be predicted as to enable any person to
save themselves from any kind of harm or injury. Likewise, an employee cannot
predict any accident which resulted in an injury to him. Therefore, it is a responsibility
 of an employer as a principle to render any compensation to an employee in case of
such an accident.
C. If such an accident has arisen out of' and in the course of an employment: The most
essential requirement of getting compensation from an employer is to substantiate
that the accident has been caused out of the employment' or during the course of the
employment', respectively. It does not suffice that an accident had been caused to an
employee. It is necessary in the current situation to understand the meaning of the
expressions, arising out of the employment' and in the course of employment:
a) Arising out of employment: The expression arising out of employment refer to
those incidents where there exists a relationship between the conditions under
which the work is required to be performed and the resulting injury. 
Case law: State of Rajasthan vs. Ram Prasad and another: the death of the
employee was caused due to natural lightening struck at him. The court held
that the employee shall be liable to receive compensation as he satisfied the
dual conditions: (a)The lightening struck at the deceased when he was in
employment of the employer; and (b) If the deceased had not been on the
work place where the lightening struck at him, the deceased would not have
died.
b) In the course of employment: To make an employer liable to pay
compensation, the workmen has to substantiate that the work performed was
identical with the time and place of the employment.
Case Law: National Iron and Steel Company Limited vs Manorama: a boy was
working on a tea shop which was situation outside the factory premises. His
duty was to provide tea to all the workers placed in the factory. The boy while
coming out of the premises passed a violent mob of workers. The police, in
order to protect themselves from the attack of workers, fired on the mob
which also hit the boy and he died instantly. The court held that the deceased
shall be liable to compensation as he was working during his working hours at
the place of premises and also, he was executing his duties for his employer.
D. If such an injury resulted in permanent or partial disablement of an employee for a
period exceeding three days: If an injury caused to an employee from the accident
results in his permanent or partial disablement for a period in excess of three days,
then the employer shall be liable to render compensation to such employee.
E.  If such an accident resulted in death of an employee: The last requirement which will
enable the heirs of employee to receive compensation is to prove that such accident
resulted in death of the employee. If it is proved in front of the court that the death
was caused by an accident occurred out of or in the course of the employment, then
the heirs of the employee shall be entitled to receive compensation.
LIABILITY OF AN EMPLOYER IN CASE OF AN OCCUPATIONAL DISEASES :
Workers employed in certain occupations are exposed to certain diseases which are inherent
[its character] in those occupations. - Infections due to contamination. - Infra-red radiations. -
Skin diseases [Chemical, Leather Processing Units]. - Hearing impairment caused by noise. -
Lung Cancer caused by asbestos dust. - Diseases due to effect of heat/cold in extreme
hot/cold climate, etc. mentioned under Part A, Part B or Part C of the Schedule III of the
Employee’s Compensation Act, the disease should have been caused due to an injury by
accident during employment.
 Part A of Schedule 3: Where the employee is in the employment
specified under Part a contracts any occupational disease, he shall be
liable to receive compensation from the employer.
 Part B of Schedule 3: Where the employee is in the employment
specified in Part B for a duration of not less than six months, contracts
any occupational disease, which arose out of the employment, he shall
be liable to receive compensation. (Single employer)
 Part C of Schedule 3:
Where the employee is in the employment specified under Part C under
more than one employer, for a period as may be specified by Central
government, contracts any occupational disease, arising out of or during
the course of employment, he shall be liable to receive compensation
from the employer.
EXCEPTIONS TO THE ABOVE PRE-REQUISITES
The Act, along with the prerequisites, also listed few exceptions in order to safeguard the
employer from paying compensation which are as following:
a. The injury which resulted from an accident does not result in total or partial
disablement of an employee for period in excess of three days;
b. The injury does not result in death of the employee;
c. The employee, at the time of accident, was drunk;
d. The employee intentionally disobeyed any rules or regulations framed for the safety
of employees; and
e. The employee intentionally disregarded or removed the safety grounds framed for
their safety.
Case Law:
DevidayalRalyaram v. Secretary of State: the doctrine of Added Peril was elaborated,
according to which if a workman while performing his duty does something which is not
required and involves extra danger, he shall not be liable to be compensated in the event of
an injury.
Conclusion: The Workman Compensation Act, 1923 was established to provide insurance to
employees who acquired/acquire injuries caused by accidents at the workplace. It ensures
the protection of their rights and dignity as labourers. Employers are also obliged to pay
compensation to workers who have suffered accidents that have resulted in disability or even
death during jobs. The Act is essentially designed for the workers to be able to get
compensation from the employers when they incur damages for the injuries sustained during
an incident. The fundamental law of Vicarious Liability applies in the Act. The employer is a
master and the employee is a servant. The employee only seeks insurance when the accident
happens in the course of employment and at work.
Q3: Short Notes on Workmen, Disability and Permanent Total Disablement
Answer:
#Workmen:
Introduction: Every employee (including those employed through a contractor but excluding
casual employees), who is engaged for the purposes of employer’s business
Meaning: Workmen means all persons employed in trade or industry whether or not in the
employment of the employer with whom a trade dispute arises. Workmen s group” means
the group consisting of every category of unskilled, semi- skilled and skilled workers and their
supervisors, including apprentices.
Definition
#Who are Workmen: Section 2(1)(n)
"Workman" means any person who is-
1. 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 (a) a master, seaman or other member 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]
2. 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 a workman who has been injured shall, where the workman is dead,
include a reference to his dependants or any of them
Workmen Compensation Act: To ensures the protection of their rights and dignity as
labourers. Employers are also obliged to pay compensation to workers who have suffered
accidents that have resulted in disability or even death during jobs. That is the reason The
Workmen Compensation Act 1923 was enacted.
 The Employees Compensation Act, 1923 extends to the whole of India.
 It came into force on the first day of July,1924. It is social security legislation.
 The Employees Compensation Act, 1923 imposes statutory liability upon an
employer to discharge his moral obligation towards employees when they suffer
from any physical disabilities or diseases, during the course of employment in
hazardous working conditions.
 The aim of the Act is to provide quick and cheaper disposal of disputes relating
to the compensation which is not possible in comparison in case of proceedings
of civil law. The Act also helps the dependants to get relieved from the hardship,
rising from accident
 Main features of the Act :
  If the injury does not end in the entire or partial disablement of the employee for
a period exceeding three days.
 If the injury, not leading in death or permanent total disablement, is caused by
an accident which is directly attributable to: 
 The employee having at the time of the accident is under the influence of drink
or drugs; 
 The willful disobedience of the employee to an order if the rule is expressly given
or expressly framed, for the purpose of securing the safety of employees; or
 The willful removal or disregard by the employee of any safety guard or other
device which has been provided for the purpose of securing the safety of
employees.
Conclusion: The exhaustive list of persons classified as “Workers” is contained in Schedule II
of the Act. According to Section 2 (1)(n), Workmen (or Workers or Employees) broadly
constitute:1. Railway Servants 2. Master, Seaman or other members of the crew of a ship, 3.
A captain or other member of the crew of an aircraft 4. A person hired as driver, mechanic,
cleaner or in any other capacity in connection with a motor vehicle, 5. A person recruited for
work abroad by a company, and who is employed outside India, Note: Workers do not
include members of the Armed Forces of India.

#Compensation:
Definition: Section 2(1)( c): "compensation" means compensation as provided for by this
Act;
Workmen Compensation Act: To ensures the protection of their rights and dignity as
labourers. Employers are also obliged to pay compensation to workers who have suffered
accidents that have resulted in disability or even death during jobs. That is the reason The
Workmen Compensation Act 1923 was enacted.
 The Employees Compensation Act, 1923 extends to the whole of India.
 It came into force on the first day of July,1924. It is social security legislation.
 The Employees Compensation Act, 1923 imposes statutory liability upon an
employer to discharge his moral obligation towards employees when they suffer
from any physical disabilities or diseases, during the course of employment in
hazardous working conditions.
 The aim of the Act is to provide quick and cheaper disposal of disputes relating to
the compensation which is not possible in comparison in case of proceedings of
civil law. The Act also helps the dependants to get relieved from the hardship,
rising from accident
Employee’s liability for compensation (Section 3) The liability of the Employer for
Compensation:
Section 3 of the Employee’s Compensation Act deals with ‘Employer’s Liability for
Compensation. This section provides the condition when an employer is liable to pay
compensation to the employees:
 If a personal injury' has been sustained by an employee.
 If such a personal injury has been inflicted as a result of an accident
  If such an accident has arisen out of' and in the course of an employment
 If such an injury resulted in permanent or partial disablement of an employee for a
period exceeding three days
  If such an accident resulted in death of an employee
Case Law:
 Case Law: Indian News Chronicle vs. Mrs. Lazarus:  is a celebrated case in which the
Court defined the scope of personal injury caused to any workman while working in an
establishment. In this case, the workmen went to a cooling room from a heating room
and contracted pneumonia and he died within a span of five days. The Court in this
case held that the workmen died due to a personal injury. A personal injury includes a
physical injury.
 Case Law: National Iron and Steel Company Limited vs Manorama: a boy was working
on a tea shop which was situation outside the factory premises. His duty was to
provide tea to all the workers placed in the factory. The boy while coming out of the
premises passed a violent mob of workers. The police, in order to protect themselves
from the attack of workers, fired on the mob which also hit the boy and he died
instantly. The court held that the deceased shall be liable to compensation as he was
working during his working hours at the place of premises and also, he was executing
his duties for his employer.
EXCEPTIONS TO THE ABOVE PRE-REQUISITES
The Act, along with the prerequisites, also listed few exceptions in order to safeguard the
employer from paying compensation which are as following:
a. The injury which resulted from an accident does not result in total or partial
disablement of an employee for period in excess of three days;
b. The injury does not result in death of the employee;
c. The employee, at the time of accident, was drunk;
d. The employee intentionally disobeyed any rules or regulations framed for the safety
of employees; and
e. The employee intentionally disregarded or removed the safety grounds framed for
their safety.
Case Law: DevidayalRalyaram v. Secretary of State: the doctrine of Added Peril was
elaborated, according to which if a workman while performing his duty does something
which is not required and involves extra danger, he shall not be liable to be compensated in
the event of an injury.
Conclusion: The Workman Compensation Act, 1923 was established to provide insurance to
employees who acquired/acquire injuries caused by accidents at the workplace. Employers
are also obliged to pay compensation to workers who have suffered accidents that have
resulted in disability or even death during jobs. The Act is essentially designed for the
workers to be able to get compensation from the employers when they incur damages for the
injuries sustained during an incident. The fundamental law of Vicarious Liability applies in the
Act. The employer is a master and the employee is a servant. The employee only seeks
insurance when the accident happens in the course of employment and at work.
#Disabilities:
Meaning: The expression "disablement" means loss of capacity to work or to
move. Disablement which reduces the earning capacity of an employee. Injury caused to an
employee by an accident resulting in the loss of earning capacity is technically called
disablement. In other words, a person is incapacitated to work or to move as a consequence
of an accident.
SCOPE AND COVERAGE
 The act extends to the whole of India and applies to any person – who is employed,
otherwise than in a clerical capacity, in the railways, factories, mines, plantations,
mechanically propelled vehicles, loading and unloading work on a ship, construction,
maintenance and repairs of roads, bridges, etc, electricity generation, cinemas,
catching or training of wild elephants, circus, and other hazardous occupations and
employments specified in Schedule II to the Act.
 However, under subsection (3) of section 2 of the Act, the state governments are
empowered to extend the scope of the Act to any class of persons whose occupations
are considered hazardous after giving three months’ notice in the Official Gazette. 
 The Workers Compensation Act, however, does not apply to members serving in the
Armed Forces of the Indian Union, and employees covered under the provisions of the
Employees’ State Insurance Act, 1948 as disablement and dependants benefit are
available under this Act 
Disablement classified into - i) Total and ii) Partial can further be classified as - (a) Temporary
and (b) Permanent. Disablement, whether permanent or temporary is said to be total when it
capacitates an employee for all work he was capable of doing at the time of the accident
resulting in such disablement
Total disablement:
Meaning: Total disablement means such disablement whether of a temporary or
permanent nature as incapacitates a workman for all work which he was capable of
performing at the time of the accident resulting in such disablement. This is generally defined
as the loss of the use of both legs, arms, hands, or eyes, or any two such parts like a leg and
arm. Total disability can also involve impairment due to a serious occupational disease .
Definition: Section 2(1)L
"Total disablement" means such disablement, whether of a temporary or permanent nature,
as incapacitates a workman for all work which he was capable of performing at the time of
the accident resulting in such disablement: Provided that permanent total disablement shall
be deemed to result from every injury specified in Part I of Schedule I or from any
combination of injuries specified in Part II thereof where the aggregate percentage of the loss
of earning capacity, as specified in the said Part II against those injuries, amounts to one
hundred percent or more.
Types of Total Disablement
 Total Disablement (Permanent) : total permanent in types of disablement in workmen
compensation act states a condition when the employee faces a lifetime injury or the
life pending in his company due to the accident along with a reduction in his major
 efficiency to work. E.g. : If Mr X works in a marketing department and comes across an
accident leading to paralysis in his leg. Therefore, in such a case he cannot continue
his fieldwork.
 Total Disablement (Temporary): Total temporary in types of disablement in workmen
compensation act refers to a situation when the employee suffers a major reduction in
his work which he did before the injury but for a temporary basis. E.g. : In the above-
mentioned example if Mr X meets an accident resulting in a fracture in his leg,  in that
case, he cannot continue his fieldwork but for a temporary basis
Case Law: Hanumantha Gowda vs. Devaraju (31.05.1995 - KARHC): MANU/KA/0170/1995
Question: Whether the workmen suffered from total disablement and had to be
compensated?
Facts: An award was passed as compensation under the Workmen's Compensation Act, 1923
on account of injuries sustained by the workman in vehicular accident. An appeal was filed by
the employer and Insurance Company against the award claiming that the workman was not
entitled to compensation as he had not been totally disabled as envisioned by the Act.
Held: That the disablement which the worker suffered should be understood vis-a-vis the
work he carried on or for which he was employed. If by the accident he becomes totally
disabled to carry on that work, it is total disablement. The fact that he can do some other
work elsewhere is no ground to state that he is not totally disabled. His disablement should
be assessed with reference to work he was employed to perform at the time of accident. If by
the accident, the worker loses his employment under his employer, thereby ceases to be a
worker as defined under the Act under that particular employer which employment brought
him under the purview of the Act and the relationship of employer worker is brought to an
end, then that amounts to "total disablement" under the Act.

Partial Disablement :
Meaning:  Partial disablement means disablement in doing normal work lasts (continuous) for
a temporary period.
Definition: Section 2(1)(g):
Partial disablement" means, where the disablement is of a temporary nature, such
disablement as reduces the earning capacity of a workman in any employment in which he
was engaged at the time of the accident resulting in the disablement, and, where the
disablement is of a permanent nature, such disablement as reduces his earning capacity in
every employment which he was capable of undertaking at that time: provided that every
injury specified [in Part II of Schedule I] shall be deemed to result in permanent partial
disablement
I)  Partial Disablement (Permanent): Partial permanent in types of disablement in workmen
compensation act occurs when an employee’s capacity to work compromises or decreases as
compared to the work done by him before the injury but for a lifetime. E.g. : If Rahul is a data
entry operator and loses his left hand in an accident. Being a right-handed person, he will be
able to perform his task but with a reduction in his efficiency for his whole life which is
termed as partial permanent disablement.
II) Partial Disablement (Temporary): Secondly, temporary partial disablement in types of
disablement in workmen compensation act does not affect the work of the employee to a
great extent. As a result, it explains a reduction in the employee’s capacity to work that too
for a temporary basis. In this case, he gets the least compensation depending on the type
of accident. E.g For a data entry operator, a fracture in his left hand for a temporary basis
might capacitate his work as he used to do before the accident but it would be present only
for a temporary basis which is referred to as temporary partial disablement of an employee.
Conclusion:  it is necessary to ensure that workers are paid sufficient wages to lead a fair life
with dignity. The working conditions must also be made healthier and safer. They must not
be placed in extremely risky situations to realize tasks that undervalue their lives. Any injury
that results due to the negligence of the employer or by accident must be followed by free
medical treatment along with compensation in accordance with the Workmen Compensation
Act 1923. Moreover, the compensation ascertained must be adequate with due weightage
given to changing times.

#Employer
Meaning: an employer can be an individual or a legal entity with control over a worker or a
servant. An employer directs the worker as per a contractual employment agreement or
implied agreement between both parties. The employer also disburses salaries or wages as
compensation to the workmen/servant.
Definition: Section 2(1)(e)
"Employer" includes anybody of persons whether incorporated or not and any managing
agent of an employer and the legal representative of a deceased employer, and, when the
services of a workman are temporarily lent or let on hire to another person by the person
with whom the workman has entered into a contract of service or apprenticeship, means
such other person while the workman is working for him.
Case Laws:
 In the State of Kerala v. KhadeejaBeevi : it was held that even a Government servant,
working as a “Mahout” in the forest department shall be treated as an employee
under the Act even if he is covered by family benefits schemes under the Government.
 In New India Assurance Co. Ltd. vs Mohan Kumar Sahoo: it was stated that a person
engaged even for one day to drive a vehicle belonging to the owner is also an
employee under this act. This is because the owner gives directions and exercises
definite control over the person.
 In Radhamony v. Secretary, Department of Home Affairs: also, it was held that an
individual working as a driver will fall under the label of an employee irrespective of
whether he is a non-governmental or government employee.

#Dependents:
Meaning:
 The Workmen Compensation Act, 1923 recognizes both the employees of an
organization, and their dependents as beneficiaries, worker compensation insurance
entitles both to receive the monetary benefit.
  The dependent is entitled to the insurance benefit in case of a workplace accident or
injury, resulting in the death of an employee. However, the survivor benefits are
passed only to eligible dependents under the workmen compensation
insurance agreement.
 Every employee must nominate at least one dependent. So, in the case of multiple
dependents, the amount is distributed among the nominated members as provided by
the worker.
 However, to qualify as a valid dependent, the claimant has to prove that he/she is
wholly or partly dependent (financially) on the deceased.
Definition: Section 2(1)(d)
"Dependant" means any of the following relatives of a deceased ]workman [, namely:-
1. a widow, a minor ] [legitimate or adopted][son, an unmarried ] [legitimate or
adopted][daughter, or a widowed mother; and
2. if wholly dependant on the earnings of the ]workman [at the time of his
death, a son or a daughter who has attained the age of 18 years and who is
infirm;
3. if wholly or in part dependant on the earnings of the ]workman [at the time
of his death,-
a) a widower
b) a parent other than a widowed mother,
c) a minor illegitimate son, an unmarried illegitimate daughter or a
daughter ] [legitimate or illegitimate or adopted][if married and a
minor or if widowed and a minor,
d) a minor brother or an unmarried sister or a widowed sister if a
minor,
e) a widowed daughter-in-law,
f) a minor child of a pre-deceased son,
g) a minor child of a pre-deceased daughter where no parent of the
child is alive, or
h) a paternal grandparent if no parent of the workman is alive.]
Explanation -For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause (iii),
reference to a son, daughter or child include an adopted son, daughter or child respectively;
Cases
 Sumitra Devi, a contract worker at Wadhwa Fashion Works: met with an accident at
work and died. She was single and lived with her parents at the time. In this case, the
parents received the benefit payable by the workmen’s compensation insurance of
the company. The parents, however, only partially depended on Sumitra’s income.
 Gayatri Prajapati- a contract worker – works at Bhali Autos India Ltd. Her husband-
Raman Prajapati was disabled and runs a puncture shop near their house. Gayatri
meets with a fatal accident at the workplace, and the employer becomes eligible to
pay compensation under W.C. Act. Bhali Autos has bought the W.C. insurance for such
scenarios and the insurer pays the compensation directly to Raman, widower, or
Gayatri.
  Ratan Kumar, a driver with Fast Courier, met with an accident and was in the hospital
for one month. Also, he was on bed rest for another 2 months before he could report
to work. For this period, the insurer paid the benefit of 25% of his salary along with
the hospital expenses. This benefit was payable directly to Ratan as he was alive and
not to his family members or dependents.
 Jignesh is an employee of a transportation company in India. He is a driver with the
firm and has to deliver inter-city consignments. The Workers Compensation Insurance
policy bought by his employer also covers Jignesh. Jignesh is a married man, with two
kids. He has a married daughter, and a minor son.  Jignesh is the sole breadwinner of
his family.
Jignesh meets with an accident while delivering a consignment. He dies while
receiving treatment in the hospital. The law entitles Jignesh’s wife as the beneficiary
since she is financially dependent on Jignesh and the legal guardian of the minor
children. In case the wife was not there, the minor son of Jignesh will be eligible to
receive the benefit

#Notional Extension of Employment

Introduction- The liability of the employer for compensation has been laid down in Sec 3 of
The Workmen Compensation Act,1923. One essential element of that provision is the clause
‘arising out of and in the course of the employment’.The compensation payable to the injured
worker under the Workmen Compensation Act, 1923 and Employee’s State Insurance Act,
148 is decided according to the doctrine of notional extension developed by the courts.
Doctrine of Notional Extension-
 The doctrine of notional extension provides that in order to attract the provisions of
the said Acts there should be a causal connection between place of accident and place
of work. It also sets out the cases where the employer would not be liable to pay
compensation to the employees or its dependents.
 The employment commences when the employee reaches the place of work and ends
when he leaves the employer’s premises. But in those cases where employees meet
with an accident outside the employer’s premises, in those cases employee can be
held liable for providing compensation to the employees under The Workmen
Compensation Act, 1923 as well as The Employees’ State Insurance Act, 1948. This is
known as the theory of notional extension of employer’s premises.
Provisions of Workmen Compensation Act-Sec 3(1) states the circumstances under which
employer will be liable to pay compensation. These are:
1) Personal injury must have been caused to an employee
2) Such injury must have been caused by an accident
3) The accident must have arisen out of and in course of employment and
4) The injury must have resulted either in death of the employee or in his total or
partialdisablement for a period exceeding three days.
Employment under the present Act is not limited to actual work or place of work but extends
to all things which the employee is entitled by the contract of employment expressly or
impliedly to do. To claim compensation from the employer, existence of a contract of
employment express or implied between employer an injured employee is necessary.
DOCTRINE OF NOTIONAL EXTENSION OF EMPLOYER’S PREMISES-
 When there is a causal connection between the accident and the place where the
employee is working, compensation is payable for the disability or death of the person
according to the Employees Compensation Act. This is the Doctrine of Notional
Extension of the workplace.
 Ordinarily a man’s employment does not begin until he has reached the place where
he has to work and does not continue after he has left the place of his employment.
 Travelling to and from the employer’s establishment is prima facie not in the course of
employment.
 But there are instances where there may be reasonable extension of time and place
and an employee may be regarded as in the course of his employment even though he
had not reached or had left his employer’s premises.
While determining whether an accident occurred in the course of employment, following
factors have to be considered:
1) As a general rule, employment of a workman does not commence until he has reached
the place of employment
2) It is subject to theory of notional extension of the employer’s premises so as to include
an area which the workman passes in going to and in leaving his actual place of
employment
3) Notional extension theory can be taken recourse to in terms of both time and place in
a reasonable manner in order to ascertain whether an accident caused to an employee
may be regarded as “in the course of employment” though he had not actually
reached his place of employment
4) In order to determine whether an accident caused to an employee be regarded as “in
the course of employment”, facts and circumstances of each cases will have to be
determined carefully keeping in view the theory of notional extension.
Case Laws-The theory of this doctrine was executed in some cases:
1) In Moondra & Co. V/s Mst. Bhawani, There was a truck driver who was told by his
employer to drive a petrol tanker. The driver found a leak in the tank and sought
permission from the employer to look for the source of the leakage. While searching
he lit a matchstick and the tank caught fire. The driver received burn injuries and died.
It was held by the court that the family members of the deceased would be entitled to
compensation since the accident took place at the workplace and in the course of
employment.
2) In Varadarajulu v. Masaya Boyan, It was held that:“Where the kind of transport
provided by the employer was the only means available to employees, the accident
was held to be in the course of employment because not only the lorry provided by
the employer was merely a reasonable means of transport but also that there was no
other means of transport to and from the workplace being a hilly tract.”
3) In a case, the Madhya Pradesh High Court held that the assault by strikers on an
injured workman who ignored to go for strike and went to work will fall under the
“course of employment”.
 4) In the case of St. Helens Colliery Co. Ltd. v. Hewlston, an employee working in a
colliery was injured while travelling in a special collier’s train. It was held that the
injury did not arise in the course of employment because of the following reasons:
•There was no obligation on the employees to travel by the train. Had he been bound
by the contract of service to travel by such train then he would be regarded as “in the
course of employment”. •An employee in a colliery is not in the course of his
employment, when he is riding in a vehicle provided by his employer unless, by the
terms of his contract, he is bound to travel in that vehicle.
EXCEPTIONOF THEORY OF NOTIONAL EXTENSION-
 There is an exception to this theory of notional extension that where the accident
occurs in public place and the risk faced by the employee is not due to his
employment but to his being on the spot as a member of the public, the employer will
be liable to pay a compensation only if it can be shown that the employee acted on
the direction of the employer.
 In J.F. Pareira v. Eastern Watch Co. Ltd., a salesman working in the company went out
and then he was found unconscious on the third floor of the building and died in the
hospital. It was held that while on a duty an employee can be out for a smoke or for
other reasons. The employee would be deemed to be on the premises of the employer
by the notional extension of the term “premises” and accident to him shall be deemed
to arise in the course of employment unless and until it can be shown that he went
out for personal reasons.
 In case of Basu Charan Mohanty, an employee, met with an accident and died on his
way to a house under construction and his actual residence was at a far-off place from
the place of accident and was in the opposite direction. The court observed that the
doctrine of notional extension applies when a person is either going to or coming from
his residence to the place of work. Travelling a far distance in opposite direction and
taking a circuitous route cannot be said to be normal route.
CONCLUSION- It is duty of the courts to decide upon facts and circumstances of the case
whether any personal injury caused by an accident to an employee outside the employer’s
premises will fall under the ambit of “arising out of” and “in the course of employment”
under Sec 3 of the Workmen Compensation Act, 1923 so that compensation can be awarded to
the dependents of the employees.

#Employees Compensation Commissioners under WCA,1923

Commissioner-Commissioners are public servants appointed under Section 20 of the
Workmen Compensation Act 1923. Under Section 23, he/she is deemed to be a ‘Civil Court’
under the Code of Civil Procedure, having powers to admit evidence and summon witnesses
and produce documents. According to Section 19, all queries as to the amount and duration
of compensation, liability of the employer, nature and extent of disability are addressed
exclusively by the commissioner.
Jurisdiction of Commissioners- The parties are free to settle the matter amicably by the
agreement. If the parties concerned could not settle the matter by mutual agreement, they
may refer the matter for decision to the Commissioner for workmen’s compensation. Under
Section 19 of this Act, the Commissioner has jurisdiction over the following matters:
 1. Liability of any person to pay compensation,
2. Whether a person injured is or is not .a workman,
3. The nature and extent of disablement,
4. The amount or duration of compensation.
No Civil Court has jurisdiction to settle, decide or deal with any question which is under this
Act, required to be settled, decided or dealt by a commissioner.
Appointment of Commissioners [Section 20]-
 The State Government may appoint any person to be a Commissioner for Workmen’s
Compensation for the specified areas.
 If more than one Commissioner has been appointed for any area, the State
Government may, by general or specific order regulatethe business between them.
 Every Commissioner shall be deemed to be a public servant within the meaning of the
Indian Penal Code.
 Any Commissioner may choose one or more persons possessing special knowledge to
assist him in holding the inquiry.
Powers and Duties/Functions of the Commissioner-The powers and duties of the
commissioner are:
1. To deposit and distribute compensation [Section 8]:
 (3) An amount not less than ten rupees which is payable may be deposited
with the commissioner on behalf of that person.
 (4) The receipt of the commissioner will be sufficient discharge of the amount if
any compensation is deposited with him.
2. Powers to require from employers statement regarding fatal accident (Section
10A):When a commissioner receives information about the death of an employee,
because of an accident that is arising out of or in the course of employment, he can
send a registered post or a notice to the employer of the employee, to submit a notice
within thirty days of service. The statement or notice shall be in a prescribed form
mentioning the circumstances under which the death took place. Also stating that
whether the employer is liable or not to deposit compensation on the death of the
employee.
3. Power of settlement of disputes [Section 19(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 workman) or as to
the amount or duration ofcompensation (including any question as to the nature or
extent of disablement), the question shall, in default of agreement, be settled by a
Commissioner.
4. Power of transfer [Section 21]: As per Section 21, any matter under the Act to be done
by or before a Commissioner, the same shall be done for the area in which
 The accident took place which resulted in the injury or
 The workman or in case of this death, the dependent claiming the
compensation ordinarily resides or
 The employer has his registered office.
 Where any proceeding pending before the Commissioner is sought to be
transferred before any other Commissioner, such transfer cannot be ordered by
the Commissioner himself unless prior sanction of the State Government is
obtained. If the second Commissioner works for another State, then prior approval
of the Government of the State is required to be obtained for transfer.
5. Power to require further deposit in case of fatal accident [Section 22A]:
 (1) Where any sum has been deposited by an employer as compensation
payable in respect of a workman 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.
6. Power of Civil Court [Section 23]: The Commissioner shall have all the powers of a Civil
Court under the Code of Civil Procedure, 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.
7. Method of recording evidence[Section 25]: Section 25 provides that the Commissioner
shall make a brief memorandum of the substance of the evidence of every witness.
The memorandum should be written and signed by the Commissioner with his own
hand and shall form past of the record.
8. Power to order costs [Section 26]: All costs, incidental to any proceedings before a
Commissioner shall, subject to rules made under this Act, be in the discretion of the
Commissioner
9. Power to submit cases [Section 27]: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.
10. Power and duty to register agreement[Section 28]: Section 28 mandates that a receipt
of payment of compensation has to be registered; Naggapattinam Import and Export
Corporation v, K. Lakshmi
11. Power to withhold certain payments pending decisions of an appeal [Section 30A]:
Where an employer makes an appeal under clause (a) of sub-section (1) of section 30,
the Commissioner may, and if so directed by the High Court shall, pending the decision
of the appeal, withhold payment of any sum in deposit with him.
12. Power of recovery [Section 31]: The Commissioner may recover as 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.
The Commissioner shall have all the powers of a Civil Court for the following purposes:
 Taking evidence on oath,
 Enforcing the attendance of witnesses, and
 Compelling the production of documents and material objects.
Conclusion-The Workman Compensation Act, 1923 was formed to provide compensations for
workers who acquired/acquire injuries caused by accidents in the course of employment. It
ensure that their rights and value are maintained. Therefore Workmen Compensation
Commissioner is appointed and is vested with powers and functions to ensure that workers
get compensated rightly.