This Act is called as employee’s compensation Act 1923. The bill was passed by the legislature which received the Royal assent & It came into force on the First Day of July, 1924 and it has been amended in the year 1995. It extends to the whole of India.

Aims & Object:

Under this Act, an employer is liable to pay compensation to the employees working under him subject to he following conditions. :
1. If personal injury is caused to a workmen.
2. This injury should be by accident.
3. The accident should be arisen out of and in the course of employment.
4. The injury results death of workmen or any type of disablement of workmen.


So- far as Railways are concerned this act applies to all such workers who are connected with the operations and maintenance of vehicular traffic or a movement of vehicular traffic for detail schedule no. 1 may be referred.

The following employees are not coming under the provision of this act.

1. Persons in Workshop governed by Factories Act.
2. Apprentices not governed by apprentices Act, 1961.
3. Persons employed in the Armed forces.
4. The worker who is not connected with the tread of business of the employer.
Section (3): The employer shall not be liable to pay compensation to employees in the following cases.:
1. In respect of any injury which does not result in the total or partial disablement of the workmen for a period of three days.
2. In respect of any injury, not resulting in death, permanent total disablement caused by an accident which is directly attributable to.:
(a) the workmen having been at the time thereof under the influence of drink or drugs, or
(b) the willful disobedience of the workmen to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or
(c) the willful removal or disregard by the workmen of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workmen.

Provisions :

Under the act the following Schedule exists as concern to payment of Compensation, List of workmen etc, which is as below.

A) Schedule-I : List of Injuries & % of Loss
B) Schedule-II : List of persons defined as Workmen
C) Schedule-III : List of Occupational Diseases
D) Schedule-IV : Relevant Factor


For the purpose of compensation under the Workmen’s Compensation act, the injury has been divided into four categories.:
1. Death
2. Permanent total disablement
3. Permanent partial disablement
4. Temporary disablement, it may be total or partial disablement.



The amount of compensation under this Act shall be as follows.:

1. Where Death results from the injury :

An amount of average pay (max Rs. 8000) multiplied by 50 and multiplied by age factor divided by 100 or Rs. 120000/- which every is more.

2. Where permanent total disablement results from the injury :

An amount at average pay (max Rs. 8000) multiplied by 60 and multiplied by age factor divided by 100 or Rs. 140000/- whichever is more.

3. Where permanent partial disablement results from the injury :

(a) in the case of an injury specified in Part-II of Schedule-I, such percentage of the compensation which would have been payable in the case of permanent total disablement as specified therein as being the percentage of the lose of earning capacity caused by that injury, and
(b) in the case of injury not specified in Schedule-I, such percentage percent of compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury.
Payment of Wages:

4. Where temporary disablement, where total or partial results from the injury :

A half monthly payment of the sum equivalent to twenty five percent of monthly wages of the workman to be paid in accordance with provisions of this Act.


The following are the duties of supervisor in case of injury caused to a workman by accident arising out of and in the course of employment.:
1. He should immediately render first Aid and call doctors.
2. Give massage to all concerned with in 48 hours.
3. He should take two eye witnesses/statements where possible.
4. He should prepare accident report including small diagram.
5. He should take down the particulars of leave taken during last 12 months.
6. He should get medical report of injured workmen.
7. He should make findings of inquiry.


Under this Act, compensation shall be paid as soon as it falls due. In case where the employer does not accept the liability for compensation to the extant claimed, he shall be bound to make provisional payment based on the event of the liabilities which he accepts and such payment shall be deposited with the commissioner or made to the workman, as the case may be, without prejudice to right of the workman to make any further claim. For non submission of papers to
the commissioner’s office within the month or for violation of any of the provisions, employer may be fined a sum upto Rs.5000/-
Where any employer is in fault in paying the compensation due under this Act within one month from the date it fell due. The commissioner may direct that in addition to the amount of the arrears, simple interest at the rate of 12% per annum on the amount due together. If in the opinion of the commissioner there is no justification for the delay, a further sum not exceeding 50% of such amount, shall be recovered from the employer by was of penalty.


Under the Workmen’s Compensation Act, there are four schedules as appended


This schedule indicates the percentage of loss of earning capacity and accordingly payment of compensation is arranged on production of certificate of doctors.


Under this schedule, a list has been mentioned. Under this list details of persons have been given who are included in the category of “workmen” and entitled for payment of compensation under this Act.


Under this schedule, occupational diseases have been shown.


Under this schedule IV, details regarding factors for working out lump sum equivalent of compensation amount in case of permanent disablement and death have been given.
Payment of compensation shall be made through Workmen’s Compensation Commissioner. Under this Act, Workmen’s Compensation Commissioner is appointed by the State Govt. though notification in the official Gazette. The State Govt. may appoint more than one Commissioner for any area. Every Commissioner shall be deemed to be a public servant within the meaning of theIndian Panel Code.
Appeal - The appeal against the decision of Workmen’s Compensation Commissioner shall lies with High Court. (18)