EMPLOYEES COMPENSATION ACT - 2010 (ECA)
ECA is an act, which safeguards certain classes of employees against the risk in employment and payment of compensation for injuries sustained by them in accidents. As amended under Gazette of India (extraordinary) dt. 23.12.09, RBE 61/11. In place of Workmen's Compensation Act 1923.
BENEFITS
- 1Safeguard against risk in employment.
- 2Inexpensive and quick remedy.
- 3Nominal application fee.
- 4Civil courts are excluded.
- 5Commissioner is quasi-judicial authority.
- 6Suo-moto action by the Commissioner.
- 7No civil court formalities followed.
Aim
- 1To provide for payment of compensation to certain classes of workers for injuries / death caused due to accidents, arising out of and in the course of employment.
- 2To regulate the payment of compensation according to the nature and result of the accidents.
- 3To prescribe the procedure to be followed in the payment of compensation.
- 4To evolve suitable machinery has been to ensure proper implementation of the provisions of the Act.
DEFINITIONS
Workmen
Workmen means any person who is
a railway servant as defined in Section 2(34) of Railways Act 1989, not permanently employed in any administrative, or divisional or sub divisional office of a railway and not employed in any such capacity as specified in schedule-II.
- (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 out side India in such capacity as specified in schedule-II.
Employed in any such capacity as specified in schedule-II.
Workmen - In relation to Railwaysit means all Railway servants as defined in "The Railways Act 1989" except those employed in District, Divisional, Sub Divisional or Administrative offices and in clerical capacity, but includes Casual Labour.
Wages
Wages - Means all remuneration expressed in terms of money or capable of being expressed in terms of money. It excludes traveling allowance, contribution to PF by the employer, amounts given to cover special kind of expenses and services. Wages for purpose of calculation of compensation will be limited to Rs.8,000.
Employer
Employer - Means any body or persons or any managing agent of the employer or any legal representative of deceased employer.
Accidents
Means an unexpected event happening without design even though there may be negligence on the part of the workmen.
Circumstances under which Compensation is Payable
- 1Where a personal injury caused to workmen is lasting a period of more than 3 days.
- 2The injury is caused as a result of accident.
- 3The accident has arisen out of and in the course of employment (out of refers to the place of accident and in the course of refers to the time of accident).
- 4Injury has resulted in disablement or death.
Circumstances under which Compensation is not Payable (Sec.3)
•In respect of any injury, which does not result in the total or partial disablement of workmen for a period, exceeding 3 days.
•In respect of any injury (excluding death) caused by accident which is directly attributable to-
- -The influence of Drink or Drug at the time of accidents.
- -Willful removal or disregard of safety appliances.
- -Willful disobedience of safety instructions.
Disablement
| Partial | Total | ||
|---|---|---|---|
| Temporary | Permanent | Temporary | Permanent |
| Reduce the earning capacity of the workmen in any of the employment he was capable of performing at the time of accident. | Reduce the earning capacity of the workmen in every employment he was capable of performing at the time of accident. | Incapacitate the workmen in all types of work. | |
Compensation under the Act
| Temporary | Partial Permanent | Total Permanent | Death |
|---|---|---|---|
| No compensation. HMP is payable during the period of treatment. (25% of wages) | Compensation is worked out for total permanent disablement and allowed proportionately based on LEC %. | 60% of wages multiplied by age factor or Rs.1,40,000/- whichever is more. | 50% of wages multiplied by age factor or Rs.1,20,000/- whichever is more. |
HMP: If the accident is found to have resulted in permanent disablement, the HMP be converted to lump sum less HMP already received.
Schedules
Age Relevant Factor
- 19 years-225.22
- 39 years-186.90
- 59 years-121.05
Schedule-I - Part-I & Part-II
| Schedule-I, Part-I | ||
|---|---|---|
| No. | Description | % |
| 1 | Loss of both hands | 100% |
| 2 | Loss of one hand and one leg | 100% |
| 3 | Loss of both legs | 100% |
| 4 | Loss of sight | 100% |
| 5 | Very severe facial disfigurement | 100% |
| 6 | Absolute deafness | 100% |
| Schedule-I, Part-II | ||
|---|---|---|
| No. | Description | % |
| 1 | Thumb | 30% |
| 2 | Index finger | 14% |
| 3 | Middle finger | 12% |
| 4 | Ring finger | 7% |
| 5 | Little finger | 7% |
Burden of Proof
For denying employee compensation benefits, the burden of proof lies on the employer. The job must be casual and employment must be for other than the employer's trade or business. Railway Servant - Sec.2(31) & Sec.197(1) Railways Act 1989.
AOO & ICE
Tests for Accident Origin:
These tests to determine whether accident has arisen out of and in the course of employment.
- •The employee was employed on duties at the time of accident.
- •The accident occurred at the place of performance of his duties.
- •The immediate act which led to accident is not so remote from the sphere of his duties, to be regarded as something foreign.
Definitions:
AOO: AOO means there must be casual relationship between accident and employment. If accident occurred due to risk incidental to employment, then it is AOO.
ICE: ICE - not only the duties assigned strictly by agreement but includes the duties connected with, relating to or AOO but consistent with specific directions of employer. (Example - though employed as night watchman, had gone on bicycle to fetch material as directed by employer).
Examples (AOO & ICE):
- Died contaminated water from the drum @ factory - AOO & ICE
- Murdered in riot while proceeding to his work from his house - AOO & ICE
(ie) Had the workman not left his house, he would not have been killed in the riot.
Not AOO employment:
No direct connection between death and accident. When a worker without the knowledge of the management and on his own accord, took a vehicle/car and met with accident resulting in disablement, it is not AOO & ICE.
NOTIONAL EXTENSION OF TIME AND PLACE
Notional extension of time space depends on circumstances of a given case. Gang man walking towards his tool box - snake bites - died.
PARTIAL DISABLEMENT (PDA)
PDA: PDA means any disablement as reduces the earning capacity of a workman. It may be temporary or permanent.
TPDA: TPDA - any disablement as reduces the earning capacity in any employment in which he was employed at the time of accident.
PPDA: PPDA - any disablement as reduces the earning capacity of a workmen in every employment which he was capable of undertaking at the time of accident.
Distinction on Injury and Earning Capacity
The reduction of earning capacity due to injury depends on whether it affects the workman in all employments he could undertake, or only in the specific employment in which he was engaged at the time of the injury.
TOTAL DISABLEMENT
Total disablement means such disablement as incapacitates a workman for all work which he was capable of performing at the time of the accident. It may be temporary or permanent.
PAYMENT OF COMPENSATION
Compensation under WCA:
Compensation payable under HMP (Honorable Member of Parliament) or WCA (Workmen's Compensation Act) cannot be assigned, charged or made liable for attachment, nor can any claim be set off against it.
Claim Filing:
Claim must be submitted before the Commissioner within 2 years from the date of accident, or in case of death, within 2 years from the date of death. This period may be condoned for sufficient cause.
Reports:
Report of fatal accidents and serious bodily injuries must be sent within 7 days of the death/injury.
WCA Commissioner:
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, or to enforce any liability under this Act.
Appeals:
An appeal lies to the High Court from an order of the Commissioner in accordance with the CPC (Code of Civil Procedure).
Amendment in 2000: Minimum Compensation
| Item | Minimum Compensation |
|---|---|
| Death | Rs. 1,20,000 |
| Permanent total disablement | Rs. 1,40,000 |
| Monthly Wage | Rs. 8,000 |
| Funeral Advance | Rs. 2,500 |
Undue Delay in Payment of Compensation
Where any undue delay (i.e., not paid within one month from the date it fell due) occurs in the payment of compensation, the employer shall be liable to pay, in addition to the compensation, a penalty of up to 50% of the compensation amount, along with simple interest @ 12%. This penalty is also payable to the workman or his dependents.