The “Employees Compensation Act, 1923” is an Act to provide payment in the form of compensation by the employers to the employees for any injuries they have suffered during an accident. Earlier this Act was known as the Workmen Compensation Act, 1923. When the employer is not liable to pay compensation.
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 Principles Governing Compensation Who will be receiving the compensation on behalf of the deceased?
A widow or a minor who is a legitimate son or unmarried daughter or a widowed mother is entitled to compensation;
If the family of the deceased is wholly dependant on the earnings of the employee at the time of his death or a son or daughter who has attained the age of eighteen years,
• A widower;
• A parent other than a widowed mother;
• 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;
• A minor brother or an unmarried sister or a widowed sister if a minor;
• A widowed daughter-in-law;
• A minor child of a predeceased son A minor child of a predeceased daughter where no parent of the child is alive, or
• A paternal grandparent if no parent of the employee is alive.
Nature of Liability
Imagine what will happen if an employee who is working putting in great benefits gets to know that he/she will not be getting any benefits. After all, people tend to do something to get something in return. When the principle of vicarious liability is applied, the employer is liable to pay compensation irrespective of his/her negligence. Employer anticipates it as damages payable to the employees but it is actually a relief for them.
An Employer becomes liable when employees have sustained injuries by any accident or unavoidable situations during the course of employment. The question arises: Will an employee who is a part-time worker would still be entitled to the benefits of the Act? Yes, the employer will still get the benefits of the Act. Who may get the compensation? To what extent the employers are liable?
To be eligible for the Employees’ Compensation Act’s benefits there are some requirements which need to be fulfilled:
• You must be an employee of the Company or Organisation
• You must have been injured at the workplace or the job was as such that you have been injured Doctrine of added peril
When an employee performs something which is not required in his duty, and which involves extra danger, the employer cannot be held liable to pay compensation for the injuries caused. In the case of Devidayal Ralyaram v/s Secretary of State. It was ruled that the doctrine of added peril was used as defense and the employer was not liable for the compensation.
Adjudication of Compensation The adjudication is done by the commissioner in calculation of the amount of compensation. The quantum of compensation is calculated from the date of the accident.
Self-inflicted Injury
If a worker inflicts an injury to himself or herself it is a self-inflicted injury. The injury may be intentional or accidental but the employer is not liable for such injuries. There are some types of jobs that have a high risk for self-inflicted injuries which include
• Law enforcement
• Medical employees
• Farmers
• Teachers
• Salespeople
Contributory negligence
Employees owe a duty to their employers to carry out their work with reasonable care so as to avoid accidents and injury. Employers are vicariously liable for the negligence of their employees but are entitled to claim a contribution or indemnity from their negligent employee in appropriate circumstances.
So if there is negligence on the part of both employee and the employer then the employer will be liable to pay compensation to the extent of his own negligence, not of the employee. Hence, the compensation amount may reduce as the employer will not be liable for the negligence of the employee.
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