WCA & ESI

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Dependents Dependents means any of the following relatives of a deceased workman. Section 2 (1) (d) of WCA 1923 classifies dependents into three classes. In the case of New India Insurance Co Ltd vs Man Singh and others, 1984, MP HC held that persons in these classes do not have mutually exclusive claim to compensation. They can simultaneously claim compensation. 1. Widowed mother, widow, minor legitimate or adopted son, unmarried legitimate or adopted daughter. In this case it is irrelevant whether they are fully or partially dependent on the earnings of the workman. 2. Legitimate son or daughter if - 1. they are fully dependent on the earnings of the workman. 2. if they are infirm. 3. if they are above 18. 3. The persons in this class must be dependent wholely or partially on the earnings of the workman to claim compensation. 1. widower 2. a parent other than widowed mother 3. an minor illegitimate son, an illegitimate or legitimate or adopted daughter if minor and married or if minor and widowed 4. widowed daughter in law 5. a minor brother, an unmarried sister, or widowed sister if minor. 6. a minor child of predeceased son. 7. a minor child of a predeceased daughter if no parent of the child is alive. 8. a paternal grandparent if no parent of the worker is alive. In the case of Ramji vs Lalit Kumar Bardiya, 1995, MP HC held that the parents have to the right to claim compensation because the workman was living jointly with them. In joint families there is a sharing of income and responsibilities. Even if workman did not contribute to the family fund that was only because he was not being paid by the employer. The family would have received the benefit of his wages otherwise. WagesSection 2(1) m defines wages as any benefit or privilege received by a worker from an employer that can be estimated in money except 1. traveling allowance or value of any concession given on traveling. 2. employer's contribution to PF or pension fund 3. any expenses reimbursed to the workman incurred due to work. The following benefits are included in calculating wages: 1. Bonus - was held to be wages in the case of Maharastra Sugar Mills Ltd. vs Ashru Jaiwant AIR 1966 Bom. 2. Maternity benefits payable to a woman after pregnancy. 3. Dearness Allowance 4. Benefits in the form of food, clothing, and accommodation 5. Accommodation 6. Overtime pay In the case of M/s J C Mills vs Deshraj, AIR 1952, MP HC held that paid leave is not a wage unless it is stated expressly in the contract of employment that paid leave can be encashed if not taken. Workman Section 2(1) n defines workman as

description

workmen act

Transcript of WCA & ESI

Page 1: WCA & ESI

DependentsDependents means any of the following relatives of a deceased workman. Section 2 (1) (d) of WCA 1923 classifies dependents into three classes. In the case of New India Insurance Co Ltd vs Man Singh and others, 1984, MP HC held that persons in these classes do not have mutually exclusive claim to compensation. They can simultaneously claim compensation.

1. Widowed mother, widow, minor legitimate or adopted son, unmarried legitimate or adopted daughter. In this case it is irrelevant whether they are fully or partially dependent on the earnings of the workman.

2. Legitimate son or daughter if -1. they are fully dependent on the earnings of the workman.2. if they are infirm.3. if they are above 18.

3. The persons in this class must be dependent wholely or partially on the earnings of the workman to claim compensation.1. widower2. a parent other than widowed mother3. an minor illegitimate son, an illegitimate or legitimate or adopted daughter if minor and married or if minor and

widowed4. widowed daughter in law5. a minor brother, an unmarried sister, or widowed sister if minor.6. a minor child of predeceased son.7. a minor child of a predeceased daughter if no parent of the child is alive.8. a paternal grandparent if no parent of the worker is alive.

In the case of Ramji vs Lalit Kumar Bardiya, 1995, MP HC held that the parents have to the right to claim compensation because the workman was living jointly with them. In joint families there is a sharing of income and responsibilities. Even if workman did not contribute to the family fund that was only because he was not being paid by the employer. The family would have received the benefit of his wages otherwise. 

WagesSection 2(1) m defines wages as any benefit or privilege received by a worker from an employer that can be estimated in money except

1. traveling allowance or value of any concession given on traveling.2. employer's contribution to PF or pension fund3. any expenses reimbursed to the workman incurred due to work.

The following benefits are included in calculating wages:

1. Bonus - was held to be wages in the case of Maharastra Sugar Mills Ltd. vs Ashru Jaiwant AIR 1966 Bom.2. Maternity benefits payable to a woman after pregnancy.3. Dearness Allowance4. Benefits in the form of food, clothing, and accommodation5. Accommodation 6. Overtime pay

In the case of M/s J C Mills vs Deshraj, AIR 1952, MP HC held that paid leave is not a wage unless it is stated expressly in the contract of employment that paid leave can be encashed if not taken.WorkmanSection 2(1) n defines workman as

A railway servant as defined in Railways Act 1989 except those who are permanently employed in an administrative office. a master, seaman, or any crewman of a ship. captain or a crew member of an aircraft. driver, mechanic, cleaner, helper or employed to any task related to motor vehicles. a person recruited for work abroad by a company. a person working for any task as described in schedule 2.

        Exception: A member of the armed forces is not a workman.

Examples:

A porter even though not included in schedule II. Narayanan vs Southern Railway - Kerala 1980

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Working for 24 days in a month on daily wages. Hastimal vs Arjunan - Madras 1993. 

Workmen's Compensation and Social SecuritySuccess of an industry depends on the productivity of the workers. Thus, minimizing the labor cost is a prime objective of factory owners. In their zest to reduce the labor cost, safety of the workers gets neglected thereby increasing the chances of death or injury to the workers. An increase in the use of complex machinery, the risk for injury to worker had increased. Further, many times, because of the injury a worker may not be able to work, or in case a worker dies, his dependents have no way of making ends meet. This in turn gives rise to poverty, hopelessness, and above all insecurity among other workmen which is detrimental to the industry itself. This is unacceptable in any civilized country. Thus, to ensure that workers and their dependents get enough financial security, Workmen's Compensation Act was enacted in 1923.  It obligates the employer to compensate a worker for his loss due to personal injury while on the job. Appropriate compensation to worker and his dependents prevents unrest among other workers. This promotes a general well being among the working class.  In the absence of such compensation, the dependents may be forced into begging or illegal activities. Thus, WCA is a great mechanism to enhance social security.

This act has gone long way to protect workmen for accidental loss of life or limb and to provide social security to poverty stricken workmen. Although its main objective is to compensate the workers for injury it has also prompted the employers to implement processes that reduce risk to the workers.

Main Features of the act:

Modeled on the British pattern and payment is obligatory on all employers whose employees are entitled to benefit under this act.

The workmen or his dependents can claim compensation if the injury has been caused by an accident arising out of and in course of employment and if such an accident cannot be attributed to drug or drinks or willful neglect of safety rules.

Various class of workmen have been specified. Earlier clerical workers and workers making more than 1600 rs per month were excluded but now the wage limit has been removed.

The amount of compensation depends, in case of death, the average monthly wages, and in case of injury, the average monthly wages and the type of injury.

The term wages includes -overtime page, benefits like food, housing, and clothing.

Principles Governing the act:

The purpose is not to give a solatium but to compensate the worker or his dependents for the actual loss suffered due to an accident.

There must be a casual connection between the injury and the accident, and the accident and the work done in the course of employment.

The claimant must prove the connection between the injury and the course of work during employment. It is not necessary that the worker is actually working or has just finished work. If the evidence shows a greater probability which satisfies a reasonable man that the work contributed to the injury, it is

enough to prove the claim.

Nature of liability

This is a different kind of liability. It is not same as a liability in torts. It arises due to the relationship between the worker and employer. An employer is only liable to pay the difference between the earning capacities of the worker before and after the accident irrespective of the loss or expenses incurred in treatment of the worker. It is also not dependent upon the neglect or wrong doing of the employer.

When is an employer liable to pay compensation?

Section 3 says that an employer is liable to pay compensation if a personal injury is caused to the workman due to an accident arising out of and in the course of employment. Thus, the following conditions must be satisfied to claim compensation:

1. Personal injury must have been caused to a workman.2. The personal injury must have been due to an accident.