Employee's Compensation Act Overview
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Questions and Answers

An employee experiences a temporary partial disablement. According to the information, what compensation is the employee entitled to during the period of treatment?

  • No compensation (correct)
  • 60% of wages
  • 25% of wages
  • 50% of wages multiplied by the age factor

An employee suffers a permanent total disablement. How is the compensation calculated, according to the information provided?

  • 25% of wages multiplied by the age factor or Rs. 1,00,000, whichever is more.
  • 50% of wages multiplied by the age factor or Rs. 1,20,000, whichever is more.
  • 60% of wages multiplied by the age factor or Rs. 1,40,000, whichever is less.
  • 60% of wages multiplied by the age factor or Rs. 1,40,000, whichever is more. (correct)

What is the significance of Schedule I in the context of disablement compensation?

  • It lists partial disablements with loss of earning capacity.
  • It lists workmen entitled to Railway compensation.
  • It lists total disablements with loss of earning capacity. (correct)
  • It lists occupational diseases.

An employee dies due to a workplace accident. What compensation is provided?

<p>Rs. 1,20,000 or 50% of wages multiplied by age factor, whichever is more. (A)</p> Signup and view all the answers

What kind of disablement reduces the earning capacity of the worker in every employment he was capable of before the accident?

<p>Permanent total disablement. (A)</p> Signup and view all the answers

If an employee is receiving ex gratia compensation from multiple sources, what is the maximum limit for the aggregate relief?

<p>Rs. 20 lakh (A)</p> Signup and view all the answers

Which of the following individuals are covered under the provisions discussed?

<p>All of the above. (D)</p> Signup and view all the answers

An employee, under the Employee's Compensation Act, 1923, sustains an injury at work. Under what circumstance(s) would compensation NOT be payable?

<p>The injury, excluding death, was a direct result of the employee's influence of drugs at the time of the accident. (B)</p> Signup and view all the answers

Which of the following scenarios best describes an accident that 'arises out of and in the course of employment,' as required for compensation under the Employee's Compensation Act, 1923?

<p>An employee is injured while working on a company machine during their designated shift. (D)</p> Signup and view all the answers

Under the Employee's Compensation Act, 1923, what is included when calculating an employee's wages for compensation purposes?

<p>Remuneration expressed in terms of money. (B)</p> Signup and view all the answers

An accident occurs at a factory where an employee disregards safety instructions, resulting in injury. According to the Employee's Compensation Act, which condition must be met for the employee to be denied compensation?

<p>The injury was directly attributable to the willful disobedience of safety instructions. (C)</p> Signup and view all the answers

What is the primary objective of the Employee's Compensation Act, 1923?

<p>To provide compensation to workers for injuries or death resulting from accidents arising out of and in the course of employment. (D)</p> Signup and view all the answers

Which of the following scenarios would be considered an 'accident' under the Employee's Compensation Act, 1923?

<p>An employee suffers a sudden back injury while lifting a heavy box at work. (D)</p> Signup and view all the answers

Under what condition is compensation payable to a 'railway servant' as defined by the Railways Act, 1989, according to the Employee's Compensation Act, 1923?

<p>If the servant is not permanently employed in any administrative district or sub-divisional office of a railway, and meets other conditions. (C)</p> Signup and view all the answers

What mechanism does the Employee's Compensation Act, 1923, employ to ensure its proper implementation?

<p>A suitable administrative machinery. (D)</p> Signup and view all the answers

If a workman experiences a temporary partial disablement, they will receive compensation equivalent to 60% of their wages during the period of treatment.

<p>False (B)</p> Signup and view all the answers

In cases of death, the compensation is calculated as 60% of wages multiplied by the age factor or Rs. 1,40,000, whichever is more.

<p>False (B)</p> Signup and view all the answers

A workman who is temporarily unable to perform their duties in any type of work due to an accident is considered to have a temporary total disablement.

<p>True (A)</p> Signup and view all the answers

The aggregate relief provided to a workman through various compensation sources is subject to a ceiling of Rs. 10 lakh.

<p>False (B)</p> Signup and view all the answers

Under the Workmen Compensation Act, apprentices selected under the Apprenticeship Act of 1961 are not covered.

<p>False (B)</p> Signup and view all the answers

The Employee's Compensation Act of 1923 mandates compensation for all injuries sustained by employees, regardless of the cause or duration of disablement.

<p>False (B)</p> Signup and view all the answers

Under the Employee's Compensation Act, 'wages' include contributions made by the employer to the employee's Provident Fund.

<p>False (B)</p> Signup and view all the answers

For an injury to be compensable under the Employee's Compensation Act, the accident must not only occur during the course of employment but also arise directly from the nature of that employment.

<p>True (A)</p> Signup and view all the answers

Under the Employee's Compensation Act, any individual or entity acting as a managing agent for an employer is considered an employer for the purposes of the Act.

<p>True (A)</p> Signup and view all the answers

An intentional act that results in an injury is considered an 'accident' under the Employee's Compensation Act, entitling the injured employee to compensation.

<p>False (B)</p> Signup and view all the answers

The Employee's Compensation Act, 1923, formerly known as the ______, aims to protect specific employee categories from employment-related risks.

<p>Workmen's Compensation Act (WCA) 1923</p> Signup and view all the answers

According to the Employee’s Compensation Act, the term '______' refers to any event that happens unexpectedly and unintentionally, even if it involves negligence on the part of the worker.

<p>Accident</p> Signup and view all the answers

Compensation is payable under the Employee’s Compensation Act, 1923 if a personal injury to a workman lasts for more than ______ days.

<p>3</p> Signup and view all the answers

According to the act, compensation is not payable if the event is attributable to the influence of ______ or ______ at the time of the accident.

<p>drink, drug</p> Signup and view all the answers

Under the Employee’s Compensation Act, 1923, '______' includes any form of payment, whether expressed in monetary terms or convertible to monetary terms, but specifically excludes items like traveling allowance.

<p>Wages</p> Signup and view all the answers

A temporary partial disablement involves reducing the earning capacity of a worker in ______ of the employments they were capable of performing at the time of the accident.

<p>any</p> Signup and view all the answers

For cases of total permanent disablement, compensation is calculated as 60% of wages multiplied by an ______ factor.

<p>age</p> Signup and view all the answers

The aggregate of relief paid through different sources of workmen compensation is subject to a ceiling of ______ lakh.

<p>20</p> Signup and view all the answers

The Act's regulations extend not only to regular employees but also to pre-working post trainees and ______ selected under the Apprenticeship Act of 1961.

<p>apprentices</p> Signup and view all the answers

In cases of death due to a work-related incident, the compensation is equivalent to 50% of wages multiplied by the age factor or ______ Rupees, whichever is more.

<p>1,20,000</p> Signup and view all the answers

Flashcards

Partial Disablement

Reduces earning capacity in some jobs.

Total Disablement

Incapacitates a worker from ALL types of work.

Temporary Partial Disablement

Reduces earning capacity temporarily.

Permanent Partial Disablement

Reduces earning capacity permanently.

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Temporary Total Disablement

Incapacitates the workmen temporarily

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Permanent Total Disablement

Incapacitates the workmen permanently.

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Schedules I-IV

Schedules listing types of disablements and occupational diseases.

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Employee's Compensation Act (ECA)

An act safeguarding employees against employment risks and providing compensation for injuries from accidents.

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Objective of ECA

Payment for injuries/death to workers due to accidents arising from and during employment.

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Wages (under ECA)

All remuneration expressed in money, excluding travel allowances or employer PF contributions.

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Accident (under ECA)

An unexpected event happening without design, possibly with negligence.

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Circumstances for Compensation

Lasting more than 3 days, caused by an accident, arising out of and during employment, resulting in disablement or death.

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When Compensation is NOT Payable

Injury doesn't cause disablement for >3 days. Or, injury due to influence of drink/drug, willful disregard of safety, or disobedience.

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Out of employment

The accident occurred at the place of employment.

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In the course of employment

The accident occured during work hours

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Employee's Compensation Act, 1923 (ECA)

Formerly known as the Workmen's Compensation Act, it protects employees against employment risks and ensures compensation for accident-related injuries.

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Employee (under ECA)

A worker who is a railway servant not permanently employed in an administrative or sub-divisional office of a railway.

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Employer (under ECA)

Any individual, group, managing agent, or legal representative of a deceased employer.

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ECA Implementation

To ensure proper execution of the Employee's Compensation Act's requirements.

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ECA accident injury

An injury lasting over 3 days arising from an unexpected accidents

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Compensation for Temporary Partial Disablement

No compensation is paid, but HMP (Hospitalisation Medical Procedures) is payable during treatment (25% of wages).

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Compensation for Permanent Partial Disablement

Compensation is worked out based on LEC% (Loss of Earning Capacity).

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Compensation for Temporary Total Disablement

60% of wages multiplied by the age factor.

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Compensation for Death

50% of wages multiplied by age factor or ₹1,40,000/-, whichever is more.

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Ceiling for Aggregate Relief

The aggregate relief paid from all sources is subject to a Rs. 20 lakh ceiling.

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ECA Objective

To provide compensation for workers due to injuries/death from accidents during employment.

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Employee's Compensation Act

Formerly Workmen's Compensation Act (WCA), it protects employees against risks and accident-related injuries.

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Accident (ECA)

Unexpected event happening without design, even if there is negligence involved

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Conditions for Compensation

Lasting >3 days, due to an accident during employment, resulting in disablement or death.

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Permanent Total Disablement Compensation

Compensation is calculated as 60% of wages multiplied by an age-related factor.

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Death Compensation

Compensation is 50% of wages multiplied by the age factor or ₹1,40,000, whichever is higher.

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Schedule I

Lists types of total disablement with loss of earning capacity.

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Schedule II

Lists types of partial disablement with loss of earning capacity.

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ECA Applicability

Protects pre-working post trainees and apprentices under the Apprenticeship Act, 1961.

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Study Notes

Employee's Compensation Act, 1923

  • The Employee's Compensation Act (ECA) was formerly known as the Workmen's Compensation Act (WCA) of 1923.
  • The act serves to protect certain categories of employees from risks associated with employment.
  • It ensures the provision of compensation for injuries sustained by employees in accidents.

Objectives

  • The primary goal is providing compensation to specific worker categories for injuries or fatalities resulting from accidents that occur during employment.
  • The act seeks to govern the payment of compensation in relation to the accidents nature and results.
  • It establishes the procedures to be followed when disbursing compensation.
  • It aims to develop an appropriate system to ensure correct enforcement of the Act's provisions.

Definitions

  • An employee is defined as a railway servant under clause (34) of section 2 of the Railways Act, 1989.
  • This excludes individuals permanently employed in any administrative district or sub-divisional railway office.
  • Wages include all forms of payment, whether expressed in monetary terms or easily convertible into monetary terms.
  • Not included are traveling allowances, employer contributions to PF, and reimbursements for specific costs or services.
  • The government is responsible for establishing wage standards for calculating compensation.
  • An employer is any individual, group, managing agent, or the deceased employer's legal representative.
  • Accidents are unforeseen events that occur without intent, potentially involving negligence.

Compensation Eligibility:

  • Compensation applies to injuries lasting longer than 3 days.
  • The injury must be the result of an accident.
  • The accident must occur during the course of employment (referring to both location and timing).
  • The accidents must result in disablement or death.

Compensation Exceptions:

  • Injuries not resulting in total or partial disablement that lasts more than 3 days are not eligible for compensation.
  • Injuries (excluding death) directly attributable to intoxication (drugs or alcohol) at the time of the accident are exempt.
  • Injuries resulting from deliberately removing or ignoring safety measures are not covered.
  • Injuries stemming from intentional non-compliance with safety regulations are an exception.

Types of Disablement:

  • Partial:
    • Temporary: Reduces earning capacity at the time of the specific accident.
    • Permanent: Reduces earning capacity in any job the worker is qualified to perform.
  • Total:
    • Temporary: Incapacitates workers temporarily from all types of work.
    • Permanent: Incapacitates workers permanently from all types of work.

Compensation Details:

  • No compensation is provided for temporary disablement, but HMP (Hospital Miscelleneous Payment) is provided during treatment, at 25% of wages.
  • Compensation for permanent partial disablement is calculated based on the Loss of Earning Capacity (LEC) percentage.
  • Total permanent disablement compensation is 60% of wages multiplied by the age factor, or Rs. 1,40,000, whichever is greater.
  • Death compensation is 50% of wages multiplied by the age factor, or Rs. 1,20,000, whichever is greater.

Schedules Outlined:

  • Schedule I includes lists of both total and partial disablements that result in a loss of earning capacity.
  • Schedule II contains lists of workmen covered by the Act.
  • Schedule III provides a list of occupational diseases covered by the Act.
  • Schedule IV specifies age-related factors for compensation calculations.
  • The total compensation from workmen's compensation, the ECA, and Section 124 of the Railways Act, 1989, cannot exceed Rs. 20 lakh.
  • The provisions of this Act apply to pre-working post trainees and apprentices selected under the Apprenticeship Act, 1961.

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Description

The Employee's Compensation Act provides financial protection to employees injured on the job. It outlines eligibility, compensation management, and accident compensation payment processes. The Act defines 'employee' and 'wages' for clarity in compensation claims.

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