23-08-2012, 11:01 AM
The Workman Compensation Act
The Workman .pptx (Size: 650.7 KB / Downloads: 40)
INTRODUCTION
The Workman Compensation Act has been amended & is now known as “The Employee's Compensation (Amendment) ACT, 2009”. Sweeping changes have been brought. Salient features of the amended act & subsequent gazette notification on wages are
The Workman’s Compensation (Amendment) Act, 2009 is now renamed as TheEmployee’s Compensation (Amendment) ACT, 2009.
Throughout the ACT, wherever “workman” and “workmen” occur, the words “employee” and “employees” to be substituted.
Earlier definition of “workman” was deleted and new definition of “employee” is included
Definition
"workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person - (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or
Workmen compensation act 1923
1. Monthly wages specified for the purpose of Sub-section 1 is Rs.4,000
Where the monthly wages of a workmen exceed four thousand rupees his monthly wage for the purposes of clauses(a) and (b) shall be deemed to be fur thousand only
The effect of this explanation is that in the event of a workman drawing more than Rs.4,000 as monthly wages it shall be deemed to be Rs.4,000 only. If the monthly wage is less than Rs.4,000 then the actual monthly wage only was taken for compensation
Employees compensation act 2009
The omission of Explanation II and the specification of ‘wages’ as Eight Thousand have significant effect on a company’s liability. Now wherever the wages appear under Section 4 dealing with Amount of Compensation it is Rs.8,000. This means even if the wages of a workman is below Rs.8,000 for the purposes of calculation of compensation it will be Rs.8,000 multiplied by the relevant factor or the minimum amount as applicable.
This has the effect of doubling our liability wherever the wages are rs.4000 and above and may be more than double if the wages are <rs.4,000 since earlier it was the actual wages or rs.4000 which was lower was considered for calculation of compensation
This has the effect of doubling our liability wherever the wages are rs.4000 and above and may be more than double if the wages are <rs.4,000 since earlier it was the actual wages or rs.4000 which was lower was considered for calculation of compensation.
IMPACT
Where the monthly wages of a workman exceed Eight thousand rupees, his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be Eight thousand rupees only;”
As a result of which liability under this would go up for insurance companies. This can be only balanced by reviewing the pricing. Now Insurance companies have to adopt cautious approach while underwriting such proposals. Consequently it has been decided that
Conclusion
UPA {united progressive alliance} wants to propose an act related to workmen by consolidating entire 41 legislations into one act. This provides utmost safety and protection to the workmen and provides stringent liability on the employer. So I hope the new legislation may increase workmen compensation insurance in India many times of existent market.