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The characteristics of the employer-employee relationship have changed dramatically throughout history, as have nations and civilisations.
Historically, employees were primarily at the mercy of their employers, who, in the event of damage, would decide whether or not to recompense an employee or their dependents at their discretion based on their own will.
With the advent of the industrial age and the implementation of large labour-based workforces, employees began working for employers in potentially riskier environments, including exposure to sophisticated machinery, technology, toxic chemicals, and so on, exposing workers to potentially riskier environments at the behest of the employer.
This article examines the objectives and purposes of the Workmen Compensation Act, 1923, as well as the procedure to claim compensation.
Object and purpose of the act
To understand the Act’s intent and purpose better, it is vital to comprehend the basic definitions, scope, and concept upon which the Act is based.
To do so, we'll go through some of the key elements and definitions established by the workmen compensation act 1923.
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Dependant
In this context, dependent refers to the relatives of a deceased employee who were totally or partially reliant on the employee for livelihood.
These dependents are divided into below-mentioned categories:
1) Direct dependents, such as a widow;
2) Indirect dependents, such as a child;
3) Indirect dependents, such as a child.
4) Significant dependents, such as a son or daughter, and
5) Other dependents, such as parents, who are (wholly or largely) reliant on the employee.
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Employer
An employer, according to Section 2(1)(e) of the workmen compensation act 1923 includes:
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Any group of people, whether or not they are incorporated.
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Any employer's managing agent.
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The executor or administrator of a dead employer's estate.
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When an employee's services are temporarily lent or let out by the compensation to another person with whom the employee has entered into a service or apprenticeship contract, i.e. the employee is working for him.
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Employee
Under the Workmen Compensation Act India, the term "employee" has a much broader scope than "employer." Any class of persons employed in any occupation that satisfies the government to be classed as a hazardous occupation has been added to Schedule II.
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Wages
Wages are defined in Section 2(1)(m) to include any privilege or benefit that can get valued in money. The definition of wages is critical since the remuneration amount depends entirely on the employee's pay.
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Partial and total disablement
The Employee Compensation Act does not define the term "disability". It only distinguishes partial and total disability. These definitions imply that disablement, as defined by the Act, is the loss of earning ability, which expressly gets described as partial or entire depending on the nature of the accident and the percentage of loss of earning capacity.
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Compensation
It is the amount paid by the employer to compensate an employee for a loss of earning capacity or incapacitated by a disability resulting from an injury, accident, or occupational illness, etc., or the amount owed to the dependents of a deceased employee as defined by Section 2(1)(c) of the Act.
Claiming the compensation under the act
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The applicant must notify the employer of the accident within a reasonable time or put it in the notice book.
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Every notice shall include the name and address of the hurt person, the injury cause, and the accident's date.
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Then, within two years following the accident, submit a claim application to the commissioner.
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The accident is judged to have occurred on the first day of illness in the case of an occupational ailment.
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If there is a defect in the notification, or if the notice is not given, or if the application is late, the compensation claim under the act will not be denied.
To Conclude:
The Employee Compensation Act of 1923, previously known as the Workmen Compensation Act of 1923, establishes laws and statutes as an ad hoc measure to provide social security to employees/workmen in the event of damage, accident, or occupational illness while on the job. In the event of a death in the course of employment, the Act also covers the deceased employee's dependents.