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WORKERS COMPENSATION ACT- 1923

The Workmens Compensation Act, aims to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen. It provides for payment by certain classes of employers to their workmen compensation for injury by accident. Scope and Coverage The extends to the whole of India. The workmens compensation (Amendment) Act, 2000 has brought all the workers within its sphere irrespective of its nature of employment i.e. whether employed on casual basis or otherwise than for the purposes of the employers trade or business. For the first time casual labors will be provided compensation for death or disability. Establishments which are covered under Employee State Insurance Act are outside the preview of this Act. The coverage of this act is also to cooks employed in Hotels and Restaurants. WHO IS A WORKMAN Workman means any person (other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employers trade or business) who isi. a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, or ii. employed in any such capacity as is specified in Schedule II, Whether the contract of employment was made before or after the passing of this Act and whether such contract is expressed or implied, oral or in writing. The provisions of the Act have been extended to cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other mechanical device in the process of cooking.

EMPLOYEES ENTITLED TO COMPENSATION Every employee (including those employed through a contractor but excluding casual employees), who is engaged for the purposes of employers business and who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act. EMPLOYERS LIABILITY FOR COMPENSATION (ACCIDENTS) The employer of any establishment covered under this Act, is required to compensate an employee: a. Who has suffered an accident arising out of and in the course of his employment, resulting into (i)

2 death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement whether total or partial, or b. Who has contracted an occupational disease. HOWEVER THE EMPLOYER SHALL NOT BE LIABLE a. In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding three days; b. In respect of any injury not resulting in death, caused by an accident which is directly attributable toi. the workmen having been at the time thereof under the influence or drugs, or ii. the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or iii. The willful removal or disregard by the workmen of any safeguard or other device which he knew to have been provided for the purpose of securing the safety of workmen. iv. when the employee has contacted a disease which is not directly attributable to a specific injury caused by the accident or to the occupation; or v. When the employee has filed a suit for damages against the employer or any other person, in a Civil Court. b. CONTRACTING OUT Any contract or agreement which makes the workman give up or reduce his right to compensation from the employer is null and void insofar as it aims at reducing or removing the liability of the employer to pay compensation under the Act.

WHAT IS DISABLEMENT Disablement is the loss of the earning capacity resulting from injury caused to a workman by an accident. Disablements can be classified as (a) Total, and (b) Partial. It can further be classified into (i) Permanent, and (ii) Temporary, Disablement, whether permanent or temporary is said to be total when it incapacitates a worker for all work he was capable of doing at the time of the accident resulting in such disablement. Total disablement is considered to be permanent if a workman, as a result of an accident, suffers from the injury specified in Part I of Schedule I or suffers from such combination of injuries specified in Part II of Schedule I as would be the loss of earning capacity when totaled to one hundred per cent or more. Disablement is said to be permanent partial when it reduces for all times, the earning capacity of a workman in every employment, which he was capable of undertaking at the time of the accident. Every injury specified in Part II of Schedule I is deemed to result in permanent partial disablement. Temporary disablement reduces the earning capacity of a workman in the employment in which he was engaged at the time of the accident.

ACCIDENT ARISING OUT OF AND IN THE COURSE OF EMPLOYMENT An accident arising out of employment implies a casual connection between the injury and the accident

3 and the work done in the course of employment. Employment should be the distinctive and the proximate cause of the injury. The three tests for determining whether an accident arose out of employment are: 1. At the time of injury workman must have been engaged in the business of the employer and must not be doing something for his personal benefit; 2. That accident occurred at the place where he as performing his duties; and 3. Injury must have resulted from some risk incidental to the duties of the service, or inherent in the nature condition of employment. The general principles that are evolved are: There must be a casual connection between the injury and the accident and the work done in the course of employment; The onus is upon the applicant to show that it was the work and the resulting strain which contributed to or aggravated the injury; It is not necessary that the workman must be actually working at the time of his death or that death must occur while he was working or had just ceased to COMPENSATION IN CASE OF OCCUPATIONAL DISEASES Workers employed in certain types of occupations are exposed to the risk of contracting certain diseases, which are peculiar and inherent to those occupations. A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment and the employer is liable to pay compensation for the same. Occupational diseases have been categorized in Parts A, B and C of Schedule III. The employer is liable to pay compensation: a. When a workman contracts any disease specified in Part B, while in service for a continuous period of 6 months under one employer b. When a workman contracts any disease specified in Part C, while he has been in continuous service for a specified period, CALCULATION OF COMPENSATION The amount of compensation payable by the employer shall be calculated as follows: (a) In case of death. - 50% of the monthly wages X Relevant Factor or Rs. 50,000, whichever is more and Rs.1000 for funeral expenses. (b) In case of total permanent disablement Specified under Schedule I - 60% of the monthly wages X Relevant Factor or Rs. 60,000, whichever is more. (c) In case of partial permanent disablement specified under Schedule I - Such percentage of the compensation payable in case (b) above as is the percentage of the loss in earning (d) In case of partial permanent disablement not specified under Schedule I .-Such percentage of the compensation payable in case (b) above, as is proportionate to the loss of earning Capacity (as assessed by a qualified medical practitioner). (e) In case of temporary disablement (whether total or partial). - A half-monthly installment equal to 25% of the monthly wages, for the period of disablement or 5 years, whichever is shorter

WHEN COMPENSATION TO BE DEPOSITED WITH COMMISSIONER ? The amount of compensation is not payable to the workman directly. It is generally deposited along with the prescribed statement, with the Commissioner who will then pay it to the workman. Any payment made to the workman or his dependents, directly, in the following cases will not be deemed to be a payment of compensation:

4 i. in case of death of the employee; ii. in case of lump sum compensation payable to a woman or a minor or a person of unsound mind or whose entitlement to the compensation is in dispute or a person under a legal disability. Besides, compensation of Rs. 10 or more may be deposited with the Commissioner on behalf of the person entitled thereto. The receipt of deposit with the Commissioner shall be a sufficient proof of discharge of the employers liability. AMOUNTS PERMISSIBLE TO BE PAID TO THE WORKMAN/ DEPENDENTS DIRECTLY Following amounts may be paid directly to the workman or his dependents: a. In case of death of the workman, any advance on account of compensation up to [an amount equal to three months wages of such workman] may be paid to any dependent. b. In case of lump sum compensation payable to an adult male worker not suffering from any legal disability. In case of half-monthly payments payable to any workman. REGISTRATION OF AGREEMENTS OF COMPENSATION 1. Where the amount payable as compensation has been settled by agreement a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on being satisfied about its genuineness, record the memorandum in a registered manner. 2. However where it appears to the Commissioner that the agreement ought not to be registered by reason of the inadequacy of the sum or amount, or by reason that the agreement has been obtained by fraud or undue influence or other improper means he may refuse to record the agreement and may make such order including an order as to any sum already paid under the agreement as he thinks just in the circumstances. 3. An agreement for payment of compensation which has been registered shall be enforceable under this act notwithstanding anything contained in the Indian Contract Act, or any other law for the time being in force. EFFECT OF FAILURE TO REGISTER AGREEMENT When a memorandum of any agreement is not sent to the Commissioner for registration, the employer shall be liable to pay the full amount of compensation, which he is liable to pay under the provisions of this Act. FILING OF CLAIMS A claim for the compensation shall be made before the Commissioner. No claim for compensation shall be entertained by the Commissioner unless the notice of accident has been given by the workman in the prescribed manner, except in the following circumstances: a. in case of death of workman resulting from an accident which occurred on the premises of the employer b. in case the employer has knowledge of the accident from any other source, c. in case the failure to give notice or prefer the claim, was due to sufficient cause.

5 LIMITATION Workman, to the Commissioner, may file the claim for accident compensation in the prescribed form, within 2 years from the occurrence of the accident or from the date of death. The claim must be preceded by (i) a notice of accident, and (ii) the claimant-employee must present himself for medical examination if so required by the employer. DUTIES OF EMPLOYERS / EMPLOYEES To pay compensation for an accident suffered by an employee, in accordance with the Act. To submit a statement to the Commissioner (within 30 days of receiving the notice) in the prescribed form, giving the circumstances attending the death of a workman as result of an accident and indicating whether he is liable to deposit any compensation for the same. To submit accident report to the Commissioner in the prescribed form within 7 days of the accident, which results in death of a workman or a serious bodily injury to a workman. To maintain a notice book in the prescribed from at a place where it is readily accessible to the workman. To submit an annual return of accidents specifying the number of injuries for which compensation has been paid during the year DUTIES OF EMPLOYEES To send a notice of the accident in the prescribed form, to the Commissioner and the employer, within such time as soon as it is practicable for him. The notice is precondition for the admission of the claim for compensation. To present himself for medical examination, if required by the employer. APPEAL / BAR TO CIVIL REMEDY An appeal against and order of the Commissioner lies to the High Court, within 60 days of the order. The employer is required to deposit the compensation before filing the appeal. No right to compensation in respect of any injury shall exist under this act if he has instituted in Civil Court a suit for damages in respect of the injury against the employer or any other person; and no suit for damages shall be maintainable by a workmen in any Court of law in respect of any injury

Managing expectations
Introduction

A performance management discussion should be uncomplicated but detailed enough to give employees a clear indication of what is required of them in their jobs. The focus is on dialogue. It is important when a performance expectation is set to determine how it will be measured. The performance management discussion cycle consists of :

1. Setting individual performance expectations After business priorities have been discussed, the next step is to state individual performance expectations relative to the job the employee performs 2. Providing ongoing feedback Ongoing feedback is the driving force behind an integrated performance management process. Performance feedback is specific information that relates to competencies and outcomes. It is timely and uses information, not subjective judgement 3. Formally reviewing performance A formal performance review is to discuss the employee's overall performance based on identified work objectives, competencies and measures. It is an opportunity to hear the employee's perspective about what went well, what did not, their strengths and weaknesses, ways to improve performance/competencies, etc. By the time the review takes place there should be no surprises because of ongoing feedback provided between formal review sessions

Pay-for-performance plans are a method of compensation where workers are paid based
on productivity, as opposed to hours spent on the job or at a set salary. They are often used in fields such as sales, where workers rely on commissions and/or bonuses for their income. While this can result in less of a sense of financial security for the employee, there are several advantages for both the employee and employer.

Advantage and Disadvantages to Performance Based Pay

1. Unlimited Compensation A pay-per-performance plan can sometimes

result in situations where the employee may be able to earn a substantial income
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Increased Motivation The opportunity to earn a substantial income can lead

to increased motivation.

Flexibility Employees who are paid based on their performance are typically
judged by results rather than more subjective methods, resulting in increased flexibility.

Increased Productivity From the employer's standpoint, productivity may

increase due to the employee's desire to earn a high income.
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Better Retention High-achieving performers who are happy with their income
and work environment may be more likely to stay instead of exploring other opportunities.

Disadvantages: - the performance of a complex job as a whole is often reduced to a simple, often single measure of performance such as profit, without considering other factors that make up overall performance - performance related pay t can create the potential for rifts among employees if they feel they are being treated unfairly or - employees may only be inclined to perform work that is measured in their performance appraisal - employees are not as motivated by monetary incentives as employers once thought - assumes it is possible to objectively measure performance.
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paired comparisons
consider using external sources of information -- customers, clients use performance appraisals as a chance to clarify or communicate the intent of the employees' job descriptions

use performance appraisals as a chance to revise job descriptions -- the interview may make it clear that the job description is inconsistent with tasks actually required of the employees

include objectives for the coming year in the performance appraisals follow up on the performance appraisal recommendations