The Parliament has passed The Employees Compensation (Amendment) Bill, 2016. The Bill amends the Employee’s Compensation Act, 1923.
It ensures compensation up to Rs 1 lakh to employee if an injured in an industrial accident and imposes hefty penalty in case of any violation by the employers.
Salient features of the Bill
- Mandatory for employers to inform the employee of his right to compensation under the Act. Such information must be given in writing at the time of employing him.
- Employer will be penalised if he fails to inform his employee of his right to compensation. Such penalty may be between Rs. 50,000 to Rs. 1 lakh.
- Raises amount in dispute related to compensation, distribution of compensation, award of penalty or interest, etc to Rs. 10, 000. It permits the central government to further raise this amount.
- Provision of withholding payments pending appeal if an employer has appealed against a Commissioner’s order has been deleted.
The Employee’s Compensation Act, 1923
- It provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.
- It provides that any dispute related to an employee’s compensation will be heard by a Commissioner (with powers of a civil court).
- Under it, appeals from the Commissioner’s order, related to a substantial question of law, will lie before the High Court only if amount in dispute is at least Rs. 300.