Act 046 of 2000 : Workmen's Compensation (Amendment) Act, 2000

Preamble

Workmen's Compensation (Amendment) Act, 20001

[Act 46 of 2000, Repealed by Act 23 of 2016*][8th December, 2000]

An Act further to amend the Workmen's Compensation Act, 1923

Be it enacted by Parliament in the Fifty-first Year of the Republic of India as follows:-

1 Received the assent of the President on 8-12-2000 and published in the Gazette of India, Extra., Part II, Section 1, dated 8-12-2000, pp. 1-2, No. 60.

* Ed.: Act 46 of 2000 repealed by Act 23 of 2016, S. 2 & Sch. I. See also S. 4 of the Repealing and Amending Act, 2016:

"4. Savings.- The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;

nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;

nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force."

SOR Statement of Objects and Reasons

Prefatory Note-Statement of Objects and Reasons.-The Workmen's Compensation Act, 1923 provides for payment of compensation to workmen or their dependants in case of personal injury caused by accident or certain occupational diseases arising out of and in the course of employment and resulting in disablement or death. The Act, at present, applies to railway servants and persons employed in certain hazardous employments specified in Schedule II of the Act.

2. Based on the recommendations of the Standing Committee of Parliament on Labour and Welfare, the Act is being made applicable to all casual workers by deleting the brackets and words "(other than a person whose employment is of casual nature and who is employed otherwise than for the purposes of the employer's trade or business)" from Section 2(1)(n) of the Act.

3. The Act was last amended in 1995. Since then, there has been general increase in prices of goods and commodities. The Standing Committee of Parliament on Labour and Welfare has also made certain recommendations for enhancement in the amount of compensation payable under the Workmen's Compensation Act. These recommendations were examined in consultation with State Governments and Union territory Administrations. Keeping in view the recommendations of the Standing Committee of Parliament and suggestions received from the State Governments, it is proposed to carry out the following amendments in the Act, namely:-

(i) Minimum amount of compensation for death is being enhanced from Rs 50,000 to Rs 80,000 and that for permanent total disablement from Rs 60,000 to Rs 90,000;

(ii) The ceiling on monthly wage prescribed in Explanation II below Section 4(1)(b) for determining the maximum amount of compensation is being enhanced from Rs 2000 to Rs 4000;

(iii) The amount of funeral expenses payable under Section 4(4) is being enhanced from Rs 1000 to Rs 2500.

4. In the case of undue delay in payment of compensation, the employer under Section 4-A(3) of the Act is also liable for payment of interest and penalty up to fifty per cent of the amount of compensation. At present interest is payable to the workman or dependants and the penalty is being credited to State Government. There have been representations for making the penalty also payable to the workman or dependants. Accordingly, it is proposed to amend Section 4-A(3) so as to make the penalty also payable to the workman or dependants.

5. The Bill seeks to achieve the above objects.

Section 1. Short title

1. Short title.-This Act may be called the Workmen's Compensation (Amendment) Act, 2000.

Section 2. Amendment of Section 2

2. Amendment of Section 2.-In the Workmen's Compensation Act, 1923 (8 of 1923) (hereinafter referred to as the principal Act), in Section 2, in sub-section (1), in clause (n), the following brackets and words shall be omitted, namely:-

"(other than a person whose employment is of a casual nature and who is employed otherwise than for the purposes of the employer's trade or business).".

Section 3. Amendment of Section 4

3. Amendment of Section 4.-In Section 4 of the principal Act,-

(a) in sub-section (1),-

(i) in clause (a), for the words, "fifty thousand rupees", the words "eighty thousand rupees" shall be substituted;

(ii) in clause (b), for the words "sixty thousand rupees", the words "ninety thousand rupees" shall be substituted;

(iii) in Explanation II, occurring after clause (b) and before clause (c), for the words "two thousand rupees" occurring at both the places, the words "four thousand rupees" shall respectively be substituted;

(b) in sub-section (4), for the words "one thousand rupees", the words "two thousand and five hundred rupees" shall be substituted.

Section 4. Amendment of Section 4-A

4. Amendment of Section 4-A.-In Section 4-A of the principal Act, for sub-section (3-A), the following sub-section shall be substituted, namely:-

"(3-A) The interest and the penalty payable under sub-section (3) shall be paid to the workman or his dependant, as the case may be.".

SECTIONS