Employees Compensation Act 1923 Amendment Bill pass in parliament

Employees Compensation (Amendment) Bill, 2016 approves by parliament

The Parliament passes The Employees Compensation (Amendment) Bill, 2016. The Employees Compensation (Amendment) Bill amends the Employee's Compensation Act, 1923.

The Employees Compensation (Amendment) Bill, 2016 ensures compensation up to Rs 1 lakh to employee during injury in an industrial accident. The amendments in Employees Compensation Act, 1923 imposes heavy penalties on employers in case of any violation of safety norms at work place.

Importants points related to the Employees Compensation Bill

1. Employees Compensation (Amendment) Bill, 2016 makes mandatory for employers to inform the employee of his full rights to avail compensation under the EMployees Compensation Act in writing at the time of employing him.

2. Employer subject to penalties if he fails to inform his employee of his right to compensation under the Act. Such penalties 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. Amendment in Employees Compensation Bill, 2016 permits the central government to further raise this amount.

3. Employees Compensation Amendment Bill has provision of withholding payments pending appeal if an employer has appealed against a Commissioner's order has been deleted.

4. The Act provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.

5. Employees Compensation (Amendment) Bill, 2016 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.

6. The plea of dispute will lie before the High Court only if amount in dispute is at least Rs. 300 or above.