Lok Sabha passes Employees Compensation Bill with amendments

NEW DELHI: Employees suffering injury in industrial accident will now get compensation of up to Rs 1 lakh, with Parliament today clearing a bill in this regard.

The Employees Compensation (Amendment) bill 2016 also has a provision for hefty penalty in case of any violation by the employers.

The bill was passed by the Lok Sabha last August but it was brought before the Lower House as Rajya Sabha had passed it last month with two minor amendments.

The new legislation provides for payment of compensation from Rs 50,000 to Rs 1 lakh to employees and their dependents in the event of injury by industrial accidents, including occupational diseases.

The legislation also has a provision for a hefty penalty in case of an violation by an employer which could prove to be a "deterrent" to the employees.

It covers workers in the organised sector and the government had said it was trying to bring more workers from the informal side to the organised sector.