Lok Sabha passes Employees’ Compensation Bill

NEW DELHI: In a move that would reduce litigation in cases of disputes arising over compensation to workers, the Lok Sabha on Tuesday passed the Employees’ Compensation (Amendment) Bill 2016 that would raise the cap on amount of compensation to be taken up by high courts.

Section 30 of the Employees’Compensation Act 1923 provides for appeal in high courts whenever the disputed amount of compensation is more than Rs 300. The bill seeks to raise this to Rs 10,000, which may be further increased through a notification later. The Bill also provides for increase in penalty for contravention of the Act to Rs 50,000 from the current Rs 5,000. It may be later raised to Rs 1lakh.

The Employees’ Compensation Act, 1923, provides for payment ofcompensation to workmen and their dependants in case of injury by industrial accidents, including certain occupational diseases arising out of and in the course of employment resulting in death or disablement.

It provides for making it obligatory on the employer to inform the employee of his rights to compensation under the Act, in writing as well as through electronic means.

“This Bill is going to benefit the en-tire organised workforce in the country. This government is pro-worker and pro-labour,” labour minister Bandaru Dattatreya said in his concluding remarks in the Lok Sabha.

This is the second key labour legislation passed by the Lok Sabha in the ongoing monsoon session, after the amendment to the Child Labour Act. The Bill will now be placed before Rajya Sabha and the changes will be notified following its passage in the Upper House.