Introduction:

Bangalore, the bustling IT hub of India, is home to numerous businesses, ranging from startups to multinational corporations. Amidst the city's vibrant economic landscape, ensuring compliance with labor laws is paramount. One such crucial legislation is the Employees' Compensation Act (ECA), which safeguards the interests of employees by providing compensation in case of work-related injuries or accidents. This article aims to provide a comprehensive guide to ensuring compliance with the Employees' Compensation Act in Bangalore.

The Employees Compensation Act,1923 is one of the important social security legislation which aims to provide compensation in case of accidents arise out of and in course of employment.

Understanding the Employees' Compensation Act:

The Employees' Compensation Act, 1923, formerly known as the Workmen's Compensation Act, is a social security legislation aimed at providing financial protection to employees and their dependents in the event of injuries or death arising out of and in the course of employment. The Act applies to all establishments where specified hazardous activities are carried out, including factories, mines, construction sites, and more.

Applicability:

It extends to whole of India and applicable to-

1. Employees working in factories, mines, docks, construction establishments, plantations, oilfields and other establishments listed in Schedule II of the
   
2. Employee’s Compensation Act, Persons recruited for working abroad and who is employed outside India as in Schedule II of the Act.
   
3. Person recruited as the driver, helper, mechanic, cleaner or any other in connection with a motor vehicle and to a captain or other member of the crew of an aircraft.
   
4. Employees working in abroad recruited by companies registered in India.
   

Exception: - The act does not apply to the members of armed forces of the Union & Workmen who are covered under ESI (Employee State Insurance) Act.

Personal injury by accident- An employer is responsible for paying compensation to workman if personal injury is let to him by accident arising out during his employment.

Occupational diseases- workers employed in certain occupations are exposed to certain diseases which are inherent in that occupation.

Exceptions for Employer’s liability-

1. In case of any injury which does not result in the partial or total disablement of the workers for a period exceeding 3 days.

2. In case of any injury, not resulting in death or permanent total disablement, caused by an accident which is directly attributable to the             following:

1. The workman presents at the time thereof under the influence of drink or drugs.
   
2. The intentional disobedience of the workman to an order expressly given, or to a rule framed, to secure the safety of workers,
   
3. The willful removal or disregard by the workman of any safety guard or other devices which he knew to have been provided for securing the safety of workers.
   

Key Provisions of the Act:

1. Employer's Liability: Employers are liable to pay compensation for injury or death caused to employees during the course of employment. This compensation includes medical expenses, disability benefits, and death benefits to the dependents of the deceased employee.
   
2. Compensation Calculation: The amount of compensation is calculated based on the nature of the injury, the employee's monthly wage, and the extent of disability.
   
3. Mandatory Insurance: Employers must obtain insurance policies from authorized insurers to cover their liability under the Act.
   
4. Reporting Requirements: Any injury or accident resulting in death or disability must be reported to the Commissioner of Workmen's Compensation within specified timelines.
   

Ensuring Compliance in Bangalore:

1. Insurance Coverage: Employers in Bangalore must ensure they have valid insurance coverage from authorized insurers to meet their obligations under the Act. It's crucial to review and renew insurance policies regularly to avoid any lapse in coverage.
   
2. Safety Measures: Prevention is better than cure. Employers should implement robust safety measures and provide necessary training to employees to minimize the risk of accidents and injuries in the workplace.
   
3. Timely Reporting: Any workplace accident resulting in injury or death must be promptly reported to the Commissioner of Workmen's Compensation. Failure to report within the prescribed timeframes can lead to penalties and legal consequences.
   
4. Documentation: Maintain detailed records of workplace injuries, medical treatment provided, and compensation disbursed. Accurate documentation will facilitate the claims process and ensure compliance with regulatory requirements.
   
5. Legal Compliance: Stay updated with the latest amendments and notifications issued under the Act to ensure full compliance with regulatory obligations.
   

Reports of fatal accidents and serious bodily injuries:

Employer shall send the report ofany accident occurring on his premises which results in death or serious bodily injury within seven days of the death or serious bodily injury to the Commissioner giving the circumstances attending the death or serious bodily injury

Returns to be filed by the employer

Employer shall file annual return specifying the number of injuries and amount of compensation paid etc.

Notice Book

Employers shall maintain notice book, which shall be readily accessible at all reasonable times to any injured employee employed on the premises and to any person acting bona fide on his behalf.

Compensation to Contract Labours/ Employees

The principal employer shall be liable to pay to compensation to contract workers/ employees employed in the execution of the work which is ordinarily part of the trade or business of the principal.

Penalties for non-compliance

Whoever-

1. Fails to maintain a notice-book
   
2. Fails to send a statement to the Commissioner,
   
3. Fails to send a report to the commissioner
   
4. Fails to make a return of accidents in previous year
   
5. Fails to inform the employee of his rights to compensation

Shall be punishable with fine which not be less than Rs 50,000/- but which may extend to Rs 1,00,000/-

Conclusion:

Compliance with the Employees' Compensation Act is not just a legal obligation but also a moral imperative for employers in Bangalore. By understanding the provisions of the Act, implementing safety measures, maintaining accurate records, and ensuring timely settlement of claims, employers can fulfill their duty towards their employees and contribute to a safer and more secure work environment. In doing so, they not only comply with the law but also foster a culture of trust, respect, and responsibility in the workplace.

Created & Posted by Himanshu Shakya