The Employees Compensation (Amendment) Act, 2017

The Employees Compensation (Amendment) Act, 2017

The Employees Compensation (Amendment) Act, 2017 got presidential assent on 12th April, 2017. The bill was introduced in the Lok Sabha in the month of August, 2016 by the minister of Labour and Employment, Mr. Bandaru Dattatreya. It seeks to amend the provisions of The Employees Compensation Act, 1923.

The main amendments are:

  1. The employer is under a duty to inform the employees of the right to compensation through physical means as well as electronically. The employer will be liable in case of default of the same.
  2. Penalties has been increased from a maximum of 5000 to 50000 which may extend to 1 lakh as well.
  3. The minimum amount for which an appeal may be filed in the High Court has been increased from 300 to 10000.
  4. Appeals in the case of compensation, distribution of compensation etc. can be made when the amount in dispute is minimum of 300.
  5. Any dispute related to the employee compensation will be heard by the Commissioner. Appeal can go to the High Court in case of substantial question of law.
  6. Under the 1923 Act, in case of appeal by the employer against the orders of commissioner, any payment to be made to the employee can be withheld. The Commissioner can order for the same after it gets the sanction from High Court till the disposal of the case. This whole provision has been removed.
  7. Provisions has been made to give compensation to the dependants of a deceased employee in case of injury caused by industrial accidents etc.
  8. 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.