Parliament passes The Employees Compensation (Amendment) Bill, 2016

The Parliament has passed The Employees Compensation (Amendment) Bill, 2016. The Bill amends the Employee’s Compensation Act, 1923.
It ensures compensation up to Rs 1 lakh to employee if an injured in an industrial accident and imposes hefty penalty in case of any violation by the employers.

Salient features of the Bill

• Mandatory for employers to inform the employee of his right to compensation under the Act. Such information must be given in writing at the time of employing him.
• Employer will be penalised if he fails to inform his employee of his right to compensation. Such penalty 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. It permits the central government to further raise this amount.
• Provision of withholding payments pending appeal if an employer has appealed against a Commissioner’s order has been deleted.

The Employee’s Compensation Act, 1923

• It provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases.
• It 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, will lie before the High Court only if amount in dispute is at least Rs. 300.

Month: Current Affairs - March, 2017