Section 29: Employer’s Liability for Compensation

Overview

This section deals with Employees’ Compensation, a crucial social security benefit under the Code on Social Security, 2020. It outlines the employer’s legal obligation to provide financial assistance to employees (or their dependents) who suffer personal injury, disease, or death arising out of and during the course of their employment. This is a ‘no-fault’ liability, meaning compensation is payable regardless of whether the employer was negligent.

Who is Covered?

• Classes of employees and establishments covered: This applies broadly to employees engaged in hazardous occupations, factory work, transportation (including drivers and conductors), mining operations, and increasingly, to workers in the gig economy and other emerging forms of employment. The Code aims for wider coverage than previous legislation.
• Any eligibility conditions such as length of service or wage limits: While the Code doesn’t explicitly define strict length of service or wage ceilings for *eligibility* to claim compensation, the specific rules framed under the Code may specify certain conditions. Generally, any employee who suffers an injury or contracts a disease during and as a result of their employment is covered, irrespective of their wage level.

Benefits and Contributions

• What benefit the employee gets: The primary benefit is financial compensation for:
  • Medical expenses incurred for treatment.
  • Loss of wages due to temporary or permanent disability.
  • Permanent physical disability (calculated based on a schedule of benefits).
  • Death (payable to dependents).
• Contribution responsibilities of employer, employee and government: Unlike schemes like Provident Fund or ESI, this section doesn’t involve regular contributions. The employer’s responsibility is triggered *only* when an accident or occupational disease occurs. The employer is solely liable to pay the compensation amount as determined by the Employees’ Compensation Commissioner. There are no contributions from employees or the government directly under this section.

Procedure and Compliance

Here’s a simplified breakdown of the process:

1. Accident/Disease Occurrence: An employee suffers a work-related injury or contracts an occupational disease.
2. Reporting: The employer is legally obligated to report the accident/disease to the Employees’ Compensation Commissioner within a specified timeframe (rules are being framed to define this).
3. Claim Filing: The employee (or their dependents in case of death) files a claim with the Employees’ Compensation Commissioner.
4. Investigation & Adjudication: The Commissioner investigates the claim and determines the amount of compensation payable.
5. Payment: The employer is required to pay the compensation amount to the employee/dependents as directed by the Commissioner.

Employers must maintain safe working conditions and comply with all relevant safety regulations to minimize workplace accidents and diseases.

Practical Examples

• Example 1: A factory worker, Ramesh, suffers a hand injury while operating a machine due to a faulty safety guard. Ramesh is eligible for compensation covering his medical expenses, lost wages during recovery, and a percentage of compensation for any permanent disability resulting from the injury.
• Example 2: A delivery driver, Priya, meets with an accident while on duty. Her employer fails to report the accident to the Employees’ Compensation Commissioner and delays processing her claim. This constitutes non-compliance and can lead to penalties and legal action against the employer.

Disclaimer

This article is for basic understanding of social security law and should not be treated as legal advice. For specific legal guidance, please consult with a qualified legal professional.